Research on legal and institutional forms for joint municipal service delivery – SALGA

Closing date and time: 06 October 2026 at 11:00 AM

Clarification questions closing date: 01 October 2026

No briefing session will be held.

Final product delivery date: 31 December 2026

Deliverables due to SALGA by: 26 February 2027

Enquiries:

• Contact: Mayenziwe Mahlalela (SCM)
• Email: [email protected]
• Telephone: 012 369 8000

Questions will only be taken up to four days prior to the closing date.

Submission portal: https://scmportal.salga.org.za/

Submission method: online via the SALGA SCM portal at https://scmportal.salga.org.za/

Closing date and time: 06 October 2026 at 11:00 AM. Late submissions will not be accepted.

Proposals must be presented in the same order as the requirements appear, section by section, numbered accordingly, with acknowledgement of all clauses.

Proposals shall be stipulated sums without escalator clauses or other qualifications.

Returnable forms (complete in full, on the original, signed in black ink; do not retype):

• SBD 4 (Declaration of Interest): discloses whether any director or shareholder is employed by the state or connected to anyone at SALGA.
• SBD 6.1 (Preference Points Claim): claims B-BBEE preference points under the 80/20 system.
• SBD 8 (Declaration of Past Supply Chain Management Practices): declares past SCM practices; breach summarily nullifies the submission.
• SBD 9 (Certificate of Independent Bid Determination): certifies the price was set independently, with no collusion.
• Originally signed copy of the General Conditions of Contract must be submitted with all bid documentation.

Disqualification risks:

• Failure to provide all or part of the required proposal information may result in exclusion from evaluation.
• Failure to comply with any condition of this request invalidates the tender proposal.
• Bids must remain valid for 120 days from the date of submission.

Evaluation stages:

1. Functionality (technical content) – minimum threshold 70 out of 100 points. Bids scoring below 70 are disqualified.
2. Price and B-BBEE – 80/20 preference point system (applies for values above R30 000 and up to R50 million).

• Price: 80 points
• B-BBEE status level of contribution: 20 points

Functionality criteria (total 100 points):

• Approach, methodology and work plan: 40 points. Rated on clarity, quality, logic, appropriateness, feasibility, and innovation.
• Relevant and appropriate project experience: 35 points. Rated on demonstrated skills/expertise, proof of similar work via appointment letters and/or positive recommendation letters not older than 5 years. SALGA may verify the letters.
• Team qualifications, knowledge, and experience: 25 points. Rated on relevant experience and qualifications of personnel. Project leader must have more than 15 years of relevant experience and a Masters/PhD qualification.

B-BBEE points (80/20 system): Level 1 = 20, Level 2 = 18, Level 3 = 14, Level 4 = 12, Level 5 = 8, Level 6 = 6, Level 7 = 4, Level 8 = 2, Non-compliant = 0.

A maximum of four (4) bidders may be invited to present their proposal for clarification; date, time and location to be confirmed.

Bidders failing to submit proof of B-BBEE status or who are non-compliant may still score price points but score 0 for B-BBEE.

Scope: Research on the legal and institutional forms for joint discharging of services between municipalities, on behalf of SALGA.

Aim: Develop an evidence-based and legally grounded framework for municipalities to jointly discharge infrastructure-related functions through cooperative, shared-service or consolidated delivery arrangements.

Research must cover:

• Analyse the legal and policy framework that enables or constrains municipalities to jointly exercise or perform infrastructure-related functions.
• Identify practical institutional models for pooling resources, technical capacity and implementation capability, including leadership and institutional culture/maturity.
• Assess circumstances under which different modalities are appropriate (dominant municipality, group of similarly constrained municipalities, district municipality, municipal entity, or other cooperative mechanism).
• Explore the role of SALGA, national and provincial government, National Treasury and relevant technical support institutions.
• Develop sample instruments/templates, including model service level agreements, governance structures, performance arrangements, risk controls and implementation protocols.
• Propose possible pilots to test feasibility across selected municipalities and grant programmes.

