VAT consulting services – 36 month contract – magareng lm open tender

SCM enquiries:

• Contact: Ms Chrystal Kruger
• Role: Supply Chain Management
• Email: [email protected]
• Telephone: 053 497 3111

Technical enquiries:

• Contact: Ms Kedisaletse Khaziwa
• Role: Finance (CFO office)
• Email: [email protected]
• Telephone: 053 497 3111

Municipal Manager (issuing authority):

• Name: Mr TM Thage
• Title: Municipal Manager

Submission address (Tender Box):

Magareng Local Municipality

Main reception area

Magrieta Prinsloo Street

Warrenton

8530

Postal address:

PO Box 10

Warrenton

8530

General telephone: 053 497 3111

Fax: 053 497 4514

Municipal website: www.magareng.gov.za

Submission method: Physical delivery to Tender Box at main reception, Magareng Local Municipality, Magrieta Prinsloo Street, Warrenton, 8530.

Closing: 06 November 2026 at 12:00.

Late, faxed, emailed or telephonic bids will not be accepted.

Document fee: R1 500 (non-refundable) if collected from municipal offices (02 October – 06 November 2026, weekdays 08:00–13:00); free on e-tender portal or municipal website.

Bid validity: 90 days from closing date.

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

• MBD 1: Invitation to Bid – bidder details and offer cover page.
• MBD 2: Tax Clearance Certificate Requirements – confirms tax compliance.
• MBD 3.3: Pricing Schedule – Professional Services – firm, VAT-inclusive ceiling price with hourly/daily rates, phase costs and recoverable expenses.
• MBD 4: Declaration of Interest – discloses state employment or relationships with officials.
• MBD 6.1: Preference Points Claim Form – claims specific-goal points (black ownership, women ownership, locality).
• MBD 7.2: Contract Form – Rendering of Services – forms the contract on award.
• MBD 8: Declaration of Past Supply Chain Management Practices – discloses past misconduct.
• MBD 9: Certificate of Independent Bid Determination – certifies no collusion.

Additional mandatory schedules:

• Proof of CSD registration.
• Tax Clearance Certificate or SARS Tax Compliance Status PIN.
• Municipal account (entity name) ≤3 months old, arrears ≤3 months (≤30 days if tender >R10m).
• Certified ID copies of all directors/shareholders (stamp ≤3 months).
• Valid CIPC/company registration documents.
• Joint Venture Agreement (if applicable) with profit/liability sharing and board resolution.
• Record of Addenda.
• Proposed Amendments and Qualifications.
• Relevant Municipal/Public Sector VAT Consulting Experience (reference letters, 5 clients, 15 years).
• Knowledge and Experience of Solar Financial System (reference letters, 5 contactable clients).
• Qualifications and Experience of Proposed Personnel (4 individuals, >10 years each, degrees, professional registration).
• Portfolio of Evidence / Track Record (signed reference letters, 5 contactable references).
• Registration as Tax Practitioner/Tax Representative and Professional Membership (SAIT, SAICA, SAIPA, CIMA).
• Proposed Methodology, Work Plan and Skills Transfer Approach.
• Letter of Good Standing from Compensation Commissioner (or on CSD).
• Audited annual financial statements (past 3 years or since establishment) if tender value >R10m and legally required.

Disqualification risks:

• Any returnable form unsigned, incomplete or omitted.
• Retyped or altered tender documents.
• Missing pages.
• Submission after closing time.
• Failure to attend compulsory briefing (none for this tender).
• Tax non-compliance not resolved within municipality-specified period.
• No valid Letter of Good Standing from Compensation Commissioner within requested time.

Two-stage evaluation:

Stage 1 – Functionality (technical) – minimum qualifying score: 70/100 (70%). Bidders scoring below 70 points are eliminated.

Functionality criteria and weights:

• Relevant Municipal/Public Sector VAT Consulting Experience: 25 points.
• Knowledge and Experience of the Solar Financial System: 15 points.
• Qualifications and Experience of Proposed Personnel: 20 points.
• Portfolio of Evidence / Track Record: 10 points.
• Registration as Tax Practitioner / Tax Representative and Professional Membership: 10 points.
• Proposed Methodology, Work Plan and Skills Transfer Approach: 10 points.

Stage 2 – Price and Specific Goals (80/20 preference points system):

• Price: 80 points.
• Specific Goals: 20 points allocated as:

• ≥51% black owned: 10 points.
• ≥30% women owned: 5 points.
• Locality within 250 km of Magareng LM: 5 points.

Bids awarded in terms of Preferential Procurement Regulations, 2022 and municipal SCM Policy.

Municipality reserves the right not to accept lowest bid or highest scoring bid, to accept whole or part of any bid, and to re-advertise.

Scope: Provision of VAT consulting services to Magareng Local Municipality for 36 months.

