Provision, licensing, hosting, support, maintenance and enhancement of an mscoa-compliant financial management system for xhariep district municipality (3 years)

Closing

• 30 October 2026 at 12:00.

Bid opening

• 30 October 2026 at 12:00, municipal side hall, in public.

Document collection

• From the date of advertisement at the Supply Chain Management Office: Mondays to Thursdays 08:00–16:00, Fridays until 15:00.

Supply chain enquiries

• Contact: Mr JOJ Tshabalala
• Role: SCM Accountant

SCM management

• Contact: Mrs TF Tshabalala
• Role: SCM Manager

Financial approval

• Contact: Mr M Tamasane
• Role: Chief Financial Officer

Municipal Manager

• Contact: Ms LY Moletsane
• Role: Municipal Manager

General

• Telephone: (051) 011 2238
• Fax: (051) 713 0461
• Website: www.xhariep.gov.za

Submission address (hand delivery)

Xhariep District Municipality

20 Louw Street

Trompsburg

9913

Postal address

Xhariep District Municipality

Private Bag X136

Trompsburg

9913

Submission method

• Sealed envelope, hand delivered or posted. No emailed or faxed bids will be accepted.
• The envelope must clearly state the tender reference number XDM/MSCOA/26/27-3.
• Bid box: reception, Xhariep District Municipality, 20 Louw Street, Trompsburg, 9913.
• Postal address: Xhariep District Municipality, Private Bag X136, Trompsburg, 9913, marked for the attention of the Municipal Manager, Ms LY Moletsane.
• Bids must reach the Municipality before 12:00 on 30 October 2026. Bids received after the closing time or date will not be considered.
• Bids will be opened in public at the municipal side hall immediately after closing.

Bid documents

• Available from the Supply Chain Management Office from the date of advertisement: Mondays to Thursdays 08:00–16:00 and Fridays until 15:00.
• Cost: R550.00 per document, non-refundable cash payment. The same documents are available free of charge on the National Treasury e-tender portal.

Returnable documents

• MBD 1 (Invitation to Bid): bidder identification, contact details and signature constituting the offer.
• MBD 3.1 (Pricing Schedule – Firm Prices): itemised pricing for the 36-month system, recurring costs and optional services.
• MBD 4 (Declaration of Interest): discloses any director, trustee, shareholder or member in the service of the state or connected to anyone involved in evaluating or adjudicating the bid.
• MBD 5 (Declaration for Procurement above R10 million): confirms audited financial statements where legally required, undisputed municipal commitments, prior state contracts and any offshore sourcing.
• MBD 6.1 (Preference Points Claim Form): claims the 20 specific-goals points under the 80/20 system.
• MBD 7.2 (Contract Form – Rendering of Services): the contract the successful bidder must sign.
• MBD 8 (Declaration of Bidder's Past Supply Chain Management Practices): discloses prior state contract conduct.
• MBD 9 (Certificate of Independent Bid Determination): certifies the price was set independently with no collusion.
• Proof of Central Supplier Database (CSD) registration.
• Tax Compliance Status (TCS) pin.
• Proof of municipal rates and taxes not older than 90 days, or a lease agreement.
• General Conditions of Contract with every page initialled by the service provider.

Disqualification risks

• Any MBD form not fully completed and signed.
• Omission of the CSD proof, TCS pin or rates/lease proof.
• Bids from a person in the service of the state.
• Bids not in a sealed envelope marked with the tender reference number.
• Use of correction fluid anywhere in the bid.
• Late bids, emailed bids or faxed bids.
• Failure to comply with any of the stated special conditions.

Municipal Bidding Documents forming part of the bid pack:

• MBD 1 (Invitation to Bid): bidder details and signed offer.
• MBD 3.1 (Pricing Schedule – Firm Prices): itemised pricing for the 36-month system.
• MBD 4 (Declaration of Interest): discloses state service or connections to anyone evaluating or adjudicating the bid.
• MBD 5 (Declaration for Procurement above R10 million): audited financial statements where legally required, municipal commitments, prior state contracts and offshore sourcing.
• MBD 6.1 (Preference Points Claim Form): claims the 20 specific-goals points.
• MBD 7.2 (Contract Form – Rendering of Services): the contract to be signed by the successful bidder.
• MBD 8 (Declaration of Bidder's Past Supply Chain Management Practices): discloses prior state contract conduct.
• MBD 9 (Certificate of Independent Bid Determination): certifies independent pricing and no collusion.

