Provision of external audit services for the ppecb

Closing date: 18 September 2026, 11h00.

Bid validity period: 120 days from closing date.

Queries must be submitted no later than 10 days before closing date.

Contract commencement: 1 April 2027.

Final audit plan for FY 31 March 2027 due by January 2027.

Tender enquiries: Sourcing specialist, email [email protected], tel +27 21 930 1134. PPECB business hours 08:15–16:45.

Electronic submission shared with [email protected] and [email protected].

Physical submission address: PPECB Head Office, 45 Silwerboom Avenue, Plattekloof, Cape Town, 7500.

Submission must be in dual format: a sealed hard copy delivered to the PPECB Tender Box at the main reception, and an electronic copy stored via Microsoft OneDrive and shared with [email protected] and [email protected]. Both must arrive before the closing time; late bids are not considered.

Proposals must be split into two sealed envelopes, placed together in an outer sealed envelope marked with the tender number and address: PPECB, 45 Silwerboom Avenue, Plattekloof, Cape Town, 7500.

Envelope 1 – Technical Proposal (no pricing): one signed original plus one electronic PDF copy (unencrypted). Must include, in order: cover letter on letterhead, table of contents, written technical proposal, specification document with declaration signed, SBD 1, SBD 4, SBD 6.1, valid B-BBEE certificate (consolidated for JV/consortium), Non-Disclosure Agreement (Annexure A), tax compliance PIN certificate, and for JV/consortium/subcontracting: JV agreement with split of work and rand value, tax clearance for each member, proof of ownership/shareholder certificates, company registration certificates. Also include latest audited annual financial statements (four years).

Envelope 2 – Pricing Proposal: one signed original pricing schedule plus one electronic copy in MS-Excel format (unencrypted). Must contain SBD 3.3 – Pricing Schedule. No technical information in this envelope.

Pricing information in Envelope 1 or technical information in Envelope 2 results in automatic disqualification. Failure to comply with packaging or submission instructions may render the bid ineligible.

Envelope 1 – Technical Proposal must contain: Bidder's Cover letter on Company Letterhead; Table of Contents; written technical proposal providing evidence for technical evaluation; specification document with declaration section completed and signed; SBD 1 – Invitation to Submit Proposal; SBD 4 – Bidder Declaration; SBD 6.1 - Preference Point Claim Form; valid B-BBEE Certificate (for JV/Consortium, consolidated B-BBEE certificate); Non-Disclosure Agreement - Annexure A; Tax Compliance Pin Certificate; for joint venture/consortium/subcontracting: Joint Venture Agreement including split of work and rand value signed by both parties, Tax Clearance Certificate/Proof of Tax Compliance of each member, proof of ownership/shareholder certificates/copies of ID, company registration certificates; latest audited annual financial statements – four (4) year financial statements. Envelope 2 – Pricing Proposal must contain SBD 3.3 – Pricing Schedule.

Evaluation is staged; failure at any stage disqualifies the bidder from further stages.

Stage 1 – Administrative/Compliance: returnable documents checked for compliance with all terms and conditions.

Stage 2 – Mandatory Criteria (disqualifying if not met):

• Independence declaration: detailed written declaration confirming independence and objectivity of the firm, engagement partner, and all proposed audit team members, including disclosure of any actual, potential, or perceived conflicts of interest.
• IRBA registration: proof of registration and good standing as an audit firm, plus evidence of satisfactory results from the most recent IRBA quality assurance review for both the firm and the proposed engagement partner.
• Use of recognised audit software for the engagement.

