Compilation of a compliant fixed asset register for maluti-a-phofung municipality (3-Year contract)

The successful bidder will be required to fill in and sign a written contract form (MBD7). The bidder must submit all required documentation; failure to comply means the bidder will not be evaluated further. The bidder must provide a valid and certified copy of the Letter of Good Standing (Tax Compliance Status) or a SARS PIN. For consortia/joint ventures/sub-contractors, each party must submit a separate TCS certificate/PIN/CSD number. If no TCS is available, the bidder must answer the questionnaire; if the answer is 'No' to all relevant questions, registration for a tax compliance status PIN is not required.

{"name":"Ms M. MOTSAU EMAIL","email":"[email protected]","phone":"058 718 3791","department":"PRIVATE BAG X 805","address":"October 2026 at 10h00"}

The bidder must submit the following documents, failure to comply will result in disqualification: valid UIF registration certificate in the name of the company, valid Tax Clearance Certificate (original and valid for 12 months from date of issue), completed municipal rates and taxes clearance certificate form or proof that rates are not in arrears for more than three months, copy of Company Profile (with documents for functionality), and all supplementary forms contained in the bid documents.

Bidders must submit a Company Registration Certificate reflecting active members (except sole traders and partnerships); be registered on the CSD; provide a SARS PIN or TCS certificate; complete all supplementary forms including municipal rates and taxes clearance (or proof not in arrears for more than three months); submit a company profile; index the bid document; provide a valid COIDA letter of good standing and UIF registration certificate. Bidders must not be in the service of the state. Bidders scoring less than 80 out of 100 on functionality will be disqualified. Preference points are claimed via MBD 6.1 for specific goals.

1.1 Review, correction and updating of existing asset registers

The service provider will be required to reconstruct a GRAP compliant asset

register from the current registers been kept by the municipality. All the

required Fixed Asset Register (FAR) assertions are to be satisfied as

required by the GRAP standards.

This includes amongst others:

 Ownership,

 Existence of the asset,

 Completeness of the existing FAR, and

 Up to date valuation of the asset for those assets without verifiable cost

prices.

The service provider is expected to identify the gaps between the FAR

provided by the municipality in meeting the GRAP standards based on the

above principles. The service provider to prepare a project implementation

plan to undertake the review and updating of the FAR to be GRAP compliant

as well as to bring it to current.

The service provider must also submit a detailed methodology for the

compilation of the FAR which should also demonstrate that the terms and

conditions outlined in this document have been taken into account.

1.2 Verification of existing assets and assets identification for incomplete

assets

The service provider must use the existing FAR to undertake the validation

and verification of the asset register. This process will include amongst

other things;

• Conducting 100% verification of infrastructure, fixed assets and

movable assets.

• Tracing all the assets in the existing FAR to their actual location,

keeping record of all assets which cannot be traced, which should

subsequently be investigated and accounted for as required for by

GRAP standards and any applicable legislation (e.g; MFMA).

• Identify and record all municipal assets in various locations which

cannot be traced to the existing FAR.

• Record the location of all fixed assets by providing the GPS

coordinates of each asset component.

• Determine the ownership of the assets from the existing asset

register as well as the asset user.

• Capture for each asset the data attributes which are required to its

description in the FAR. This will include amongst a few, the length,

width, diameter, capacity, etc of each asset component. The data

attributes from the field work should be compared with those in the

existing asset register and reconciled as required.

The service provider must ensure that all movable assets are bar-coded,

and the municipality’s GIS is updated with the relevant information

including the verified infrastructure asset coordinates.

1.3 Unbundling of the asset register and condition assessment

For infrastructure assets in the existing FA, the service provider should

review the level of the componentization applied with the municipality’s

asset management policy as well as the National Treasury guidelines.

For all completed projects, the service provider should undertake a

comprehensive componentization of the assets to a level where significant

components have differing useful life expectations to that of the parent

asset. This process should be undertaken to enable more realistic

depreciation charges to be set and thus more accurately model the use of

the asset.

To undertake a condition assessment of the assets with the view to provide

indication as to whether or not the consumption of the asset is as initially

expected upon the acquisition of the asset and service levels are being

attained. The condition assessment of the fixed assets should be

undertaken to a level that will enable the municipality to:

• Analyse the rate of deterioration of the assets,
• Identify the appropriate mitigation measures to take and the timing,
• Support more accurate estimates for remaining useful life, and
• Enable the forward planning on the capital replacement needs that will

decrease risk of unavoidable and unplanned expenditures.