Key deliverables (due by 26 February 2027):

1. Inception report and refined research design
2. Legal and policy review report
3. Assessment of institutional options and comparative models
4. Draft report with consolidated stakeholder inputs
5. Practical framework for joint discharging of infrastructure-related functions
6. Model service level agreement or memorandum of agreement template
7. Proposed pilot design and implementation roadmap
8. Final research report with recommendations
9. Presentation slide deck for stakeholder and governance engagements

Proposal content requirements:

• Strengths and weaknesses of the firm, similar experience, in-house skills
• Mission statement, vision, values, long-term strategies
• List of references of previous and current appointments relevant to the services
• Organogram or list of partners, managers, specialists, with CVs of staff who will be available
• Breakdown of tariff, VAT inclusive, per category
• Comprehensive budget with charge-out rates and budgeted hours per activity, detailing assumptions and all cost factors such as travel
• How the bidder proposes to provide governance assistance to SALGA
• Overview of the methodology to be applied
• How the bidder will ensure transfer of skills to the SALGA team

Research aim and scope of work: Develop an evidence-based and legally grounded framework for municipalities to jointly discharge infrastructure-related functions through cooperative, shared-service or consolidated delivery arrangements.

Scope includes:

• Analyse the legal and policy framework enabling or constraining joint exercise of infrastructure-related functions.
• Identify practical institutional models for pooling resources, technical capacity and implementation capability, considering leadership and institutional culture/maturity.
• Assess circumstances under which different modalities are appropriate (dominant municipality, group of similarly constrained municipalities, district municipality, municipal entity, or other cooperative mechanism).
• Explore the role of SALGA, national and provincial government, National Treasury and relevant technical support institutions.
• Develop sample instruments/templates, including model service level agreements, governance structures, performance arrangements, risk controls and implementation protocols.
• Propose possible pilots to test feasibility across selected municipalities and grant programmes.

Key deliverables (due by 26 February 2027):

1. Inception report and refined research design
2. Legal and policy review report
3. Assessment of institutional options and comparative models
4. Draft report with consolidated stakeholder inputs
5. Practical framework for joint discharging of infrastructure-related functions
6. Model service level agreement or memorandum of agreement template
7. Proposed pilot design and implementation roadmap
8. Final research report with recommendations
9. Presentation slide deck for stakeholder and governance engagements

Proposal must include an overview of the methodology to be applied, and how the bidder will ensure transfer of skills to the SALGA team.

Preferred service provider competencies:

• Appropriate skills/expertise in conducting research, understanding of the legal framework on local government especially relating to basic services.
• Experience and understanding of the basic services value chains in local government.
• Understanding of local government responsibilities and service delivery challenges.
• Proven ability to deliver on similar assignments (provide traceable references).
• Demonstrable capacity and willingness to deliver within set constraints (time, funds, scope).
• Assigns a team with appropriate qualifications and demonstrable diversity of experience linked to the subject matter (e.g. municipal finance, HR, institutional form, service delivery value chain).

Functionality evaluation for experience (weight 35):

• Proof of similar work via appointment letters and/or positive recommendation letters not older than 5 years.
• Points awarded based on number of similar projects: 0 projects = 0 points, 1 = 7, 2 = 14, 3 = 21, 4 = 28, 5 or more = 35.

Team qualifications (weight 25):

• Project team CVs/profiles must be submitted demonstrating years of experience and qualifications.
• Project leader must have more than 15 years of relevant experience and a Masters/PhD qualification.
• Points awarded based on team experience and qualifications: 2-year experience with graduate qualification = 5 points, 3-year = 10, 4-year with postgraduate = 15, 5-year with postgraduate = 20, more than 5-year with postgraduate and project leader with >15 years and Masters/PhD = 25.

Pricing format: Stipulated sums without escalator clauses or other qualifications.

Proposals must include a breakdown of the tariff, VAT inclusive, per category.

A comprehensive budget must show service activities, charge-out rates and budgeted hours per activity, detailing all assumptions and cost factors such as travel.

Expenditure incurred without prior approval of SALGA will not be reimbursed.

Consultant remuneration rates will be subject to negotiation, not exceeding the applicable rates in the DPSA Guide on Hourly Fee Rates for Consultants.

Remuneration framework must consider:

• Guidelines on Fees for Audits done on behalf of the Auditor-General of South Africa (AGSA) as issued by SAICA
• Guide on Hourly Fee Rates for Consultants as issued by DPSA
• Remuneration guidelines issued by professional service organisations or regulatory bodies

Mandatory returnable forms (complete in full, on the original, signed in black ink; do not retype):

• SBD 4 (Declaration of Interest)
• SBD 6.1 (Preference Points Claim)
• SBD 8 (Declaration of Past Supply Chain Management Practices)
• SBD 9 (Certificate of Independent Bid Determination)
• Originally signed copy of the General Conditions of Contract

Bidders must declare any conflict of interest.

