Appointment of a service provider: provision of a short-term insurance on municipality assets for a period of three (03) years

The municipality seeks to appoint a service provider to provide short-term insurance on its assets for a period of three years. The insurer must place cover under the specified insurance classes, including buildings combined, office contents, business all risks, theft, money, commercial crime, stated benefits, electronic equipment, motor fleet, public and employees' liability, business interruption, accidental damage, group personal accident, machinery breakdown, and SASRIA. The tender price is fixed for the first twelve months, with escalation as per the SLA from the second and third years.

Closing date: 29 October 2026 at 10h00. Bid documents available from 16 September 2026 after 10h00 from the cashiers point at Phuthaditjhaba offices, or downloadable from the e-tender portal at no charge.

Supply Chain Enquiries: M. Motsau, tel (058) 718 3878 / (058) 718 3870, email [email protected] or [email protected]. Technical Enquiries: S. Mopeli, tel 058 718 3791, email [email protected]. Submission address: Bid Box No. "A", Maluti-a-Phofung Municipality, Setsing Business Centre, Cnr Moremoholo & Motloung Streets, Phuthaditjhaba.

Bids must be delivered by hand to Bid Box No. "A" at the Maluti-a-Phofung Municipality, Setsing Business Centre, Cnr Moremoholo & Motloung Streets, Phuthaditjhaba, before the closing time. Late, electronic, telegraphic or faxed bids will not be accepted. Only one submission per bidder will be considered. Bids must be submitted on the official forms provided (not re-typed) and must be indexed properly. The sealed envelope must clearly show the bid number and description. Returnable forms include MBD 1 (Invitation to Bid), MBD 2 (Tax Clearance Requirements), MBD 4 (Declaration of Interest), MBD 6.1 (Preference Points Claim), MBD 8 (Declaration of Past SCM Practices), MBD 9 (Certificate of Independent Bid Determination), and the Municipal Services, Rates and Taxes Clearance Certificate. Bidders must also submit a Company Registration Certificate (CRC) reflecting active members (except sole traders and partnerships), a Company Profile, CSD number, SARS tax PIN, and proof of municipal rates and taxes not in arrears for more than three months. Failure to comply with any condition may invalidate the bid.

Documents to be submitted as proof for functionality: Written and signed references on letterhead from public sector clients for similar projects (intermediary/insurance services) with contact details. Written and signed recommendation letters on letterhead from clients (including contact details both email & telephone) for claims administration. Written and signed recommendation letters on letterhead from client for risk management, and the Risk Register. Certificates for key representative: FSP number, FSCA certificate (Key individual RE1), Finance degree NQF level 7 or equivalent, FAIS accreditation, Institute of Directors in South Africa accreditation, Institute of Risk Management South Africa accreditation. Certificate from bank showing category to verify portfolio, and three years Audited Financial Statements.

Bidders must score at least 70 out of 100 points on functionality to be considered; those scoring below 70 are disqualified and not evaluated on preference points. Functionality criteria: Company experience in similar projects (40 points) — 8 years = 40, 6-7 years = 30, 4-5 years = 20, 1-3 years = 10, 0 years = 0; Claims administration system (10 points) — >6 recommendation letters = 10, 4-5 = 5, 2-3 = 3, 0-1 = 1, 0 = 0; Experience in Risk Management (15 points) — >6 recommendation letters = 10, 4-5 = 5, 2-3 = 3, 0-1 = 1, 0 = 0; Key representative qualification (10 points) — certificates = 10, 6, 4, 2, 0; Public sector clients with portfolio value of R5 billion or above (25 points) — 4 confirmation letters = 20, 3 = 15, 2 = 10, 1 = 0. Total allocation 100 points. After functionality, the 80/20 preference point system applies: 80 points for price, 20 points for specific goals. Specific goals: location-based (within Maluti-a-Phofung = 15, within Thabo Mofutsanyana District = not stated, within Free State = 5, outside Free State = 0) and woman-owned enterprise = 5. Proof required for specific goals: official municipal rates statement, lease agreement, affidavit for rural entities, company registration documents, and identification documents.

