Appointment of service provider for provision of short term insurance- 3 year contract

Closing date: 21 September 2026 at 16:00.

Returnable documents — all must be completed, signed and submitted with the bid:

• SBD 1 (Invitation to Bid): bidder and contact details, signed as the offer cover page.
• SBD 4 (Declaration of Interest): discloses whether any director or shareholder is employed by the state or connected to anyone at the municipality.
• SBD 6.1 (Preference Points Claim): claims B-BBEE points under the PPPFA.
• SBD 8 (Declaration of Bidder's Past Supply Chain Management Practices).
• SBD 9 (Certificate of Independent Bid Determination): certifies no collusion and independent pricing.
• Authority to Sign / Board Resolution: authorises the named signatory to bind the bidder.
• Form L: Pricing Schedule - Non-Firm (Broker Fees) for evaluation.
• Proof of registration with FSCA, FIA, IRMSA, IISA, and Institute of Directors.
• Proof of Professional Indemnity of R450 million.
• Proof of registered South African representative.

Disqualification risks:

• Any returnable form left unsigned or omitted.
• Bids not submitted on the official tender format.
• Failure to comply with the disqualification criteria checklist may render the tender invalid at the option of the council.
• Non-adherence to minimum requirements results in disqualification.
• Tenders not meeting subcontracting requirements (if applicable) are disqualified.

Two-phased bidding system: 90 points for bid price/functionality and 10 points for B-BBEE status. The 90 points split into 90 for functionality and 10 for pricing.

Functionality evaluation (out of 90):

• Experience of bidding entity in insurance industry: 5 years = 0, 10 years = 2, 16 years = 10 points.
• Risk Management Strategy: 0-1 years = 0, 2-3 = 3, 3-5 = 5 points (submit letters of recommendation).
• Vehicle Tracking experience (years providing similar services to municipalities/government): 1-5 years = 5, 6+ years = 10 points.
• Public Sector Experience (appointment letters): 0-5 = 3, 6-10 = 5, 11-15 = 8, 16-20 = 10, 50-100 = 15 points.
• Director(s): minimum two with 16 years' experience; CVs, BCom degree (Insurance & Risk Management and/or Accounting), FAIS accreditation (RE 1 & 5), IODSA Certificate, IRMSA Certificate, FIA Member Certificate, Matric.
• Account Manager: minimum two with 10 years' experience; CV, B.A degree, Risk Management NQF level 10, Advanced Insurance Practice NQF level 6, Short-Term Insurance NQF level 5, IISA Certificate (Fellow & Associate), FAIS Accredited (RE 1 & RE 5), Matric.
• Claims Manager: minimum 5 years' experience; CV, Diploma in Insurance, FAIS Accredited (RE 5), Programme in Risk Management NQF Level 6, IISA Programme Advanced Insurance Practice NQF level, IISA Certificates (Fellow), Matric.
• Contactable references from clients with insured over R5 million: minimum 5 letters, 2 points per letter (10 points).
• Professional Indemnity & Fidelity Guarantee/Schedule: minimum R500 million, confirmation letter from insurer (15 points).

Bidders must gain a minimum of 70% for functionality before further evaluation. Points allocated for full compliance only; no points for partial or non-compliance.

Preference point system:

• 80/20 for goods/services with Rand value equal to or below R50 million; 90/10 for above R50 million.
• Specific goals: 51% owned by Black People, women, people with disabilities, people in rural underdeveloped areas (10/5 points each); locality preference: Tswaing Local Municipality (10/5), Ngaka Modiri Molema District (6/3), North West Province (4/2), Republic of South Africa (2/1).
• Points for specific goals added to price points, rounded to two decimal places. Contract awarded to highest scoring tenderer.

Subcontracting: For contracts above R30 million, compulsory subcontracting to designated groups may apply. Tenderers must submit proof of subcontracting arrangement. Main contractor held liable for performance.

Deadlock: If equal total points, awarded to tenderer with highest specific goal points; if still equal, drawing of lots by Bid Evaluation Committee.