Stage 3 – Functional/Technical Evaluation (weighted, total 170 points):

• Technical Approach (20 points): financial statement audits (5), AOPOs (5), SCM processes and controls (5), ITGCRs (5).
• Auditing technology and software tools (10 points): specify software (e.g., CaseWare) (2), describe support for planning/risk/execution/documentation/review/reporting (3), information security measures (2), demonstrate enhancement of quality/efficiency/compliance (3).
• Use of CAATs (10 points): CaseWare IDEA/ACL Analytics or equivalent with valid licence proof (10), other software with proof (5), none (0).
• Audit Planning and Approach (20 points): final audit plan for FY 31 March 2027 by January 2027, showing understanding of scope, approach, team, timelines.
• Experience – Audit Team Composition and Capacity (5 points): organogram of audit personnel (partners, managers, other staff) and identification of key team members with roles.
• Personnel Qualifications and Experience (25 points): Engagement Partner must be IRBA Registered Auditor and SAICA/ACCA member (10 points); public sector experience as active partner: <3 years (0), 3-4 years (10), >4 years (15). Partner must be based in Cape Town.
• Technical personnel (15 points): details of technical staff with qualifications, experience, and professional certifications (e.g., CISA); <3 years (0), 3-5 years (10), >5 years (15).
• Quality Control (35 points): description of quality management system (20), copy of internal quality policies (5), declaration of legal/regulatory proceedings or sanctions in past 3 years (10).
• Insurance – Professional Indemnity and Public Liability (10 points): provide insurer name, policy number, expiry, limit of indemnity, confirmation valid for contract duration.
• References (20 points): written references from public sector institutions of similar size/complexity, on letterhead, signed by CEO/CFO/Accounting Officer, specifying nature, duration, value, and contact details. Points: <2 refs (0), 2 (5), 3 (10), 4 (15), >4 (20).

Minimum functional threshold: 140 points. Bidders scoring below this are disqualified. Sub-minimum points per criterion may also apply.

Stage 4 – Price and Preference: 80/20 preference point system. Specific goals (total 20 points):

• Small business (EME/QSE): EME=10, QSE=10, Generic=5.
• Black woman ownership: 70-100% shareholding=10, 51-69.99%=5, 30-50.99%=3, below 30%=0.

Stage 5 – Due Diligence (Financial Health): submission of latest audited or independently reviewed financial statements; PPECB may assess financial position, liquidity, solvency, profitability, creditworthiness, and capacity. Failure to provide requested information may lead to disqualification.

Stage 6 – Objective Criteria: PPECB may consider risk of fruitless/wasteful expenditure, abnormally low bid, material irregularity, litigation with PPECB, and poor past performance.

Scope: External audit of PPECB's annual financial statements for five years, from FY2026/27 (1 April 2026 to 31 March 2027) through FY2030/31 (1 April 2030 to 31 March 2031). Contract effective 1 April 2027 to 31 March 2032, subject to annual performance assessments and AGSA approval. Maximum appointment period is five years.

Audit must be conducted in accordance with the Public Audit Act, 2004, any General Notices, and International Standards on Auditing (ISAs). The service provider must report on performance against predetermined objectives, compliance with legislation, and internal control deficiencies (without expressing an audit opinion). Must communicate significant findings to management and the Audit Committee, submit a final audit report with recommendations, attend all scheduled Audit Committee meetings, and liaise with the Auditor-General of South Africa.

Systems in scope: Microsoft Dynamics 365 (D365), Oracle, CRS, TITAN, and Navision. The provider must evaluate the adequacy and effectiveness of systems controls, including access management, segregation of duties, data integrity, workflow approvals, change management, and compliance with policies and regulations.

Mandatory pre-qualification requirements:

• Independence from PPECB and its directors; detailed statement required.
• Registered as a public auditor in public practice with IRBA; evidence of satisfactory IRBA review results for the firm and engagement partner.

Evaluation criteria for short-listed firms include professional competence and integrity, at least three years' experience in government or similar audits, knowledge of PFMA and Treasury Regulations, engagement partner with at least three years' public audit experience, no conflict of interest (firms currently performing advisory services for PPECB are not eligible), track record and reputation, capacity to conduct audit (staff availability typically January–February for planning, April–May for final audit), and firm size with a minimum of three partners who are SAICA members.

The successful service provider and engagement partner must be based in Cape Town for the duration of the audit. Travel and accommodation costs are for the provider's own account and included in the bid price. Any proposed resource must be replaced with someone of similar skill, experience, and qualification if unavailable at contracting.

