Short-term insurance brokerage services for xhariep district municipality (12 months)

Closing date: 27 November 2026 at 12:00.

Bid opening: immediately after closing, in public at the municipal side hall.

Tender documents available from date of advertisement, Monday to Thursday 08:00-16:00, Friday until 15:00.

Submission address:

Xhariep District Municipality

20 Louw Street

Trompsburg, 9913

Postal address:

Private Bag X136

Trompsburg, 9913

Attention: Municipal Manager, Ms LY Moletsane

Municipality contact:

Telephone: (051) 011 2238

Fax: (051) 713 0461

Website: www.xhariep.gov.za

Submission method: sealed envelope, hand-delivered to the bid box at Xhariep District Municipality reception, 20 Louw Street, Trompsburg, 9913, or posted to Private Bag X136, Trompsburg, 9913, to arrive before closing. No emailed or faxed bids accepted.

Closing time: 12:00 on 27 November 2026.

Envelope must be marked with the tender reference number and title.

Returnable forms (all must be completed, signed, and submitted):

• MBD 1 (Invitation to Bid): bidder and contact details, signed as the offer cover page.
• MBD 3.1 (Pricing Schedule – Firm Prices): firm prices only, valid for 90 days from closing date.
• MBD 4 (Declaration of Interest): discloses any connection to persons in the service of the state.
• MBD 5 (Declaration for Procurement Above R10 Million): required if the contract value exceeds R10 million; includes financial statements and disclosure of outstanding municipal debts.
• MBD 6.1 (Preference Points Claim): claims specific-goal points (women-owned, black-owned).
• MBD 7.2 (Contract Form – Rendering of Services): signed contract undertaking.
• MBD 8 (Declaration of Bidder's Past SCM Practices): discloses any restrictions, convictions, or terminated contracts.
• MBD 9 (Certificate of Independent Bid Determination): certifies no collusive bidding.
• Each page of the General Conditions of Contract must be initialled.

Disqualification risks:

• Late bids, regardless of reason.
• Incomplete or unsigned bid documents.
• Use of correction fluid on any document.
• Failure to meet eligibility criteria.
• Bids from persons in the service of the state.

Evaluation stages:

• Phase 1 (Functionality): scored out of 100 points. Minimum qualifying score: 75% (75/100). Bidders below this are disqualified and do not proceed.
• Phase 2 (Price and Specific Goals): 80/20 preference point system. Price: 80 points; Specific Goals: 20 points.

Functionality criteria (values 1-5, weight multiplied by value):

• Brokering experience (6+ years): 40 points. Appointment letters and reference letters from various institutions required; more letters earn higher scores (1 letter = 1, 5+ letters = 5).
• FSP Certificate: 15 points. Attached = full points; not attached = 1 point.
• Claims Policy with turnaround times: 30 points. Must address all categories; if any category missing, no points for this criterion.
• Category A (computer items): claims closed within 7 days.
• Category B (vehicles): within 30 days, full comprehensive cover.
• Category C (furniture and office equipment): within 30 days.
• Category D (land and buildings): within 60 days, insurer arranges alternative office space.
• SAIBA registration proof: 15 points. Attached and meets requirements = 5; attached but fails = 1.

Specific goals (20 points):

• Women-owned: 81-100% = 10 points, 51-80% = 8, 1-50% = 6, 0% = 0.
• Black-owned: 81-100% = 10 points, 51-80% = 8, 1-50% = 6, 0% = 0.
• Proof: company registration or shareholder certificate plus identity document.

Note: The lowest price or highest points may not necessarily be accepted; the municipality reserves the right not to award.

Scope: Provision of short-term insurance brokerage services for Xhariep District Municipality for 12 months.

The successful bidder must:

• Prepare a comprehensive annual insurance risk profile.
• Review the municipality's insurance risk profile and identify new insurable risks.
• Assess the adequacy of existing insurance cover.
• Benchmark the insurance programme against the water sector.
• Recommend appropriate policy limits and deductibles.
• Negotiate favourable insurance terms, conditions, excesses and premiums with insurers, identifying opportunities for premium savings without reducing protection.

Deliverables:

• A comprehensive project schedule showing milestones, cost, timeframes, delivery dates and progress reports.
• A detailed pricing schedule as per the scope of work.
• An implementation plan with stated milestones.

Special notes:

• The service provider must be prepared to comply with future National Treasury regulations on minimum business processes and functionality, at a reasonable agreed cost.
• Data related to full functionality remains the property of the municipality.
• By submitting, the bidder consents to vetting of documents in terms of the POPI Act.

Bidders must have at least six (6) years of brokering service experience. Evidence: appointment letters accompanied by reference letters with a proven record of success for similar projects. Letters must be on company letterheads, signed by the accounting officer, and from various institutions. More letters earn higher scores (1 letter = 1 point, 5+ letters = 5 points).

Pricing must be submitted on MBD 3.1 (Pricing Schedule – Firm Prices). Only firm prices are accepted. The offer must be valid for 90 days from the closing date. The price breakdown includes insurance brokerage for 12 months, excluding VAT, with VAT (15%) added if applicable. All delivery costs must be included in the bid price.

Pricing format: firm prices only, on MBD 3.1. Non-firm prices (including exchange-rate variations) will not be considered.

Offer validity: 90 days from closing date.

Price breakdown: insurance brokerage for 12 months, excluding VAT; VAT (15%) added if applicable.

Bid document cost: R550.00 non-refundable cash payment, or free download from National Treasury e-tender portal.

No bid security, bond, or guarantee is specified.

Payment terms: not stated in the document (standard 30 days per MBD 7.2).

CSD registration: proof of Central Supplier Database registration must accompany the bid.

Tax compliance: valid tax compliance status PIN must be submitted; the bidder must remain tax compliant at all times.

Municipal rates and taxes: proof not older than 90 days, or a lease agreement, must be attached.

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

Professional registrations:

• FSP (Financial Service Board) certificate required.
• SAIBA (South African Insurance Brokers Association) registration proof required.

B-BBEE: not a separate requirement; specific goals (women-owned, black-owned) are claimed via MBD 6.1 with supporting documents.

Contract period: 12 months. The contract will be governed by the General Conditions of Contract (GCC) and any special conditions. The successful bidder must sign a contract form (MBD 7.2). The municipality is not obliged to accept the lowest or any bid. The service provider must comply with future National Treasury regulations on minimum business processes and functionality at a reasonable agreed cost. Data related to full functionality remains the property of the municipality.

Evaluation is in two phases. Phase 1 (Functionality) is scored out of 100 points; a minimum of 75% is required to proceed. Phase 2 uses the 80/20 preference point system: 80 points for price, 20 points for specific goals (women-owned and black-owned). The lowest price or highest points may not necessarily be accepted.