Appointment of a panel of service providers to support municipalities and municipal entities to improve their financial sustainability programme

SALGA was established by the Organised Local Government Act to assist in the comprehensive transformation of local government in South Africa. Its mandate includes representing, promoting and protecting the interests of local government; transforming local government to fulfil its developmental role; enhancing the role and status of members and municipalities; being recognised as the representative and consultative body for local government; ensuring full participation of women; and being the National Employers' Association for municipal members. SALGA's mandate rests on six pillars: Representation, Advocacy and Lobbying; Employer Body; Capacity Building; Support and Advice; Strategic Profiling; and Knowledge and Information Sharing.

Context: Municipalities face weak audit outcomes (AGSA 2023/24: 41 clean, 99 unqualified, 90 qualified, 6 adverse, 11 disclaimer, 10 outstanding), revenue leakages of R25 billion annually, collection rates below 70%, R467.2 billion owed by customers, R160.8 billion owed by municipalities to creditors, and a structural fiscal gap (expected to fund 90% of recurrent expenditure from own revenues but only covering 60%). Municipalities need support in strengthening financial governance, institutional capacity, modernising revenue systems, leveraging innovative finance, and improving audit outcomes.

Scope: Appointment of a panel of service providers to support municipalities and municipal entities to improve their financial sustainability over 36 months (Project D). The service provider must assist with financial modelling and scenario planning, develop a digital tool, and train municipal officials.

Closing date and time: 11 September 2026 at 11:00 am.

Last day for questions: 11 September 2026 (clarification questions accepted only up to four days prior to the closing date).

Proposal submissions due: 28 August 2026 by 11h00.

No briefing session or site visit is stated.

Enquiries: Mr. Lucky Nkomo, Senior Buyer: SCM, at [email protected], SALGA National Office, tel 012 369 8184.

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

Bidders finding discrepancies or omissions must inform SALGA via [email protected] before the closing date.

Submission channel: proposals must be submitted through the SALGA SCM portal at https://scmportal.salga.org.za/. Proposals submitted through any other platform will not be considered. Bidders must register on the portal for their proposals to be considered.

Returnable documents (all must be completed in full, signed, and submitted with the proposal):

• SBD 1 (Bid Invitation): bidder and contact details, signed as the offer cover page.
• SBD 4 (Bidder's Disclosure): declares whether any director or shareholder is employed by the state or connected to anyone at SALGA; false disclosure disqualifies.
• SBD 6.1 (Preference Points Claim): claims B-BBEE points; complete in full, with special attention to sections 12 and 13, signed on the SupplyFlow portal.
• An originally signed copy of the General Conditions of Contract must be submitted with all bid documentation.

Disqualification risks:

• Submission through any platform other than the SALGA SCM portal.
• Failure to complete or submit any returnable document.
• Failure to comply with any condition of the RFP.
• Proposals must remain valid and irrevocable for 120 days after the closing date.

Standard Bidding Forms: Bidders must complete the following forms in full and submit them with their proposal: SBD 6.1 Preference Points Claim Form (complete in full, special attention to sections 12 and 13, signed on the SupplyFlow portal); SBD 4 Bidder's Disclosure (complete in full, signed); SBD 1 Bid Invitation (complete in full, signed on the SupplyFlow portal). Note: Bidders will not be evaluated on price and B-BBEE as this is a panel of service provider request.

Evaluation is in two phases:

Phase 1 – Pre-Compliance Check: Bidders are advised to be registered on the Central Supplier Database (CSD) before submitting. Failure to do so will not automatically disqualify the bid and it will proceed to Phase 2.

Phase 2 – Technical Functionality (total 100 points, minimum threshold 70 points):

• Understanding of the brief (20 points): 0 for lack of understanding; 10 for sound grasp of one stream or partial grasp of both; 20 for comprehensive grasp of both the Municipal Financial Sustainability (MFSP) and Municipal Infrastructure Finance (MIF) deliverables and their linkage.
• Approach and Methodology (40 points): 0 for no project plan; 20 for a project plan, management plan and methodology in line with the scope; 40 for a plan outlining all elements from development to close-out. Marks split evenly between MFSP (data collection & diagnostics, modelling assumptions/engine, scenario architecture, validation, training/handover) and MIF (institutional/financing model design, capital-raising and blended finance approach, credit-assessment and project-bankability methodology).
• Company Experience (20 points): 0 for no comparable assignments; 5 for capability in 1–2 of four domains; 10 for 3 domains; 20 for all four domains (municipal finance & MFMA fluency; financial modelling/scenario-planning tool build; capital markets, bonds & blended finance; credit assessment & project bankability). Comparable means similar or related work; equivalents accepted.
• Experience of Key Personnel (20 points): 0 for no certificates and no personnel confirmation; 10 for certificates provided and up to 10 years of relevant experience; 20 for certified professional registrations and CVs showing over 10 years of relevant municipal-finance experience. Recognised bodies include SAICA, SAIPA, ECSA, SACPCMP, CFA, or a relevant statutory/chartered body. The team must collectively cover modelling and financing/credit skill sets.

Bidders scoring 70 points and above will be recommended for the panel of experts. Bidders will not be evaluated on price or B-BBEE as this is a panel appointment.

Scope: Appointment of a panel of service providers to support municipalities and municipal entities to improve their financial sustainability, for a period of 36 months (Project D).

