Tender Document Forthe Proposal of Revenue Enhancement Strategy

MHLONTLO LOCALMUNICIPALITY

TENDER DOCUMENT FORTHE PROPOSAL OF REVENUE ENHANCEMENT STRATEGY

BIDNOTICENO:MLM/RES/02/2017

Issued by: TheMunicipalManager

MHLONTLO LOCALMUNICIPALITY

P.O. BOX 31

QUMBU

5180

96 General Mabindla Street

QUMBU

5180

Tel:+27(047) 553 7000

Fax;+27(047) 5530189

CSD NO.______SARS PIN______

NAME OFBIDDER:

TENDER AMOUNT:

BBBEE LEVEL:______

t1.1:REQUEST FOR PROPOSAL
PROJECT NAME / CONTRACT NUMBER / ADVERT DATE / CLOSING DATE / CLOSING TIME
THE PROPOSAL OF REVENUE ENHANCEMENT STRATEGY /

MLM/RES/02/2017

/ 22/01/2018 / 13/02/2018 / 12:00PM

N.B tender documents will be available on e-Tender portal

Proposals are requested from suitable qualified service providers for Revenue Enhancement Strategy to Mhlontlo Local municipality.

EVALUATION CRITERIA

The bids will be evaluated in two stages, namely:

Stage 1- Functionality
Stage 2- Price and BBBEE Points

Only Bidders who score 70% or more on Functionality will be evaluated further and therefore eligible for the award.

ITEM / Weight
STAGE 1 OF EVALUATION – FUNCTIONALITY
Functionality / 100

Previous Experience

/ 40

Capacity

/ 40

Methodology

/ 20
STAGE 2 OF EVALUATION – PRICE & PREFERENTIAL POINTS
BBBEE POINTS / 20
Price / 80
TOTAL / 100

BIDDERS SHALL TAKE NOTE OF THE FOLLOWING BID CONDITIONS:

Submission of a Certified B-BBEE Verification Certificate from a Verification Agency accredited by the South African Accreditation System (SANAS) or sworn affidavit

CSD Report not later than one month of the tender closing date
Tax compliance status pin
Proof of Municipal Rates
JV Agreement must be signed
A Detailed Company Profile (with relevant past experience) and MBD4 FORM

Failure to attach the above-mentioned documents will lead to disqualification.

Bids must be deposited in the tender Box at the Mhlontlo Local Municipality, 96 Church Street Qumbu or Posted to P.O. Box 31 Qumbu 5180. Faxed or electronic submission of documents will not be accepted.

Mhlontlo Local Municipality reserves the right to withdraw any invitation to tender and/or to re-advertise or to reject any tender or to accept a part of it.

The Municipality does not bind itself to accepting the lowest tender or any tender

4. ENQUIRES

Any queries for further information relating to this advert must be directed to Mrs L.Bunyenge-Dyomfana on 047553 7000 and SCM queries to be forwarded to Mr.T Mbono at 047 553 7000.

------

MR S.G SOTSHONGAYE

Municipal Manager

Terms of Reference of Request for Proposal for Revenue Enhancement Strategy

DataCleansing

DebtManagement

1.Background

Mhlontlo Municipality intends to enter into a service level agreement with a service provider for the provision of revenue enhancement solutions in the form of data cleansing, electronic or automated meter reading, and debt management projects, and as such the terms of reference are arranged in order to have a collaborative, coordinated and integrated implementation of their powers and functions as provided for in the Municipal Systems Act 32 of2000.

Mhlontlo Municipality Debtor Database has challenges with a section of the database with regard to old personal information and incomplete information and as such it creates challenges for the municipality to effectively manage some of these accounts. The appointed service provider will assist the MunicipalitywithimprovingthissituationaspartoftheMunicipality’sRevenueEnhancementStrategy.

2.Purpose

The purpose of the terms of reference is to map out the requirements of the project by the Municipality. The project is aimed at assisting Mhlontlo Municipality with regards to data cleansing in order to determine the collectable and uncollectable amount and proposals for write-off where necessary; through ensuring that the municipality has a reliable revenue data, and can improve efficiencies in collecting water meter data through automated systems and subsequent billing in order to enhance the level of services offered to its customers.

3.Functions

While the present data is reasonably well-arranged and managed, the expansion of debtor listing to all the areas under the Municipality’s jurisdiction requires a clear set of rules and procedures in relation to naming convections (farms, suburbs, and extensions), debtor groupings, and data loading authority levels to protect the data purity.

One specific area where improvements can be made is the current land valuations. All accounts linked to farm properties with no land valuation need to be rectified where necessary. This includes accounts linked to properties currently under the administration of national or provincial government departments. This could potentially increase revenue of the municipal property rates. An associated activity is the review and correction of the owner/tenant indicator to ensure that all owner accounts are linked to the valuation roll and associated assessment ratestariffs.