The appointed insurer must place cover under the following insurance classes: Buildings combined, Office contents, Business all risks, Theft, Money, Commercial Crime, Stated Benefits, Electronic equipment, Motor Fleet, Public and employees' liability, Business Interruption, Accidental Damage, Group Personal Accident, Machinery Breakdown, SASRIA for Councillors, and SASRIA. The tender price must be fixed for the first twelve months, except for new additions; escalation will be provided for as per the Service Level Agreement (SLA) from the second and third years. The service provider must hold a valid FSP licence registered with the FSCA under the FAIS Act, and must provide proof of a South African based insurer agency contact. Performance will be monitored monthly in line with the SLA, as required by Section 116(2) of the MFMA.

The 80/20 preferential points allocation system will be applied in line with the revised Procurement Regulations of 2022, using the balanced scorecard methodology.

Bidders must demonstrate company experience in similar projects (intermediary/insurance services) through written and signed reference letters on letterhead from public sector clients, with contact details for verification. Experience scoring: 8 years = 40 points, 6-7 years = 30, 4-5 years = 20, 1-3 years = 10, 0 years = 0. Key representative qualifications: the bidder must be a financial service provider accredited by the Financial Services Board (FSCA), provide the FSP number, FSCA certificate (Key individual RE1), Finance degree NQF level 7 or equivalent, FAIS accreditation, Institute of Directors in South Africa accreditation, and Institute of Risk Management South Africa accreditation. Scoring: certificates = 10, 6, 4, 2, 0.

The tender price must be fixed for the first twelve months, except for new additions; escalation will be provided for as per the SLA from the second and third years. Bidders must submit three years of audited financial statements and a bank certificate showing their category to verify their portfolio value.

Bidders must submit three years of audited financial statements as part of the functionality evaluation. The bid price must be fixed for the first twelve months, with escalation as per the SLA from the second and third years. Bidders must provide a certificate from their bank showing their category to verify their portfolio value. The municipality is not bound to accept the lowest bid and reserves the right not to award the bid.

Bidders must be registered on the Central Supplier Database (CSD) and provide their CSD number; for joint ventures, all parties must be registered. Bidders must submit their SARS tax PIN to enable the municipality to view their tax profile and status; each consortium/JV/sub-contractor party must submit a separate TCS certificate/PIN/CSD number. Bidders must submit a Company Registration Certificate (CRC) reflecting active members (except sole traders and partnerships). Bidders must complete the Municipal Services, Rates and Taxes Clearance Certificate or provide proof that municipal rates and taxes are not in arrears for more than three months. Bidders must not be persons in the service of the state. Returnable forms: MBD 1 (Invitation to Bid), MBD 2 (Tax Clearance Requirements), MBD 4 (Declaration of Interest), MBD 6.1 (Preference Points Claim), MBD 8 (Declaration of Past SCM Practices), MBD 9 (Certificate of Independent Bid Determination).

The contract will be for a period of three years. The tender price is fixed for the first twelve months, with escalation as per the SLA from the second and third years. The municipality will monitor the performance of the service provider monthly in line with the SLA, as required by Section 116(2) of the MFMA. The successful bidder will be required to sign a written contract form (MBD 7).

No bids will be accepted from persons in the service of the state. Bid documents are obtainable from the cashiers point upon payment of a R493.50 non-refundable fee, or downloadable from the e-tender portal at no charge. No electronic copies, telegraphics, telefaxes or late bids will be accepted. The municipality is not bound to accept the lowest bid and reserves the right not to award the bid. Only one submission per bidder will be considered. Failure to comply with the conditions may invalidate the bid. If no correspondence is received within 90 days, the bid should be regarded as unsuccessful. Communication will be limited to the successful bidder.

Bidders must submit a Company Registration Certificate (CRC) reflecting active members (except sole traders and partnerships). Bidders must be registered on the Central Supplier Database (CSD) and provide their CSD number; for joint ventures, all parties must be registered. Bidders must submit their SARS tax PIN. All supplementary forms including the municipal rates and taxes clearance certificate must be completed in full, or proof that municipal rates and taxes are not in arrears for more than three months. In bids involving consortia/joint ventures/sub-contractors, each party must submit a separate TCS certificate/PIN/CSD number. Bidders must submit a Company Profile with documents for functionality. Bidders must index their bid document properly. Technical mandatory requirements: proof of a valid FSP licence registered with the FSCA under the FAIS Act, and proof of a South African based insurer agency contact.