Purpose: The service provider must assist municipalities with financial modelling and scenario planning for long-term planning, assess the impact of municipal reforms, financing proposals and external service delivery mechanisms on municipal finances, develop a financial modelling and scenario planning tool, and train municipal officials on its use.

Key deliverables:

• Inception report and introductory engagements with municipalities (problem statement, methodology, stakeholder plan, workplan and timelines).
• Data collection and diagnostics of financial and other relevant data.
• Development of a digital financial modelling and scenario planning tool.
• Municipal and stakeholder consultation records and validation workshops.
• Consolidating recommendations and final financial modelling and scenario planning tool.
• Training municipal officials on utilisation of the tool.

Minimum expertise required:

• Demonstrated financial modelling and scenario planning capabilities and experience on municipal projects.
• Extensive knowledge of municipal legislation, systems and processes.

The service provider must assist municipalities with financial modelling and scenario planning for long-term planning, assess the impact of municipal reforms, financing proposals and external service delivery mechanisms on municipal finances, develop a financial modelling and scenario planning tool, and train municipal officials on its use.

Key deliverables include: inception report and introductory engagements (problem statement, methodology, stakeholder plan, workplan and timelines); data collection and diagnostics; development of a digital financial modelling and scenario planning tool; municipal and stakeholder consultation records and validation workshops; consolidating recommendations and final tool; and training municipal officials.

Minimum expertise: demonstrated financial modelling and scenario planning capabilities and experience on municipal projects; extensive knowledge of municipal legislation, systems and processes.

Bidders will not be evaluated on price or B-BBEE as this is a panel of service provider request. No pricing schedule format is specified in the document.

Bidders will not be evaluated on price or B-BBEE as this is a panel of service provider request.

No pricing format, bond, guarantee, or payment terms are stated in the document.

CSD registration: Bidders are advised to be registered on the Central Supplier Database (CSD) before submitting bids; failure to do so will not automatically disqualify the bid.

Returnable forms:

• SBD 1 (Bid Invitation): signed as the offer cover page.
• SBD 4 (Bidder's Disclosure): declares any connection to the state or SALGA.
• SBD 6.1 (Preference Points Claim): claims B-BBEE points.
• General Conditions of Contract: an originally signed copy must be submitted.

Other requirements:

• The service provider must sign confidentiality and indemnity agreements with SALGA.
• Bidders must declare any conflict of interest; SALGA may not consider bids where a conflict exists.
• Bidders must not disclose proposal details or issue public announcements without SALGA's written approval.

Contract term: The contract runs for the duration of the assignment and expires upon fulfilment of the scope of work. It may be extended by mutual agreement.

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

Liability: SALGA will not be held liable for any actions of the recommended bidder or its employees.

Intellectual property: All materials and products developed in the execution of the contract vest in SALGA. They may not be made available to unauthorised persons or sold for profit without SALGA's written consent. On completion or termination, all materials and products must be handed over to SALGA.

Confidentiality: Bidders must sign confidentiality and indemnity agreements. No information about the tender or award may be disclosed without SALGA's prior written approval.

Variation: SALGA may vary the instruction to include more or exclude work; the bidder cannot claim for excluded work and may engage SALGA on pricing for additional work.

Disputes: Settled by mutual consultation, mediation (with or without legal representation), or in a South African court of law.

General conditions: SALGA's general conditions of bid, contract and order apply. SALGA reserves the right not to award the bid to any bidder.

Submission: Proposals must be submitted through the SALGA SCM portal at https://scmportal.salga.org.za/. Proposals through other platforms will not be considered. SALGA is not responsible for costs incurred by bidders. Proposals must remain valid and irrevocable for 120 days after closing.

Conditions of bid: Failure to meet any requirement may render the bid non-responsive. The service provider must sign confidentiality and indemnity agreements. SALGA may vary instructions to include more work. Failure to comply with any condition invalidates the proposal. If a conflict of interest is discovered, SALGA may cancel the agreement and demand return of all materials. Bidders must not disclose proposal details or issue public announcements without written approval. Bidders must declare any conflict of interest. Disputes are settled by mutual consultation, mediation, or in a South African court. The bidder is bound by the General Conditions of Contract, an originally signed copy of which must be submitted. All returnable documents must be completed in full and submitted. SALGA is not liable for costs incurred during site visits or submission.

Minimum expertise: Demonstrated financial modelling and scenario planning capabilities and experience on municipal projects; extensive knowledge of municipal legislation, systems and processes.

Returnable documents: SBD 1, SBD 4, SBD 6.1, and an originally signed copy of the General Conditions of Contract must be completed in full and submitted.

Other requirements: Bidders must be registered on the CSD (advised, not mandatory for Phase 1); must sign confidentiality and indemnity agreements; must declare any conflict of interest; must not disclose proposal details or issue public announcements without SALGA's written approval.

Evaluation is in two phases: Phase 1 Pre-Compliance Check (CSD registration advised, not disqualifying) and Phase 2 Technical Functionality (100 points, minimum threshold 70). Criteria: Understanding of the brief (20 points), Approach and Methodology (40 points), Company Experience (20 points), and Experience of Key Personnel (20 points). Bidders scoring 70 and above are recommended for the panel. Bidders are not evaluated on price or B-BBEE.