Ecl model development & implementation – grap 104 tender in kwazulu-natal

{"closingDate":"06 JULY 2026","closingTime":"12:00","briefingSession":"{\"date\":null,\"time\":null,\"venue\":null,\"is_compulsory\":false}"}

Compulsory briefing session: There will be no briefing session. For further information or clarities contact Mr. Khulekani Nxumalo on 035 473 3356 during normal office hours.

{"name":"Mr. Khulekani Nxumalo on","email":"[email protected]","phone":"+27 35 473 3300","department":"SCM OFFICES ADDRESS","address":"ED CREDIT LOSS (ECL)"}

Returnable Documents: Supplier Database (CSD)

Returnable schedule documents

Supply Chain Management Policy to undertake the

following:-

Tender description tender closing date functionality

Number and time

Three Year Contract- KZN ULM 06 July 2026 at 11 KV

• Company’s proven experience

Development, Customization 40/25/26 Challenor Street, practical knowledge of

and Implementation of an Eshowe at 12h00 municipal GRAP environment

Expected Credit Loss (ECL) by the lead company = 25

• Experience of the team leader Model in Terms of Grap 104

and manager on the project

Service Provider shall be valid for a maximum period of 3 years (36 Months) from

commencement date.

3.3 Scope of works

3.3.1 Development, customization, and implementation of an ECL model in terms of GRAP

104 (Revised)

(i) Development, customization and implementation of the proposed impairment (ECL) model

for receivables in terms of GRAP 104 (revised). If a new model should be developed, it

would ideally be Excel based. The customization and implementation should include the

modification of the model to input data from available reports from the PHOENIX

financial system, without the need for human intervention/manipulation of data into

another format.

(ii) Development /amendment of new/existing debt impairment policy and methodology.

3.3.2 Annual License fee for the ECL model (if applicable)

(i) Yearly use, updates and maintenance of ECL Model.

3.3.3 Ad-hoc consulting/support fees

(i) Assistance with the updating of the annual financial statements with revised accounting

policies and disclosures as required by the revised GRAP 104.

(ii) General assessment and implementation of other changes required by the revised GRAP

104 (not covered above).

(iii) Technical training / discussions on the implementation of the revised GRAP 104 (if and

when applicable and required).

(iv) Assistance with answering of audit queries (should there be any that arises) related to the

implementation of the revised GRAP 104.

3.4 Transfer of skills

3.4.1 Skills transfer must be provided during execution of the project where it is practically

possible. The officials to whom skills must be transferred to are limited to number of

officials nominated by employer on the commencement meeting.

3.4.2 Successful Consultant to submit proposed skills transfer strategy on the project as

requirement of this tender.

3.4.3 This schedule shall be read together with skill transfer clause of this contract. The uMlalazi

installation of an ECL model in terms of

GRAP 104 (Revised) (Any proposed

subsistence and travel should be included

in the price). Price to include

development of new provision for

impairment policy and methodology as

well as accounting policies

2 Annual License fee for the ECL model (if

applicable)

Three Year Contract- KZN ULM 06 July 2026 at 11 KV

• Company’s proven experience

Development, Customization 40/25/26 Challenor Street, practical knowledge of

and Implementation of an Eshowe at 12h00 municipal GRAP environment

Expected Credit Loss (ECL) by the lead company = 25

• Experience of the team leader Model in Terms of Grap 104

and manager on the project

(Lead Company) = 25

• Experience of the team

members (Lead company) = 20

• Unqualified audit

municipality/municipalities

where revised GRAP 104

was implemented = 30

ELIGIBILITY TO TENDER: Entities registered with South African Institute of Chartered Accountants

(SAICA) to submit tenders.

2.7. Evaluation method

2.7.1. Eligibility to tender only if it is applicable and specified in the bid.

2.7.2. Compliance with completion of tender document as per item 2.3 in this bid document.

2.7.3. Compulsory returnable documents.

2.7.4. Functionality (as per criteria on item 9 in this bid document) only if it is applicable in this

bid.

2.7.5. Price and preferential procurement system as specified in the bid.

2.8. Validity period

The tender undertakes that bid will be valid for a period of Ninety (90) days and that the Tenderer

will not retract or change the tender during the period that the uMlalazi Municipality is

scrutinizing the acceptance thereof.

