Wcghsc 0371/2026: provision of debt collection service in respect of outstanding debt to the department of health, western cape government for a five (5) year period.

• This is a tender for a comprehensive debt collection service covering all outstanding debt owed to the Western Cape Department of Health and Wellness.
• The primary debt is patient fees, with an estimated average of ±5,126 invoices valued at ±R12 million raised per month (for estimation only; no guarantees).
• The service includes collecting staff and other related debt for all departmental institutions listed in Annexure D.
• The contractor will be paid a percentage commission on the actual amounts recovered. All overhead costs (legal, tracing, admin) are included in this percentage.
• Debts are handed over electronically on a weekly basis, not ceded to the contractor.
• The contractor must provide detailed monthly reports on progress, including efforts made on unsuccessful accounts.
• Key deliverables include electronic data processing, multi-channel debtor contact (call centre, SMS, email), credit bureau access, and strict confidentiality of all data.

• Bid Closing Date: 7 August 2026.
• Bid Closing Time: 11:00 (AM).
• Bid Validity Period: 60 days from the closing date.
• Contract Period: Five years, with an option to extend for one additional year on the same terms. The Department will give at least three months' notice before expiry.
• Service Commencement: A date to be mutually agreed after contract award and provision of required guarantees.
• No briefing sessions, site visits, or clarification deadlines are mentioned in the document.

• For bidding procedure enquiries:

• Contact Person: Ms Shamsonisa Davids
• Directorate: Supply Chain Sourcing
• Email: [email protected]
• Tel: 021 483 6271

• For technical/specification enquiries:

• Contact Person: Mr Ridwaan Achmat
• Email: [email protected]
• Tel: 021 483 4240

• General CSD/Procurement email: [email protected]
• Physical submission address: Bid box at Western Cape Government Building 4 Dorp Street, Cape Town (next to the Cape High Court).

• Submit bids in a sealed envelope clearly marked with your name, address, bid number (WCGHSC0371/2026) and closing date (7 August 2026).
• Envelopes must be deposited in the bid box at: Western Cape Government Building 4 Dorp Street, Cape Town (next to the Cape High Court), junction of Dorp and Keerom Street. The box is open 06:00–21:00 daily.
• Late bids will not be considered and may be returned unopened.
• Bids sent by courier must be in a courier pouch, signed off by an official or deposited by the courier’s representative.
• Use only the official bid forms provided; do not re-type them. Photocopies are allowed but must be signed in original.
• Fill in bids using black or red ink only.
• Bids by telegram, telex or fax are not accepted unless specifically allowed.
• Ensure all pages are present and correctly numbered; missing pages are your responsibility.
• Failure to comply with submission rules may invalidate your bid.

Eligible bidders must: be registered on CSD with compliant tax status; be registered with Council of Debt Collectors per Debt Collectors Act; hold valid ADRA membership; have physical office in Western Cape; possess fidelity insurance; maintain trust account at registered bank; demonstrate debt collection experience with large organizations; comply with Debt Collectors Act Code of Conduct; not be in service of state or have directors/members in state service; provide B-BBEE verification certificate/sworn affidavit for preference points; submit audited financial statements (for companies/CCs/partnerships); and meet all technical specifications in Section 4.

• Scope: Provide a debt collection service for outstanding debt (primarily patient fees, also staff and bursary debt) for all institutions of the Western Cape Department of Health and Wellness. Refer to Annexure D for the full list of entities.
• Key Service Requirements:

• Must be able to follow up on debt anywhere in South Africa or abroad, regardless of amount, age, or quantity.
• System must electronically process weekly handover data from the Department and provide monthly payment details electronically.
• Must have data cleansing/validation capabilities for debtor information.
• Must utilise SMS, emails, and voice-mandated debit orders (NAEDO) as part of collection strategy.
• Must have or have access to a credit bureau, providing the Department with electronic access at no cost.
• Must be able to levy and separate interest on debt as instructed.
• Must provide detailed monthly electronic progress reports per institution, including unsuccessful cases.
• Must have an in-house tracing service or use external tracing agents.
• Must operate a call centre and provide evidence of contact attempts (hits) per debtor.

• Compliance & Standards:

• Must be a registered member of the Council of Debt Collectors.
• Must be a bona fide member of the Association of Debt Recovery Agents (ADRA).
• Must comply with the Debt Collectors Act Code of Conduct.
• Upon award, must open and maintain a separate trust account for collected monies and provide bank certification within 14 days.
• All debtor information must be treated with strict confidentiality.

• Operational Details:

• Contractor is paid a percentage commission on actual amounts recovered monthly; this includes all overhead costs.
• Debtors cannot be charged for recovery costs (postage, phone, etc.).
• Contractor indemnifies the Department against any claims arising from collection activities.
• A Contract Management Officer (CMO) will be appointed for liaison, monitoring, and certification of payments.
• Contractor must have an established office in the Western Cape, preferably Cape Town, for meetings and inspections.

