RFP: innovative revenue enhancement initiatives – nkomazi local municipality tender

Closing date: 28 October 2026 at 12:00 PM

Briefing session: The document mentions a non-compulsory/optional explanatory meeting, but no date, time, or venue is stated. Attendance may be a condition of the bid; check the tender advertisement for details.

Bidding procedure enquiries:

• Contact: Mr. H Ngomane
• Department: SCM
• Telephone: (013) 790 0386
• Email: [email protected]

Technical enquiries:

• Contact: Mr. Themba Mashabane
• Department: Budget and Revenue
• Telephone: (013) 790 0245
• Email: [email protected]

Submission address:

9 Park Street

Malalane

Private Bag X101

Malalane, 1320

Submission method: Bids must be deposited in the bid box at 9 Park Street, Malalane, Private Bag X101, Malalane, 1320, before the closing time. Late bids will not be considered.

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

• MBD 1 (Invitation to Bid): bidder details and signed offer cover page.
• MBD 4 (Declaration of Interest): discloses any connection to state employees or the municipality.
• MBD 5 (Declaration for Procurement Above R10 Million): required if the procurement exceeds R10 million; includes declarations on audited financials, outstanding municipal debts, past contracts, and foreign sourcing.
• MBD 6.1 (Preference Points Claim): claims preference points for specific goals.
• Schedule of Rates (T10): must be completed in full.
• Certificate of Authority for Signature: signed by the Board of Directors, authorising the signatory.
• Joint Venture Agreement and CSD registration as a Joint Venture (if applicable).

Additional mandatory documents:

• Original or certified Tax Clearance or SARS PIN.
• CSD Registration Report (printed after the tender advert and on or before closing date).
• Certified copy of Company Registration (CK), all pages certified.
• Certified copy of B-BBEE Certificate (SANAS accredited) or sworn affidavit.
• Full CSD report not older than 3 months.
• Certified proof of municipal rates and taxes payment or lease agreement for the business and all directors/board members (not older than 3 months, not in arrears more than 3 months), with affidavit if not in company name.
• Bank rating letter on bank letterhead, not older than 3 months.
• Latest Annual Financial Statements; audited statements if legally required.
• Comprehensive methodology on investing back into the community (for proposals above R5 million).

Disqualification risks:

• Any page missing, not initialled, or not signed.
• Use of correcting fluid, pencil, or electronic signatures.
• Form of offer not completed in words and numbers.
• Submission after the closing date and time.
• Certified copies older than three months, or copies of certified copies.
• Failure to submit any mandatory returnable document.

Evaluation is a three-stage process:

• Stage One: Administrative Compliance and Pre-Qualification – checks all mandatory documents and requirements. Only compliant bidders proceed.
• Stage Two: Technical Evaluation – scores functionality, technical merit, experience, expertise, financial and operational capacity, methodology, innovation, and sustainability. Minimum qualifying score: 70 out of 100. Bidders scoring below 70 are disqualified.
• Stage Three: Price and Preference Points – applies the 80/20 preference point system (80 points price, 20 points specific goals). The highest-ranked bidder may be identified, subject to approvals.

Technical evaluation criteria (points not fully specified in the document):

• Company experience and profile: appointment letters and reference letters for similar multidisciplinary revenue projects (2 letters = 5 points, 3 letters = 8 points, 4+ letters = 10 points).
• Financial ability: Annual Financial Statements or bank confirmation – R1 million to R2 million turnover = 5 points; more than R2 million = 10 points.
• Project proposal and methodology: comprehensive proposal demonstrating design, feasibility, step-by-step methodology, and ability to obtain external funding (up to 50 points).
• Significance of expected revenue results and identification of products/services.

The municipality seeks proposals for innovative revenue-generating and revenue-enhancement initiatives to improve its revenue management value chain, maximise collection, and recover revenue leakages. Initiatives should target residents, businesses, water tankers, private boreholes, and rural communities.

