Appointment of ERP implementation service provider for vaal central water

• Technical Queries: Mr. K. Sethoga, ICT Manager: Information Systems. Tel: 051 403 0800. Fax: 051 422 5333. Email: [email protected]. Physical Address: 2 Mzuzu Street, Pellissier, Bloemfontein, 9322. Postal Address: P.O. Box 30121, 9322, Bloemfontein, Free State.
• Tender Administrative Queries: Supply Chain Management. Tel: 051 403 0800. Fax: 051 422 5333. Email: [email protected].
• Submission Address: Tender Box, Ground Floor Main Entrance, 2 Mzuzu Street, Pellissier, Bloemfontein, 9322, for attention: Supply Chain Management, Vaal Central Water.

• Submit one sealed envelope clearly marked with: Tender No. VCW269/ERPIS/21, bidder’s name, address, and title: 'Request for Appointment of Professional Service Providers to Implement an ERP Information System on Behalf of Vaal Central Water'.
• Deliver to: Tender Box, Ground Floor Main Entrance, 2 Mzuzu Street, Pellissier, Bloemfontein, 9322, before 12:00 on Thursday, 18 June 2026.
• Use only the issued tender documentation. A one-envelope system applies.
• Incomplete, incorrectly filled, telegraphic, telephonic, telex, facsimile, e-mail, or late submissions will be rejected.
• Include all required returnable documents: fully completed and signed SBD Forms (1, 3.3, 4, 6.1), Annexure 1 (Acceptance of Bid Conditions), Annexure 2 (Supply Chain Management Questionnaire), and proof documents for specific goals and compliance.
• Tender offer validity: 120 business days from closing date. VCW may extend by 90 days via written notice; bidders not agreeing must inform in writing or be deemed non-responsive.
• Attendance at the compulsory briefing session on 3 June 2026 is mandatory; failure to attend results in disqualification.
• Correct pricing errors as per clause F.3.9; failure to correct may lead to rejection.

Evaluation follows a multi-stage process:

Stage 1: Administrative Compliance

• Bids checked for completeness of documents (SBD Forms, Annexures, proof documents). Non-compliance results in disqualification.

Stage 2: Functionality (Quality)

• Technical evaluation criteria and weighting:

• Company Experience and Reference Letters (25 points): Requires 3+ contactable client references with ERP experience (5+ years). 0 points for <2 references or <5 years experience; 15 points for 3 references with 5+ years; 25 points for >3 references with 5+ years.
• Expertise of Technical Personnel (15 points): ICT Project Manager with PM certification (e.g., PMP, PRINCE 2) and 10+ years ICT project management experience; project team with 5+ years ERP implementation experience. 0 points for <10 years (manager) or <5 years (team); 12 points for 10 years (manager) and 5 years (team); 15 points for >10 years (manager) and >5 years (team).
• Service Methodology (15 points): Comprehensive implementation plan with clear deliverables and timelines. 15 points for ≤18 months; 5 points for 18-24 months; 0 points for >24 months.
• Locality (5 points): Business offices in Free State or Northern Cape = 5 points; elsewhere in South Africa = 0 points.
• Previous Relevant Experience in ERP Support (10 points): 3+ support projects in South Africa = 10 points; 1-2 projects = 5 points.
• Functional Team Leads: Minimum 3-year Diploma/Degree in ICT or related field, certified in the proposed ERP solution, and involved in ≥3 ERP implementations.

• Minimum threshold: 60 points to progress to Stage 3.

Stage 3: Presentation/Demonstration (30 points)

• 45-minute presentation covering project implementation, functional architecture, data collection, reporting, billing, project plan, and financial breakdown.
• Scoring: 5 points each for functional architecture, data collection, reporting, billing, project plan, and financial breakdown.
• Minimum threshold: 25 points to progress to pricing evaluation.

Stage 4: Price and Preference

• Financial proposals of compliant bids (80%+ functionality score) are evaluated for price and B-BBEE status.
• Method 2: 80 points for price, 20 points for B-BBEE (or 90/10 split as per PPPFA Regulations 2022).
• Final evaluation: 80% functionality (Stage 2) + 20% demonstration (Stage 3) + price and preference (Stage 4).

Scope: Replace and augment core IT systems with an integrated ERP solution, phased over several years. Initial rollout covers finance, procurement, and HR, followed by asset management, supply chain, inventory, project management, water management & billing, and water quality.