Additional returnable items

• Proof of CSD registration.
• Tax Compliance Status pin.
• Proof of municipal rates and taxes not older than 90 days, or a lease agreement.
• General Conditions of Contract with every page initialled.

Evaluation runs in two stages.

Stage 1 — Functionality (100 points)

• Scored on a 1–5 scale (1 = poor, 2 = average, 3 = good, 4 = very good, 5 = excellent); the allocated weight is multiplied by the value awarded.
• Relevant mSCOA implementation experience within local government: 40 points (one appointment letter = 1, two = 2, three = 3, four = 4, five = 5).
• Reference letters from different organisations that appointed the bidder for mSCOA: 20 points (one = 1, two = 2, three or more = 5).
• Quality Management Systems: 10 points (ISO or SABS accreditation certificate submitted = 5, not submitted = 1).
• Methodology/implementation plan with milestones, deliverables, timeframes, costing and a skills transfer plan: 20 points (attached but not meeting requirements = 1, attached and meeting all requirements = 5).
• CVs and qualifications of the Lead Consultant, Software Developer and Project Manager: 10 points (CV plus Accounting or relevant degree for the Lead Consultant, CV plus IT-related degree for the Software Developer, CV plus Project Management degree for the Project Manager; non-submission of both CV and relevant qualifications = 1).
• Minimum qualifying score: 70% of the 100 functionality points. A bidder scoring below this is automatically disqualified and does not proceed to Stage 2.

Stage 2 — Price and specific goals (80/20 preference point system)

• Price: 80 points.
• Specific goals: 20 points.
• Women owned: 10 points.
• Black owned: 10 points, banded as 81–100% = 10 points, 51–80% = 8 points, 01–50% = 6 points, 0% = 0 points.
• Points for specific goals are only awarded if the supporting documents are submitted with the bid; without proof, no specific-goals points are claimed.
• The Municipality may require a bidder to substantiate any preference claim before or after adjudication.
• The lowest price or highest points bid will not necessarily be accepted, and the Municipality reserves the right not to award the contract.

Purpose

• Provide, license, host, maintain, support and continuously enhance a National Treasury-approved mSCOA-compliant financial management system for Xhariep District Municipality over three years.
• The system must remain fully functional, secure, efficient and compliant with mSCOA, the MFMA, GRAP standards and National Treasury requirements, with uninterrupted service during transition from the current contract.

Core services

• Break-fix and ad-hoc services, software health checks, software enhancements, client administrative functions, service delivery management, document management, system reporting and documentation upkeep.
• Facilitation of licence renewals, contract management, and recommendations on new products or add-on modules.
• End-to-end supply chain management including online adjudication.
• Installation of software upgrades and security patches as released by the vendor, in consultation with management.
• Bug fixes where operational errors occur, including diagnosis and resolution.
• Interfaces with other municipal systems, data cleansing, and facilitation of mSCOA compliance and submissions.
• Remote and on-site support for functional issues, plus physical, telephone, email and remote access support throughout the contract.
• Training of users and application administrators, with administrator and end-user manuals updated as the system changes.

Hosting

• The system must be hosted on a cloud environment belonging to the Municipality, with handover at the end of the contract and assistance in acquiring the cloud.