Proposals must focus on one or more of the following categories:

• Energy
• Water and Sanitation
• Waste Management
• Finance
• Property Development
• Srac
• Developmental Projects
• Nkomazi Traffic Department Corporate and Legal
• Other

Revenue enhancement initiatives may include:

• Deployment of revenue management solutions
• Water management smart systems (including rural/tribal areas)
• Smart metering systems (electricity and water) piloting
• Identification and recovery of revenue leakages
• Revenue recovery in Eskom supply areas
• Customer incentive schemes to improve payment culture

Revenue generation initiatives may include:

• Innovations for funding revenue generation projects
• Location-based revenue management linking stand information to Town Planning, GIS, Deeds office, etc.
• Telecommunication / cell mast revenue recoveries
• Revenue from strategic land parcels, lettable facilities, heritage buildings, township economies, outdoor advertising, and municipality Wi-Fi infrastructure
• Metering of un-metered stands
• Flat rate for water and waste collection where possible
• Public-private partnerships for development of NKLM land
• Waste management revenue generation
• Metering kiosks to prevent tampering

Proposals must not be a 'shopping list'; each item must be justified. They must demonstrate how they will be funded, the implementation timeline, and expected outcomes. Successful bidders will be placed on a panel and allocated work per category.

Proposals must:

• Not be a 'shopping list'; justify each item.
• Demonstrate how they will be funded and the implementation timeline.
• Be realistic, implementable, and show background work.
• Include a step-by-step methodology for implementation.
• Provide a detailed project plan with clear timelines.
• Demonstrate ability to obtain external funding or elevate institutional image.
• Show how the project will achieve revenue generation/enhancement outcomes.

Expected deliverables for revenue enhancement and generation are listed in the technical specifications.

Supporting documents for technical evaluation:

• Company profile with track record of similar multidisciplinary revenue projects (local, provincial, national, state-owned, or private sector).
• Portfolio of evidence of similar projects.
• Draft proposal of the multidisciplinary innovations.
• Relevant contactable references.
• Latest Annual Financial Statements or bank confirmation reflecting R1 million or more financial ability.
• Cost breakdown of the proposal.

Scoring for experience:

• 2 appointment/reference letters = 5 points
• 3 letters = 8 points
• 4 or more letters = 10 points

Letters must be on official letterhead with contact details.

Complete the Schedule of Rates (T10) in full. Prices in South African currency. Firm prices and delivery periods preferred; state if they remain firm for the contract duration.

Pricing format:

• Complete the Schedule of Rates (T10) in full.
• Prices must be quoted in South African currency and in specified units.
• Firm prices and delivery periods are preferred; state whether they remain firm for the contract duration.

Financial capacity:

• Latest Annual Financial Statements or bank confirmation reflecting financial ability of R1 million or more.
• For technical evaluation, financial ability is scored: R1 million to R2 million annual turnover = 5 points; more than R2 million = 10 points.

Bid deposit:

• A non-refundable bid deposit may be required if purchasing tender documents; payable by bank cheque to Nkomazi Local Municipality. Alternatively, documents can be downloaded free from e-Tender or the Nkomazi website.

No bid security, retention, or payment terms are specified in the document.

Mandatory compliance:

• CSD registration: submit a detailed CSD report printed after the tender advert and on or before closing date. Joint Ventures must be registered on CSD as a Joint Venture.
• Tax compliance: submit SARS Tax PIN or tax clearance certificate. Foreign suppliers must complete the pre-award questionnaire. Each party in a consortium/JV must submit separate TCS/PIN/CSD.
• B-BBEE: submit a valid B-BBEE certificate (SANAS accredited) or sworn affidavit (for EME/SME). Preference points are claimed under the 80/20 system.
• Company registration: certified copy of CK certificate, all pages certified.
• IDs: original certified copies of IDs of all directors/members/board members.
• Municipal account/lease: certified proof of payment for municipal rates and taxes or lease agreement for the business and all directors/board members, not older than 3 months and not in arrears more than 3 months. If not in company name, provide an affidavit from the property owner.
• Certificate of Authority for Signature: signed by the Board of Directors.
• Persons in the service of the state are prohibited from bidding.