2.7. Competence of key personnel and quality

2.7.1. To carry out and complete work the Proffessional Service Provider shall employ only such

person as are careful competent and efficient in their various professions. All key personnel

presented by the tenderer during bidding stage for evaluation purposes must be maintained

or remain unchanged for the duration of the contract “ no substitution without municipity’s

written approval will be allowed’’

2.7.2. Appointed bidder will be required to maintain all quality presented during bidding process

which has significantly influenced decision making in awarding of this tender, this shall be

part of the service level agreement.

2.6 Location and geographical size of the municipality

The administrative center of uMlalazi Local Municipality (KZN284) (Eshowe) is situated along

the north eastern coast of Kwa Zulu Natal, 140km north east of Durban. UMlalazi municipality

is located within King Cetshwayo District. Geographically, the municipal area covers 2 217km2

and consist of 28 electoral wards with dominance of rural wards, and there are 14 tribal

authority areas of which AmaKhosi are custodians thereof on behalf of the Ingonyama Trust

3.5.1 Monitoring, reporting requirements and performance includes but not limited to: (i) This Contract will be monitored on monthly basis and performance/ progress report will be required to be submitted as a supporting documents to service provider’s invoice where required by municipality. 3.5.2 Service provider to: (i) Submit, written reports on the project progress as per the agreed reporting requirements. (ii) Be available to present progress reports during the contract. 3.5.3 The Municipality reserves the right to introduce or put in place additional performance measures as and when required, as deemed necessary during contract administration.

1. Notice .............................................................................................................................................. 2

2. Instructions and conditions of tender ................................................................... 6

3. Specifications of tenders ............................................................................................... 11

4 pricing instructions pricing and payment related ..................................... 14

5 PRICING SCHEDULE (Professional fees break-down) .............................................................. 17

6. Form of offer........................................................................................................................... 18

7. Form of acceptance ............................................................................................................ 20

8. Returnable and schedule documents .................................................................... 21

A. Proof of purchase of tender document ............................................................... 22

B. Tax clearance certificate requirements .......................................................... 23

4 Additional Services submitted by bidder in terms of clause 4.1.4 of the pricing instructions

I/We______________________________________________________________________ do hereby

tender for the

“Three-year contract development, customization, delivery and

IMPLEMENTATION OF AN EXPECTED CREDIT LOSS (ECL) MODEL IN TERMS OF GRAP 104” as

per specifications and scope of work in the tender document for an amount of:-

Total carried from pricing schedule, in figures (Exclusive of VAT) R ____________________

15% VAT (if vat registered) R _______________________

Total carried from pricing schedule, in figures (Inclusive of VAT) R ____________________

In terms of Clause 38 of the Supply Chain Management Policy the uMlalazi Municipality reserves the

right to reject any tender if any municipal rates and tariffs or municipal service charges owed by that

tenderer or any of its directors to the municipality or to any other municipality or municipal entity are

in arrears for more than 3 (three) months.

which the business is situated/ located.

This serves to confirm that my company’s municipal rates and taxes are paid up to date and the

following is attached:

1. An copy of the most recent municipal statement not older than 3 months, indicating the status

of payment of all municipal accounts and taxes, electricity, water, refuse, rates and levies, from

the Municipality in which jurisdiction it’s business is situated or;

establishment, the tenderer to provide copy of lease agreement and a recent statement from its

landlord certifying that all the tenants payments in respect of all municipal accounts and taxes

i.e. electricity, water, refuse, rates and levies are paid up to date or;

Valid tax clearance certificate (original) valid as at date of tender closing Compulsory

valid Tax Clearance Certificate will result in the invalidation of the bid

CSD report

Central supplier database registration

Central Supplier Database (CSD)

Joint Venture Agreement in this bid

Joint Venture Agreement and Power of Attorney in case of Joint Ventures

Power of Attorney in case of Joint Ventures

Supplier Database (CSD)

B. Tax clearance certificate requirements

TCC 001. 'Application for Tax Clearance Certificate’ and submit it to any SARS branch office

nationally. The Tax Clearance Certificate requirements are also applicable to foreign

2. SARS will then furnish the bidder with a Tax Clearance Certificate that will be valid for a

3. The original Tax Clearance Certificate must be submitted together with bid. Failure to submit

the original and valid Tax Clearance Certificate will result in the invalidation of the bid.

