Implementation of revised grap 104 expected credit loss (ecl) model for greater kokstad municipality

Appointment of a service provider for the full implementation of the revised GRAP 104 (Expected Credit Loss impairment model) for a period of one year. The provider will deliver an automated solution ensuring compliance with the standard, covering design, development, implementation, and operationalisation of the ECL model.

• Closing Date and Time: 21 July 2026 at 12:00.
• Compulsory Briefing: None.

• For Technical Enquiries: Contact Ms. Smangele Mbhele. Tel: 039 797 6652. Email: [email protected]
• For Supply Chain Management (Bidding Procedure) Enquiries: Contact Ms. Andiswa Mahlaka. Tel: 039 797 6700. Email: [email protected]
• Submission Address: Tender Box, Reception Area, 75 Hope Street, Kokstad, 4700.

• Submit your bid in a sealed envelope clearly marked with the bid number and closing date.
• Deliver the bid to the tender box at Reception Area, 75 Hope Street, Kokstad, 4700 by 12:00 on 21 July 2026. Late bids will not be considered.
• Use only the official bid forms provided; do not retype or redraft them.
• Ensure the total bid price is clearly written on MBD1. Omission of price on MBD1 leads to disqualification.
• Attach a Central Supplier Database (CSD) report not older than 3 months, or ensure your CSD number on MBD1 is correct for verification.
• Provide proof that your company and each director do not owe municipal rates/taxes for more than 90 days. Acceptable proof includes a valid municipal statement, lease agreement, or affidavit.
• For joint ventures, submit a signed JV agreement identifying the lead partner. Each partner must be CSD registered and tax compliant.
• Complete, sign, and submit all required MBD forms (MBD1, MBD4, MBD6.1, MBD8, MBD9). Incomplete or unsigned forms render the bid non-responsive.
• Bids submitted by post, fax, email, or telegraph will not be considered.
• Bidders are responsible for ensuring their documents are placed in the correct tender box.

The service provider will implement a revised GRAP 104 Expected Credit Loss (ECL) impairment model over 12 months.

Key Scope:

• Assessment & Gap Analysis: Review current accounting policies and processes for financial instruments.
• ECL Model Development: Design an automated model compliant with revised GRAP 104, incorporating probability-weighted outcomes, forward-looking data, segmentation, and historical trends.
• Data Analysis & Calibration: Analyse historical debtor data, identify risk drivers, and calibrate credit loss matrices.
• Model Implementation & Integration: Ensure compatibility with existing MUNSOFT financial systems.
• Accounting Policy & Compliance: Update policies and provide guidance on financial instrument recognition, measurement, and classification.
• Financial Statement Disclosure: Assist in preparing GRAP 104-compliant disclosures.
• Model Validation & Audit Support: Perform independent validation and provide documentation for audit.
• Training & Knowledge Transfer: Conduct workshops and hands-on training for finance staff.
• Technical Support: Provide online/site support for 12 months.

Key Deliverables: ECL model, data analysis, model integration, policy development, disclosure support, validation, training, and technical support.

Key Competencies: Company must demonstrate experience in GRAP application and ECL model implementation. Project manager must have experience overseeing GRAP financial instrument projects.

• The service provider must follow a detailed methodology covering assessment, ECL model development, data analysis, implementation, accounting policy compliance, disclosure support, validation, training, and technical support.
• The model must be automated, integrate with MUNSOFT, and include probability-weighted outcomes, forward-looking data, and historical trends.
• A work plan and budget consistent with the scope must be presented.

• Company must have relevant experience in applying GRAP and implementing new GRAP Standards.
• Company must demonstrate experience in at least one project involving the application and implementation of Expected Credit Loss (ECL) models per GRAP 104/IFRS 9 principles.
• Project manager must have experience overseeing full implementation of financial instrument impairment projects under GRAP.
• For evaluation, provide signed reference letters/appointment letters as proof of experience.

• Performance is assessed against KPIs using a 5-point rating scale: Excellent (5), Good (4), Acceptable (3), Poor (2), Very Poor (1).
• Performance scoring: 95-100% (Excellent), 80-94% (Good), 70-79% (Acceptable), 60-69% (Poor), below 60% (Very Poor).
• Poor or Very Poor performance may trigger invoice deductions or warnings.

• Prices must be firm, inclusive of all taxes, and valid for at least 90 days.
• The total bid price must be clearly stated on MBD1.
• Bidders must provide a detailed work plan and budget, including monthly quotes, consistent with the scope of work.

• Prices quoted must be firm, inclusive of all taxes, and valid for at least 90 days from the tender closing date.
• The total bid price must be carried over to MBD1. Omission leads to disqualification.
• Bidders must provide proof of good standing regarding municipal rates and taxes for the company and each director.
• For joint ventures, all partners must be CSD registered and tax compliant.
• Performance penalties may apply: written warnings, 2.5% or 5% invoice reductions for poor performance, or contract termination for repeated non-performance.

Mandatory Documents & Checks:

• Central Supplier Database (CSD): Submit a CSD report not older than 3 months or ensure correct CSD number on MBD1. Registration is mandatory.
• Tax Compliance: Submit your SARS Tax Compliance Status PIN or a printed TCS certificate. Foreign suppliers must complete a pre-award questionnaire.
• B-BBEE: Submit a B-BBEE Verification Certificate or Sworn Affidavit (for EMEs & QSEs) to qualify for preference points.
• Declaration of Interest (MBD4): Fully disclose any relationships with municipal/state officials. Failure constitutes a false declaration.
• Preference Points Claim (MBD6.1): Complete to claim points for specific goals.
• Past SCM Practices (MBD8): Declare any previous government contract restrictions or failures.
• Independent Bid Determination (MBD9): Certify the bid was prepared without collusion.
• Municipal Rates Clearance: Provide proof that the company and each director do not owe municipal rates/taxes for more than 90 days.
• Professional Registrations: Company Director must provide SAICA membership proof. Data Analyst must provide ASSA/ASABA membership proof.
• Persons in the service of the state are not eligible to bid.

• The successful bidder must sign a written contract (MBD7).
• Contract duration is 12 months.
• Performance is reviewed monthly against KPIs.
• Failure to meet standards may result in written warnings, invoice reductions (2.5% or 5%), or contract termination for repeated non-performance.