4.Servicesrequired

The following are services required to be provided to the municipality in the area of revenue enhancement:

4.1Customer DataCleansing

The scope of work to be undertaken is as follows:

Comprehensive data cleansing of all farm properties to ensure billingintegrity

Total number of farms:81
Valuable properties: 1802

Debtor information and debtorclassification

Debt book cleanup

Improve billingaccuracy

Investigate all debtors by type and reclassify debtors that are incorrectly identified on the billing system

Verify account status (active/inactive) and include as reportingindicator

Obtain tile Deed information perproperty

Reflect arrears per account according to ageing and byservice

Investigate all accounts which appear to have incorrect billing, e.g. tenant accounts with assessmentrates

Correctly categorise each account according to the correct and responsibledebtor

Produce account reconciliations for eachaccount

Consolidation of duplicated customerprofile/accounts

The current payment levels for farms is 28%

4.2 DebtManagement

The debt management intervention must ensure that the following objectives are achieved through this project:

•Updating of customer information withease

•Adding of new customers to the system with a record of their deposits and other registration requirements,and

•Changing and alternating customer status between regular and indigent, thus instituting credit control measurespromptly

•Managing the revenue environment through regular reports and updates on income received per area and service for the monitoring ofrevenue

•Managing customer queries by keeping records of complaints and the response that was provided with dates andtimes.

•The following is a customer debt status of themunicipality

•Current accounts = R 2 501 029.84

•Arrears by 30 days = R 598 355.89

•Arrears by 90 days = R 1 342 456.34

•Arrears by 120 days = R 51 967 469.40

•Arrears over 120days = R 4 614 255.81

Apart from having a suitable financial management system that supports the customer management and billing functions, maintaining the integrity of the base data is critical in ensuring that the billing function is perceived by consumers as reliable and accurate. For this reason, it is important to establish sound business rule for the maintenance and updating of consumer data with specific reference to the following:

•Debtortypes

•Property and suburbidentifiers

•Account indicators (active/inactive andowner/tenant)

•Servicecategories

•Payment arrangement and creditcontrol

5.ImplementationPlan

A project steering committee (PSC) should be formed at the municipality to give direction to the project, monitoring progress and measuring the quality of outputs.

Monitoring of progress and analysis of all data will be done by means of the Municipal Data analysis model based on regular data extracts over the project period. Special monitoring reports will be developed in respect of indigent management as well as for the implementation of internal data cleansing and system improvement activities. Data changes (improvement of the integrity of the current billing data) will be facilitated by service provider and may require the input from the billing system administrators and municipal staff. The implementation of the comprehensive project should be supported by a dedicated professional team. The success of the project and the achievement of the financial benefits are dependent on the direct support and participation of the PSC and their functional departments.

5.1 Composition of the Project Steering Committee

Task Team should be established which should be part of the operations in support of the Service Provider and it should report to the CFO and he Senior Accountant, and the CFO will then report to the Project Steering Committee.

The PSC Comprises to the CFO, Revenue Manager, Technical Services Manager, Service Provider, DLGH, LPT and other members to be determined by the CFO that should form part of the PSC

6.Meetings

The Service Provider and the Municipality will meet on a monthly basis, whereas the meeting with the Steering Committee will be on a Bi-monthly basis, to discuss the progress report on the project.

7.General

These terms of reference may be amended as required, subject to the approval of the PSC members.

8.Enquiries

All related enquiries must be forwarded to the project manager Mrs L Bunyenge Dyomfana at 047 553 7000

PROSPECTIVE BIDDERS SHALL TAKE NOTE OF THE FOLLOWING:

The Mhlontlo Local Municipality Supply Chain Management Policy will apply;
Original & valid Tax Clearance, Professional certificate(s), company registration, certified ID copies of Members & Company profile must be submitted; VAT Registration (where applicable);
Mhlontlo Local Municipality does not bind itself to accept the lowest or any other bid and reserves the right to accept the whole or part of the bid;
Bids which are late, incomplete, unsigned or submitted by facsimile or electronically, will not be accepted;
Bidders must take note that where a correction is made the bidder should append a signature.
All bids should be completed in black ink and the use of a correction fluid is NOT permitted at all and will lead to disqualification.
Bids completed in pencil will be disqualified.
Bidders must submit latest statement of municipal rates & taxes.
Bidders are encouraged to disclose whether its members are working for the State, failure to do so will lead to disqualification.
Bidders are required to submit original and valid B-BBEE Status Level Verification Certificates or certified copies thereof together with their bids, to substantiate their B-BBEE rating claims.
All tenders shall be held valid for a period of 90 days after the tender closing date and all bidders if not heard from the Municipality within this period regard your tender as unsuccessful.