Certified copies of the Tax Clearance will not be acceptable.

a separate Tax Clearance Certificate.

5. Copies of the TCC 001 “Application for a Tax Clearance Certificate” forms are available from

6. Applications for the Tax Clearance Certificate may also be made via eFiling. In order to use

include an acceptable Joint Venture Agreement in this bid.

B-BBEE Minimum Level: 1

B-BBEE Details: (SAICA) to submit tenders.

Sealed tenders endorsed tender number and description must reach the Municipal Manager, uMlalazi

Municipality, and must be hand delivered and placed in the Tender Box at the Municipal Buildings, KV

Challenor Street, Eshowe by no later than 12h00 on the above stipulated dates.

This tender will be evaluated based on returnable documents, functionality and price where 80/20 point

system as per stipulated specific goals of this tender in terms of Preferential Procurement Regulations,

2022.

Specific Goals: -

NO. Categories Weight 80|20

1. Ownership Goals:

• BBBEE Level 1 100% 10
• BBBEE Level 2 60% 6

20% 2

• BBBEE Level 3 & Below

2. Reconstruction & Development Programme Goals:

• Enterprise Located within uMlalazi Municipality 100% 4
• Enterprise Located within District Municipality = 2 50% 2
• Enterprise Located within the Province = 1 25% 1

3. SMME Development (EME and QSE): 100% 4

• an EME or QSE which is at least 100% owned by black people 100% 4
• an EME or QSE which is at least 51% owned by black people 50% 2
• an EME or QSE which is at 25% - 50% owned by black people 25% 1

4. Combination of other goals: 100% 2

• an EME or QSE that is 100% owned by: Black (Youth , Women,

Disabled People, Military Veterans), residing within uMlalazi

Municipality

100% 20

Registration on the Councils Database is preferred prior to the submission and closing of the tender. It is

the responsibility of the Tenderer to ensure that the Data Base registration documents are received by the

Supply Chain Management Office. Further information in this regard can be obtained from the Supply

Chain Management Unit on 035 – 473 3300 ext. 3445. Tenderers are requested to register on Central

Supplier Database (CSD)

Tender documents are availa

Procurement regulations 2022..................................................................................... 31

K. Supporting documents for preferential procurement goals points39

L. Declaration of interest .................................................................................................. 40

M. Declaration of bidder’s past supply chain management practices .. 44

N. Certificate of independent bid determination ............................................... 46

O. Declaration for procurement above r10 million (all applicable

Taxes included) ....................................................................................................................... 48

P. Agreement in terms of section 37(2) of the occupational health and

SAFETY ACT No ........................................................................................................ 50

Q. Record of addenda to tender documents ........................................................... 53

R. Certicicate of authority sign documents .......................................................... 54

S. Amendments or qualifications by tenderer ..................................................... 55

9. Functionality .......................................................................................................................... 56

“Three-year contract development, customization, delivery and

Implementation of an expected credit loss (ecl) model in terms of grap

104”must reach the Municipal Manager, uMlalazi Municipality, by hand and placed in the Tender

Box at the SCM offices, KV Challenor road (industrial Area), by no later than 12:00 pm on the date

as per advert where they will be opened in public. NB: Late tenders, telegraphic or facsimile tenders

will not be considered.

2.3 Completion of tender document

2.3.1 Tender document must duly completed in very manner and all required returnable

documentation must be furnished as specified in this bid.

2.3.2 Fraudulent practice will result to disqualification of the bid and any further corrective

actions that may be required.

2.3.3 Forms in this tender document must be completed and signed.

2.3.4 All pages allocated signing spaces must be signed.

2.3.5 Tenderers will make provision for all machinery, labour, material, equipment and all non-

incidentals needed for the execution and completion of the project in accordance with the

tender documents.

2.4 Authority for signing

Agreement in terms of section 37(2) of the occupational health and safety act no 85 For contractP.

of 1993. purposes

become subject to an appeal process. As such, in terms of Section 62 of the Municipal Systems

Act , a period of fourteen (14) days will be set aside to allow for the submission of

appeals against the award / process of making the award to a particular bidder by any interested

party. Except in scenarios where the decision of a duly appointed appeal panel sets aside the

appointment of the successful bidder as the service provider for this contract, the appointment

will then be confirmed by the municipality in writing.