Remedies: False information regarding specific goals may lead to disqualification or contract termination after 14 days to make representations.

Scope: Appointment of a short-term insurance intermediary for a 3-year contract. Insurance covers include Accidental Damage, Goods in Transit, Group Personal Accident, Machinery Breakdown, Directors and Officers Liability, and SASRIA for councilors.

Services required:

• Workshopping of executive insurance summary with municipality insurance and risk management officials.
• Liaison between insurance claims administration service provider and municipality.
• Attendance of monthly portfolio and loss control meetings.
• Provide expert insurance or underwriting advice upon request.
• Report on claims statistics weekly or monthly; submit claims analysis and age analysis reports.
• Formulate proposals to remedy loss problem areas in monthly report format; assist in applying remedial measures.
• Pro-active management of loss control and risk preventative measures; develop, negotiate and implement loss control benchmarks; report on achievement.
• Complete uninsurable risk evaluation process; submit report with proposed remedial actions; implement remedial actions.
• Review municipality's existing underwriting questionnaires and assist in compiling new ones.
• Supply, install and monitor a vehicle tracking management system with features: live web-based tracking, 24/7 availability, theft retrieval movement alerts, location determination, trip logs, cell/email notifications, over speed reports, incident reports, activity reports, stop reports, weekly analysis, driver identification, fleet staff training.
• Verify/review exposures, limits, sum insureds, risk financing structures; advise on improvements.
• Participate in renewal negotiations with underwriters; benchmark renewal quotes in open market; supply written report.

Risk services: Bidders must supply proposed solutions including pricing model, risk management framework, and list of deliverables.

Expected outputs: Full coverage on all asset classes as per risk management strategy, deductibles, policy wording and insurers for 36 months.

Services required: Workshopping of executive insurance summary with Municipality insurance and risk management officials; Liaison between insurance claims administration service provider and Municipality; Attendance of monthly portfolio and loss control meetings; Provide expert insurance or underwriting advice; Report on claims statistics weekly or monthly; Submission of claims analysis and age analysis reports; Formulate proposals to remedy loss problem areas in monthly report format; Assist in applying remedial measures; Pro-active management of loss control and risk preventative measures; Develop, negotiate and implement loss control benchmarks; Reporting on achievement of benchmarks; Complete uninsurable risk evaluation process; Submit report with proposed remedial actions; Implementation of remedial actions; Review Municipality's existing underwriting questionnaires; Supply, installation and monitoring of vehicle tracking management system with features including live tracking, 24/7 availability, theft retrieval alerts, location determination, trip logs, notifications, over speed reports, incident reports, activity reports, stop reports, weekly analysis, driver identification, and fleet staff training; Verification/review of exposures, limits, sum insureds, risk financing structures; Participate in renewal negotiations; Benchmark renewal quotes from underwriters.

Risk services: Bidders must supply proposed solutions pertaining to advice, recommendations in terms of service delivery, regulations and insurability, including pricing model, risk management framework, and list of deliverables.

Bidder must have a minimum of 10 years' experience in placing municipal and public sector clients. Evidence of appointment as intermediary for short-term insurance on portfolio over R1 billion assets in past 3 years. Evidence of appointment as intermediary for municipal portfolio in past 3 years. Evidence of dealing with individual claims over R100,000 in past 3 years. Name five local authorities where bidder applies risk management, risk control and finance solutions. Provide confirmation letters of three highest value claims in excess of R5 million. Provide reference letters for brokerage and claims management services. Key personnel qualifications: Director(s) minimum two with 16 years' experience, BCom degree, FAIS accreditation, IODSA, IRMSA, FIA; Account Manager minimum two with 10 years' experience, B.A degree, Risk Management NQF level 10, Advanced Insurance Practice NQF level 6, Short-Term Insurance NQF level 5, IISA Certificate, FAIS; Claims Manager minimum 5 years' experience, Diploma in Insurance, FAIS, Programme in Risk Management NQF level 6, IISA certificates.

