SALGA panel of service providers: technical advice on municipal finance legislation reforms and revenue models (36-Month contract)

SALGA is the national association representing all 257 municipalities. Its mandate includes representation, advocacy and lobbying, employer body functions, capacity building, support and advice, strategic profiling, and knowledge sharing.

This RFP appoints a panel of service providers to support SALGA's Lobby and Advocacy Programme on municipal finance legislation, comprising two sub-projects: (1) technical advice on the review of Section 118 of the Municipal Systems Act, and (2) a feasibility study on alternative and complementary municipal revenue models arising from the water and electricity transition. The contract period is 36 months.

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

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

Proposal submissions due: 28 August 2026 at 11h00 (note: this appears to be an internal deadline; the official closing date is 11 September 2026).

No briefing session or site visit is stated.

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

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

Bidders finding discrepancies or omissions in the RFP should 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.

Returnable documents (all must be completed in full and signed on the portal):

• SBD 1 (Bid Invitation): bidder and contact details, signed as the offer cover page.
• SBD 4 (Bidder's Disclosure / Declaration of Interest): discloses whether any director or shareholder is employed by the state or connected to anyone at SALGA.
• SBD 6.1 (Preference Points Claim): claims B-BBEE points under the PPPFA; special attention to sections 12 and 13.
• Pricing Schedule (SBD 3.x): pricing details as required.
• General Conditions of Contract: an originally signed copy must be submitted with all other bid documentation.

Disqualification risks:

• Failure to complete any returnable document in full, or omitting any required form.
• Failure to comply with any condition of the RFP.
• Proposals not submitted through the SALGA SCM portal.
• Proposals received after the closing time.

Bid validity: proposals must remain valid and irrevocable for 120 days after the closing date.

SALGA will not be responsible for any costs incurred by bidders in preparing responses.

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 does not automatically disqualify the bid.

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

• Understanding of SALGA requirements (20 points): 0 = lack of understanding; 10 = understanding of key deliverables and submission of documentation; 20 = comprehensive understanding.
• Approach and Methodology (40 points): scored on comprehensiveness and clarity of the proposal, approach, methodology, and a detailed project plan. 0 = no submission; 5 = plan not suitable; 10 = incomplete plan; 20 = satisfactory; 30 = good; 40 = outstanding.
• Company Experience (20 points): scored on number of reference letters for similar or comparable projects. 0 = no evidence; 3 = 1 letter; 5 = 2 letters; 10 = 3 letters; 15 = 4 letters; 20 = 5 or more letters.
• Experience of Key Personnel (20 points): scored on certified copy of certificate of registration with a recognised professional body and CVs reflecting years of relevant experience in Local Government. 0 = no knowledge; 3 = less than 2 years; 5 = less than 5 years; 10 = 5-10 years; 15 = 10-15 years; 20 = more than 15 years.

Bidders scoring 70 points and above will be recommended as a list of panel of experts.

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

Scope of work – Lobby and Advocacy Programme (Municipal Finance Legislation), Project C, for a period of 36 months.

Sub-Project 1: Technical Advice on the Review of Section 118 of the Municipal Systems Act.

• Produce a clear problem statement, legally defensible options, and a recommended policy position to strengthen municipal fiscal sustainability.
• Key issues: clearance certificates, historical municipal debt, revenue leakages, fraudulent certificates, billing accuracy, legal interpretation, property transfers, system integration with the Deeds Office, and protection of municipal revenue.
• Activities: inception and workplan; legal and implementation diagnosis; stakeholder consultation; options development; impact and risk assessment; preparation of SALGA's consolidated policy position and advocacy package.
• Minimum deliverables: inception report; diagnostic note; options paper with assessment matrix; draft SALGA position paper and advocacy brief; stakeholder consultation record and validation workshop report-back; final technical advice report.

Sub-Project 2: Feasibility Study on Alternative and Complementary Municipal Revenue Models (water & electricity transition).

• Assess financial, legislative, institutional and operational implications of the water and electricity transition on municipal revenue.
• Identify and evaluate alternative revenue models (e.g., differentiated service charges, prepaid metering, revenue assurance, wheeling, network access charges, ring-fenced utility models, performance-based contracting).
• Activities: inception and study design; baseline assessment; model identification and longlist; feasibility, compliance and risk assessment; municipal segmentation; quantification and scenarios; shortlist and pilots; implementation roadmap and toolkits.
• Minimum deliverables: inception report; baseline diagnostic report; options longlist and assessment matrix; municipal segmentation/typology; quantification notes; final report and executive summary; implementation roadmap and municipal toolkit; stakeholder buy-in workshops.

