INVITATION

FOR PROPOSAL

NOTICE NO: 137/2010

Closing Date: 20 August 2010

INDEX

PROPOSAL: REVENUE MANAGEMENT AND COLLECTION

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Revenue Management and Debt Collection

 

 

Please take note of the following:

· The Kouga Municipality is looking at innovative methods to increase revenue and manage costs to improve service delivery to its citizens.

· All required information and documents are to be completed as requested.

· The appointed service provider must register on the Municipal Database.

· Ensure that the full proposed cost of Revenue Management Assessment and Collection and specified related activities is reflected in the space provided below. Detail the cost basis (rates) and your proposed maximum cost for the project.

· Your proposed plan of action must cover all the activities referred to in the terms of reference, with complete costing for each.

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Revenue Management and Debt Collection

DETAILS of PROPOSER

1.	Full Names
2.	Identity / Registration No.
3.	Postal Address
4.	Physical Address
5.	Telephone No.
6.	Facsimile No.
7.	email Address
8.	Contact Person
9.	Contact No.

KougaMunicipality
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Revenue Management and Debt Collection

PREAMBLE

 

1. Objective

 

The assessment of the current status of revenue collection within the Kouga Municipality including:

· A revenue assessment.

· A revenue improvement program,

· A debt collection process to improve revenue collection.

 

2. Purpose of the Document

The purpose of this document is to set out the terms and conditions under which a service provider may submit a proposal for revenue management assessment and debt collection as described herein.

Specific requirements of products, goods and services are contained in Schedule 1. Other requirements are dealt with in the relevant sections as contained herein.

The offer document shall be treated as an integral set of parameters and requirements to satisfy the Municipality’s needs as described herein. Should any anomaly or contradiction arise between various parts of this document, the specific content and meaning of the Forms and Schedules shall prevail.

3. Legislative Prescription

(a) Municipal Finance Management (Act No. 56 of 2003)

Regulations issued in terms of the Act must be complied with.

(b) Municipal Systems Act (Act No. 32 of 2000)

All relevant prescriptions and conditions related to local government financial statements are to be observed.

4. Administrative Goals

Revenue Management and Debt Collection

Effective revenue management and debt collection

5. Liaison

The Chief Financial Officer shall oversee the project and ensure achievement of the desired objectives. All communication with regard to the implementation and management of this project will be through the Chief Financial Officer.

KougaMunicipality

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Revenue Management and Debt Collection

6. Headings

Clause headings are used for convenience and form neither part of the body of the clause nor the defined meaning thereof.

7. Terminology

For purposes of clarity, words used in this document have the general meaning attached to the legislative context to which they refer. Should a conflict arise between such original contextual meaning and the construed meaning as presented herein, the original contextual meaning shall prevail. Where a reference is made herein to:

• a gender, it shall include the other;
• a natural person, it shall include a body corporate, and vice versa;
• the singular, it shall include the plural, and vice versa;
• any Act of Parliament, Regulation or municipal by-law and/or policy, it shall be construed as being the latest authorised version of said Act, Regulation, by-law or policy;
• a number of days, with regard to specific performance, that number shall specifically mean working days, shall exclude the first day and include the last day of such stated number of days; and
• a term defined in a clause other than the definitions hereunder, that term shall be held to have the same meaning in any and all other clauses where such term may be used.

8. Definitions

“Act” means the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003) and Regulations made in terms thereof;

“In Good Standing” means that the Service Provider or the Service Provider’s representative(s) have no outstanding municipal debt of 90 days or more with a local authority within the Republic of South Africa;

“Completion Certificate” means the document issued by the municipality in confirmation of acceptance of the product as specified, including the satisfactory resolution of errors and/or defects discovered therein during implementation, and the Service Provider’s compliance with the terms and conditions of the tender;

“Letter of Acceptance” means the written communication by the municipality to the Service Provider confirming acceptance by the municipality of the tender, subject to any further terms and conditions which may, by agreement between the Service Provider and the municipality, be included in the proposal;

“Municipality” shall mean Kouga Municipality;

KougaMunicipality

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Revenue Management and Debt Collection