1.4 Valuation of the asset register

Review the valuation of assets in the existing asset register to ensure that

they are correctly valued.

For projects completed, the service provider must use the projects record to

determine the date that the asset became available for use, and appropriate

cost model to determine the initial cost of the asset components that are

unbundled and recognised in the FAR. Where the relevant project records

are not available due to the poor state of record keeping at the municipality,

the service provider should apply appropriate valuation techniques/methods

in line with the municipality’s asset management and accounting policy and

applicable GRAP standards to value the asset.

1.5 Review and update the useful life of the existing asset

The service provider must undertake a review of the estimated useful life

(EUL), the asset component age and the remaining useful life (RUL) of

each asset and ensure that changes to the EUL are effected in the updated

asset register.

Based on available records on asset installation dates where available, the

service provider must review and update the asset (and asset component)

age of the infrastructure. The service provider must indicate the

methodology that will be used that takes into account, the materiality of the

valuation of the assets.

It is important that the service provider determines the remaining useful life

of each asset component based on the condition assessment undertaken

than just assessing the EUL and deducting the current age of the asset.

The service provider must indicate the methodology that will be used in

determining the useful life and asset age. The issue of materiality of the

result should be considered in developing the method of assessing useful

lives of each asset component.

For assets that may be near or past their assessed useful life but still in

use, the service provider must determine the minimum remaining life based

on the asset type or the service type.

1.6 Calculate the depreciation charges

In order to determine the carrying value of the assets, the service provider

must determine the depreciation of each asset based on the depreciation

amount of each asset over its useful life. In order to determine the

depreciation, the service provider must indicate the depreciation methods to

be used for the various assets based on the depreciation pattern of each

asset component which must reflect the pattern in which the asset’s future

economic benefits are expected to be consumed in line with the

municipality's asset management policy and accounting policy.

The service provider must ensure that the depreciation charges are in line

with the useful lives of the assets as determined in the Local Government

Capital Assets Management Guideline of 2008.

1.7 Compile a GRAP compliant asset register

The service provider must compile a GRAP 17 compliant asset register that

provides the information determined from the above tasks. Further tasks to

be performed as part of the compilation process will include but not limited

to the following:

• Corrections emanating from the review of the valuation of assets in

the existing asset register to ensure that they are correctly valued.

• Take on dates for assets in the existing FAR.
• Reconciliation of the assets in various locations to those in the

existing FAR.

• Investigation of assets in the existing FAR but not traceable to the

various locations.

• Reconciling the new asset register with the existing asset register

and resolve all variances identified.

• Addressing any other gaps identified in the existing FAR in meeting

GRAP 17 standards.

The service provider must compile the fixed asset listing in a format

suitable for import into the municipality’s current financial management

system. The asset register must provide the following but not limited to

information on:

• Asset class
• Asset unique identification codes
• Attribute data of each asset
• Location of the asset
• Acquisition date
• Take-on date
• Purchase price
• Take-on value
• Estimated base useful life
• Condition of the asset
• Modified useful life
• Remaining useful life
• Current unit replacement cost
• Replacement cost
• Method of depreciation
• Accumulated depreciation
• Depreciation replacement cost
• Annual depreciation
• Conditional assessments
• Impairment
• Prior period adjustments
• Additions
• Disposals
• Derecognition
• Carrying amount

The service provider must further consult the MFMA-Local

Government Capital Asset Management Guideline, part 5.1.1 for

information to be included in an asset register.

1.8 Review and update the asset management policy & standard

operating procedures

1.8.1 Updating of the Asset Management Policy

The service provider should review the municipality’s asset

management policy based on the updated register. This should

include but not limited to the following:

• Review the criteria to be met before expenditure can be

capitalised as an item of property, plant and equipment.

• Criteria for determining the initial cost of the different items of

property, plant and equipment. Document the method of

calculating depreciation for different items of property, plant

and equipment.

• Review and determine the criteria for capitalizing subsequent

expenditure on property, plant and equipment.

• Review/develop the standards and procedures for scrapping

and disposal of property, plant and equipment.

• Review and update the classification and/or

componentization of property, plant and equipment.

1.8.2 Procedures for maintenance of the asset register

The service provider should review the current processes for the

maintenance of an up-to-date GRAP compliant asset register.

1.9 Capacity building and training

The importance of the need for relevant capacity building, training and

technology transfer to the municipal asset, financial and engineering

officials cannot be overemphasized. This is considered to be a key

component of the assignment, not only because it will serve to develop the

competence and expertise of the individuals, but also because it will

establish a common understanding of the technical aspects of asset

management and specifically the updating of the asset registers which form

the basis for maintenance management and financial management of the

assets.