Objectives: reduce municipal audit findings, improve audit outcomes, develop implementable revenue models, improve revenue generation/protection/collection, provide technical advice on Section 118, conduct financial modelling and scenario planning, and provide capacity building to councillors and officials.

Sub-Project 1 methodology: inception and workplan to confirm policy questions and advocacy priorities; legal and implementation diagnosis of Section 118; stakeholder consultation with municipalities, government departments, legal experts, conveyancers and property-sector representatives; options development covering legislative, regulatory and administrative reforms; impact and risk assessment; preparation of SALGA's consolidated policy position and advocacy package.

Sub-Project 2 methodology: inception and study design; baseline assessment of current revenue models; model identification and longlist of local and international models; feasibility, compliance and risk assessment; municipal segmentation framework; quantification and scenarios of revenue potential; shortlist and pilots; implementation roadmap and toolkits.

Both sub-projects require stakeholder buy-in workshops and defined deliverables as listed in the scope.

Minimum expertise: The panel must demonstrate proven experience in South African local government fiscal policy, municipal finance and municipal legislation, with practical knowledge of municipal revenue administration. The panel should collectively possess expertise in legal and legislative drafting and review, administrative law, municipal revenue and debt management, property rates, tariffs and related fiscal and regulatory frameworks. Demonstrated experience in policy development and advocacy, stakeholder and intergovernmental engagements, legislative processes, and preparation of evidence-based policy positions and submissions to government departments, regulators, Parliament and other legislative structures is required.

Evaluation of key personnel: certified copy of certificate of registration with a recognised professional body and CVs reflecting years of relevant experience in Local Government. Scoring ranges from 0 (no knowledge) to 20 points (more than 15 years' team average experience).

Pricing Schedule (SBD 3.x) must be completed in full and signed on the portal.

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

No pricing format details (fixed, schedule of rates, etc.) are stated beyond the standard form.

Pricing format: Bidders must complete the Pricing Schedule (SBD 3.x) as part of the returnable documents.

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

No bond, guarantee, or insurance requirements are stated.

No payment terms or financial capacity thresholds are stated.

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

Returnable forms (all must be completed in full and signed on the portal):

• SBD 1 (Bid Invitation): bidder and contact details.
• SBD 4 (Bidder's Disclosure / Declaration of Interest): discloses any connection to the state or SALGA.
• SBD 6.1 (Preference Points Claim): claims B-BBEE points; special attention to sections 12 and 13.
• General Conditions of Contract: originally signed copy required.

Bidders must declare any conflict of interest; SALGA may disqualify bids where a conflict exists or may arise.

The Service Provider will be required to sign confidentiality and indemnity agreements with SALGA.

No tax clearance, CIDB, CIPC, or local content requirements are stated.

Contract term: for the duration of the assignment, expiring upon fulfilment of the scope of work. 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 or violates the RFP substantially.

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

Intellectual property: all materials and products developed vest in SALGA; bidders must not disclose or sell them without written consent. On completion or termination, all materials must be handed over to SALGA.

Confidentiality: bidders must not disclose proposal details or issue public announcements without SALGA's prior written approval.

Disputes: settled by mutual consultation, mediation, or in a South African court of law.

SALGA may vary the instruction to include more or exclude work; bidders may engage SALGA on pricing of additional work.

SALGA reserves the right not to award the bid to any bidder.

Conditions of bid:

• Failure to meet any requirement may render the bid non-responsive.
• A contract will be signed with the appointed service provider.
• The service provider must sign confidentiality and indemnity agreements.
• SALGA may vary the instruction to include more work.
• Failure to comply with any condition invalidates the tender proposal.
• If a conflict of interest is discovered, SALGA may summarily cancel the agreement.
• Bidders must not disclose proposal details or issue public announcements without prior written approval.
• Bidders must declare any conflict of interest.
• Bid offers must be valid for 120 days.
• Submission of a proposal gives rise to no contractual obligations.
• Disputes settled by mutual consultation, mediation, or in a South African court.
• The bidder is bound by the General Conditions of Contract.
• All returnable bid documents must be completed in full.
• SALGA will not be liable for costs incurred during site visits or submission.
• Completion of Standard Bidding Documents is mandatory.

Evaluation is in two phases: Phase 1 Pre-Compliance Check (CSD registration advised but not disqualifying) and Phase 2 Technical Functionality (total 100 points, minimum threshold 70).

Functionality criteria and weights:

• Understanding of SALGA requirements: 20 points
• Approach and Methodology: 40 points
• Company Experience: 20 points (based on number of reference letters)
• Experience of Key Personnel: 20 points (based on years of experience and professional registration)

Bidders scoring 70 points and above will be recommended as a list of panel of experts.