Actuarial valuation, legal compliance and individual negotiations for the buyout of post-retirement medical aid obligations (12 months)

Closing: 11 November 2026 at 12H00.

Enquiries cut-off: 10 November 2026 at 11H30.

Supply chain management enquiries

• Email: [email protected]
• Telephone: 012 426 9541

Technical enquiries

• Contact: Mr. Thulani Shabane
• Email: [email protected]
• Telephone: 012 426 9508

Submission address

SANC Reception

Cecilia Makiwane Building

602 Pretorius Street

Arcadia

Pretoria, 0083

Submission method: sealed quotation deposited in the tender box at SANC Reception.

Submission address:

Cecilia Makiwane Building

602 Pretorius Street

Arcadia

Pretoria, 0083

Closing: 11 November 2026 at 12H00 (South African time).

Late quotations: not accepted.

Format: complete the official quotation forms supplied; submissions may not be retyped.

Validity: quotations must remain valid for at least 60 days from the closing date.

Enquiries: by email only; the cut-off for all enquiries is 10 November 2026 at 11H30.

Returnable documents:

• Invitation to Bid: complete and sign the supplied pro forma.
• Bidder's Disclosure: complete and sign the supplied pro forma.
• Tax status: CSD report or CSD supplier number.
• SBD 6.1 Preference Point Claim Form: claims points for specific goals; non-submission scores zero on specific goals.
• Proof of specific goals ownership: CIPC documents, valid B-BBEE certificate, identity document, medical report for disability ownership, or a signed declaration letter.
• Proof of registration as a Registered Service Provider with ASSA or another regulatory body.
• Written price quotation covering the scope of work and the deliverables.
• Proof of authority to sign, such as a company resolution.

Disqualification risks:

• Quotations received after the closing time.
• Any document marked as mandatory left unsigned or omitted.
• Quotations not submitted on the official forms.

Preference point system: 80/20 under the Preferential Procurement Regulations 2022.

Evaluation phases, in order:

1. Administrative compliance — mandatory documents must be submitted; non-compliance disqualifies.
2. Mandatory requirements — ASSA or other regulatory body registration and a written price quotation; non-compliance disqualifies.
3. Functionality — minimum qualifying score: 70 out of 100. Bids below this are not considered further.
4. Price and specific goals — 80 points for price and 20 points for specific goals.

Functionality criteria (100 points):

• Service provider experience in actuarial valuations, post-retirement medical aid, legal compliance and individual negotiation: 15 points.
• Under 2 years: 0
• 2 years: 3
• 3–4 years: 5
• 5–7 years: 10
• More than 7 years: 15
• Key personnel — Actuary qualifications: 30 points.
• NQF 9 or higher (actuarial science): 35
• NQF 8 (actuarial science): 20
• NQF 7 (actuarial science): 10
• No or irrelevant qualification: 0
• Membership of a recognised professional body such as ASSA: 5
• Key personnel — Business Analyst qualifications: 20 points.
• NQF 9 or higher (business management or equivalent): 15
• Nqf 8: 10
• Nqf 7: 5
• No or irrelevant qualification: 0
• Certified Negotiation Expert (CNE) with the Center for Professional Supply Chain Professionals, or Certified International Negotiator (CIN) with the Chartered Institute of Professional Certifications: 5
• Reference letters: 10 points.
• Fewer than 3: 0
• 3: 3
• 4: 5
• 5: 8
• 6 or more, including at least 2 public-sector, professional council or regulated-environment clients: 10
• Proposal and project plan (methodology): 20 points.
• No methodology or does not meet requirements: 0
• Broadly aligned to deliverables: 5
• Aligned and demonstrates understanding of the assignment: 10
• Detailed, with clear approach, timelines and deliverables: 15
• Comprehensive, with implementation plan, stakeholder engagement strategy, risk mitigation measures, reporting framework and alignment to all terms of reference: 20

Price (80 points): scored using Ps = 80(1 − (Pt − Pmin)/Pmin), where Pt is the bid price and Pmin the lowest acceptable price.

Specific goals (20 points):

• Black ownership: 8 points (100% black ownership = 8; 51%–99% = 5; below 51% = 0).
• Black women ownership: 4 points (100% = 4; 30%–99% = 2; below 30% = 0).
• Black youth ownership: 4 points (100% = 4; 30%–99% = 2; below 30% = 0).
• Disability ownership: 4 points (20% or more owners with disability = 4; below 20% = 2; 0% = 0).
• Ownership is measured by the percentage of the enterprise owned, or shares held by members active in day-to-day operations.
• Price and specific goals points are added and rounded to two decimal places; the bidder with the highest total points is awarded the contract.