The service provider must develop a capacity building program and a

training framework during the inception phase. The framework should

include but not be limited to the following:

• Training objectives
• Identify the training needs/purpose and what will be achieved
• Provide the training methodologies to be used
• Identify a capacity building and training plan with clear timelines,

deliverables, trainers and trainees.

Framework Act No (80/20 preferential points allocation system in line with

revised Procurement Regulations of 2022 by using the balance scorecard methodology) will

be applied.

service provider must review and update the asset (and asset component)

age of the infrastructure. The service provider must indicate the

methodology that will be used that takes into account, the materiality of the

valuation of the assets.

Professional (SAGC

Registered);

• All five professionals as per

the required team list 15

including team leaders=

• Any three professionals as 10

per the required team list =

• Any two professionals as per 5

the required team list =

• One professional as per the

required team list =

Each expert must have at least 5

years of practical experience in the

municipal asset and finance

environment.

Project Time Frames (10 Points)

• An in-detail project work plan The FAR compilation plan must be

with detailed tasks and time 10 submitted to the AGSA, in line with

frames = 5 the MFMA and the AFS plan

• A basic plan with basic time 0 prepared by the municipality

frames =

• No Project plan =

compliant fixed assets register for the municipality for a period of three (3) years

Requirements:

 Bidders must submit a Copy of Company Registration Certificate (CRC) Reflecting

Active Members (Except for Sole Traders and Partnership).

 Bidders must be registered with Central Supplier Database (CSD), CSD number must

be provided, and in case of a JV all parties must be registered on CSD.

 Bidders are required to submit their unique personal identification Number (Pin) issued

by SARS to enable the Municipality to view the taxpayer’s profile and tax Status

 All supplementary forms including municipal rates and taxes clearance certificate

form contained in the bid documents must be completed in full or (submit a proof that

the municipal rates and taxes are not in arrears for more than three months)

 In Bids whereby consortia/ joint ventures/ sub-contractors are involved, each party

must submit a separate Tax Compliance Status (TCS) Certificate/Pin/CSD Number.

 Copy of Company Profile (with documents for functionality)

 Bidders must index their bid document properly.

Sealed Bids should clearly indicate: APPOINTMENT OF A SERVICE

Leader (10 Points) All relevant certified qualifications and

registrations must be submitted to claimThe team must be led by

points.both:

 a Qualified

terms of, and to sign, the bid, on behalf of the bidder;

5. For the purposes of this Certificate and the accompanying bid, I understand that the word “competitor” shall include

any individual or organization, other than the bidder, whether or not affiliated with the bidder, who:

(a) has been requested to submit a bid in response to this bid invitation;

(b) could potentially submit a bid in response to this bid invitation, based on their qualifications,

abilities or experience; and

(c) provides the same goods and services as the bidder and/or is in the same line of business as the

bidder

Bidders are requested to follow the model below so that proposals can easily be

completed.

Product Unit Quantity/Hours Year 1 Year 2 Year 3 Total

Price Amount

R r r r

Information

Gathering

Gap Analysis

Reconciliation

Verification

Data Validation

Financial Reporting

Compile Asset

Management Plan

(and FAR)

Provide Audit

Support

Disbursement

Sub-

Total

VAT

Gran

D

Total

[

Criteria weight points documents to be submitted as

Allocated proof to score points

EXPEREINCE: Previous

GRAP Compliant Copies of signed appointment letters and

projects (40 Points) reference letters from previous clients

should be attached to claim points. The

Previous completed municipality will verify the information

GRAP-compliant FAR submitted with respective referees.

projects with an

unqualified audit opinion 40 The attached references should be

on Property, Plant and 25 contactable to enable the municipality to

Equipment: 10 verify the letters (both email and

• 06 and above, 0 telephone).

reference letters =

• 03 – 05 reference

letters =

• 01 – 02 reference

letters =

• 0 reference letters

=

RESOURCES: Technical

Expertise and

Competency of Team

Leader (10 Points) All relevant certified qualifications and

registrations must be submitted to claimThe team must be led by

points.both:

 a Qualified

Engineer Please attach an organogram of the

(Engineering proposed project team.