Category-specific compliance:

• For each proposed revenue category, submit all applicable statutory, regulatory, technical, professional, environmental, and operational certifications (e.g., licenses, permits, registrations). Failure to submit for a category may render the bidder non-responsive for that category.

Preference point system: 80/20 (80 price, 20 specific goals).

Specific goals and points (vary by proposal value):

• For proposals R200,000 to R5 million:
• 100% black-owned enterprise: 2.5 points
• More than 30% woman shareholding: 2.5 points
• More than 30% youth shareholding: 2.5 points
• More than 30% people with disability shareholding: 2.5 points (medical certificate required)
• EMEs/Start-ups in Ehlanzeni District: 2.5 points (CSD report with matching address)
• B-BBEE Level 1 contribution: 5 points (certified certificate or affidavit)
• For proposals above R5 million to R10 million: similar structure with different point allocations (10 points for HDI-owned, 10 for RDP programmes).
• For proposals above R10 million to R50 million: 8 points HDI-owned, 12 points RDP.
• For proposals above R50 million: 4 points HDI-owned, 6 points RDP.

Documentation required:

• Full CSD report not older than 3 months.
• Certified valid B-BBEE certificate (SANAS accredited) or sworn affidavit for EME/SME.
• CIPC issued certificate confirming annual turnover and Black ownership.
• Medical certificate for disability claims.
• For subcontracting: documentation showing 30% of contract value subcontracted to EMEs in local communities.

Proposals should consider environmental aspects where relevant, such as water management smart systems and waste management revenue generation. No specific environmental compliance requirements are stated beyond general category-specific certifications.

Contract nature:

• The municipality will appoint service providers, investors, partners, or other entities to implement revenue-generating/enhancement initiatives.
• Contract term is determined per proposal based on nature, scope, complexity, investment, and benefits, subject to legislation and approvals.
• Proposals that constitute a Public-Private Partnership (PPP) are subject to the Municipal Finance Management Act and PPP regulatory framework.
• The successful bidder must negotiate and conclude a service level agreement with the council.
• The contractor may not abandon, transfer, assign, or sublet the contract without prior written consent of the council.

Intellectual property:

• All data, information, plans, documents, and deliverables produced are the property of the municipality.
• The municipality acquires copyright and intellectual property rights for paid work.
• Source codes of developed systems must be delivered to the municipality, which assumes full ownership.
• Any changes to source codes must be communicated and delivered on a mutually agreed basis.
• Developments must be compatible with NKLM systems at the time of development.
• The municipality may use deliverables for other purposes without consent.

If proposed innovations are subject to specific legislation (e.g., PPP, MFMA), they will only be considered if they comply with such legislation. The municipality may negotiate with preferred bidders, but identification as preferred does not guarantee appointment.

General requirements:

• Bids must be on official forms, not retyped, no photocopies, no electronic signatures, black ink only.
• All pages must be numbered consecutively and initialled/signed.
• Deviations from specification must be clearly indicated.
• Bidders may quote for additional items on a separate sheet, but these are not evaluated.
• The municipality may issue briefing notes during the briefing session.
• A non-refundable bid deposit may be required if purchasing documents; otherwise free download from e-Tender or Nkomazi website.
• Bids must be submitted before closing time; late bids are not considered.
• The successful bidder must conclude a service level agreement.

Tax compliance:

• Submit SARS PIN or TCS certificate. Foreign suppliers complete pre-award questionnaire. Each JV/consortium party submits separate TCS/PIN/CSD.

Category-specific compliance:

• Submit all applicable licenses, permits, registrations, certifications for each proposed category. Failure may render bidder non-responsive for that category.

Three-stage evaluation as described in the main evaluationCriteria section. Minimum technical score of 70/100 to proceed to price evaluation.