Bids must remain valid for 120 days from the date of submission.

Proof of B-BBEE status level of contribution must be submitted.

No specific B-BBEE minimum level is set; non-compliant bidders score 0 for B-BBEE but may still be considered on price.

No CIDB grading required (this is a professional services research assignment).

No CSD registration or tax clearance mentioned in the document.

B-BBEE status level of contribution points (80/20 system): Level 1 = 20 points, Level 2 = 18, Level 3 = 14, Level 4 = 12, Level 5 = 8, Level 6 = 6, Level 7 = 4, Level 8 = 2, Non-compliant contributor = 0.

Bidders must submit proof of their B-BBEE status level of contributor.

A bidder failing to submit proof or who is a non-compliant contributor may not be disqualified but may only score points out of 80 for price and 0 points out of 20 for B-BBEE.

Contract term: Governed by a Service Level Agreement (SLA) to be concluded with the winning bidder. Term is for the duration of the assignment and expires upon fulfilment of the scope of work. May be extended by mutual agreement. Either party may terminate with 30 days written notice.

Commencement: Work anticipated to commence within a week of receiving the appointment letter. Final product must be delivered by 31 December 2026.

Termination: SALGA may terminate with 30 days written notice if the bidder fails to perform in accordance with the service requirements or substantially violates the RFP or agreement.

Liability: SALGA will not be liable for any actions of the winning bidder and/or its employees.

Conditions of bid:

• A contract will be signed with the appointed service provider.
• The service provider must sign confidentiality and indemnity agreements with SALGA.
• SALGA may at its discretion vary an instruction to include more work.
• Failure to comply with any condition invalidates the tender proposal.
• If a conflict of interest is discovered, SALGA may summarily cancel the agreement and demand return of all information, documents and property.
• SALGA may request new or additional information.
• Bidders shall not disclose details of their proposal to anyone not specifically involved unless authorised.
• No press release, social media or public announcement about the project without prior written approval.
• Bidders must declare any conflict of interest.
• Bids valid for 120 days from submission.
• Submission of a proposal gives rise to no contractual obligations on the part of SALGA.
• Disputes settled by mutual consultation, mediation, or in a South African court of law.
• SALGA will not be liable for costs incurred during site visits or any other cost related to submission.

General conditions:

• Intellectual property and ownership of all materials and products developed during the contract vest in SALGA.
• Materials and products may not be made available to unauthorised persons or sold for profit without prior written consent.
• On completion or termination, all materials and products must be handed over to SALGA.
• No information concerning the tender or award may be disclosed without prior consultation and written approval.
• SALGA may vary the instruction to include more scope/work or exclude work/service areas.
• All copyright and intellectual property rights resulting from the work reside with SALGA; the service provider must sign a confidentiality agreement.
• SALGA may dictate the framework for document submission.
• SALGA's general conditions of bid, contract and order apply.
• The service provider must conclude and sign an SLA after appointment.
• SALGA reserves the right not to award the bid to any bidder at its own discretion.

Evaluation method: After the closing date, an appointed evaluation committee of SALGA officials and possibly other external parties will evaluate the proposals against the appointed criteria as provided for in Preferential Procurement Regulations, 2017. All proposals will be evaluated on three categories: Functionality (technical content), Price, and B-BBEE status level of contribution. Bids will be evaluated using the 80/20 split. The 80/20 preference points system applies for acquisition of goods or services for Rand value equal or above R30 000 and up to R50 million. Firstly, the assessment of functionality will be done in terms of the evaluation criteria and the minimum threshold value of 70 points. A bid will be disqualified if it fails to meet the minimum threshold value for functionality. A Bid Evaluation Committee will review and evaluate the proposals. A maximum of four (4) bidders may be invited to present their proposal for clarification. Thereafter, only the qualifying bids will be evaluated in terms of the 80/20 preference points system: 80 points for price and 20 points for B-BBEE Status Level of Contribution. The price points will be calculated in accordance with the formula prescribed in Regulation 6(1) of the Preferential Procurement Regulations, 2017. A recommendation for award will be made at the Bid Adjudication Committee meeting.