Term contract for financial service provider to manage and disburse epwp stipend payments (3 years)

Closing date and time: 07 July 2026 at 11:00. Non-compulsory pre-tender briefing: 18 June 2026 at 10:00 via Microsoft Teams (link: https://teams.microsoft.com/meet/36290918537823?p=IXXfGQOALXSiPf29FX). Tender documents available from 05 June 2026 on eTender Portal (http://www.etenders.gov.za) or ECDPW website (www.ecdpw.gov.za/tenders).

SCM Enquiries: Email: [email protected], Tel: 040 602 4563/4000. Technical Enquiries: Ms. Hombakazi Noqayi, Email: [email protected], Tel: 040 602 4477/4000. Fraud/Complaints Hotline: 0800 701 701 (toll-free). Physical address for submissions: Department of Public Works and Infrastructure, Qhasana Building, Ground Floor, Independence Avenue, Bhisho, 5605.

Submit bids in a sealed envelope clearly marked with bid number (SCMU5-26/27-0009), description, and closing date. Deposit in the bid box at: Department of Public Works and Infrastructure, Qhasana Building, Ground Floor, Independence Avenue, Bhisho, 5605 by 11:00 on 07 July 2026. Late, incomplete, unsigned, or electronically submitted bids will be rejected. Bids must be submitted on original forms (SBD1 Part A and B, SBD3.1, SBD4, SBD6.1). Bid Sum in words must match figures; failure to complete either invalidates the bid. Courier-submitted bids must be deposited in the bid box by the courier; do not deliver to officials. Bid validity period: 120 days from closing date.

Scope: Appoint a financial service provider to manage and disburse monthly EPWP stipends for 36 months (starting 01 April 2027, extendable). The provider must: process DPWI-approved payment batches; disburse stipends to participants’ bank accounts on agreed dates (regardless of bank); ensure robust account verification; handle payment queries within 3 days; submit monthly invoices, reconciliation statements, and narrative reports (including participant lists, unpaid stipends, and suspicious transactions); archive all transaction documents for 5 years post-contract; provide audit-ready records. Deliverables: monthly stipend disbursements, payment confirmations, reconciliation statements, narrative/quarterly SLA reports, unclaimed funds returns, and 5-year archived records. Contract includes a 3-month retention period for handover. Service fees must be all-inclusive (VAT and management fees). Estimated participants: 2,550 across EPWP Maintenance, Prestige Maintenance, APTCoD, and NYS programmes. Total estimated monthly stipend value: R6,994,980.

Bidders must submit: a 3-year implementation plan addressing expenditure accountability, waste avoidance, unauthorized withdrawal prevention, financial management systems, and audit-ready filing; a risk management plan covering financial, fraud, operational, compliance, technology, and reputational risks; an affidavit confirming ability to transfer stipends to participants’ bank accounts; a social responsibility/investment plan (e.g., financial management training). Post-award, the provider must: process monthly DPWI-approved batches; disburse stipends on agreed dates; verify accounts to prevent errors/duplicates; submit invoices with proof of evidence; provide all-inclusive budget plans (VAT + fees); resolve payment queries within 3 days; submit monthly electronic bank statements, reconciliation statements, and narrative reports (including participant lists, unpaid stipends, and suspicious transactions).

Financial service providers must demonstrate: Financial Stability: Proof of R14m/month (50 points), R7m/month (30 points), or <R7m/month (0 points) via audited financial statements, cash flow projections (3 years). Disbursement of Stipend: Affidavit confirming ability to transfer funds to participants’ accounts (20 points). Company Experience: 5+ years (30 points), 3-4 years (20 points), 1-2 years (10 points), or no experience (0 points) in similar projects (attach testimonials). Must score in all three criteria to pass Phase Two (minimum 70/100). Appoint a dedicated account/business manager with banking experience for daily operations. Provide references for all transactions to simplify reconciliations.

Submit firm prices on SBD3.1 for service fees per participant per month (VAT-exclusive and VAT-inclusive). Pricing is rate-based; the number of participants may vary, and payment will adjust accordingly. VAT vendors must include 15% VAT; non-VAT vendors may exclude VAT but must register within 21 days of award if turnover exceeds R1m. Prices must be all-inclusive (no additional fees). Exchange rate adjustments may be negotiated post-award. The grand total on SBD3.1 is for evaluation purposes only. Failure to complete pricing or mismatch between words/figures invalidates the bid.

Submit firm prices only on SBD3.1 (Pricing Schedule) for service fees per participant per month (VAT-exclusive and VAT-inclusive columns). VAT vendors must include 15% VAT; non-VAT vendors may exclude VAT but must register within 21 days of award if turnover exceeds R1m. Pricing must be all-inclusive (no hidden fees). Exchange rate adjustments may be negotiated post-award. Payment terms: monthly invoices with proof of evidence. Contract value may vary based on participant numbers. Non-compliance with pricing format or missing VAT details may disqualify the bid.

Mandatory: CSD registration prior to award; tax compliance (TCS PIN or CSD number); valid VAT registration within 21 days of award if applicable. Submit: FSCA registration (if financial service provider), Bank Act registration (if applicable), NCR registration, company profile, Grade B bank rating letter, audited financial statements (last 12 months), cash flow projections (3 years), implementation plan, risk management plan (covering financial, fraud, operational, compliance, technology, and reputational risks), social responsibility/investment plan, SBD4 (disclosure of interests), SBD6.1 (preference points claim), Resolution to Sign (if applicable). Joint ventures/consortia: each party must submit separate TCS/CSD proof. No bids accepted from state employees or entities with state-employed directors/members.

Contract duration: 36 months from 01 April 2027, with a 3-month retention period for handover. Contract may be extended based on performance. The Department reserves the right to vary contract quantities post-award. Governing law: South African. Disputes resolved via litigation. Bidder indemnifies the Department for breaches causing costs/damages. Contract may be terminated for defaults, insolvency, or non-performance. Penalties apply for late delivery or non-compliance. The Department may accept/reject bids at any time pre-contract and is not liable for bid preparation costs. Bidders must not recruit Department employees. All bids remain valid for 120 days post-closing.

Three-phase evaluation: Phase One (Administrative Compliance) checks responsiveness to minimum requirements (e.g., completed forms, tax compliance, CSD registration). Non-compliant bids are eliminated. Phase Two (Functionality) scores Financial Stability (50 points), Disbursement of Stipend (20 points), and Company Experience (30 points). Minimum 70/100 required to advance; bidders must score in all three criteria. Phase Three applies PPPFA/PPR 2022: 80 points for price, 20 points for specific goals (e.g., B-BBEE). Highest total points win. SBD6.1 must be submitted to claim specific goal points. Joint ventures must submit a JV agreement and allocate points proportionately.