Required system functionality

• Procurement, supplier management and accounts payable: requisition-to-order processing, supplier database, automated supplier rotation, quotation and tender evaluations, tracing of outstanding requisitions and purchase orders, order processing linked to supplier invoices or goods received vouchers without duplicate capture, SCM integration, contract management module, transaction listings, supplier age analysis (monthly for Treasury), automatic EFT payments linked to the municipal bank account, remittance advices, and automatic deletion of purchase orders with no commitment at quotation expiry.
• Budget control: budget cannot be exceeded at purchase order approval, adjustment budget revisions, variance reporting, budget per vote including outstanding orders, project budget monitoring, paperless approvals, off-site cloud access, budgeting and reporting on all 7 mSCOA segments, data string extraction, account number creation, annual and adjustment budget capture, and an integrated budget module.
• General ledger: Standard Chart of Account compliance, general ledger and trial balance per vote or function, full audit trails at transaction level, segregation of duties between originating and posting entries, account-level enquiry, and GRAP1 statement of financial performance and statement of financial position.
• Cash book and bank reconciliation: multiple cash books for all bank accounts, petty cash floats and investments, electronic bank statement import, bank reconciliations including automatic reconciliation, cash books per bank account, and an investment register.
• Accounts receivable and billing: full billing module, receivables from billing through invoicing to credit control, monthly statements to customers, staff and debtors, SMS and email notifications, automatic interest calculation per municipal policy, and an MFMA ageing report.
• Asset management: reports per GRAP13, 16, 17, 100 and 102; additions, disposals, revaluations, impairments, useful life reviews, depreciation, residual values and funding sources; asset movement and condition tracking; automatic reconciliation; and barcode scanning directly into the asset module.
• Inventory management: requisitions and purchases, movement tracking, multiple inventory locations and inventory counts.
• Work in progress accounting: tracking of each job or asset under construction and transfer to assets on completion.
• Grant account: GRAP-compliant accounting for non-exchange revenue, with grant reports and registers showing opening receipts, expenditure per grant and unrealised balances.
• Payroll and human resources: fully-fledged payroll, payroll interface, seamless HR and payroll integration, self-service leave management and leave reconciliation, adherence to tax changes within the required timeframe, and support for job costing, reporting, security, data extraction, job and position management, performance management, employee management, employment equity, skills and learning, infoslips and SMART reporting.
• MFMA Section 71 and 72 and Treasury budget returns: automated production of all MFMA and Treasury reports without recapture and without manual reports.
• Annual financial statements: credible information for AFS and reports.
• Data migration: migration of all master data and balances, and of transactions where necessary or practical.
• Training: all users trained with hands-on practical experience so they can operate independently of the provider, with training linked to GRAP accounting.
• Monthly support: willingness to sign a service level agreement for support as required and at fixed monthly intervals, automated Section 71 reconciliations (data strings to trial balance, cash flow to bank vote, C schedule to income statement, C schedule to balance sheet) and assistance with Treasury queries.

IT security

• Compliance with the municipal IT Security Policy, including: passwords of six characters or more containing letters, numbers and special characters; logout and mandatory password reset after three failed attempts; hibernation requiring password re-entry after three minutes of inactivity; and monthly password recreation that recognises previously used passwords.

Deliverables

• A comprehensive project schedule showing deliverable milestones, cost, timeframes, delivery dates and progress reports.
• A detailed pricing schedule per the scope of work.
• An implementation plan with stated milestones.
• A detailed work plan covering methodology, stages of completion with timeframes and due dates, and a query resolution and technical support mechanism.
• A skills transfer plan explaining how municipal officials will be able to perform all scope work after contract conclusion, and how this will be measured.

Required submissions

• A comprehensive project schedule showing deliverable milestones, cost, timeframes, delivery dates and progress reports.
• A detailed pricing schedule aligned to the scope of work.
• An implementation plan with stated milestones.
• A detailed work plan covering methodology, stages of completion with timeframes and due dates, and a mechanism for query resolution and technical support.
• A skills transfer plan explaining how municipal officials will be able to perform all scope work after the contract ends, and how that transfer will be measured.

Delivery approach

• Support must be available remotely and through on-site visits, plus physical, telephone and email channels throughout the contract period.
• Software upgrades and security patches must be installed as released by the vendor, in consultation with management.
• Interfaces with other municipal systems must be implemented, and data cleansed where required.