Objective: appoint a consulting firm combining actuarial, legal and negotiation specialists to design, manage and execute a voluntary buyout of the South African Nursing Council's post-retirement medical aid (PRMA) liability.

Background

• SANC provides post-retirement medical aid benefits to 20 main retired members; the obligation is an unfunded liability carried in SANC's annual financial statements.
• The most recent valuation of the liability was performed as at 31 March 2026.
• The valuation must comply with IAS 19 (Employee Benefits).

Scope — three phases

Phase 1: Actuarial valuation and financial modelling

• Review and clean the PRMA beneficiary database (ages, dependants, medical aid options, subsidy tiers).
• Perform an updated IAS 19 actuarial valuation of the liability.
• Build an individual buyout pricing matrix with actuarially justified, financially sustainable and legally defensible settlement options (for example lump-sum payouts) tailored to each beneficiary's age and risk profile, in consultation with the CFO/Senior Manager Finance.

Phase 2: Legal framework and strategy design

• Draft a legal framework compliant with national employment and pension law that protects SANC from future liability or litigation.
• Draft individual, legally binding Discharge and Settlement Agreements for participating former employees.
• Provide guidance on the tax implications for beneficiaries, including applying for tax directives where required.

Phase 3: Stakeholder engagement and individual negotiations

• Produce plain-language educational material and run collective briefing sessions, working with unions or bargaining councils where necessary.
• Conduct individual consultations with each former employee (and their financial advisers or families) explaining the voluntary offer, without coercion.
• Manage formal acceptance, secure signed settlement agreements and hand the verified payout schedule to the CFO/Senior Manager Finance.

Deliverables and timelines (measured from project start)

• D1 Inception Report — project plan, methodology and stakeholder engagement strategy: 2 weeks.
• D2 Actuarial Model — valuation report and individual pricing/buyout matrices: 6 weeks.
• D3 Legal Toolkits — settlement agreements, consent forms and tax clearance templates: 8 weeks.
• D4 Negotiation Phase — individual consultation rounds and tracking of acceptance rates: 16 weeks.
• D5 Final Close-out — signed legal agreements, final payout schedules and close-out report: 20 weeks.

Confidentiality: SANC information must be treated as strictly confidential and must not be disclosed to any third party.

Bidders must submit a comprehensive methodology showing understanding of the terms of reference and the proposed approach to diagnosing and resolving workplace conflict.

The proposal must cover:

• Stakeholder engagement approach.
• Data collection methods.
• Mediation and facilitation methodology.
• Risk management measures.
• Project plan with milestones and timelines.
• Reporting framework and deliverables.
• Sustainability and relationship restoration approach.

Scoring (20 points):

• No methodology, or one that does not meet requirements: 0.
• Broadly aligned to the deliverables: 5.
• Aligned and demonstrating understanding of the assignment: 10.
• Detailed, with a clear approach, timelines and deliverables: 15.
• Comprehensive, with an implementation plan, stakeholder engagement strategy, risk mitigation measures, reporting framework and alignment to all terms of reference: 20.

Service provider experience (15 points)

• Minimum 2 years' relevant experience in actuarial valuations, post-retirement medical aid, legal compliance and individual negotiation, including conflict mediation and resolution interventions.
• Under 2 years = 0; 2 years = 3; 3–4 years = 5; 5–7 years = 10; more than 7 years = 15.
• Evidence: detailed company profile and list of completed projects.

Key personnel — Actuary (30 points)

• Certified copies of qualifications, not older than 6 months; SANC may verify.
• NQF 9 or higher in actuarial science = 35 points; NQF 8 = 20; NQF 7 = 10; no or irrelevant qualification = 0.
• Membership of a recognised professional body such as ASSA = 5 points.

Key personnel — Business Analyst (20 points)

• Certified copies of qualifications, not older than 6 months; SANC may verify.
• NQF 9 or higher in business management or equivalent = 15 points; NQF 8 = 10; NQF 7 = 5; no or irrelevant qualification = 0.
• Certified Negotiation Expert (CNE) registered with the Center for Professional Supply Chain Professionals, or Certified International Negotiator (CIN) registered with the Chartered Institute of Professional Certifications = 5 points.

Reference letters (10 points)

• Minimum of three references, on client letterhead, signed, dated, not older than eight years, with contact details.
• Fewer than 3 = 0; 3 = 3; 4 = 5; 5 = 8; 6 or more, including at least 2 public-sector, professional council or regulated-environment clients = 10.
• SANC may contact referees to confirm the information.

