Renewal and licensing of sage 300 people HR & payroll system – tender in kwazulu-natal

Closing date: 22 October 2026 at 12:00

Bid opening: immediately after closing time, in public

No compulsory briefing or site visit is stated in the document.

Bidding procedure enquiries:

• Contact: Andiswa Mahlaka
• Department: Budget and Treasury Office
• Telephone: 039 797 6743
• Fax: 039 727 3676
• Email: [email protected]

Technical enquiries:

• Contact: Sivenathi Cwati
• Department: Corporate Services
• Telephone: 039 797 6711
• Fax: 039 727 3676
• Email: [email protected]

Site code requests:

• Email: [email protected] or [email protected]

Submission address:

Greater Kokstad Municipality

75 Hope Street

Kokstad, 4700

Submission method: sealed envelope deposited in the tender box at the Reception Area, 75 Hope Street, Kokstad, 4700, before 22 October 2026 at 12:00. Envelope must be marked "Bid No.: GKM 14-26/27 SAGE 300 LICENSE RENEWAL". Late, faxed, emailed, or telegraphic bids will not be considered. Bids must be submitted on official forms only; retyping or redrafting is prohibited. All alterations must be initialled; correcting fluid is prohibited. Bids must remain valid for 90 days from closing date. Returnable documents (all must be completed, signed, and submitted):

• MBD 1 (Invitation to Bid): bidder details, pricing, and acceptance of conditions; omission of price disqualifies.
• MBD 4 (Declaration of Interest): disclose any relationship with municipal employees, councillors, or state officials; list all directors/shareholders/partners.
• MBD 6.1 (Preference Points Claim Form): claim specific goal points by writing the number, not ticking.
• MBD 8 (Declaration of Bidder's Past SCM Practices): declare any past restrictions, terminations, or failures on government contracts.
• MBD 9 (Certificate of Independent Bid Determination): certify the bid was prepared independently without collusion.
• CSD report not older than 3 months (or clear CSD number on MBD 1).
• Proof of municipal rates and taxes good standing for the company and each director (see Section J).
• Sage Partner Certificate/Confirmation.
• Authority to sign documentation (company resolution, partnership certificate, etc.).
• Joint Venture agreement (if applicable) signed by all partners, identifying lead partner and shareholding.
• Tender Consent Form (POPIA consent).
• Declaration that CSD information is correct and up to date.

Disqualification risks: incomplete, unsigned, or missing mandatory documents cannot be rectified after closing; failure to provide municipal rates proof; false declarations; submission after closing time.

Evaluation is in two stages per National Treasury Circular No. 53:

Stage 1 – Functionality (maximum 80 points):

• Company Experience (50 points): proven track record in renewal and licensing of Sage 300 People HR & Payroll, with signed appointment letters/orders and reference letters for public sector projects. 5 or more projects = 50 points; 3-4 projects = 30 points; 1-2 projects = 10 points.
• Personnel Experience (30 points):
• HR Consultant: NQF Level 6 in HRM with 5 years experience in personnel and leave management = 15 points; 3-4 years = 10 points; 1-2 years = 5 points.
• Payroll and Tax Consultant: NQF Level 6 in Finance with 5 years experience in payroll administration and taxation = 15 points; 3-4 years = 10 points; 1-2 years = 5 points.
• Minimum qualifying score: 60 out of 80 points on functionality. Bidders scoring below 60 are disqualified.

Stage 2 – Price and specific goals (80/20 system, estimated value below R50 million):

• Price: 80 points, calculated using the formula Ps = 80(1 - (Pt - Pmin)/Pmin).
• Specific goals: 20 points total.
• Goal 1 – Ownership (max 10 points): business owned 50% or more by black person = 5 points; by black youth = 5 points. Verified via detailed CSD.
• Goal 2 – RDP (max 10 points): business located within KwaZulu-Natal = 10 points. Refer to Section J.
• Bidders not submitting specific goal documentation are not disqualified but receive zero points for those goals.
• Total points out of 100; price and specific goal points must not exceed 100.

The municipality requires the appointment of a service provider for the renewal and licensing of the Sage 300 People HR & Payroll System (Cloud-Based) for a period of 3 years. Scope of work:

• Facilitate annual license renewal for 3 years.
• Provide maintenance and support not exceeding 250 hours per annum (postpaid, billed as per usage).
• Provide helpdesk services for system-related queries.
• Manage user license modifications (additions and cancellations).
• Configure customised reports when required.
• Provide APIs and configure integration between Sage 300 People and the Time and Attendance system.
• Provide training and skills transfer for ICT, HR, and payroll staff.

Technical specifications:

• Sage 300 People modules: Payroll (Salaries + Wages + Leave Management), General Ledger Integration, mSCOA, Sage Intelligent Connector.
• HR modules: Personnel Management, People Self Service (including Job Requisition & Mobile App).
• Software subscription based on a maximum of 1300 users, including a maximum of 15 Cloud Users.

Key deliverables:

• Annual license renewal for 3 years.
• Maintenance and support up to 250 hours per annum.
• Delivery within 7 days of receipt of official purchase order.
• Helpdesk services.

Performance management:

• Performance reviewed monthly.
• KPIs with weights: License Renewal Completion (50%), Service Desk Response Time (15%), User Support & Training (20%), Incident Resolution (15%).
• Targets: license renewal within 7 days of appointment; respond to incidents within 2 hours; resolve incidents within 6 hours.
• Penalties for non-performance: written warnings, 2.5% or 5% invoice reduction, contract termination for repeated non-performance.