• Bidders must have proven experience in rendering debt collection services to large institutions/organisations.
• Submit detailed information including: extent of debt collection activities, list of existing contracts, years in business, and CV/qualifications of the person controlling the service.
• For partnerships, closed corporations, or companies, submit an affidavit with names, ID numbers, addresses of partners/members/directors, and the latest audited financial statements.
• Provide a clear organisational structure and procedures for an effective debt collection service at the Department's institutions.
• Must have an established office in the Western Cape from where the service will be managed.

• The Department will appoint a Contract Management Officer (CMO) to monitor performance through regular liaison meetings and periodic site inspections at the contractor's office.
• The contractor must submit monthly electronic progress reports in a specified format.
• The Department reserves the right to request additional reports at no cost.
• Quarterly, the successful supplier must provide three months of invoices to Supply Chain Sourcing for auditing.
• The Department may negotiate with bidders/contractors regarding price revisions or service delivery if deemed necessary.

• Use pricing schedule WCBD 3.3 to quote your percentage commission for each of the five contract years.
• The percentage must be inclusive of VAT and all overhead costs.
• You must confirm that the quoted percentages are firm for the full contract period.
• Complete the accompanying questionnaire confirming compliance with specifications and VAT registration status.

• Pricing Format: Bid must quote a single percentage commission on amounts recovered. This percentage must be inclusive of VAT and all overhead costs (legal, tracing, administrative).
• Price Firmness: The quoted percentage must remain firm for the entire 60-month (five-year) contract period.
• Payment Terms:

• Contractor invoices the Department monthly based on amounts recovered.
• Department will pay the verified commission within 30 days of invoice receipt.
• Collected monies must be paid over to the Department within 14 business days after month-end.
• Payments to the Department must be via Electronic Funds Transfer (EFT); cash receipts are prohibited.

• Financial Guarantees: The successful bidder must obtain and maintain fidelity insurance for collected monies and provide proof within 14 days of signing the Service Level Agreement.
• Cost Responsibility: All legal and tracing costs are for the Contractor's account, though recoverable legal costs prescribed by law can be claimed from the debtor.
• Commission Exclusions: No commission is payable on:

• Payments made by debtors directly at hospitals within 14 business days of handover.
• Overpayments by debtors.
• Payments resulting from direct Department intervention where cases were not timely withdrawn.

• Central Supplier Database (CSD): Registration is compulsory at the time of bid closing. Unregistered bidders or those with suspended registration will be deemed non-compliant. Register at www.csd.gov.za.
• Tax Compliance: Must provide a valid Tax Compliance Status (TCS) PIN from SARS. If tax status is non-compliant on CSD, you have 7 working days to rectify. A printed TCS certificate can be submitted with the bid.
• B-BBEE: Submit a completed WCBD 6.1 form to claim preference points. A B-BBEE Verification Certificate or Sworn Affidavit (for EMEs/QSEs) must accompany the WCBD 6.1. The status on this form is used for evaluation, not the CSD status.
• Entity Restrictions: No bids will be considered from persons in the service of the state, or companies/close corporations with directors/members in the service of the state.
• Foreign Suppliers: If you are a foreign-based supplier, you must complete a questionnaire regarding your presence and tax liability in South Africa.
• Professional Registration: Must be a registered member of the Council of Debt Collectors and the Association of Debt Recovery Agents (ADRA). Proof of membership/certificates must be submitted with the bid.
• Other Documents: Submit the latest audited financial statements (for companies/CCs), organisational structure details, and proof of experience as per Annexure A.

• The bid is subject to the Occupational Health and Safety Agreement, if applicable, as part of the General Conditions of Contract.
• No specific OHS plans or HSE compliance details are stipulated beyond this general reference.

• Contract Duration: Five years, with an option for a one-year extension on the same terms. The Department will give at least three months' notice.
• Breach and Termination: Either party can terminate if the other breaches and fails to remedy it within 30 days of written notice.
• Termination for Insolvency: The Department can terminate immediately if the contractor becomes insolvent, is wound up, or enters administration.
• Post-Termination: Contractor must return all debtors' accounts and information within 30 days, stop collection activities, and inform debtors to pay the Department directly.
• Confidentiality: All debtor and Department information must remain confidential indefinitely and be returned or destroyed upon contract end.
• Subcontracting & Cession: Not allowed without prior written permission from the Department.
• Notices: Formal communications are valid if delivered by hand, registered post, or email as specified.
• Fidelity Insurance: Contractor must maintain insurance for collected monies and provide proof within 14 days of signing the SLA.
• Governing Law: Subject to the General Conditions of Contract (GCC) and any Special Conditions.

• The bid will be evaluated using the 80/20 Preferential Procurement Policy.
• Bidders must complete form WCBD 6.1 to claim B-BBEE preference points; the status on this form is used, not the CSD status.
• The quoted commission percentage is a critical evaluation factor and must be fixed for the five-year period.