2.15. Other general terms and conditions of this bid

2.15.1 Awarding of contract will be subject to the Service Provider’s acceptance of offer in

writing.

2.15.2 Project personnel requirements will be confirmed during project initiation and shall remain

unchanged for the duration of the project, unless prior written consent has been granted by

the Municipality.

2.15.3 All secretarial services such as arranging meetings, setting of agenda’s and minute taking

shall be the responsibility of the Service Provider.

2.15.4 No material or information derived from the provision of the services under the contract

may be used for any other purposes except for those of the uMlalazi Local Municipality

except where duly authorized to do so in writing by the uMlalazi Local Municipality.

2.15.5 The successful Service Provider agrees to keep all records and information of, or related to

the project confidential and not discloses such records or information to any third party

without the prior written consent of uMlalazi Local Municipality.

2.16 Contractagreement/service level agreement

4.1 Pricing Instruction Projects (during submission of quotations)

4.1.1 The offer or price shall be as per the pricing schedule.

4.1.2 The offer will be all inclusive of disbursement or and additional services that will be determined

on each project to be allocated. No additional services or disbursement will be paid except where

not those not included in the pricing schedule.

4.1.3 It is the responsibility of the Consultant to establish triggered additional services that are stated in

the pricing schedule or form of offer prior submitting the bid.

4.1.4 The price must be unconditional, and any service deemed omitted in the pricing schedule must be

completed in the space provided in the pricing schedule. In the event where no additional services

submitted by the bidder, all services as per specification of this tender must be provided within the

offered price.

4.1.5 Normal fees will be adjusted to actual project costs after contractor’s appointment and final

project costs is determined.

4.1.6 Recoverable costs will not be subjected to actual project costs or change of project size.

4.1.7 All prices quoted shall be inclusive of Value Added Tax (VAT) if the contractor is registered as

vat vendor.

4.1.8 Prices quoted must include complete delivery of services including level of construction

monitoring stated in specification.

4.1.9 Vendors not registered for Value Added Tax with SARS will be treated as Non VAT vendors

4.2 Payment Instruction

4.2.1 Payment will not be made for work or services performed that fall outside the ambit of the

contract and approved Contract Price, all variation orders must be approved in writing by a

person authorized to do so.

4.2.2 Payment will be made by the municipality to the Service Provider upon delivery of service, which

payment will be made via electronic transfer of funds to the Contractor’s financial institution

subject receipt of a valid tax invoice accompanied with relevant supporting documents specified in

this contract.

4.2.3 Where applicable progress payment claims shall be submitted in the same format, accompanied by

an original tax invoice.

4.2.4 All provisional sums items provided in the pricing schedule are for purposes of tender evaluation

or are estimates, claims will be based on actual costs incurred for work done

4.2.5 The Service Provider is obliged to submit the invoice together with a signed monthly reports,

travel log books, job card or municipal time sheet (whichever is applicable) and job card/time

sheet must be properly filled and reflect worked hours / quantity of work done, site name etc.

Documents of all directors ......................................................................................... 24

D. Proof of central supplier database registration ....................................... 25

E. Rates and municipal services clearance certificate ................................ 26

F. Workmen’s compensation ................................................................................................ 27

G. Proof of professional indemnity insurance ...................................................... 28

H. Audited annual financial statements statemets .......................................... 29

(i) “Closing time” means the date and hour specified in the bidding documents for the receipt of bids.

(ii) “Contract” means the written agreement entered into between the purchaser and the supplier, as recorded

in the contract form signed by the parties, including all attachments and appendices thereto and all

documents incorporated by reference therein.

(iii) “Contract price” means the price payable to the supplier under the contract for the full and proper

performance of his contractual obligations.

(iv) “Corrupt practice” means the offering, giving, receiving, or soliciting of anything of value to influence

the action of a public official in the procurement process or in contract execution.

(v) "Countervailing duties" are imposed in cases where an enterprise abroad is subsidized by its government

and encouraged to market its products internationally.

(vi) “Country of origin” means the place where the goods were mined, grown or produced or from which

the services are supplied. Goods are produced when, through manufacturing, processing or substantial

and major assembly of components, a commercially recognized new product results that is substantially

different in basic characteristics or in purpose or utility from its components.

