Outsourced treasury service provider for surplus cash investment management – sedfa (3-Year contract)

Closing date: 09 September 2026 at 11:00 am. Deadline for responding to clarifications: 28 August 2026 at 12:00 pm. No briefing session or site visit is stated.

Main contact: Sebotse Mokgabudi / Phindile Zwane, Tel: 012 748 9725, Email: [email protected] / [email protected]. Communication must be in writing only via SCM officials. Fraud hotline: 0800 000 663. Complaints: [email protected].

Bids must be submitted in a sealed envelope marked with the bid description, bid number, and bidder's name, deposited into the Tender Box at SEDFA Head Office, 11 Byls Bridge Office Park, Building 14, Block D, 11 Bylsbridge Boulevard, Cnr Jean Avenue & Olievenhoutbosch Road, Centurion, 0157, before the closing time. Bidders must request an entrance access code via [email protected], [email protected], or [email protected] on the day of submission. Submit one original and one electronic PDF copy on a memory stick or flash drive. All pages must be initialled, the proposal must be in English, and each section clearly marked and bound. Bids must follow the Bid Response Template in Appendix 1. Late bids will not be considered under any circumstances. Counter conditions or amendments to bid conditions will render the bid invalid. Returnable forms: SBD 1 (Invitation to Bid), SBD 4 (Declaration of Interest), SBD 6.1 (Preference Points Claim), valid Tax Compliance Status PIN, CSD registration proof, B-BBEE certificate or sworn affidavit, CIPC registration with certified ID copies, and POPIA Consent Form. Consortium/JV partners must each submit separate tax clearance and a signed agreement.

Bidders must submit: SBD 1, SBD 4, SBD 6.1 forms; valid Tax Compliance Status (TCS PIN); proof of CSD registration; B-BBEE certificate or sworn affidavit; CIPC registration documents with directors/shareholders and certified ID copies; POPIA consent form; and for consortiums, separate tax clearance and signed agreement. Bids must be in a sealed envelope with one original and one electronic PDF copy on a memory stick.

Evaluation is in four stages. Stage 1: Administrative compliance (initial screening) – failure to comply disqualifies. Stage 2: Mandatory requirements – must comply with all, including FSCA Category II FSP licence, Key Individuals approved under FAIS, insurance cover, access to rated investment funds, minimum R2 billion discretionary fixed income and cash management AUM, and a complete technical and financial proposal. Stage 3: Functionality – minimum overall score of 70 out of 100, and at least 50% of points for each individual criterion. Functionality criteria: Portfolio Managers Experience (35 points), Supporting Staff (25 points), Fixed Income Track Record (30 points), Responsible Investing (10 points). Stage 4: Price and Specific Goals using the 80/20 preference point system – Price 80 points, Specific Goals 20 points. Only bidders passing Stage 3 proceed to Stage 4. Specific goals: size of enterprise (up to 8 points), B-BBEE black ownership (2 points), black women owned >30% (4 points), youth (2 points), spatial rural/township/city (4 points).

The appointed service provider(s) will deliver a comprehensive outsourced treasury function for SEDFA and its subsidiaries, including: design and implement a treasury function with policies, procedures, and internal controls; develop a Treasury Policy and Investment Framework aligned to PFMA and National Treasury Regulations; establish governance structures and delegations of authority; analyse and forecast cash flows, develop rolling forecasts, and optimise liquidity; develop and implement an investment strategy for surplus funds, prioritising capital preservation, liquidity, and risk-adjusted returns; operate within defined investment limits. The scope also includes compliance with PFMA, FSCA, National Treasury regulations, and Prudential Authority requirements (for the insurance subsidiary). Detailed scope is in Annexure E. SEDFA may appoint one or more bidders, with mandates allocated based on investment strategy, liquidity, credit mandates, performance, diversification, transformation, and risk management.

The bidder must submit a technical and financial proposal including: a detailed technical approach and methodology for delivering the services; a clear implementation plan with timelines and milestones; governance, reporting, and communication arrangements; an organogram with key personnel and roles; a detailed pricing schedule and fee structure with all cost components and assumptions; and how the entity will manage conflicts of interest, including policies and procedures for identifying and mitigating conflicts, periodic disclosures, and maintaining independence between investment and credit decision-making.

