Online vending system and third-party vending – government tender in free state

Compulsory briefing: Wednesday, 05 August 2026, 09:00-10:00, at Allen Rautenbach Hall, Hill Street, Kroonstad. Bids will not be accepted from bidders who do not attend.

Closing: Monday, 07 September 2026, 12h00 noon.

Validity period: 120 days after closing date.

SCM unit (document completion enquiries): phone 056 2169187 / 0562169185; email [email protected] or [email protected].

SCM offices: Corner 11 & 12 Way, Magasyn/Stores, Industrial, Kroonstad. Open Monday-Friday 08:00-16:30.

Specification enquiries: contact person as specified in the advert.

Bid document download: free from the E-tender Portal at www.etender.gov.za.

Submission channel: sealed envelope deposited in the bid box at Corner 11&12 Way, Magasyn/Stores, Industrial, Kroonstad, by 12h00 on the closing date. No email or fax submissions accepted; late tenders rejected.

Envelope marking: endorse clearly on the outside with the tender number and title.

Completion rules: original document completed fully in black pen ink and signed by an authorised signatory; retyped documents, missing pages, or unauthorised alterations cause disqualification.

Returnable forms (all must be completed, signed and submitted):

• MBD 1 (Invitation to Bid): bidder and contact details, signed as the offer cover page.
• MBD 4 (Declaration of Interest): discloses whether any director or shareholder is employed by the state or connected to anyone at the municipality.
• MBD 5 (Declaration for Procurement Above R10 Million): required for procurements above R10 million.
• MBD 6.1 (Preference Points Claim): claims B-BBEE points under the PPPFA 80/20 system.
• MBD 7.1 (Contract Form): purchase of goods/services.
• MBD 8 (Declaration of Bidder's Past Supply Chain Management Practices): discloses past SCM conduct.
• MBD 9 (Certificate of Independent Bid Determination): certifies no collusion or price disclosure.

Additional returnable documents: company registration (CIPC-CK), certified IDs of directors, valid tax clearance or TCC PIN, municipal form or rates/taxes proof, proof of CSD registration, B-BBEE certificate or sworn affidavit, joint venture agreement (if applicable), audited annual financial statements, pricing schedule, and evidence of compliance with specifications.

Disqualification risks: any returnable form omitted or unsigned; failure to attend the compulsory briefing; not registered on CSD; tax matters not in order; municipal rates/taxes in arrears; missing IDs or company registration documents.

Returnable documents include: Company registration document, identity documents of all directors, valid tax clearance certificate or TCC PIN, municipal form, municipal rates and taxes of company, proof of CSD registration, a copy of a valid B-BBEE certificate / sworn affidavit, joint venture agreement (if applicable), audited annual financial statements, pricing schedule, and evidence in support of compliance to specifications.

Preference points system: 80/20. Price carries 80 points; specific goals carry 20 points (Locality = 10 points; B-BBEE Level of Contributor = 10 points).

Functional/technical evaluation: bidders must score a minimum of 80 out of 100 points to qualify for further evaluation. Criteria and weights:

• Firm's Experience in Local Government (appointment letters with reference letters): 30 points. 0 letters = 0 points; 1 = 1; 2-3 = 2; 4-5 = 3; 6-7 = 4; 8+ = 5.
• Project Manager experience (CVs and similar local government projects): 5 points. 0 projects = 0; 1 = 1; 2-3 = 2; 4-5 = 3; 6-7 = 4; 8+ = 5.
• Supervisors experience (CVs and similar local government projects): 5 points. Same scale as Project Manager.
• Prepaid Vending Software (STS accreditation, web-hosted, SOLAR integration, auxiliary debt collection, third-party footprint of at least 3 banks and 2 merchants): 40 points. No software = 0; STS = 1; STS + web-hosted = 2; + SOLAR integration = 3; + auxiliary debt collection = 4; + third-party footprint = 5.
• Mobile Application Vending System (signed reference letter from a client): 5 points. No = 0; Yes = 5.

Pre-qualification criteria (must be submitted): signed confirmation letter of 24/7 helpdesk support; test procedure on company letterhead; full project plan for implementation; signed proof of Third-Party Fund Security on insurer's letterhead.

Scope: provision and administration of a prepaid electricity vending system and third-party vending for Moqhaka Local Municipality, for three years. The system must be STS and NRS compliant.

Customer base: 26 605 active prepaid customers as of April 2026, with prepaid meters maintained by internal and external technicians. The municipality is promoting conversion to prepayment meters.

Applicable standards: STS Part 1, 2 and 3; SANS 1524-1 (Electricity Payment Systems – Part 1: Prepayment meters); Code of Practice for Electricity Metering; NRS 057/SANS 474 (mandatory per NERSA licence conditions).

