Provision of short term insurance services to magareng local municipality for 36 months

Closing date: 15 December 2026 at 12:00

Briefing session: none (no briefing session; bidders may make own arrangements for site visits)

Tender documents available: from 13 November 2026 until 15 December 2026, weekdays 08:00–13:00

SCM enquiries:

• Contact: Ms Chrystal Kruger
• Email: [email protected]
• Telephone: 053 497 3111

Technical enquiries:

• Contact: Mr Thapelo Jacobs
• Email: [email protected]
• Telephone: 053 497 3111

Additional technical contact:

• Contact: Ms KV Khaziwa
• Email: [email protected]
• Telephone: 053 497 3111

Issued by:

• Name: Mr Tumelo Thage
• Role: Municipal Manager
• Email: [email protected]
• Telephone: 053 497 3111

Submission address:

Magareng Local Municipality

Magrieta Prinsloo Street

Warrenton, 8530

(Tender Box at main reception area)

Submission method: physical tender box only.

• Place completed tender documents in the Tender Box at the main reception area, Magareng Local Municipality, Magrieta Prinsloo Street, Warrenton, 8530.
• Closing date: 15 December 2026 at 12:00.
• Late, faxed, emailed or telephonic bids will not be accepted.
• Bids must remain valid for 90 days after the closing date.
• Complete the original tender document fully in black ink and sign it; retyped documents, missing pages, or unauthorised alterations will disqualify the bid.
• 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 2: Tax Clearance Certificate Requirements – confirms tax compliance.
• MBD 3.3: Pricing Schedule – Professional Services – firm prices inclusive of VAT.
• MBD 4: Declaration of Interest – discloses any connection to the state.
• MBD 6.1: Preference Point Claim Form – claims B-BBEE and specific goal points.
• MBD 7.2: Contract Form – Rendering of Services – signs the contract terms.
• MBD 8: Declaration of Bidder's Past Supply Chain Management Practices.
• MBD 9: Certificate of Independent Bid Determination – certifies no collusion.
• Additional returnable schedules: proof of CSD registration, tax clearance certificate or tax compliance status PIN, proof of current municipal rates/taxes/charges, certified ID copies of directors/members (stamp not older than 3 months), valid CIPC documents, joint venture agreement (if applicable), record of addenda, proposed amendments and qualifications, experience in the insurance industry, key personnel details, and professional indemnity and fidelity guarantee.
• If the tender amount exceeds R10 million (incl. VAT), submit audited annual financial statements for the past three years (or since establishment if younger).
• Bidders must not contact the municipality about their bid from bid opening until contract award; any attempt to influence evaluation may lead to rejection.

Evaluation stages:

1. Functionality (minimum threshold): score at least 70 out of 100 points to be considered further.

• Experience in the Insurance Industry: 40 points
• Key Personnel: 40 points
• Professional Indemnity & Fidelity Guarantee: 20 points

2. Price and specific goals (80/20 preference points system): 80 points for price, 20 points for specific goals.

Specific goals (80/20 system):

• 51% or more black-owned companies: 10 points
• 30% or more women-owned companies: 5 points
• Locality within 250 km from Magareng Local Municipality: 5 points
• The municipality reserves the right not to accept the lowest bid or the bid scoring the highest points.

Scope: Provision of short-term insurance services to Magareng Local Municipality for a period of 36 months.

• The successful bidder must provide full coverage on all asset classes as per the risk management strategy, deductibles, policy wording and insurers mentioned in the schedules.
• Bidders must submit a detailed summary of their recommended insurance and risk mitigation structure(s).
• Bidders must disclose the service provider(s)/insurer or consortium of service providers on each policy wording.
• Proposed solutions must include a pricing model, risk management framework, and list of deliverables.
• Reporting: monthly progress reports on all claims, risk services matters and other general matters; monthly meetings with the insurance clerk and risk officer.
• Intellectual property: bidder's information treated as confidential and remains the property of the bidder.

Bidders must demonstrate experience in the insurance industry (40 functionality points) and provide key personnel details (40 functionality points). Professional indemnity and fidelity guarantee are required (20 functionality points).

Pricing must be submitted on MBD 3.3 (Pricing Schedule – Professional Services). Prices must be firm and inclusive of VAT. Bidders must provide a ceiling price, hourly/daily rates for personnel, cost per phase with man-days, and details of travel and other expenses (recoverable at actual cost with proof). Bids valid for 90 days.

Pricing format: MBD 3.3 Pricing Schedule – Professional Services.

• Prices must be firm and inclusive of VAT.
• Bidders must indicate a ceiling price based on total estimated time for completion, including all expenses and taxes.
• Provide hourly and daily rates for personnel involved, and cost per phase with man-days.
• Travel and other expenses (e.g. accommodation) are recoverable only at actual cost, with proof and certified invoices.
• Bids must remain valid for 90 days after closing date.
• If the tender amount exceeds R10 million (incl. VAT), audited annual financial statements for the past three years are required.
• No bid security or performance guarantee is specified in the document.

Mandatory compliance:

• Central Supplier Database (CSD) registration: required; submit a CSD report not older than 3 months from closing date.
• Tax clearance: submit a valid Tax Compliance Status PIN or Tax Compliance Certificate from SARS; the municipality will verify the PIN on the SARS website.
• Municipal account: submit a municipal account in the bidder's entity name, not older than 3 months and not in arrears for more than 3 months at closing date; if tender exceeds R10m, not in arrears for more than 30 days. For business properties in shareholders'/directors' names, no undisputed municipal payments overdue more than 90 days.
• Letter of Good Standing from the Compensation Commissioner: must accompany the bid or be on record via CSD; if not available, the municipality may obtain it after closing, but failure may lead to disqualification.
• Certified copies of ID documents of directors/members (stamp not older than 3 months).
• Valid CIPC registration documents.
• Joint ventures: submit a joint venture agreement; each member must submit separate tax clearance, municipal account, and Letter of Good Standing.
• B-BBEE: a B-BBEE status level verification certificate or sworn affidavit (for EMEs and QSEs) must be submitted to qualify for preference points.
• No bids from persons in the service of the state.

General Conditions of Contract (GCC) apply; Special Conditions of Contract (SCC) prevail in case of conflict. The contract may be extended by up to 15% of the original period based on performance. Subcontracting the whole contract is prohibited; partial subcontracting requires prior written consent. The municipality may request an additional Service Level Agreement. Penalties for late performance are calculated at the current prime interest rate per day of delay. The municipality may terminate for default, insolvency, or corrupt/fraudulent practices. Disputes are to be resolved amicably, then through mediation. The contract is governed by South African law, and the language is English.

Functionality threshold: minimum 70 out of 100 points. Functionality criteria: Experience in the Insurance Industry (40 points), Key Personnel (40 points), Professional Indemnity & Fidelity Guarantee (20 points). After functionality, evaluation proceeds on price and specific goals under the 80/20 preference points system.