Appointment of short-term insurance broker for okhahlamba local municipality

Documents available: from 05 November 2026 at 15:30, free download from www.etenders.gov.za, or from the SCM Bids office after a non-refundable deposit of R400.00.

Briefing session: none stated.

Closing: 10 December 2026 at 12:00.

Bid opening: public opening in the municipal boardroom at the closing time.

Technical enquiries:

• Name: S Khanyile
• Role: Finance Department, technical enquiries
• Email: [email protected]
• Telephone: 036 448 8066 / 074 763 2288

SCM and bidding procedure enquiries:

• Name: Thulile Maphalala
• Role: Finance - Supply Chain Management Department
• Email: [email protected]
• Telephone: 036 448 8056 / 087 086 9209
• Facsimile: 036 448 1986

Submission address:

259 Kingsway Street (opposite Astron Garage)

Bergville

3350

Postal address:

PO Box 71

Bergville

3350

Submission method: hand delivery or courier to the bid box at reception, Okhahlamba Local Municipality, 259 Kingsway Street (opposite Astron Garage), Bergville, 3350; postal address PO Box 71, Bergville, 3350. Facsimile and emailed bids are not accepted. Late bids are not considered. Courier deliveries should arrive at least two days before closing to avoid late delivery. Bids must be submitted on the official forms issued, not re-typed, and completed in black ink. The envelope must be endorsed with the contract number and description, with bidder details clearly indicated. Bids are opened in public in the municipal boardroom at the closing time.

Returnable forms:

• MBD 1 / Form of Acceptance and Declaration: bidder offer and acceptance of bid conditions.
• MBD 3.1 Pricing Schedule: firm brokerage fees for the three-year contract.
• MBD 4 Declaration of Interest: disclosure of state employment or connections to the municipality.
• MBD 6.1 Preference Points Claim: claim for specific goals points under the 80/20 system.
• MBD 8 Declaration of Past Supply Chain Management Practices: declaration of no abuse, fraud, or default listing.
• MBD 9 Certificate of Independent Bid Determination: certification that the bid was prepared independently without collusion.

Documents to submit with the bid:

• CSD Registration Full Report, not older than 3 months.
• Company Registration certificate.
• Certified copies of identity documents of directors.
• Certified copy of B-BBEE Status Level Verification Certificate or sworn affidavit.
• Rates Statement and/or Lease Agreement or proof of residence.
• FSB License.
• FAIS registration, Representative and Key Individual Certificates.
• FIA membership.

Bid validity: 90 days from closing; the bid may not be withdrawn during this period.

Disqualification risks: late bids; unsigned or omitted returnable forms; bids from persons in the service of the state; failure to return documents in the form and order issued; deviation from the tender insurance document.

Evaluation is conducted in two stages: functionality first, then preference points.

Minimum functionality score: 75 out of 100.

Functionality criteria:

• Proof of experience with government departments or municipalities in the past 5 years: 30 points (5 points per appointment letter and letter of recommendation; 0 points if only one is attached).
• Company existence of more than 8 years: 10 points.
• Monthly claims statistics in spreadsheet format, including self-insurance fund, with proof of sent claims statistics from previous work: 10 points.
• Project leader: 15 points (3 points for every 2 years' experience); detailed CVs and certified copies of qualifications required; relevant qualification in Insurance Management, Finance, Investment or Business at NQF Level 7.
• Claims Manager: 15 points (3 points for every 2 years' experience); detailed CV and certified copies of qualifications required; relevant qualification in Insurance Management at NQF Level 4.
• Agreement letter from underwriter signed by both company directors: 20 points; 0 points if one signature is missing.

Preference points: 80/20 system.

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

• 100% Black ownership: 10 points; 51-99% Black ownership: 5 points; 0-50% Black ownership: 0 points (proof: CK document).

• Women: 2 points (proof: 2 ID copies).

• Youth aged 18-35 years: 2 points (proof: 2 ID copies).

• Disabled: 1 point (proof: medical certificate).

• Location: UThukela district 5 points; KwaZulu-Natal provincial 3 points; national outside KwaZulu-Natal 0 points (proof: CSD and utility bill, lease agreement, or affidavit confirming residence).

Failure to submit proof for specific goals means no preference points are claimed.

Procurement: appointment of a short-term insurance broker for a period of three years for Okhahlamba Local Municipality.

Role: independent intermediary between the municipality and insurance companies.

Required functions: expertise and risk assessment; lower costs and tailored deals; claims advocacy; time and convenience; ongoing support.

The broker may not suggest insurance bases or alternatives outside the tender document; deviation results in disqualification.

The tenderer must be willing to underwrite each individual policy type at the tendered premium without other policies being granted.

Specimen wording of each policy must be attached.

Either party may cancel a long-term agreement with appropriate penalties.

The municipality may adjust insured property details and amounts at final placement and during the contract.

Premiums must be rounded to the nearest full rand and must include VAT.

The broker must disclose the insurer on each policy.

