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Honorary Master
SCA finds W Cape’s Royal Security services deal was ‘cost-effective tendering’
The Supreme Court of Appeal has dismissed an application to interdict a tender awarded by the W Cape Department of Infrastructure to Royal Security.
The SCA found it was common ground during litigation that the price Royal had tendered was “most favourable” to the provincial government. The bid, the court noted, was “lower than all the others by a significant margin”.
Royal’s bid of R282-million for the 24-month contract was 18.45% below the pre-tender estimate, whereas Seal and Tyte had exceeded the estimate by 5.62% and 1.35% respectively.
The SCA quoted an earlier opinion by Judge Patrick Gamble that “at the end of it all, the approach adopted by the province was in accordance with the touchstone of public procurement — the promotion of competition and cost-effective tendering. Importantly, the exercise resulted in a significant saving for the public purse — around R83m when compared to Seal’s price.”