Experience evidence

• Appointment letters demonstrating mSCOA implementation within local government; the number of letters determines the functionality score.
• Reference letters signed by different organisations that appointed the bidder for mSCOA work.

Key personnel

• Lead Consultant: CV plus a degree in Accounting or a relevant qualification.
• Software Developer: CV plus an IT-related or relevant degree.
• Project Manager: CV plus a degree in Project Management or a relevant qualification.
• The Lead Consultant must be allocated to the contract for its full duration and may only be replaced with an equivalent resource with the Municipality's consent.
• Non-submission of both the CV and relevant qualifications for a role scores the minimum.

Training obligation

• All users must receive training and hands-on practical experience so they can operate independently of the provider, with training linked to GRAP accounting.

Bidders must submit a Quality Management Systems accreditation certificate from the International Organization for Standardization (ISO) or the South African Bureau of Standards (SABS) to score under the functionality criteria. Submission scores 5; non-submission scores 1.

MBD 3.1 (Pricing Schedule – Firm Prices) applies. Only firm prices are accepted; non-firm prices, including those subject to exchange rate variation, are excluded. The offer must be valid for 90 days from the closing date.

Once-off items (36-month system)

• Project initiation and planning; installation and configuration of the mSCOA financial system; data migration and cleansing; integration with existing municipal systems.
• Modules: supply chain management, budgeting, general ledger, cashbook and bank reconciliation, accounts receivable and billing, asset management, inventory management, grant management, payroll and human resources.
• MFMA Section 71 and 72 reporting functionality; annual financial statements reporting functionality; document management system.
• Cloud hosting setup and configuration; user and administrator training; skills transfer programme; user manuals and documentation.

Recurring monthly costs (36 months)

• Software licensing fees; cloud hosting services; system maintenance and support; help desk and remote support; on-site technical support visits; software enhancements and updates; security patches and version upgrades; Treasury reporting and mSCOA compliance support; contract management and SLA management.

Optional professional services

• Additional consultant support per hour; additional training per day; additional development or customisation per hour; additional on-site support per day.

Price summary

• Must show implementation costs, software licensing, cloud hosting, maintenance and support, training and skills transfer, optional services, subtotal excluding VAT, VAT at 15%, and total bid price including VAT.
• All delivery costs must be included in the bid price.

Pricing

• Only firm prices will be accepted; non-firm prices, including prices subject to exchange rate variation, will not be considered.
• The offer must remain valid for 90 days from the closing date.
• All delivery costs must be included in the bid price.
• The price summary must show implementation costs, software licensing (36 months), cloud hosting (36 months), maintenance and support (36 months), training and skills transfer, optional services, subtotal excluding VAT, VAT at 15%, and total bid price including VAT.
• Pricing is structured as once-off implementation items, recurring monthly costs over 36 months, and optional professional services charged per hour or per day.

Document fee

• R550.00 per bid document, non-refundable, payable in cash; the documents are also available free on the National Treasury e-tender portal.

Financial capacity

• MBD 5 applies to procurement above R10 million (all applicable taxes included). Bidders legally required to prepare audited annual financial statements must submit audited statements for the past three years, or since establishment if established within the past three years.
• Bidders must declare any undisputed municipal service commitments older than three months, or any payment to another service provider overdue by more than 30 days.
• No bid security or performance guarantee amount is stated.

Mandatory registrations and status

• Central Supplier Database (CSD) registration proof must accompany the bid.
• A Tax Compliance Status (TCS) pin must be submitted. Where no TCS is available but the bidder is CSD-registered, the CSD number must be provided.
• In consortia, joint ventures or sub-contracting arrangements, each party must submit a separate TCS certificate, pin or CSD number.
• Proof of municipal rates and taxes not older than 90 days, or a lease agreement, must be attached.
• No bid will be considered from a person in the service of the state.

B-BBEE and preference points

• The 80/20 preference point system applies: 80 points for price and 20 points for specific goals.
• Specific goals: women owned (10 points) and black owned (10 points), verified by identity document, company registration or share certificate.
• Black ownership bands: 81–100% = 10 points, 51–80% = 8 points, 01–50% = 6 points, 0% = 0 points.
• Supporting documents must be attached with the bid to claim specific-goals points; without them the points are not claimed.