(vii) “Day” means calendar day.

(viii) “Delivery” means delivery in compliance of the conditions of the contract or order.

(ix) “Delivery ex stock” means immediate delivery directly from stock actually on hand.

(x) “Delivery into consignees store or to his site” means delivered and unloaded in the specified store or depot

or on the specified site in compliance with the conditions of the contract or order, the supplier bearing

all risks and charges involved until the supplies are so delivered and a valid receipt is obtained.

(xi) "Dumping" occurs when a private enterprise abroad market its goods on own initiative in the RSA at

lower prices than that of the country of origin and which have the potential to harm the local industries

in the RSA.

(xii) ”Force majeure” means an event beyond the control of the supplier and not involving the supplier’s

fault or negligence and not foreseeable, events may include, but is not restricted to, acts of the purchaser

in its sovereign capacity, wars or revolutions, fires, floods, epidemics, quarantine restrictions and freight

embargoes.

(xiii) “Fraudulent practice” means a misrepresentation of facts in order to influence a procurement process

or the execution of a contract to the detriment of any bidder, and includes collusive practice among

bidders (prior to or after bid submission) designed to establish bid prices at artificial non-competitive

levels and to deprive the bidder of the benefits of free and open competition.

(xiv) “GCC” means the General Conditions of Contract.

(xv) “Goods” means all of the equipment, machinery, and/or other materials that the supplier is required to

supply to the purchaser under the contract.

(xvi) “Manufacture” means the production of products in a factory using labour, materials, components and

machinery and includes other related value-adding activities.

(xvii) “Order” means an official written order issued for the supply of goods or works or the rendering of a

service.

(xviii) “Project site,” where applicable, means the place indicated in bidding documents.

(xix) “Municipality/Client/purchaser” means the organization purchasing the goods and services.

(xx) “Republic” means the Republic of South Africa.

(xxi) “SCC” means the Special Conditions of Contract.

(xxii) “Services” means those functional services ancillary to the supply of the goods, such as transportation

and any other incidental services, such as installation, commissioning, provision of technical assistance,

training, catering, gardening, security, maintenance and other such obligations of the supplier covered

under the contract.

(xxiii) “Written” or “in writing” means handwritten in ink or any form of electronic or mechanical writing.

(xxiv) Certified copy’ means true and accurate representation of original by an authorized person (Not a copy

of a certified copy).

(xxv) “Returnable documents” refers to listed documents to be submitted together with the bid document

including forms to be completed by the bidder.

(xxvi) “Returnable Schedule documents” refers to forms or parts of the bid document within the returnable

documents that require to be completed by bidder or stated input from the bidder.

remain in force unless replacement submission is made and accepted by the municipality.

2.5 Acceptance of tenders

2.5.1. The Bidder or a competent authorised representative of the Professional Service Provider who

submitted the tender has attended the compulsory briefing meeting (if applicable to this

tender).

2.5.2. The tender offer is signed by a person authorised to sign on behalf of the Bidder.

2.5.3. A Bidder who submitted a tender as a Joint Venture if accepted in the bid document, must

include an acceptable Joint Venture Agreement in this bid.

2.5.4. Acceptance of the tender will not guarantee that the programme, methods and other details

will be approved. Municipality may consider reviewing such prior entering into a contract

agreement.

2.5.5. The Municipality does not bind itself to accept the lowest or any other bid and reserves the

right to accept the whole part of the bid.

2.5.6. The uMlalazi Municipality will not be held responsible for any cost incurred for submitting

this tender.

2.5.7. Failure to comply with the foregoing instructions may lead to the tender not being considered.

2.5.8. When the bid is accepted, the successful tenderer will be informed and the contract negotiated

indicating the financial implications and terms of service will be entered into.

2.5.9. In terms of Section 38 of the Supply Chain Management Policy the Municipality reserves

the right to reject any Bid:

(i) If any municipal rates and tariffs or municipal service charges owed by that Company

owner or any of its directors to the municipality or municipal entity or to any other

municipality or municipal entity are in arrears for more than 3 (three) months.

(ii) Who in last 5 (five) years has failed to perform satisfactory on a previous contract with the

municipality or municipal entity or any other organization of state after written notice was

given to that Service Provider that performance was unsatisfactory.