Technical Approach (20 points): Bidders must provide a detailed description of the audit methodology and approach, covering at minimum: financial statement audits (5 points), auditing of Annual Operational Performance Objectives (AOPOs) (5 points), Supply Chain Management (SCM) processes and controls (5 points), and Information Technology General Control Reviews (ITGCRs) (5 points).

Audit Planning and Approach (20 points): Provide a final audit plan for FY 31 March 2027 by January 2027, demonstrating clear understanding of the terms of reference and scope, including audit approach, General Control Review, audit team, and timelines.

Auditing technology and software tools (10 points): Specify audit software package(s) used (e.g., CaseWare Audit International or equivalent) (2 points); describe how the software supports audit planning, risk assessment, execution, documentation, review, and reporting (3 points); describe information security measures to safeguard confidential client information and audit documentation (2 points); demonstrate how technology enhances audit quality, efficiency, consistency, and compliance (3 points).

Use of Computer-Assisted Audit Techniques (CAATs) (10 points): Demonstrate use of CAATs to analyse large volumes of data and identify anomalies, trends, exceptions, and audit risks. Provide detailed description of data analytics software and valid third-party proof of licence registration. Points: CaseWare IDEA, ACL Analytics, or equivalent with proof (10); other software with proof (5); no software (0).

Audit Team Composition and Capacity (5 points): Provide an organogram of audit personnel (partners, managers, other staff) and identify all key audit team members proposed for the PPECB engagement, with roles and responsibilities.

Key Personnel – Qualifications and Experience (25 points): Submit CVs of the proposed engagement partner and all managers. Engagement Partner must be a Registered Auditor with IRBA and a member in good standing of SAICA or ACCA (10 points). Public sector experience as an active partner: less than 3 years (0), 3-4 years (10), more than 4 years (15). The engagement partner must be based in Cape Town during the audit period (written confirmation).

Technical Personnel (15 points): Provide details of technical personnel assigned, including role, qualifications, years of experience, and copies of valid professional certifications (e.g., CISA for IT Audit Specialist). Points: less than 3 years (0), 3-5 years (10), more than 5 years (15).

References (20 points): Provide written references for external audit assignments completed in the past three years, from public sector institutions or public entities of similar size and complexity to PPECB. Points: less than 2 references (0), 2 (5), 3 (10), 4 (15), more than 4 (20). Reference letters must be on official letterhead, signed by CEO, CFO, Accounting Officer, or authorised representative, specify nature and duration of engagement, indicate value of audit services, and include contact details for verification.

Quality Control (35 points in technical evaluation): The bidder must demonstrate an effective system of quality management compliant with applicable auditing standards and IRBA requirements. Provide: a detailed description of the quality management system, including quality control policies and procedures (20 points); a copy of internal quality management policies and procedures (5 points); a declaration disclosing any legal proceedings, regulatory investigations, sanctions, or disciplinary actions against the firm or proposed engagement partners in the preceding three years, with details of nature, outcome/status, and corrective actions, or written confirmation if none exist (10 points).

Pricing must be submitted on SBD 3.3 – Pricing Schedule, with total cost for Year 1 to Year 5 inclusive of costs and variables (Annexure C). All prices inclusive of VAT. Bidders must submit pricing strictly in accordance with the pricing schedule; deviation results in non-responsiveness. Discounted prices only considered if unconditional. Provide a price schedule with total cost breakdown and a detailed description of how pricing was derived. The tender must be quoted in its entirety; no portion may be left blank. The agreement will be variation-based, with fixed unit costs applying throughout the contract lifecycle.

Pricing must be submitted strictly in accordance with the pricing schedule (SBD 3.3) and include all costs for Year 1 to Year 5, inclusive of VAT. Deviation from the pricing schedule results in non-responsiveness.

All prices must be inclusive of VAT. Discounted prices will only be considered if offered on an unconditional basis. The tender must be quoted in its entirety; no portion may be left blank. Errors and omissions will not be accepted; only the total price submitted will be considered.

Suppliers must submit Annexure C and a price schedule setting out the total cost breakdown, with a detailed description of how pricing was derived. The agreement will be variation-based, with fixed unit costs applying throughout the contract lifecycle.

Bid validity: 120 days from closing date.