“Proposal” means the Service Provider’s submission of a proposal with regard to this request, including all forms and schedules provided by the municipality related to this proposal and all additional documents of proposal compiled and submitted by the Service Provider with the object of securing the appointment for this service;

“Signature Date” means the date of signature of the Letter of Acceptance by the municipality;

“Proposal” shall include all forms and schedules contained in the municipality’s document, as well as any proposals and/or additional information submitted by the Service Provider, which together form the basis for the goods to be supplied and/or services to be rendered in terms hereof, and any further agreement to be entered into between the Service Provider and the municipality which is intended to achieve the purpose of this request;

“Service Provider” means the person, whether natural or juristic, whose offer has been duly accepted by the municipality;

KougaMunicipality

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FORM – A

 

Form of Proposal, Declaration and Details

DECLARATION

The undersigned Service Provider hereby declares that the Service Provider:

1. Confirms that the Service Provider’s signatory to this proposal is duly authorised and appointed thereto;

2. Proposes to provide and implement the goods and services required for the successful completion of the above-mentioned service, in accordance with all forms and schedules which together constitute this document;

3. Agrees to be bound by the specifications, terms and conditions of the proposal as stipulated herein, together with the time frames and the prices proposed by the Service Provider for the period of validity of the proposal made;

4. Understands that a proposal may only be accepted following completion of the prescribed procurement processes and the issuance of a Letter of Acceptance by the Municipality in favour of the Service Provider;

5. Shall initial each page of the proposal and, if applicable, amendments made thereto, in acknowledgement of full understanding hereof and as proof of intention to contract with the Municipality on the specific terms and conditions contained in this document and the proposal submitted by the Service Provider.

Signature of Proposer / Authorised Representative:

KougaMunicipality

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Revenue Management and Debt Collection

FORM – B

General Undertakings by Proposer

1. Acceptance of Responsibility

The Service Provider hereby agrees:

• to supply the goods and/or services specified in the document and as described in the Service Provider’s proposal, in accordance with the Municipality’s terms and specifications;
• to maintain the prices offered, having regard for delivery and/or execution time frames specified therein

2. Binding Proposal

The Service Provider agrees further that:

• the Service Provider’s proposal shall remain binding upon the Service Provider and open for acceptance by the Municipality during the validity period as defined above;
• the Service Provider is fully acquainted with the terms and conditions contained in the forms, schedules and/or annexure of this document.

3. Performance

Notwithstanding anything to the contrary contained in the forms, schedules and/or annexure constituting this document, the Service Provider acknowledges that:

3.1 should the Service Provider withdraw the proposal within the validity period, or fail to render specific performance in terms of a related contract awarded by the Municipality, the Municipality may, without prejudice to its rights, agree to the withdrawal of the proposal or cancellation of the contract that may have been entered into between the Service Provider and the Municipality;

3.2.the Service Provider shall be liable for any additional expense incurred by the Municipality for having either to accept a less favourable offer or, if fresh proposals have to be invited, the additional expenditure incurred in the invitation of fresh proposals and the subsequent acceptance of any less favourable proposal;

3.3the Municipality shall have the right to recover such additional expenditure by set-off against monies which may be due or become due to the Service Provider in terms of this or any other proposal, contract, guarantee or deposit that may have been furnished by or on behalf of the Service Provider for the due fulfilment of this or any other contractual obligation with the Municipality; and

KougaMunicipality

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Revenue Management and Debt Collection

4. Familiarisation

The Service Provider, including representatives, employees and agents of the Service Provider, shall familiarise themselves with the appropriate legislation, debt collection standards, regulations and by-laws of the Municipality that may be applicable to the Service Provider’s activities in terms hereof.

5. Notification

If the Service Provider’s proposal is accepted by the Municipality, such acceptance shall be communicated by letter to the Service Provider’s stated postal, fax or email address. Proof of delivery of such letter of acceptance handed to the SA Post Office, or the production of a document confirming that a facsimile or email has been sent, shall be accepted as proof of delivery of the letter of acceptance to the Service Provider.