Bidders must price each deliverable separately on the pricing schedule, VAT exclusive, with VAT and grand total shown.

• D1 Inception Report — project plan, methodology and stakeholder engagement strategy.
• D2 Actuarial Model — valuation report and individual pricing/buyout matrices.
• D3 Legal Toolkits — settlement agreements, consent forms and tax clearance templates.
• D4 Negotiation Phase — individual consultation rounds and tracking of acceptance rates.
• D5 Final Close-out — signed legal agreements, final payout schedules and close-out report.

The total must be an all-inclusive price for the service.

Payment is per milestone or for work completed and accepted by SANC.

Pricing

• Provide a single all-inclusive price for the service.
• Price the five deliverables separately on the pricing schedule, VAT exclusive, with VAT and grand total shown.
• Price is scored out of 80 using Ps = 80(1 − (Pt − Pmin)/Pmin), where Pt is the bid price and Pmin the lowest acceptable price.

Payment

• Payment is made per milestone or for work completed and accepted by SANC.
• Invoices must be valid, original, submitted timeously through the agreed channel and supported by the required evidence.
• SANC will not approve invoices for outstanding deliverables, duplicated work or unproductive time.

Validity: quotations must remain valid for at least 60 days from the closing date.

CSD and tax

• Register on the National Treasury Central Supplier Database and submit a CSD report or CSD supplier number.
• Submit a SARS tax compliance status PIN or a printed TCS certificate; consortia, joint ventures and subcontractors must each submit their own TCS certificate, PIN or CSD number.
• Bidders found tax non-compliant are notified and must settle outstanding obligations within 7 days; failure to provide written proof within 7 days results in rejection of the bid.
• Bidders in the service of the state, or companies or close corporations whose directors or members are in the service of the state, will not be considered.

Professional registration

• Valid proof of registration as a Registered Service Provider with ASSA or another regulatory body is a mandatory requirement; SANC may verify authenticity.

B-BBEE and specific goals

• A valid B-BBEE certificate or sworn affidavit (for EMEs and QSEs) must be submitted to claim preference points.
• Specific goals points are claimed on SBD 6.1 and verified with CIPC documents, a valid B-BBEE certificate, identity documents, a medical report for disability ownership or a signed declaration letter; without proof, zero points are awarded.

Returnable forms

• Invitation to Bid: complete and sign.
• Bidder's Disclosure: complete and sign; listing on the Register for Tender Defaulters or the List of Restricted Suppliers disqualifies the bidder.
• SBD 6.1 Preference Point Claim Form: claims specific goals points.
• Proof of authority to sign, such as a company resolution.

Duration: twelve (12) months.

Confidentiality: SANC information must be treated as strictly confidential and must not be disclosed to any third party.

Pricing: a single all-inclusive price is required for the service.

References: reference letters must be provided on the referee's letterhead.

Payment: SANC may pay per milestone or for work completed and accepted; invoices must be valid, original, submitted timeously through the agreed channel and supported by evidence. SANC will not approve invoices for outstanding deliverables, duplicated work or unproductive time.

Governing framework: the quotation is subject to the Preferential Procurement Policy Framework Act, 2000, the Preferential Procurement Regulations, 2022 and the General Conditions of Contract.

Tax compliance: a bidder whose tax status is non-compliant must settle outstanding obligations within seven (7) days and provide written proof, failing which the bid is rejected.

Preference point system: 80/20 under the Preferential Procurement Regulations 2022.

Functionality minimum: 70 out of 100; bids below this are not considered further.

Functionality scoring (100 points):

• Service provider experience: 15 points.
• Key personnel: Actuary qualifications 30 points; Business Analyst qualifications 20 points.
• Reference letters: 10 points.
• Proposal and project plan (methodology): 20 points.

Price and specific goals (100 points):

• Price: 80 points.
• Specific goals: 20 points.

Specific goals allocation:

• Black ownership: 8 points (100% black ownership = 8; 51%–99% = 5; below 51% = 0).
• Black women ownership: 4 points (100% = 4; 30%–99% = 2; below 30% = 0).
• Black youth ownership: 4 points (100% = 4; 30%–99% = 2; below 30% = 0).
• Disability ownership: 4 points (20% or more owners with disability = 4; below 20% = 2; 0% = 0).
• Ownership is measured by the percentage of the enterprise owned, or shares held by members active in day-to-day operations.
• Price and specific goals points are added and rounded to two decimal places; the bidder with the highest total points is awarded the contract.