Payment terms: 30 days from invoice date, subject to correct purchase order number on tax invoice and services being accepted.

CSD registration: Bidders must be registered on the Central Supplier Database and include their Master Registration Number in SBD 1.

Tax compliance: Submit a valid tax compliance PIN certificate (or CSD number if no PIN).

B-BBEE: Submit a valid B-BBEE certificate (or sworn affidavit for EMEs/QSEs) to claim preference points. For JV/consortium, submit consolidated B-BBEE certificate.

IRBA registration: Must be registered as an audit firm with IRBA and provide proof of good standing and satisfactory IRBA review results.

Professional registrations: Engagement partner must be IRBA Registered Auditor and member of SAICA or ACCA. Firm must have a minimum of three partners who are SAICA members.

Independence: No conflict of interest; firms currently performing advisory services for PPECB are not eligible.

Joint ventures/consortia: Submit signed JV agreement, tax clearance for each member, proof of ownership, and company registration certificates.

Returnable forms: SBD 1, SBD 4, SBD 6.1, SBD 3.3, Non-Disclosure Agreement (Annexure A), tax compliance PIN, B-BBEE certificate, audited financial statements (four years).

The National Treasury's General Conditions of Contract (GCC) apply, supplemented by PPECB's Special Conditions of Contract (SCC). Where conflict arises, SCC prevails.

Special conditions: PPECB may reject any proposal non-compliant with the Terms of Reference. Any change or replacement of approved resources must be formally communicated to PPECB. The successful bidder must sign a formal agreement. Assignment of obligations or cession of payment rights to third parties requires prior written consent.

Insurance: The successful bidder is responsible for all work, materials, tools, and property. Proof of insurance must be provided before commencing work and maintained for the contract duration. Bidders must submit a sample certificate of insurance indicating limitations of liability and a copy of public liability insurance.

Assignment and cession: No assignment of obligations or cession of payment rights without prior written consent.

News and press releases: No news releases concerning the tender or award without PPECB's consent and coordination.

Payment: PPECB will pay in accordance with the contract, subject to agreed quotes, acceptance of services, VAT inclusion, and correct purchase order number on tax invoice. Payment terms are 30 days from invoice date.

Subcontracting after award: Any changes to subcontracting arrangements require prior written approval from PPECB.

Duration: Contract commences on the commencement date and terminates per agreement terms. Subject to annual performance review; PPECB may cancel if performance does not meet agreed standards. PPECB may terminate without penalty if the successful tenderer fails to honour terms, or if there is reputational risk by association.

Special Conditions of Contract: The PPECB reserves the right to reject any proposal found to be inadequate or non-compliant to the Terms of Reference. The PPECB needs to be formally informed of any change/replacement of approved resources. The successful Bidder will be required to sign a formal agreement with the PPECB. The Bidder may not assign, in whole or in part, any of its obligations to perform in terms of the contract to any third party, unless prior consent is obtained in writing. A Bidder may not cede his right to payment in terms of a contract to a third party without prior written consent.

The National Treasury's General Conditions of Contract (GCC) will apply and is enforceable on this tender (Refer Annexure B). PPECB may not amend the GCC but may supplement this with its own Special Conditions of Contract (SCC). Where there is a conflict between the GCC and the SCC, the provisions of the SCC shall prevail.

Mandatory competency requirements as pre-qualification: (1) The audit firm must be independent of the PPECB, its Board of Directors, and management, and must be able to maintain such independence throughout the engagement. Bidders must submit a detailed written declaration confirming independence and objectivity of the firm, engagement partner, and all proposed audit team members, including disclosure of any actual, potential, or perceived conflicts of interest. (2) The bidder must be registered as an audit firm with the Independent Regulatory Board for Auditors (IRBA), with documentary proof of registration and good standing. The bidder must submit evidence of satisfactory results from the most recent IRBA quality assurance review/inspection for both the firm and the proposed engagement partner. (3) The bidder shall utilise recognised audit software to perform the external audit engagement.

Bidders must register on the Central Supplier Database (CSD) and include their Master Registration Number (Supplier MAAA Number) in SBD1 to enable verification of tax status, company registration, bank details, directors and shareholders.