Council of South

Africa Registered), 10

or 07

 Chartered 05

Accountant

02 (acca/saica &

0 IRBA Registered):

• 10 and more years

=

• 7 - 9 Years =
• 4 - 6 Years =
• 1 - 3 Years =
• 0 - years =

RESOURCES: Asset

Management Team Composition

(20 Points)

The team must be composed of the

following individuals:

All relevant certified qualifications

and registrations must be

1. Chartered Accountant submitted to claim points

(Acca/saica & irba

Registered);

2. Qualified Professional valuer

(PV SACPVP Registered);

3. Registered Geomatics

Professional (SAGC

Registered);

• All five professionals as per

the required team list 15

including team leaders=

• Any three professionals as 10

per the required team list =

• Any two professionals as per 5

the required team list =

• One professional as per the

required team list =

Each expert must have at least 5

years of practical experience in the

municipal asset and finance

environment.

Project Time Frames (10 Points)

• An in-detail project work plan The FAR compilation plan must be

with detailed tasks and time 10 submitted to the AGSA, in line with

frames = 5 the MFMA and the AFS plan

• A basic plan with basic time 0 prepared by the municipality

frames =

• No Project plan =

Asset Management

System (20 Points)

To provide the system brochure or pamphlet or

Proof of an Asset System screenshots or any other documentation to

with the following main support the point claimed per the listed system 5

futures: functionalities.

• High definition arial

maps taken within the

financial year =

• Updated street view 5

of the entire municipal

assets and 5

network =

• Digitized asset

registers in a

Geographic

Information System

(GIS) =

• Mobile asset

verification software

(Image and GPS

enabled) =

Total allocation 100

training framework during the inception phase. The framework should

include but not be limited to the following:

• Training objectives
• Identify the training needs/purpose and what will be achieved
• Provide the training methodologies to be used
• Identify a capacity building and training plan with clear timelines,

deliverables, trainers and trainees.

Price schedule

 Official Municipal Rates

4.4 Does the bidder or any of its directors owe any municipal rates and taxes or municipal Yes No

charges to the municipality / municipal entity, or to any other municipality / municipal

entity, that is in arrears for more than three months?

4.4.1 If so, furnish particulars:

4.5 Was any contract between the bidder and the municipality / municipal entity or any Yes No

other organ of state terminated during the past five years on account of failure to

perform on or comply with the contract?

4.7.1 If so, furnish particulars:

 Bidders must submit a Copy of Company Registration Certificate (CRC) Reflecting Active Members (Except for Sole Traders and Partnership).  Bidders must be registered with Central Supplier Database (CSD), CSD number must be provided, and in case of a JV all parties must be registered on CSD.  Bidders are required to submit their unique personal identification Number (Pin) issued by SARS to enable the Municipality to view the taxpayer’s profile and tax Status  All supplementary forms including municipal rates and taxes clearance certificate form contained in the bid documents must be completed in full or (submit a proof that the municipal rates and taxes are not in arrears for more than three months)  In Bids whereby consortia/ joint ventures/ sub-contractors are involved, each party must submit a separate Tax Compliance Status (TCS) Certificate/Pin/CSD Number.  Copy of Company Profile (with documents for functionality)  Bidders must index their bid document properly. Sealed Bids should clearly indicate: APPOINTMENT OF A SERVICE PROVIDER FOR THE COMPILATION OF GRAP COMPLIANT FIXED ASSET REGISTER FOR THE PERIOD OF THREE (3) YEARS (SCM/BID07/2026/2027) Closing date: 29th October 2026 at 10h00 Bid Box: Bid Box No. “A” Maluti-a-Phofung Municipality Setsing Business Centre C/O Moremoholo & Motloung streets Phuthaditjhaba Supply Chain Enquiries: M. Motsau (058)7183878/(058) 718 3870 –[email protected] [email protected] Technical Enquiries: S. Mopeli - 058 718 3791- [email protected] Please note

No bids will be accepted from persons in the service of the state.

Bid documents will be obtainable as from Wednesday the 16th of September 2026 after 10h00 from the cashiers point, Phuthaditjhaba offices upon payment of a R 504.00 non- refundable fee (cash or bank guaranteed in favour of Maluti-a-Phofung Municipality) or alternatively the tender document may be download from e-tender portal at no extra charge.

No electronic copies, telegraphics, telefaxes and late Bids will be accepted.

Municipality is not bound to accept the lowest Bid.

Municipality reserve the right not to award the bid.

Municipal Supply chain management policy and Preferential Procurement Policy Framework Act No (80/20 preferential points allocation system in line with revised Procurement Regulations of 2022 by using the balance scorecard methodology) will be applied.

Only one submission for this bid will be considered from the bidder.

Failure to comply with the above mentioned conditions may invalidate your bid.

Should you not receive any correspondence from us within 90 days regard your bid as unsuccessful.