Portfolio managers must have relevant skills and experience in fixed income portfolio management. Qualifications: at least NQF Level 8 and CFA (higher NQF levels score more). Supporting staff (junior portfolio manager, senior investment analyst, credit analyst, treasury advisory, operation support) must have relevant qualifications and experience. Bidders must provide CVs and demonstrate a track record with reference letters for fixed income mandates. At least 90% of assigned personnel must be South African citizens. No more than 55% of staff may be replaced without SEDFA approval.

Bidders must complete and sign pricing proposals; failure to do so leads to disqualification. The pricing schedule must include all cost components and assumptions. Price is scored out of 80 points using the formula Ps = 80(1 - (Pt - Pmin)/Pmin). Bidders must demonstrate discretionary fixed income and cash management AUM of at least R2 billion. The successful bidder must maintain insurance cover including Professional Indemnity, Directors' and Officers' Liability, Cyber Liability, and Fidelity/Crime Insurance, and submit proof of cover with policy schedules and limits of indemnity.

Bidders must be registered on the National Treasury Central Supplier Database (CSD) and submit proof of registration. A valid Tax Compliance Status (TCS PIN) issued by SARS must be submitted at closing. Bidders must hold a valid FSCA Category II (Discretionary) Financial Services Provider licence in good standing, with Key Individuals and Representatives approved under FAIS. B-BBEE: minimum level 1 to 4, with a valid B-BBEE certificate from a SANAS-accredited agency, or a sworn affidavit for EMEs/QSEs (dtic or CSCC templates). CIPC registration documents listing all directors/shareholders with certified ID copies (not older than three months) must be submitted. Bidders must not be listed on the National Treasury List of Restricted Suppliers, directors must not be on the Register of Defaulters, and the entity must not be deregistered on CIPC or CSD. Returnable forms: SBD 1, SBD 4, SBD 6.1, POPIA Consent Form. Consortium/JV partners must each submit separate tax clearance and a signed agreement.

Preference will be given to bidders with B-BBEE status level 1 to 4. Specific goals include: size of enterprise (micro, small, medium, large) up to 8 points; B-BBEE black ownership up to 2 points; black women owned (more than 30%) 4 points; target youth group 2 points; spatial (rural, township, city) up to 4 points. Bidders must submit a valid B-BBEE certificate or sworn affidavit and indicate claims on SBD 6.1.

Equipment and productivity tools brought onto site must comply with the Occupational Health and Safety (OHS) Act, 1993. The bidder is liable for insuring staff against injury or death and must ensure employees have the necessary Personal Protective Equipment (PPE).

Bids are valid for 120 business days from submission. Material changes in control or composition of the bidder after submission require prior written approval from SEDFA; failure to seek approval may result in exclusion. SEDFA may conduct due diligence, security vetting, and credit vetting on short-listed bidders. Bidders must comply with FICA and provide KYC documents (certified IDs, certificate of incorporation, list of directors). SEDFA reserves the right to cancel the bid and to appoint more than one bidder. Successful bidders must enter into a Service Level Agreement. Services are rendered Monday to Friday during working hours. The bidder must comply with employment legislation (UIF, COIDA, PAYE). Equipment must comply with the OHS Act. The bidder is liable for insuring staff and providing PPE. Monthly statements of payments, credit notes, and payments must be submitted. SEDFA is not responsible for damages, losses, theft, or injury. All procurement is conducted by SEDFA's SCM division only.

Special conditions include: services rendered Monday to Friday during working hours; compliance with employment legislation (UIF, COIDA, PAYE); equipment must comply with OHS Act; bidder liable for insuring staff and providing PPE; monthly statements of payments; SEDFA not responsible for damages or losses; all procurement conducted by SEDFA's SCM division. Bidders must provide their own equipment (laptop, internet, transport, phone).

Mandatory requirements include: being a licensed Financial Services Provider (FSP) with a valid Category II (Discretionary) licence from FSCA; Key Individuals and Representatives approved under FAIS; maintaining adequate insurance cover (Professional Indemnity, D&O, Cyber, Fidelity/Crime); demonstrating access to rated investment funds and credit research capability; having discretionary fixed income and cash management AUM of at least R2 billion; and submitting a comprehensive technical and financial proposal.

The bid will be evaluated in four stages: Stage 1 administrative compliance, Stage 2 mandatory requirements, Stage 3 functionality (minimum 70/100 overall and 50% per criterion), Stage 4 price and specific goals using the 80/20 preference point system. Price is allocated 80 points, specific goals 20 points. Functionality criteria include portfolio manager experience (35 points), supporting staff (25 points), fixed income track record (30 points), and responsible investing (10 points).