For joint ventures, consortiums, trusts, partnerships, agency and/or distribution agreements, bidders must submit signed agreements as proof of existence. The agreement must clearly set out names, roles and responsibilities of the Lead Partner, identify the Lead Partner with power of attorney to bind other parties, and provide: entity(ies) guaranteeing contract performance, date of agreement formation, details of the nature of the agreement including proposed percentage division of work, and details of guarantees from holding companies and related subsidiaries. Failure to submit these will result in the bid being deemed non-responsive.

The tender evaluation process will be conducted in compliance with relevant Supply Chain acts (including PFMA, PPPFA), associated Regulations, and PPECB's Procurement and Preferential Procurement Policies. Bids will be evaluated in stages: Stage 1 – Administrative/Compliance Evaluation; Stage 2 – Mandatory Criteria; Stage 3 – Functional/Technical Evaluation; Stage 4 – Price and Preference Evaluation; Stage 5 – Due Diligence (Financial Health Assessment); and Stage 6 – Objective Criteria (Risk) Evaluation. Failure at any stage may lead to disqualification.

Stage 1 – Administrative/Compliance Evaluation: Bidders will be evaluated on returnable documents for administrative compliance and to confirm if the bidder meets all terms and conditions of the bid, including all annexures.

Stage 2 – Mandatory Criteria: Failure to submit mandatory documentation will result in disqualification. Mandatory criteria include: (1) independence declaration, (2) IRBA registration and satisfactory IRBA review results, (3) utilisation of recognised audit software.

Stage 3 – Functional/Technical Evaluation: Bidders will be evaluated on functionality. The weighted/rated technical evaluation criteria include: Technical Approach (maximum 20 points) covering financial statement audits, auditing of Annual Operational Performance Objectives (AOPOs), Supply Chain Management processes and controls, and Information Technology General Control Reviews (ITGCRs); auditing technology and software tools (10 points); Use of Computer-Assisted Audit Techniques (CAATs) (10 points); Audit Planning and Approach (20 points); Experience – Audit Team Composition and Capacity (5 points); Personnel Qualifications and Experience (25 points); Technical personnel details (15 points); Quality Control (35 points); Insurance – Professional Indemnity and Public Liability (10 points); References – Relevant Experience (20 points). Total points: 170. Minimum functional threshold is 140 points. Bidders scoring less than this threshold will be disqualified. Bidders must also score higher than individual sub-minimum points per criteria where applicable.

Stage 4 – Price and Preference Evaluation: All bidders that pass previous stages will be evaluated on Price and Preference/Specific Goals (B-BBEE). The bid will be evaluated using the 80/20 preference point system as per the current Preferential Procurement Regulations. Specific goals include: (1) Small business including EMEs or QSEs – proof of B-BBEE status level, with points: EME = 10, QSE = 10, Generic = 5; (2) Black woman ownership – proof of B-BBEE status level, with points based on percentage shareholding: 70% to 100% = 10, 51% to 69.99% = 5, 30% to 50.99% = 3, Below 30% = 0. Total specific goals: 20 points.

Stage 5 – Due Diligence (Financial Health Assessment): The bidder shall submit its latest audited annual financial statements, or independently reviewed financial statements where applicable, to demonstrate financial stability and ability to perform the contract for the full contract period. PPECB reserves the right to conduct a financial due diligence assessment, which may include evaluation of financial position, liquidity, solvency, profitability, creditworthiness, and overall capacity. PPECB may request additional financial information. Failure to provide requested information within stipulated timeframe may result in disqualification.

Stage 6 – Objective Criteria: In terms of Preferential Procurement Regulation 11 and section 2(1)(f) of the PPPFA, the PPECB may consider the following objective criteria in the bid award: (1) risk of fruitless and wasteful expenditure; (2) risk of an abnormally low bid; (3) risk of a material irregularity; (4) PPECB reserves the right not to consider bids from bidders currently in litigation with PPECB; (5) PPECB reserves the right not to award to any bidder based on proven poor record of accomplishment in previous projects within PPECB and referee submitted.