Core services (ongoing monthly unless otherwise indicated):

1. VAT Compliance and Risk Review – comprehensive review of VAT function, processes, controls, historical returns; assess VAT treatment of all revenue streams (rates, refuse, sewerage, electricity, water, rental, grants) and expenditure; identify/quantify under/over-declarations; recommend/implement corrective action including voluntary disclosures.
2. SARS Audit Readiness and Support – prepare VAT records, reconciliations, documentation for audit readiness; represent/assist during SARS VAT audits, verifications, reviews; respond to SARS queries; liaise with SARS when mandated.
3. Monthly VAT Function Support – review monthly VAT201 calculations/returns; perform monthly VAT reconciliations (GL, VAT control accounts, returns); advise on VAT treatment of new/unusual transactions, contracts, grant funding; advise on legislative/SARS policy changes; guide correct VAT journal entries and posting in financial system.
4. Annual Financial Statements and Year-End Audit Support – assist with VAT calculation, treatment, disclosure in AFS per GRAP; prepare/review VAT audit working papers, reconciliations, disclosure notes for AGSA; respond to AGSA VAT audit queries.
5. Solar Financial System Knowledge – extensive hands-on experience with Solar system; advise on VAT transaction processing, reporting, journal configuration to minimise manual errors.
6. Skills Transfer – continuous structured skills transfer and on-the-job training to Finance and Creditors staff on VAT legislation, compliance, Solar usage; develop/update VAT SOPs and desktop guides; submit 10 signed training assessments from qualified trainer confirming client satisfaction.

Minimum eligibility:

• Registered and in good standing with recognised professional body (e.g. SAICA, SAIT).
• Minimum 10 years' proven VAT consulting/advisory experience in municipal/public sector.
• Demonstrable, verifiable Solar financial system experience (reference sites/letters).
• Sound knowledge of VAT Act, MFMA, GRAP, municipal SCM/finance environment.
• Valid Tax Clearance Certificate/PIN.
• CIPC registration documents and proof of professional indemnity insurance.
• CVs and qualifications of specific personnel assigned to the account.

Pricing format: Firm, VAT-inclusive ceiling price based on total estimated time for all phases and all expenses.

MBD 3.3 pricing schedule requires:

• Hourly and daily rates for each person/position involved.
• Phased cost breakdown with man-days per phase.
• Travel expenses: actual costs only (rate/km, total km, air travel class) with proof attached to certified invoices.
• Other expenses (accommodation, telephone, reproduction, etc.) on actual cost basis with proof.
• Rates must be firm for full contract period; if not, basis of adjustment (e.g. CPI) must be stated.

Payment terms: Invoices paid within 30 days of submission (GCC clause 16.3).

Performance security: Successful bidder must furnish performance security within 30 days of award notification, amount specified in Special Conditions of Contract (form: bank guarantee/irrevocable letter of credit or certified cheque). Security returned within 30 days of contract completion including warranty.

Penalties: Prime interest rate per day of delay on delayed goods/services (GCC clause 22.1).

Retention: Not explicitly stated; governed by GCC/SCC.

Financial capacity: If tender value >R10m (VAT incl.) and bidder legally required to prepare audited financial statements, must submit audited statements for past 3 years or since establishment.

Municipal account arrears threshold: ≤3 months (≤30 days if tender >R10m).

Document fee: R1 500 (non-refundable) for physical collection.

Mandatory compliance:

• Central Supplier Database (CSD) registration – municipality may not award to unregistered suppliers.
• Tax compliance: Valid SARS Tax Compliance Status PIN or Tax Clearance Certificate (verified on SARS website). JV members each need separate PIN/certificate.
• Municipal rates/taxes/charges: Entity municipal account ≤3 months old, arrears ≤3 months (≤30 days if tender >R10m). Rural bidders: tribal authority letter with affidavit. JV members each need statement; leased premises require lease agreement + lessor's municipal statement.
• Certified ID copies of all directors/shareholders/members (stamp ≤3 months).
• Valid CIPC/company registration documents.
• Letter of Good Standing from Compensation Commissioner (or valid on CSD). JV members each need separate letter unless on CSD.
• Professional registration: Tax Practitioner/Tax Representative registered with SARS and member of recognised controlling body (SAIT, SAICA, SAIPA, CIMA).
• Professional indemnity insurance (required per Terms of Reference).
• No history of supply chain abuse, corruption, fraud, or improper influence (MBD 8, MBD 9).
• Authorised signatory must sign original tender document in black ink; retyped documents disqualified.
• Joint Ventures: JV agreement, individual tax clearances, profit/liability sharing agreement, board resolution; JV qualifies for specific-goal points as a single legal entity.

B-BBEE: Preference points claimed via MBD 6.1; specific goals as per evaluation criteria (black ownership, women ownership, locality). No explicit minimum B-BBEE level stated; points awarded per declared status.

CIDB: Not applicable (professional services, not construction).