Government Asset Auctioneering Services NEW

The Department of Home Affairs (DHA) has issued tender DHA19-2026 to appoint one or more service providers to conduct public auctions of state assets for its Head Office and nine provincial offices: North West, Limpopo, Northern Cape, Free State, Western Cape, Mpumalanga, KwaZulu-Natal, Eastern Cape and Gauteng. The contract runs for 36 months, with an option to renew for a further 24 months, subject to satisfactory performance and the availability of funds. The Department may appoint different providers for different provinces. The service is needed to dispose of assets that are scrap, obsolete, no longer required, or beyond economic life, as required under the Modified Cash Standard and the asset management framework.

The successful bidder must manage the full disposal cycle for each auction. Responsibilities include advertising each sale as a 'State Auction' using a Department-approved format, sorting and lotting assets, preparing the auction catalogue, and providing security and storage where required. The provider must also register buyers, conduct the auction in English, supply a public address system on request, and collect payment before the auction closes. Net proceeds, after deducting commission (including VAT) and advertising costs, must be paid to the Department by EFT within seven working days. The provider must also submit a reconciliation report and clear the warehouse within 15 days of each auction. Assets are sold 'voetstoots', and buyers must remove lots within three working days. Pricing is commission-based: bidders submit an all-inclusive commission rate (including VAT) for each province, covering storage and all other costs. Rates are compared per province, and the commission rate applies for the full 36-month period.

Bidders must pass a compliance check and several pre-qualification and mandatory requirements before functionality scoring. Bidders must be registered on the Central Supplier Database and tax compliant, and must confirm potential buyers in each province they bid for. For each province, bidders must provide an auction site, supported by a valid lease, title deeds, municipal rates account, or a signed letter. Functionality is scored out of 100, with a minimum of 70 required: years of auction experience (up to 40 points) and completed auctions (up to 60 points), supported by contactable client reference letters not older than three years. Qualifying bids are then evaluated on price (80 points) and B-BBEE specific goals (20 points) under the 80/20 preference system. The Department also requires vetting of successful bidders and their employees, disclosure of conflicts of interest, and a prohibition on any 'ring' activity. A non-compulsory virtual briefing will be held on Friday, 13 November 2026 from 13:00 to 14:00. Bids must be submitted online through the eTender portal by 11:00 on 27 November 2026 and remain valid for 90 days.