ISO 9001:2015 Certificate required as a minimum requirement and disqualification criterion.

Pricing format: Form L: Pricing Schedule - Non-Firm (Broker Fees). Offer valid for 90 days from closing date.

Broking service fees:

• Evaluation based on Broking Service Fee.
• Fee increases in Year 2 and 3 limited to CPIX.
• Fees for: placement-broking risk placement, contract management service (reporting), formulating risk finance and portfolio structuring, claim management system and maintenance, claims value chain management, administrative and operations services.
• Pricing periods: Period 1 (01 July 2023 – 30 June 2024, fixed), Period 2 (01 July 2024 – 30 June 2025), Period 3 (01 July 2025 – 30 June 2026).

Insurance premium:

• Broker to obtain premiums based on municipality's insurance portfolio in local/international market.
• Proposals based on most cost-effective placement considering financial risk exposure.
• Quotations from insurance market must be made available to municipality for scrutiny and approval by Chief Risk Officer or Head of Department.

Price used for evaluation inclusive of all applicable taxes including VAT.

Minimum requirements (non-adherence results in disqualification):

• South African based Insurer agency contract (attach proof).
• Valid Tax Clearance Certificate.
• Registration with FSCA/FSB (attach proof).
• Registration with Financial Intermediaries Association (FIA) (attach proof).
• Registration with Institute of Risk Management South Africa (IRMSA) (attach proof).
• Insurance Institute of South Africa (IISA) (attach proof).
• B-BBEE accreditation (attach proof).
• Institute of Independent Directors certification for directors.
• Proof of Professional Indemnity of R450 million.
• CVs with contactable references.
• B degree in Insurance and Risk Management for the Director.
• Confirmation letters of three highest value claims in excess of R5 million.
• Reference letters for brokerage and claims management services.
• ISO 9001:2015 Certificate.
• Information Regulator Certificate.

Disqualification criteria checklist (failure may render tender invalid):

• Detailed Approach and Methodology.
• Confirmation of agency agreements with insurers.
• Detailed broker fee structure for Year 1, 2, 3.
• BEE rating by SANAS-accredited agency.
• Proof of placing assets above R1 billion in value.
• Professional Indemnity and Fidelity Cover of R450 million.
• Minimum 10 years' experience in placing municipal and public sector clients.
• Disclosure if outsourcing more than 25% of service, including equity ownership and HDI status of partners.
• Name five local authorities where bidder applies risk management, risk control and finance solutions.
• Evidence of appointment as intermediary for short-term insurance on portfolio over R1 billion assets in past 3 years.
• Evidence of appointment as intermediary for municipal portfolio in past 3 years.
• Evidence of dealing with individual claims over R100,000 in past 3 years.
• ISO 9001:2015 Certificate.
• Information Regulator Certificate.

Returnable forms: SBD 1, SBD 4, SBD 6.1, SBD 8, SBD 9, Authority to Sign, Form L pricing schedule.

Specific goals: Points allocated for specific goals to promote economic development. Maximum of 20 points (80/20) or 10 (90/10) for specific goals: Contracting with persons historically disadvantaged by unfair discrimination on basis of race, gender or disability; promotion of enterprise located in local area. 50% of points allocated to promote local area goal. Points for locality: Within Tswaing Local Municipality (10/5), within Ngaka Modiri Molema District (6/3), within North West Province (4/2), within Republic of South Africa (2/1). Specific goals include: Company at least 51% owned by Black People (10/5), at least 51% owned by women (10/5), at least 51% owned by people with disabilities (10/5), at least 51% owned by people living in rural underdeveloped areas (10/5). Verification via CSD Report or medical report.

Appointment of Intermediary for 3-year period. Intermediary must enter into a performance agreement with the municipality. Municipality reserves right to terminate contract if service provider does not perform according to agreement. Contract valid for three years from date of appointment.

Intellectual property: Information of the tenderer treated as confidential and remains property of the bidder.