The tenderer must indicate how many local authorities' insurance is currently handled, with examples and contact person references.

The broker must state: number of staff employed countrywide; staff experience handling insurance of local authorities; which office will handle the council's portfolio.

Professional indemnity insurance details required: indemnification limit minimum R20m, excess, underwriters, renewal date.

Pricing covers brokerage fees only, per annum for three years.

An asset register (Annexure A) listing municipal assets to be insured is attached.

Proof is required for every functionality criterion. Proof of experience with government departments or municipalities in the past 5 years: 5 points per appointment letter and letter of recommendation, 0 points if only one is attached (maximum 30 points). Company existence: more than 8 years (10 points). Monthly claims statistics: spreadsheet format including self-insurance fund, with proof of sent claims statistics from previous work (10 points). Project leader: 3 points for every 2 years' experience (15 points); detailed CVs and certified copies of qualifications; relevant qualification in Insurance Management, Finance, Investment or Business at NQF Level 7. Claims Manager: 3 points for every 2 years' experience (15 points); detailed CV and certified copies of qualifications; relevant qualification in Insurance Management at NQF Level 4. Agreement letter from underwriter signed by both company directors: 20 points; 0 points if one signature is missing. Minimum functionality score: 75%.

The pricing schedule must be completed; failure to complete it renders the bid invalid and results in disqualification. Only firm prices are accepted; non-firm prices are not considered. Prices are fixed for the duration of the contract. Bidders provide brokerage fees only, per annum, for Year 1 (2027/2028), Year 2 (2028/2029), and Year 3 (2029/2030), with separate columns for price exclusive of VAT and price inclusive of VAT. All delivery costs must be included in the bid price. An asset register (Annexure A) listing municipal assets is attached to assist bidders with pricing.

Pricing format: firm prices only; non-firm prices, including prices subject to exchange rate variations, are not accepted.

Prices are fixed for the duration of the contract.

Bidders quote brokerage fees only, per annum, for:

• Year 1 (2027/2028): price exclusive of VAT and price inclusive of VAT.
• Year 2 (2028/2029): price exclusive of VAT and price inclusive of VAT.
• Year 3 (2029/2030): price exclusive of VAT and price inclusive of VAT.

All delivery costs must be included in the bid price.

All premiums must include VAT.

Payment terms: payments made to the service provider within 30 days of receipt of invoice.

Professional indemnity insurance: minimum indemnification limit of R20m.

Bid validity: 90 days.

Tender document cost: R400.00 non-refundable deposit from the SCM Bids office; free download from www.etenders.gov.za from 05 November 2026 at 15:30.

CSD registration: CSD Registration Full Report not older than 3 months; CSD number required where no TCS is available.

Tax compliance: valid Tax Clearance Certificate plus SARS status verification PIN; TCS certificate or PIN may be submitted.

Company registration: Company Registration certificate (CK document).

Directors: certified copies of identity documents of directors.

B-BBEE: certified copy of B-BBEE Status Level Verification Certificate or sworn affidavit.

Licences and memberships: FSB License; FAIS registration with Representative and Key Individual Certificates; FIA membership.

Residence: Rates Statement and/or Lease Agreement or proof of residence.

State employment: no bids will be considered from persons in the service of the state.

Database registration: bidders must be registered on the National Treasury Central Supplier Database (CSD) and the Okhahlamba Local Municipality database.

Returnable forms: MBD 1 Form of Acceptance and Declaration; MBD 3.1 Pricing Schedule; MBD 4 Declaration of Interest; MBD 6.1 Preference Points Claim; MBD 8 Declaration of Past Supply Chain Management Practices; MBD 9 Certificate of Independent Bid Determination.

Contract form: successful bidder must complete and sign MBD 7 written contract form.

Contract duration: three years from the day of finalisation of appointment. Payment: within 30 days of receipt of invoice. Price: firm prices for the contract duration; no variation except authorised adjustments. Bid validity: 90 days from closing; the bid may not be withdrawn during this period. Returnable documents: issued documents must be returned in the form and order issued; failure to comply may result in disqualification. Appeals: a 14-day objection period applies to award decisions; the notice of award is published on the municipal website. Municipality rights: to call for presentations from shortlisted suppliers; not to make any award; to request further technical or functional information after closing; to verify information and documentation; to withdraw or amend bid conditions by written notice; to remedy incorrect awards.

The 80/20 preference point system applies. Price is allocated 80 points and specific goals 20 points, for a total of 100 points. Specific goals points: 100% Black ownership 10 points (proof: CK document); 51-99% Black ownership 5 points; 0-50% Black ownership 0 points. Women 2 points (proof: 2 ID copies). Youth aged 18-35 years 2 points (proof: 2 ID copies). Disabled 1 point (proof: medical certificate). Location: UThukela district 5 points; KwaZulu-Natal provincial 3 points; national outside KwaZulu-Natal 0 points (proof: CSD and utility bill, lease agreement, or affidavit confirming residence). Failure to submit required proof means no preference points are claimed.