System requirements:

• Full system documentation, including network schematics, must be provided.
• Must be a fully functional, demonstrable vending system.
• Must vend to all STS meters in the municipal area.
• Active system hosted at service provider infrastructure; back-up system hosted at Moqhaka's administration offices.
• Seamless transfer from existing system with no interruption; all existing data backed up and secured; cost of data loss recovery borne by service provider.
• Must integrate with the SOLAR financial system (customer database, billing) and provide an API for third-party access.
• Must cater for future GIS integration.

Technology and platform:

• Relational SQL database conforming to RDBMS rules; supports concurrent users, automated triggers, multi-version consistency, no row-lock escalation, JAVA database engine, precompiled stored procedures.
• Reports accessible via standard SQL tools (e.g., Cognos Impromptu, Crystal Reports); audit log searchable; databases encrypted.
• Application and database certified on Windows or Linux; user-friendly GUI.
• Standard PC-based hardware; standard STS security module with 16-bit PCI-based motherboard.
• Data model: Point-of-Connection independent from Location/Meter/Consumer; tariff at Point-of-Connection; multiple meter types per connection; hierarchical nodes; WGS-84 GPS coordinates; multiple consumer agreements; accommodate additional resources (water/gas).
• Thin client GUI for customer management, meter management, reporting.
• Security: unlimited named operators, adjustable access control, smart card SSL for online PoS.
• Communication: LAN/WAN, dial-up, GPRS/mobile broadband, internet, intranet, ISDN, radio modems, WiFi, satellite, SMS.

Performance and support:

• 24/7 helpdesk support for municipality and vendors; online platform for call management.
• Guaranteed system performance; upgrades to correct mal-operation at tenderer's cost; latent defects rectified at tenderer's cost after 12-month guarantee period.
• System commissioned before implementation date.

Cost breakdown: bidders must separately identify costs for vending software, upgrade/replacement of online vending machines, database/OS/workstation/POS licences, additional hardware, SOLAR interface and data migration, system and interface testing, training, and additional options.

Confidentiality: municipal data must be treated with strict confidentiality and not used for marketing without prior written approval.

Implementation plan: bidders must submit a full project plan for implementation of the vending system.

Testing procedure: submit test procedure on company letterhead to be followed during testing.

Data handling: municipal data must be treated with strict confidentiality; not for marketing without prior written approval.

Performance management: monthly monitoring of service provider performance in line with the Service Level Agreement, per Section 116(2) of the MFMA.

Third-party fund security: signed proof on insurer's letterhead required.

Firm's experience: appointment letters with contactable reference letters from local government clients. Points scale: 0 letters = 0; 1 = 1; 2-3 = 2; 4-5 = 3; 6-7 = 4; 8+ = 5 (out of 30).

Project Manager: CV and list of similar local government projects. Points scale: 0 projects = 0; 1 = 1; 2-3 = 2; 4-5 = 3; 6-7 = 4; 8+ = 5.

Supervisors: CVs and list of similar local government projects. Same points scale as Project Manager.

Mobile application: signed reference letter from a client confirming the mobile application vending system.

Standards: vending system must be STS and NRS compliant. Applicable standards: STS Part 1, 2 and 3; SANS 1524-1; NRS 057/SANS 474 (mandatory per NERSA).

Compliance: bidders must submit a clause-by-clause compliance schedule with the tender; alternatives must be separately listed.

Testing: pre-bidding testing at bidder's account; premises open for inspection; costs of tests depend on compliance.

System performance: guaranteed functional performance; upgrades to correct mal-operation at tenderer's account; latent defects rectified at tenderer's cost after 12-month guarantee.

Support: 24/7 helpdesk support; online platform for call management.

Bid amount must be VAT inclusive; third-party vending commission percentage must be stated.

Costs must be broken down by functional module: vending software, upgrade/replacement of online vending machines, database/OS/workstation/POS licences, additional hardware, SOLAR interface and data migration, system and interface testing, training, and additional options.

Pricing schedule is Section 4.10 of the tender document.

Pricing format: bid amount must be quoted VAT inclusive; bidders must also state the third-party vending commission percentage.

Pricing schedule: separate identification of individual functional modules (vending software, hardware, licences, SOLAR interface, testing, training, etc.) for fair comparison.

Payment terms: payments made within 30 days of invoice submission; in Rand.

Prices: must not vary from quoted bid prices except for authorised adjustments.

Variation orders: changes up to 15% of contract value may be instructed; no price escalation.

Performance security: successful bidder must furnish performance security within 30 days of contract award, in the form of a bank guarantee, irrevocable letter of credit, or cashier's/certified cheque.

Financial documents required: audited annual financial statements must be submitted with the bid.

CSD registration: bidders must be registered on the Central Supplier Database; proof of registration must be attached. The municipality cannot do business with unregistered suppliers.