Disqualification criteria checklist: Detailed Approach and Methodology; Confirmation of agency agreements with insurers; Detailed broker fee structure for Year 1, 2, 3; BEE rating by SANAS-accredited agency; Proof of placing assets above 1 billion in value; Professional Indemnity and Fidelity Cover of R450 million; Minimum 10 years' experience in placing municipal and public sector clients; Disclosure of outsourcing more than 25% with equity ownership and HDI status; Name five local authorities where bidder applies risk management, risk control and finance solutions; Evidence of appointment as intermediary for short-term insurance on portfolio over R1 billion assets in past 3 years; Evidence of appointment as intermediary for municipal portfolio in past 3 years; Evidence of dealing with individual claims over R100,000 in past 3 years; ISO 9001:2015 Certificate; Information Regulator Certificate. Failure to comply may render tender invalid.

Minimum requirements: South African based Insurer agency contract; Valid Tax Clearance Certificate; Registration with FSCA/FSB; Registration with Financial Intermediaries Association (FIA); Registration with Institute of Risk Management South Africa (IRMSA); Insurance Institute of South Africa (IISA); B-BBEE accreditation; Institute of Independent Directors certification for directors; Proof of Professional Indemnity of R450 million; CVs with contactable references; B degree in Insurance and Risk Management for Director; Confirmation letters of three highest value claims in excess of R5 million; Reference letters for brokerage and claims management services; ISO 9001:2015 Certificate; Information Regulator Certificate. Non-adherence results in disqualification.

Representative: Proof of registered South African representative must be provided.

Required documents: All tenderers need to be registered with Financial Services Conduct Authority (FSCA), Financial Intermediaries Association (FIA), The Institute of Risk Management South Africa (IRMSA), Insurance Institute of South Africa (IISA), Membership Certificate of Institute of Directors, Professional indemnity of R450,000,000.

Two-phased bidding system: 90 points for bid price/functionality and 10 points for B-BBEE status. 90 points split into 90 for functionality and 10 for pricing. Functionality evaluated on: Experience of bidding entity in insurance industry (years); Risk Management Strategy (letters of recommendation); Vehicle Tracking experience (years providing similar services to municipalities); Public Sector Experience (appointment letters); Director(s) qualifications (CVs, BCom degree, FAIS accreditation, IODSA, IRMSA, FIA, Matric); Account Manager qualifications (CV, B.A degree, Risk Management NQF level 10, Advanced Insurance Practice NQF level 6, Short-Term Insurance NQF level 5, IISA Certificate, FAIS Accredited, Matric); Claims Manager qualifications (CV, Diploma in Insurance, FAIS Accredited, Programme in Risk Management NQF level 6, IISA Programme, Matric); Contactable references from clients with insured over R5 million (minimum 5 letters); Professional Indemnity & Fidelity Guarantee/Schedule (minimum 500 million). Bidders must gain minimum 70% for functionality before further evaluation. Points allocated for full compliance only.

Preference point systems: 80/20 for goods/services with Rand value equal to or below R50 million; 90/10 for above R50 million. Formulas: Ps = 80(1 - Pt/Pmin) for 80/20; Ps = 90(1 - Pt/Pmin) for 90/10. For income-generating contracts, formulas use Pmax instead of Pmin. Points for specific goals added to price points, rounded to two decimal places. Contract awarded to highest scoring tenderer.

Subcontracting as condition of tender for procurement above R30 million: Tswaing Local Municipality will identify procurement opportunities for designated groups where compulsory sub-contracting must be applied to all contracts/projects above R30 million. Tenderers must submit proof of subcontracting arrangement. Main contractor held liable for performance. Tenders not meeting subcontracting requirements disqualified.

Criteria for breaking deadlock in scoring: If two or more tenderers score equal total points, contract awarded to tenderer with highest points for specific goals. If still equal, award decided by drawing of lots conducted by Bid Evaluation Committee.

Remedies: If Tswaing Local Municipality believes tenderer submitted false information regarding specific goal, it must inform tenderer and give opportunity to make representations within 14 days. After considering representations, if false information concluded, may disqualify tenderer or terminate contract, and claim damages.