Auctioneer Services for Disposal of Movable Assets

Lepelle Northern Water (LNW), a water board established under the Water Services Act No. 108 of 1997, has approved a set of movable assets for disposal and is seeking a qualified auctioneer to manage the process end to end. Under LNW's finance policy 7.12, surplus assets may be sold by tender, auction, or other approved methods. This Request for Quotation (RFQ 10049797) is issued by Supply Chain Management on behalf of the Finance user department. The assets are listed in Annexure A of the RFQ document. Hand-delivered submissions must be placed in the blue tender box at 01 Landros Mare, Polokwane, by 11:00 on 19 November 2026.

The appointed service provider will collect approved assets from LNW plants within two weeks of appointment and transport them to the auctioneer's site. Scope of work includes safe storage of assets until disposal, advertising the auction, and running a lawful auction with its own venue and equipment. The provider must also collect auction revenue, reconcile the assets sold, and facilitate scrapping of unsold items, but only after LNW gives written consent. Final deliverables include an auction close-out report to management and transfer of all auction proceeds to LNW. All assets must be disposed of within six months of appointment, and the terms will be formalised in a Service Level Agreement. Netting off is prohibited. Disbursements and commission are payable only after proceeds have been transferred to LNW, and total costs, including commission, are capped at the auction proceeds.

Bidders must meet mandatory pre-qualification requirements, including FICA registration, Central Supplier Database (CSD) registration, company registration documents, certified shareholder ID copies dated within three months, a valid BBBEE certificate or sworn affidavit, and a fully completed pricing schedule. Joint ventures must submit a signed agreement showing percentage splits totalling 100%, and each partner must submit the mandatory documents. Quotations are evaluated in two stages. Stage 1 scores functionality out of 100, with a minimum of 80 points required to proceed. Points are awarded for auction experience (up to 40), capacity including plant and equipment such as tower trucks and loading trucks (up to 30), valid membership of the South African Institute of Auctioneers, which is mandatory (15 points), and professional indemnity insurance of at least R1,000,000 (15 points). Stage 2 applies an 80/20 split between price and specific goals, including disability, black women, black ownership, and black youth shareholding. LNW is not obliged to accept the lowest or any bid and may reduce the scope of work due to budget constraints.

For LNW, the appointment provides a structured, low-risk way to recover value from redundant assets without upfront cost, since the auctioneer is paid from proceeds. For the successful provider, the contract offers a defined six-month engagement, a regional auction mandate covering multiple LNW plants, and an opportunity to build a public sector track record. Interested auctioneers should read the full RFQ and its annexures carefully, as non-compliance with any mandatory requirement results in disqualification.