2.5.10. Late tenders, electronic mailed and computer edited or altered tenders will NOT be accepted.

2.5.11. Corrupt practices of any kind such as canvassing in gift of Municipality is strictly prohibited

and will lead to disqualification of the bid.

2.5.12. Registration on the Councils Database shall be mandatory to the successful bidder. This will

apply on final award of this tender.

2.6 List of compulsory returnable documents to be submitted by tenderer

3.4.5 Skills transfer aspects:

(i) Planning and studies: gathering of all information and data analysis.

(ii) Preliminary designs and design development: ensure participation in data

application, design calculations, understanding of design standards and preparation

of drawings.

(iii) Procurement / Tendering stage – Participate in preparation of tender document and

understanding of all applicable standards and specification including preparation of

bill of quantities.

(iv) Contract administrations

3.4.6 The following conditions also apply:

(i) Failure to transfer skills shall constitute breach of this contract.

(ii) Skill transfer to take place at Company office submitted at tender stage or at Municipal

office where appropriate.

(iii) Editable version documents will be produced and left with the municipality for future

use.

(iv) Only professional registered person be used to transfer skills.

(v) Prior arrangements be made municipality nominated personnel to ensure his/her

availability.

3.5 Monitoring, reporting requirements and performance

detail and a reasonable time frame to enable the Service Provider to rectify such performance.

4.2.8 The municipality is not obliged to pay for incomplete delivered services. In the event of the entire

amount or a portion of the invoice being disputed by the Municipality, the entire invoice amount

shall be withheld, until the dispute is resolved. The undisputed portion may be paid on

municipality’s discretion subjected to nature and conditions of services and submission of the

revised invoice amount as such payment may render the contract irregular.

4.2.9 Invoice will be only be certified for payment once complete services has been delivered, and the

municipality accepts no incomplete consultancy services.

4.1. Penalties

4.1.1. If the service provider fails to perform any or all services within the period(s) specified in the

contract, the Municipality shall, without prejudice to its other remedies under the contract, deduct

from the Price of due service, a penalty of 10% of the overall current invoice amount for the

delayed goods/ services/work. The Municipality may also consider applying termination clause of

the contract should non-compliance with delivery timeframes constitutes gross breach of this

contract.

4.1.2. If at any time during performance of the contract, the supplier or its subcontractor(s) should

encounter conditions impeding timely delivery of the goods and performance of services, the

supplier shall promptly notify the purchaser in writing of the fact of the delay, its likely

duration and its cause(s). As soon as practicable after receipt of the supplier’s notice, the

purchaser shall evaluate the situation and may at his discretion extend the supplier’s time for

performance, with or without the imposition of penalties, in which case the extension shall be

ratified by the parties by amendment of contract.

4.1.3. Failure to deliver the goods or service within the period(s) specified in the contract is as a result of

an event of force majeure, the service provider must report in writing with evidence required

and Municipality shall assess the submission on its discretion.

4.1.4. Notwithstanding the provisions of penalties and termination Clause, the supplier shall not be

liable for forfeiture of its performance security, damages, or termination for default if and to the

extent that his delay in performance or other failure to perform his obligations under the contract

is the result of an event of force majeure.

5 PRICING SCHEDULE (Professional fees break-down)

gift of Municipality is strictly prohibited and will lead to disqualification of tenders. UMlalazi Local the whole/ part of the bid.

Service provider’s details: accountants (saica)

Preferential Procurement Points claim from in terms of the preferential procurement CompulsoryJ.

Supporting documents for preferential procurement for goals points (refer to MBD 6.1) FurtherK.

table 1 evaluation

2.7. Evaluation method

2.7.4. Functionality (as per criteria on item 9 in this bid document) only if it is applicable in this

2.7. Competence of key personnel and quality

presented by the tenderer during bidding stage for evaluation purposes must be maintained

2.7.2. Appointed bidder will be required to maintain all quality presented during bidding process

9. Functionality .......................................................................................................................... 56

Tender description tender closing date functionality

This tender will be evaluated based on returnable documents, functionality and price where 80/20 point

system as per stipulated specific goals of this tender in terms of Preferential Procurement Regulations,

Specific Goals

J. Preference points claim form in terms of the preferential

K. Supporting documents for preferential procurement goals points39