Communication will be limited to the successful bidder. ___________________ ADV M.M MOFOKENG MUNICIPAL MANAGER

Points Allocation: 3 points

B-BBEE Details: ...................

4. Full details of directors / trustees / members / shareholders.

Full Name Identity Number State Employee

Number

......................................... ............................................

Signature Date

........................................ .............................................

Capacity Name of Bidder

Mbd 6.1

Preference points claim form in terms of the preferential procurement

Regulations 2022

This preference form must form part of all bids invited. It contains general information and serves as a claim form for

preference points for specific goals.

Nb: before completing this form, bidders must study the general conditions,

Definitions and directives applicable in respect of the tender and

Preferential procurement regulations, 2022.

1. General conditions

1.1 The following preference point systems are applicable to all bids:

• the 80/20 system for requirements with a Rand value of up to R50 000 000 (all applicable taxes

included); and

• the 90/10 system for requirements with a Rand value above R50 000 000 (all applicable taxes

included).

1.2

a) The value of this bid is estimated to exceed/not exceed R50 000 000 (all applicable taxes included) and therefore

the 80/20 preference point system shall be applicable; or

1.3 Points for this bid shall be awarded for:

(a) Price; and

(b) Specific goals

1.4 The maximum points for this bid are allocated as follows:

1.5

Points

Price 80

Specific goals 20

Total points for Price and Specific Goals must not exceed

1.6 Failure on the part of a bidder to submit proof or documentation required in terms of this tender to claim points for

specific goals with the tender, will be interpreted to mean that preference points for specific goals are not claim

certify that the points claimed, based on the specific goals as advised in the tender,

qualifies the company/ firm for the preference(s) shown and I acknowledge that:

i) The information furnished is true and correct;

ii) The preference points claimed are in accordance with the General Conditions as

indicated in paragraph 1 of this form;

iii) In the event of a contract being awarded as a result of points claimed as shown

in paragraphs 1.4 and 4.2, the contractor may be required to furnish documentary

proof to the satisfaction of the organ of state that the claims are correct;

iv) If the specific goals have been claimed or obtained on a fraudulent basis or any

of the conditions of contract have not been fulfilled, the organ of state may, in

addition to any other remedy it may have –

(a) disqualify the person from the tendering process;

(b) recover costs, losses or damages it has incurred or suffered as a

result of that person’s conduct;

(c) cancel the contract and claim any damages which it has suffered

as a result of having to make less favourable arrangements due

to such cancellation;

(d) recommend that the tenderer or contractor, its shareholders and

directors, or only the shareholders and directors who acted on a

fraudulent basis, be restricted from obtaining business from any

organ of state for a period not exceeding 10 years, after the audi

alteram partem (hear the other side) rule has been applied; and

(e) forward the matter for criminal prosecution, if deemed necessary.

Signature(s) of Tenderer(s):___________________ Date: ____________________

Mbd 8

Declaration of bidder’s past supply chain management practices

2. Bid documents will be obtainable as from Wednesday the 16th of September 2026 after

10h00 from the cashiers point, Phuthaditjhaba offices upon payment of a R 504.00 non-

refundable fee (cash or bank guaranteed in favour of Maluti-a-Phofung Municipality) or

alternatively the tender document may be download from e-tender portal at no extra charge.

evaluated further:

o Valid and certified copy of a Letter of good standing compensation & injury Diseases Act

(Coida).

o Valid Unemployment Insurance fund (UIF) registration certificate in the name of the company

or close corporation (submit certified copy of the original document).

• Risk implications
• The Municipal assets are at risk of being stolen or vandalized and inadequately maintained which

adversely impacts the delivery of basic service

Mbd 1

considered, reasonable steps are taken to prevent any form of bid-rigging.

5 In order to give effect to the above, the attached Certificate of Bid Determination (MBD 9) must be completed and

submitted with the bid:

No bids will be considered from persons in the service of the state. Only one submission for this bid will be considered from the bidder. The successful bidder will be required to fill in and sign a written contract form. All bids must be submitted on the official forms provided (not to be re-typed). The bidder must submit a separate TCS certificate / PIN / CSD number. If the answer is 'No' to all relevant questions, it is not a requirement to register for a tax compliance status system PIN code from SARS.

The 80/20 or 90/10 preference point system applies. Points are awarded for specific goals: bidders within Thabo Mofutsanyana District (5 points), within Free State Province (5 points), outside Free State (0 points). Bidders must indicate how they claim points for each preference. Supporting documents (e.g., municipal rates statement, lease agreement) must be submitted to validate claims.