MBD 1

INVITATION TO BID

YOU ARE HEREBY INVITED TO BID FOR REQUIREMENTS OF THE MHLONTLO LOCAL MUNICIPALITY

BID NUMBER: MLM/RES/02/2017

CLOSING DATE: 13/02/2018

CLOSING TIME: 12:00 PM

DESCRIPTION: THE PROPOSAL OF REVENUE ENHANCEMENT STRATEGY

The successful bidder will be required to fill in and sign a written Contract Form (MBD 7).

BID DOCUMENTS MAY BE POSTED TO:

MHLONTLO LOCAL MUNICIPALITY

P.O. BOX 31

QUMBU

5180

OR

DEPOSITED IN THE BID BOX SITUATED AT (STREET ADDRESS)

96 Church Street

Qumbu

5180

Bidders should ensure that bids are delivered timeously to the correct address. If the bid is late, it will not be accepted for consideration.

The bid box is generally open 24 hours a day, 7 days a week.

ALL BIDS MUST BE SUBMITTED ON THE OFFICIAL FORMS – (NOT TO BE RE-TYPED)

THIS BID IS SUBJECT TO THE PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT AND THE PREFERENTIAL PROCUREMENT REGULATIONS, 2011, THE GENERAL CONDITIONS OF CONTRACT (GCC) AND, IF APPLICABLE, ANY OTHER SPECIAL CONDITIONS OF CONTRACT

NB: NO BIDS WILL BE CONSIDERED FROM PERSONS IN THE SERVICE OF THE STATE (as defined in Regulation 1 of the Local Government: Municipal Supply Chain Management Regulations)

THE FOLLOWING PARTICULARS MUST BE FURNISHED

(FAILURE TO DO SO MAY RESULT IN YOUR BID BEING DISQUALIFIED)

NAME OF BIDDER…………………………………………………………………………………

POSTAL ADDRESS…………………………………………………………………………….

STREET ADDRESS…………………………………………………………………………………………

TELEPHONE NUMBERCODE……………NUMBER………………………………………………………………………………..

CELLPHONE NUMBER…………………………………………………………

FACSIMILE NUMBERCODE………… .NUMBER…………………………………………………………………………………

E-MAIL ADDRESS…………………………………………………………………………………..

VAT REGISTRATION NUMBER……………………………………………………………………………………

HAS AN ORIGINAL AND VALID TAX CLEARANCE CERTIFICATE BEENATTACHED? (MBD 2)YES/NO

HAS A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE BEEN SUBMITTED? (MBD 6.1)YES/NO

IF YES, WHO WAS THE CERTIFICATE ISSUED BY?______

AN ACCOUNTING OFFICER AS CONTEMPLATED IN THE CLOSE CORPORATION ACT (CCA) □

A VERIFICATION AGENCY ACCREDITED BY THE SOUITH AFRICAN NATIONAL ACCREDITATION SYSTEM (SANAS) □

A REGISTERED AUDITOR □

(Tick applicable box)

(A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE MUST BE SUBMITTED IN ORDER TO QUALIFY FOR PREFERENCE POINTS FOR B-BBEE)

ARE YOU THE ACCREDITED REPRESENTATIVE

IN SOUTH AFRICA FOR THE GOODS/SERVICES/WORKS OFFERED ?YES/NO (IF YES ENCLOSE PROOF)

SIGNATURE OF BIDDER ………………………………………………………………………………………

DATE………………………………………………………………………………………………………………..

CAPACITY UNDER WHICH THIS BID IS SIGNED………………………………………………………………………………………

TOTAL BID PRICE……………………………………

TOTAL NUMBER OF ITEMS OFFERED…………………………………

______

ANY ENQUIRIES REGARDING THE BIDDING PROCEDURE MAY BE DIRECTED TO:

Municipality / Municipal Entity: Mhlontlo Local Municipality

Department: Budget and Treasury Office

Contact Person: Mr. T Mbono (SCM)

Email:

Tel: 047553 7000

Fax: 047553 0189

ANY ENQUIRIES REGARDING TECHNICAL INFORMATION MAY BE DIRECTED TO:

Contact Person: Mrs L Bunyenge-Dyomfana

Email:

Tel: 047553 7000

Fax: 047553 0189

MBD 4

DECLARATION OF INTEREST

1.No bid will be accepted from persons in the service of the state.

Any person, having a kinship with persons in the service of the state, including a blood relationship, may make an offer or offers in terms of this invitation to bid. In view of possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons connected with or related to persons in service of the state, it is required that the bidder or their authorised representative declare their positionin relation to the evaluating/adjudicating authority and/or take an oath declaring his/her interest.

3In order to give effect to the above, the following questionnaire must be completed and submitted with the bid.

3.1Full Name: …………………………………………………………………………

3.2Identity Number: …………………………………………………………………

3.3Company Registration Number: …………………………………………………

3.4Tax Reference Number: …………………………………………………………

3.5VAT Registration Number: ………………………………………………………

3.6Are you presently in the service of the state YES / NO

3.6.1If so, furnish particulars.

