1. Background
Following the comprehensive evaluation and the Bid Evaluation Committee’s recommendation, Bidder A was identified as the most suitable service provider for the [insert project or service name] procurement initiative under the Q1 2025 bidding cycle.
In line with SayPro’s procurement procedures and the Supply Chain Management Regulations outlined in SCMR-1, the next phase involved formal negotiation and finalization of a binding contract that reflects SayPro’s operational, financial, legal, and ethical standards.
2. Objectives of Negotiation
The objectives of the negotiation phase were to:
- Align service and performance expectations between SayPro and Bidder A
- Finalize commercial terms including pricing, payment schedules, and penalties
- Define scope of work and deliverables with measurable milestones
- Ensure compliance with legal, regulatory, and donor requirements
- Mitigate operational and reputational risks
- Integrate SayPro’s standard clauses for ethics, confidentiality, data protection, and termination
3. Key Terms Negotiated
3.1 Scope of Work and Deliverables
- Refined the scope based on project needs and clarified deliverables with detailed timelines
- Incorporated clear performance indicators (KPIs) for monitoring and evaluation
- Included a work plan with phased delivery schedules to ensure effective project tracking
3.2 Pricing and Payment Terms
- Final contract value confirmed at [insert amount] excluding VAT
- Payment terms structured as follows:
- 30% on contract signature and mobilization
- 40% on mid-project milestone verification
- 30% upon final deliverable submission and acceptance
- Included provisions for cost variation approvals in exceptional cases only
3.3 Compliance and Legal Clauses
- Incorporated SayPro’s ethical procurement clause, including a commitment to anti-corruption and fair labor practices
- Required compliance with South African laws and international donor regulations where applicable
- Mandated submission of valid tax clearance certificate and B-BBEE Level 1 verification
3.4 Confidentiality and Intellectual Property
- All work products, data, and materials generated remain the property of SayPro
- The vendor is restricted from reproducing, sharing, or using the material for other purposes without prior consent
- A non-disclosure agreement (NDA) was executed as an annexure to the main contract
3.5 Dispute Resolution and Termination
- Disputes to be resolved through mediation, with arbitration as a secondary step if unresolved
- Termination clause added for breach, non-performance, or reputational risk with 30-day notice period
- Provision for force majeure included to protect both parties in cases of unforeseen circumstances
4. Contract Finalization Process
The final contract was drafted and reviewed in collaboration with the Legal and Compliance Units. The document was then submitted to Bidder A for review and signed after mutual agreement. Both parties signed the contract on [insert date], and the execution phase is scheduled to begin on [insert start date].
The final contract, including all annexures (scope of work, timelines, payment schedule, legal terms, NDA), has been securely filed and uploaded into SayPro’s Procurement and Document Management System for reference and audit.
5. Conclusion and Recommendation
The negotiation and contracting process was concluded successfully with Bidder A, ensuring alignment with SayPro’s procurement integrity, operational needs, and donor compliance requirements.
It is recommended that project implementation commence as per the agreed schedule and that the assigned project manager initiate the kickoff and vendor onboarding activities in the week of [insert date].
6. Sign-Off and Approvals
| Name | Designation | Signature | Date |
|---|---|---|---|
| [Insert Name] | Procurement Officer | ||
| [Insert Name] | Legal Officer | ||
| [Insert Name] | CFO | ||
| [Insert Name] | Executive Director |
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