Key Requirements:

• Hosting: On-premises at Vaal Central Water; cloud hosting proposals may be considered.
• Integration: Fully integrated to eliminate duplicate data entry; must integrate with utility applications like SCADA and GIS.
• Database: Data stored in Microsoft SQL Server (license provided by Vaal Central Water).
• Compliance: GRAP (Generally Recognized Accounting Practices) compliant with GRAP-compliant reporting.
• Implementation: All systems implemented, configured, and tested on-site; no remote access granted; data not to be removed from site.
• Licensing: Systems must be licensed to Vaal Central Water for five years post-handover.
• Implementation Plan: Service provider must provide and periodically report on a detailed implementation plan with milestones and deliverables.
• Support: System must allow support by multiple partners to avoid single-company reliance.
• Access Control: Configured according to Vaal Central Water employee access requirements.
• Data Migration: Ability to migrate data from the old system to the new system.
• CRM: Provide Customer Relationship Management functionality for daily incident reporting across departments.
• Customization: Minimal to ensure easy future updates and upgrades.
• Training: Train Vaal Central Water employees on system usage and provide 2 months of post-implementation assistance.
• Documentation: Full system documentation, including interfaces, must be provided.
• Support and Maintenance: Provide licensing, support, and maintenance for 60 months after handover.
• Tracking: System must track submissions, progress reports, briefing minutes, site minutes, change orders, and completion reports, including a document repository.

• Pricing Format: Submit a detailed financial breakdown of costs per activity and per year in the financial proposal (Part C2: Pricing Data).
• Pricing Schedule: Use SBD 3.3 Pricing Schedule for Professional Services (submit in a separate envelope).
• Validity Period: Tender offer must remain valid for 120 business days from closing date. VCW may extend by 90 days via written notice; bidders not agreeing must inform in writing or be deemed non-responsive.
• Payment Terms: Not explicitly stated; refer to Standard Professional Services Contract (Part C1.3) and Contract Data (Part C1.2).
• Financial Capacity: Bidders must provide financial references, audited financial statements, and a bank rating of not less than 'C'.
• Bonds/Guarantees: Professional indemnity insurance details required (underwriter, limits, deductible, maturity dates).
• Alternative Tender Offers: Permitted if demonstrably compliant with VCW’s standards. Must include a 5% amount of the tendered value to cover VCW’s costs for verifying acceptability.

Mandatory Pre-qualifiers (immediate disqualification if not met):

• Fully completed and signed SBD Forms: 1, 3.3, 4, 6.1.
• Attendance at the compulsory clarification session on 3 June 2026 by a duly authorised representative.
• Proof of partnership with an OEM (e.g., SAP, Oracle, Microsoft, SAGE).
• Professional indemnity insurance details: underwriter, limits, deductible, and maturity dates.
• Legal entity proof: Certified copy of certificate of incorporation (company), founding statement (CC), partnership agreement, or ID document (sole proprietor).
• Tax Compliance: Valid Tax Compliance Status PIN from SARS; each consortium/JV member must submit separately. Latest UIF return if not on tax PIN.
• No history of SCM system abuse or poor performance on previous contracts.
• Not listed on the Register of Tender Defaulters (Prevention and Combating of Corrupt Activities Act, 2004).
• CSD Registration: Must be registered on the National Treasury Central Supplier Database (CSD) and submit a full CSD report (not summary).
• Declaration of Interest: Completed form with no conflicts of interest.
• B-BBEE Compliance: Valid B-BBEE Compliance Certificate or sworn affidavit.
• Locality Proof: Original or certified copy of municipal rates clearance certificate or lease agreement (not older than 3 months). VCW reserves the right to verify addresses physically.
• Financial Stability: Financial references, audited financial statements, and bank rating of not less than 'C'.
• Returnable Documents: Completed Annexure 1 (Acceptance of Bid Conditions) and Annexure 2 (Supply Chain Management Questionnaire).

Preference Points (Specific Goals):

• Black Ownership (>50%): Certified ID copy and CIPC registration/CSD report. Points: 3 (80/20), 2 (90/10).
• Women Ownership (>50%): Certified ID copy and CIPC registration/CSD report. Points: 2 (80/20), 1 (90/10).
• Youth Ownership (>50%, owners <35 years): CIPC registration/shareholder certificate, certified ID, and CSD report. Points: Not explicitly stated.
• Persons with Disability Ownership (>50%): Medical report, certified ID, and CIPC registration/CSD report. Points: Not explicitly stated.
• Locality (Free State/Northern Cape): Municipal rates statement, clearance certificate, municipal form, tribal authority letter, or lease agreement in company’s name. Points: 10 (80/20), 4 (90/10).
• B-BBEE Status: Level 1 = 5 points, Level 2 = 2 points, Levels 3 and 4+ = 0 points.