Document compliance

• All MBD forms must be fully completed and signed; incomplete or unsigned forms will be rejected.
• Every page of the General Conditions of Contract must be initialled by the service provider.
• Bids must be enclosed in a sealed envelope clearly stating the tender reference number.
• No correction fluid may be used on any document.
• All CVs and supporting documents are subject to verification.
• By submitting, the bidder consents to the Municipality vetting submitted documents under the POPI Act.
• Non-compliance with any special condition results in disqualification.

The 80/20 preference point system applies.

• Price: 80 points.
• Specific goals: 20 points.
• Women owned: 10 points.
• Black owned: 10 points, banded as 81–100% = 10 points, 51–80% = 8 points, 01–50% = 6 points, 0% = 0 points.
• Verification documents: identity document, company registration or share certificate.
• Supporting documents must be attached with the bid; without them, specific-goals points are not claimed.
• The Municipality may require a bidder to substantiate any preference claim before or after adjudication.

Contract framework

• The General Conditions of Contract apply, and every page must be initialled by the service provider.
• The successful bidder must complete and sign the written contract form (MBD 1).
• The provider must be willing to sign a service level agreement for support as required and at fixed monthly intervals.

Ongoing obligations

• National Treasury intends to promulgate regulations on minimum business processes and functionality; the provider undertakes to meet these future requirements at a reasonable agreed cost.
• Data related to full functionality remains the property of the Municipality.
• Submitting a bid constitutes consent for the Municipality to vet submitted documents under the POPI Act.
• The Municipality reserves the right not to award the contract to any bidder, and the lowest price or highest points bid will not necessarily be accepted.

Special conditions applying to all bidders; non-compliance results in disqualification.

• Bid documents cost R550.00 non-refundable, or are free on the National Treasury e-tender portal.
• The 80/20 preference point system applies and functionality scoring will be applied.
• Proof of CSD registration must accompany the bid.
• A Tax Compliance Status pin must be submitted.
• Proof of municipal rates and taxes not older than 90 days, or a lease agreement, must be attached.
• No bids will be considered from a person in the service of the state.
• Bids must be in a sealed envelope clearly stating the tender reference number.
• The General Conditions of Contract apply and each page must be initialled by the service provider.
• All CVs and relevant documents are subject to verification.
• MBD documents not fully completed and signed will be rejected.
• No correction fluid may be used.
• Bids received after the closing time or date will not be considered.
• The lowest price or highest points bid will not necessarily be accepted, and the Municipality reserves the right not to award any contract.
• Bids must be placed in the municipal tender box; emailed and faxed bids will not be accepted.

Functionality is assessed first, out of 100 points, on a 1–5 scale (1 = poor, 2 = average, 3 = good, 4 = very good, 5 = excellent) where the weight is multiplied by the value awarded.

• Relevant mSCOA implementation experience within local government: 40 points, scored by number of appointment letters attached (one = 1, two = 2, three = 3, four = 4, five = 5).
• Reference letters from different organisations that appointed the bidder for mSCOA: 20 points (one = 1, two = 2, three or more = 5).
• Quality Management Systems: 10 points (ISO or SABS accreditation certificate submitted = 5, not submitted = 1).
• Methodology/implementation plan with milestones, deliverables, timeframes, costing and a skills transfer plan: 20 points (attached but not meeting requirements = 1, attached and meeting all requirements = 5).
• CVs and qualifications of the Lead Consultant, Software Developer and Project Manager: 10 points (CV plus Accounting or relevant degree for the Lead Consultant, CV plus IT-related degree for the Software Developer, CV plus Project Management degree for the Project Manager; non-submission of both CV and relevant qualifications = 1).
• The Lead Consultant must remain on the contract for its duration and may only be replaced by an equivalent resource with the Municipality's consent.
• Minimum qualifying score: 70%. Bidders below this are automatically disqualified and do not proceed to the price and specific-goals stage.