Tax compliance: valid original Income Tax Clearance Certificate or SARS unique PIN must accompany the bid; for joint ventures/consortia, every member must submit a separate certificate or PIN. If not attached, the municipality may verify after closing; failure to obtain verification leads to disqualification.

Municipal rates and taxes: must not be in arrears. Provide one of: municipal rates statement in company name (not older than 3 months), clearance certificate from local municipality, completed municipal form, official letter from tribal authority, valid lease agreement with tax invoice, or affidavit if statement is in landlord's/director's name.

Company registration: CIPC-CK document reflecting company name, registration number, date of registration, and active directors/members; missing proof causes disqualification.

Identity documents: certified copies (not older than 6 months) of all directors' IDs; missing IDs cause disqualification.

B-BBEE: valid B-BBEE certificate issued by DTIC through CIPC, or by a SANAS-accredited institution, or sworn B-BBEE affidavit signed by commissioner of oaths. Failure to comply results in no preference points.

CIDB: when applicable, copy of registration and grading certificate with CIDB must be included; failure causes disqualification.

Returnable forms: MBD 4 (Declaration of Interest), MBD 5 (Declaration for Procurement Above R10 Million), MBD 6.1 (Preference Points Claim), MBD 8 (Past SCM Practices), MBD 9 (Independent Bid Determination) — all must be completed and signed.

B-BBEE certificate issued by DTIC through CIPC, or by a SANAS-accredited institution, or sworn B-BBEE affidavit signed by commissioner of oaths. Failure to comply results in no preference points.

B-BBEE Level of Contributor contributes 10 points out of the 20 specific goals points in the 80/20 preference system.

Contract duration: three years, with possible extension if additional funds become available.

GCC and SCC apply; where in conflict, SCC prevails.

Warranty: goods new, unused, no defects; valid 12 months after delivery or 18 months after shipment, whichever earlier.

Payment: within 30 days of invoice; in Rand.

Prices: fixed at bid prices; no escalation.

Variation orders: up to 15% of contract value; no price escalation.

Assignment and subcontracting: no assignment without prior written consent; subcontracts must be notified in writing.

Delays and penalties: delay penalties calculated at prime interest rate per day of delay; termination for default possible.

Termination: for default, insolvency, or corrupt/fraudulent practices; restriction from public sector business up to 10 years.

Force majeure: supplier not liable for delay caused by force majeure; must notify purchaser.

Disputes: amicable resolution, then mediation, then South African court.

Limitation of liability: supplier not liable for indirect or consequential loss; aggregate liability capped at total contract price.

Confidentiality: supplier must not disclose contract documents or information without prior written consent.

Intellectual property: documents/projects developed for the municipality vest in the municipality.

Taxes and duties: supplier responsible for all taxes; no contract with bidder whose tax matters are not in order or municipal rates in arrears.

Restrictive practices: collusive bidding prohibited; may be referred to Competition Commission; contract may be terminated and bidder restricted.

GCC and SCC apply; SCC prevails in conflict.

Municipality reserves right to withdraw, re-advertise, reject any tender, or accept part of it; not bound to accept lowest or highest-scoring bid.

Bids valid for 120 days after closing.

Tender documents must be completed in black pen ink and signed by authorised signatory; retyped documents, missing pages, or unauthorised alterations cause disqualification.

No contact with municipality on bid matters from bid opening until contract award.

Bids awarded per PPPFA, Preferential Procurement Regulations 2022, and municipality's SCM policy.

Tax invoices must comply with VAT Act and show VAT clearly; municipality's VAT registration number is 4000846578.

Contract in English; may be extended if funds available; governed by South African law.

Successful bidder liable for duties and costs on legal documents.

Incorrect information furnished may lead to recovery of costs, losses, or damages.

Compulsory documentation: valid tax clearance or TCC PIN; CIDB certificate (when applicable); municipal rates/taxes proof (not older than 3 months); certified IDs of directors (not older than 6 months); CIPC-CK company registration; B-BBEE certificate or sworn affidavit; CSD registration proof.

Pre-qualification criteria: signed 24/7 helpdesk support letter; test procedure on company letterhead; full project plan; signed proof of third-party fund security.

Joint ventures: every member must submit separate tax clearance certificate or TCC PIN; joint venture agreement required if applicable.

No contract with bidders whose municipal rates/taxes are in arrears.

80/20 preference points system: 80 points for price, 20 for specific goals (locality = 10, B-BBEE level = 10).

Functional/technical evaluation: minimum 80 out of 100 points required to qualify. Criteria: firm's local government experience (30), project manager experience (5), supervisors experience (5), prepaid vending software features (40), mobile application vending (5).

Pre-qualification criteria must be met before functional evaluation.