6. Legal Authority

The laws of the Republic of South Africa shall govern the contract and or service level agreement created by the acceptance of this proposal.

The Service Provider hereby consents to the jurisdiction of the Magistrates Court for the district of Mthatha and Mqanduli in respect of any action whatever arising from this contract.

7. Validation of Tender and Obligations

The Service Provider hereby acknowledges that it has satisfied itself as to the correctness and validity of this proposal, that the stated prices (which must be inclusive of value added tax) and rates cover all goods and services specified in the proposal document, and that errors regarding price and/or damages arising from any miscalculation will be absorbed by the Service Provider.

The Service Provider, as principal contractor herein, accepts full responsibility for the proper execution and fulfillment of all obligations pertinent to this agreement.

KougaMunicipality

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Revenue Management and Debt Collection

FORM – C

General Conditions

1. Documentation

Documents are currently available only in the English language format.

2. Acceptance

Service Providers are hereby advised that acceptance by the Municipality of the proposal, inclusive of all conditions and stipulations contained in this document, shall constitute the contract between the Service Provider and the Municipality.

3. Municipal Policy Documents

Service Providers are required to comply with the Municipality’s Supply Chain Management Policy and other pertinent procurement guidelines, whether stipulated by the Local Government: Finance Management Act, 2003 (Act No. 56 of 2003) or other applicable legislation.

4. Disqualification

Failure by the Service Provider to sign this form, to acknowledge and accept the conditions in writing or to complete the required documents in all respects, may invalidate the proposal. Acceptance of an incomplete submission rests within the sole discretion of the Municipality.

5. Prices

This tender process would be undertaken in a two phase process;

• Phase 1 would be undertaken on the risk of the service provider with a scope of assessing the current revenue of the municipality and provide a view of the potential revenue improvement that could be achieved.
• Phase 2 would be the implementation of a debt collection process to retrieve that revenue on behalf of the municipality. The service provider should provide innovative pricing structures to share risks between the service provider and the municipality.

6. Submission of Proposals

The service provider must provide two (2) hard copies and one electronic copy of the submission.

KougaMunicipality

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Revenue Management and Debt Collection

7. Fiscal Obligations

Service Providers are required to provide evidence of good standing with:

· the Receiver of Revenue, by including a current tax clearance certificate with their submission; and

· the Municipality, if the Service Provider is a property owner or service consumer receiving services from the Municipality.

Should a Service Provider not be in good standing with the Municipality, the Service Provider shall consent to the Municipality’s deducting the amount(s) lawfully owing to the Municipality from any payments due and payable to the Service Provider.

8. Proof of Capability

Service Providers are required to provide contactable references of clients who have acquired some or all of the goods and/or services being offered to the Municipality.

9. Acceptance of Proposal

The Municipality shall not be obliged to accept the lowest priced offer or any offer submitted for the Municipality’s consideration.

Proposal will be evaluated in terms of:

· proven experience of providing solutions in the field of debtors policies and data analysis, as well as debt collection processes; and

· innovation and improvement of the municipal processes

Prospective service providers must obtain a minimum acceptable rating on the above in order for the proposal to be considered by the Municipality’s Bid Committee. Although pricing is an important consideration it will not form part of the initial evaluation process.

10. Disclaimer

Neither the Municipality nor any official of the Municipality shall be held responsible for the loss of a potential opportunity to submit a proposal due to the failure of the Service Provider to comply with any of the requirements of this tender.

11. Integrity of Document

The Service Provider’s covering letter or other materials submitted together with the official document may explain, amplify or illustrate, but shall not replace any portion of the official document or the information furnished therein.

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12. The following will serve as a guideline for the assessment of proposals and the subsequent appoint of service providers:

	Maximum		Maximum
	Percentage	Points	Percentage	Points
Price & functionality		90		80
Price Functionality Experience* Social Contribution within Kouga jurisdiction Preference points HDI Women Locality (Kouga Office) Disability *Experience scoring Less than 3 but greater than 1 year Greater than 3 years but less than 5 years Greater than 5 years	80% 20%	72 18 13 5 10 6 2 1 1 Points 3 6 13	80% 20%	64 16 9 7 20 12 4 2 2 Points 3 6 9

12. Payment

The Municipality will agree with the service provider on a payment schedule based on the innovative options provided by the service provider/s.