Project management: service provider reports to Corporate Services Department (ICT), with the ICT System and Web Administrator as Project Coordinator.

Scope of work: annual licensing of Sage 300 People HR & Payroll System (3 years); manage user license modifications; configure customised reports; provide APIs and integration with Time and Attendance system; provide training and skills transfer for ICT, HR, and payroll staff; provide up to 250 hours per annum of support (postpaid). Technical specifications: modules include Payroll (Salaries + Wages + Leave Management), General Ledger Integration, mSCOA, Sage Intelligent Connector; HR modules include Personnel Management, People Self Service (Job Requisition & Mobile App); software subscription based on maximum 1300 users, including maximum 15 Cloud Users.

Functionality criteria for evaluation: Proven track record with renewal and licensing of Sage 300 People HR & Payroll system and providing support to the public sector - 5 or more projects (50 points), 3-4 projects (30 points), 1-2 projects (10 points) - verified via signed appointment letters/orders and reference letters. Personnel: HR Consultant with NQF Level 6 in HRM and 5 years experience in personnel and leave management (15 points), 3-4 years (10 points), 1-2 years (5 points); Payroll and Tax Consultant with NQF Level 6 in Finance and 5 years experience in payroll administration and taxation (15 points), 3-4 years (10 points), 1-2 years (5 points) - verified via certified qualifications and CVs.

No specific quality management system or certification is required beyond the performance KPIs and scoring method described in the tender. Service quality is measured through monthly performance reviews against the defined KPIs, with penalties for non-compliance.

Prices or rates quoted must be firm and inclusive of all applicable taxes. Price must be carried over to MBD 1 - omission leads to disqualification. Tender sum (all inclusive) must be stated. The 80/20 preferential point system applies as the estimated value is below R50 million. Price points calculated using the formula Ps = 80(1 - (Pt - Pmin)/Pmin).

Pricing format: firm prices, inclusive of all applicable taxes. The total bid price must be carried over to MBD 1; omission leads to disqualification.

Tender validity: prices must remain valid for at least 90 days from the closing date.

No bid security, bonds, guarantees, or retention are specified in the document.

The 80/20 preferential point system applies as the estimated value is below R50 million.

Mandatory requirements:

• Sage Partner Certificate/Confirmation.
• CSD registration: all suppliers must be registered on the Central Supplier Database (www.csd.gov.za). A detailed CSD report not older than 3 months must be attached.
• Tax compliance: submit a valid SARS Tax Compliance Status (TCS) PIN or CSD number. Foreign suppliers must complete the pre-award questionnaire.
• Municipal rates and taxes: proof that the company and each director do not owe municipal rates, services, or taxes for more than 90 days. Acceptable proof: municipal statement not older than 3 months, valid lease agreement, municipal rates clearance certificate/affidavit (rural areas), landlord's letter/statement with affidavit, or original affidavit explaining why rates are not owed.
• No bids from persons in the service of the state.
• No bids from persons owing municipal rates for more than 90 days.
• No bids from bidders listed on the National Treasury list of tender defaulters or restricted service providers.
• Joint Venture submissions: signed JV agreement, separate or combined MBD 4, 8, 9 forms, all partners CSD registered and tax compliant.
• B-BBEE: a B-BBEE status level verification certificate or sworn affidavit (for EMEs and QSEs) must be submitted to qualify for preference points.

The municipality will enter into a three-year Service Level Agreement (SLA) with the successful service provider. Performance is reviewed monthly. Failure to meet standards may result in written warnings, penalties (2.5% or 5% invoice reduction), or contract termination for repeated non-performance. KPIs and weights: License Renewal Completion (50%), Service Desk Response Time (15%), User Support & Training (20%), Incident Resolution (15%). Scoring ratings: 5 = Excellent, 4 = Good, 3 = Acceptable, 2 = Poor, 1 = Very Poor. Performance levels: 95-100% Excellent (no action), 80-94% Good (monitor), 70-79% Acceptable (written warning), 60-69% Poor (2.5% invoice deduction), below 60% Very Poor (5% invoice deduction).

Mandatory requirements: Sage Partner Certificate/Confirmation. Bidders must be registered on the Central Supplier Database (CSD). Bidders must provide proof of good standing regarding municipal rates and taxes for the company and each director (municipal statement not older than 3 months, lease agreement, or affidavit). Bidders must not be in service of the state, owe municipal rates for more than 90 days, or be listed on National Treasury's list of tender defaulters. Bidders must submit a valid Tax Compliance Status (TCS) PIN or CSD number. Joint Venture submissions require a signed JV agreement, separate or combined MBD 4, 8, 9 forms, and all partners must be CSD registered and tax compliant. Tender validity: prices must remain valid for at least 90 days from closing date.

Evaluation is in two stages per National Treasury Circular No. 53. Stage 1: Functionality assessment – only bidders achieving a minimum threshold of 60 points on functionality proceed. Functionality criteria: Company Experience (50 points), Personnel Experience (30 points). Stage 2: 80/20 preferential point system – 80 points for price, 20 points for specific goals (ownership and RDP). Specific goals: Goal 1 Ownership (max 10 points): business owned 50% or more by black person (5 points), by black youth (5 points) – verified via detailed CSD. Goal 2 RDP (max 10 points): business located within KwaZulu-Natal (10 points) – refer to Section J. Price points calculated using the 80/20 formula. Bidders not disqualified for not submitting specific goal documentation, but no points awarded. Total points out of 100.