SARS scraps another R1.5bn tender

Johannesburg, 25 Jul 2006

The South African Revenue Service (SARS) will reconsider its R1.5 billion customs scanner tender - for the installation, maintenance, upgrading and operation of 11 scanning machines in Durban's harbour - just six weeks after cancelling its voice and data networks tender.

Logan Wort, GM for communications at SARS, says a new tender will be issued, but it will not include the operational component that constituted part of the original tender.

"We will issue a new tender within the next few weeks for the acquisition and maintenance of the scanners only."

He explains that a decision has been made to insource the operation of the scanners.

Changing cost components

The operational component of the tender would have entailed more than 50% of the total cost, he notes.

Wort adds that at the beginning of the tender process, the actual acquisition, maintenance and upgrade of the machines was expected to constitute the majority of the expense.

"Because of the rapid deployment of these scanners all over the world, due to heightened global security requirements, the price of the equipment has significantly decreased. When we started, we thought that operations would be a small part of the cost."

Half the value

The three shortlisted bidders - Bonisa Scanning Solutions, Safika-Smith Consortium and Thibela Scanning - were told yesterday that the new tender will be issued shortly, but will now be worth an estimated R500 million to R750 million.

All three are special-purpose consortiums established for this tender, and include local and international stakeholders, notes Wort.

He adds that the cancellation of this tender was "not a decision that was taken lightly", and reaffirms the urgency of the project. "We really need to begin this project - we hope to have the first [of the 11 port scanners] deployed within the next six months."

The scanners range in price from $1.5 million to $4.5 million, he notes. SARS originally expected the first scanner would be installed this month.