………………………………………………………………

3.7Have you been in the service of the state for the past YES / NO

twelve months?

3.7.1If so, furnish particulars.

………………………………………………………………

3.8Do you, have any relationship (family, friend, other) with persons in the service of the state and who may be involved with the evaluation and or adjudication of this bid?

3.8.1If so, furnish particulars.

………………………………………………………………

……………………………………………………………

3.9Are you, aware of any relationship (family, friend, other) between a bidder and any persons in the service of the state who may be involved with the evaluation and or adjudication of this bid?

3.9.1If so, furnish particulars

…………………………………………………

……………………………………………………..

YES/NO

3.10Are any of the company’s directors, managers, principal YES / NO

shareholders or stakeholders in service of the state?

3.10.1If so, furnish particulars.………………………………………………………………

………………………………………………………………

3.11Are any spouse, child or parent of the company’s directors, YES / NO

managers, principal shareholders or stakeholders in service

of the state?

3.11.1If so, furnish particulars.………………………………………………………………

………………………………………………………………

CERTIFICATION

I, THE UNDERSIGNED (NAME) ………………………………………………………………………

CERTIFY THAT THE INFORMATION FURNISHED ON THIS DECLARATION FORM IS CORRECT.

I ACCEPT THAT THE STATE MAY ACT AGAINST ME SHOULD THIS DECLARATION PROVE TO BE

FALSE.

…………………………………..……………………………………..

SignatureDate

…………………………………. ………………………………………………………………….

Position Name of Bidder

MBD 6.1

PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT REGULATIONS 2011

This preference form must form part of all bids invited. It contains general information and serves as a claim form for preference points for Broad-Based Black Economic Empowerment (B-BBEE) Status Level of Contribution

NB:BEFORE COMPLETING THIS FORM, BIDDERS MUST STUDY THE GENERAL CONDITIONS, DEFINITIONS AND DIRECTIVES APPLICABLE IN RESPECT OF B-BBEE, AS PRESCRIBED IN THE PREFERENTIAL PROCUREMENT REGULATIONS, 2011.

GENERAL CONDITIONS

1.1The following preference point systems are applicable to all bids:

-the 80/20 system for requirements with a Rand value of up to R1 000 000 (all applicable taxes included); and

-the 90/10 system for requirements with a Rand value above R1 000 000 (all applicable taxes included).

1.2The value of this bid is estimated to exceed/not exceed R1 000 000 (all applicable taxes included) and therefore the……………………system shall be applicable.

1.3Preference points for this bid shall be awarded for:

(a)Price; and

(b)B-BBEE Status Level of Contribution.

1.3.1The maximum points for this bid are allocated as follows:

POINTS

1.3.1.1PRICE…………..

1.3.1.2B-BBEE STATUS LEVEL OF CONTRIBUTION…………...

Total points for Price and B-BBEE must not exceed100

1.4Failure on the part of a bidder to fill in and/or to sign this form and submit a B-BBEE Verification Certificate from a Verification Agency accredited by the South African Accreditation System (SANAS) or a Registered Auditor approved by the Independent Regulatory Board of Auditors (IRBA) or an Accounting Officer as contemplated in the Close Corporation Act (CCA) together with the bid, will be interpreted to mean that preference points for B-BBEE status level of contribution are not claimed.

1.5.The purchaser reserves the right to require of a bidder, either before a bid is adjudicated or at any time subsequently, to substantiate any claim in regard to preferences, in any manner required by the purchaser.

2.DEFINITIONS

2.1 “all applicable taxes” includes value-added tax, pay as you earn, income tax, unemployment insurance fund contributions and skills development levies;

2.2“B-BBEE” means broad-based black economic empowerment as defined in section 1 of the Broad

-Based Black Economic Empowerment Act;

2.3 “B-BBEE status level of contributor” means the B-BBEE status received by a measured entity based

on its overall performance using the relevant scorecard contained in the Codes of Good Practice on Black Economic Empowerment, issued in terms of section 9(1) of the Broad-Based Black Economic

Empowerment Act;

2.4“bid” means a written offer in a prescribed or stipulated form in response to an invitation by an

organ of state for the provision of services, works or goods, through price quotations, advertised

competitive bidding processes or proposals;

2.5“Broad-Based Black Economic Empowerment Act” means the Broad-Based Black Economic

Empowerment Act, 2003 (Act No. 53 of 2003);

2.6“comparative price” means the price after the factors of a non-firm price and all unconditional

discounts that can be utilized have been taken into consideration;

2.7“consortium or joint venture” means an association of persons for the purpose of combining their expertise, property, capital, efforts, skill and knowledge in an activity for the execution of a contract;