KougaMunicipality

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SCHEDULE – 1

Service Specifications

CREDIT CONTROL AND DEBT COLLECTION SYSTEM

1. The municipality will provide all the relevant data or access to relevant data to the service provider for data analysis.

2. The service provider may use the data provided and any other additional data to compile its data analysis of the current revenue collection and the revenue collection potential.

3. The service provider must provide in writing the revenue gap and a plan to recover that revenue.

4. The service provider must include various innovative risk sharing and revenue sharing options to the municipality.

5. The revenue management process must include compliance with the various legal and policy stances of the municipality.

6. This process must include a revenue management process assessment across the municipality’s core business of land management (through new developments, supply of services, property valuations, property management, and billing) and recommendations on revenue improvement processes where possible.

7. The service provider must indicate their approach to assess the effectiveness of the municipality in managing both land and revenue information.

8. The service provider must demonstrate experience in the activities of revenue management and credit control within a municipal environment.

9. The proposed approach must highlight commitment to long term sustainability of the solution within the municipality.

10. Once the phase 1 scope has been successfully completed the municipality will undertake and proceed to contract the service provider for the debt collection process.

11. The service provider must implement a credit management process to reduce risk to the municipality.

12. The service provider must provide innovative business costing models for the project.

13. If required advise on how to sell off irrecoverable debt must be explored and a strategy provided to the municipality.

KougaMunicipality

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Revenue Management and Debt Collection

SCHEDULE – 2

 

Declaration [MFMA/SCM]

In terms of clause 112(1) of the

Local Government: Municipal Finance Management Act, 2003

(Act No. 56 of 2003)

and in terms clauses 44 and 45 of the

Municipality’s Supply Chain Management Policy

(to be signed in the presence of a Commissioner of Oaths)

Part 1

I,  (full name and identity no.) the undersigned, hereby declare that I am duly authorised to act for and on behalf of

 (name of firm)*

and hereby declare that, to the best of my knowledge, no director / member of said firm is—

i) a person who has been convicted of fraud or corruption during the past 5 years;

ii) a person who willfully neglected, reneged on or failed to comply with a government contract during the past 5 years;

iii) a person whose tax matters are not cleared by the South African Revenue Services;

iv) a person who is in service of the State;

v) a person who is an advisor or consultant contracted with the Employer;

vi) a person whose account with the Municipality is currently in arrears for 3 (three) months or longer.

* —Attach copy of authorising resolution to the appropriate page—

Deponent:

Print full name(s):  

Signature: Date:

Details of Firm:

Name and Registration No:  

Address:  

 

 

Postal Code:  

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Contact Numbers:Telephone:Facsimile: Cellphone:

KougaMunicipality

 

Part 2

Further to the above I herewith disclose the particulars of any spouse, child or parent who is in the service of the State, or has been in the service of the State in the immediately previous twelve months.

Name of said person:  

Particulars of Employer:  

Capacity in which that person is in the service of the State:

Sworn to, and signed before me at on this day of _ 2008 by the Deponent, who has acknowledged that the deponent knows and understands the content of this Affidavit, that such content is true and correct to the best of the deponent’s knowledge, and that the deponent has no objection to taking the prescribed oath which shall be binding on the deponent’s conscience.

Commissioner of Oaths:

Place: Date:

KougaMunicipality

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Revenue Management and Debt Collection

Corporate Resolution

Attach a certified copy of the authorised corporate resolution to this page.

KougaMunicipality

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Revenue Management and Debt Collection

SARS Income Tax Clearance Certificate

Attach your original, valid income tax certificate to this page.

KougaMunicipality

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Revenue Management and Debt Collection

Department of Labour – Registration as Employer

Attach a certified copy of a monthly UIF return

as proof of your registration as an employer

with the Department of Labour.

KougaMunicipality

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Revenue Management and Debt Collection

 

Company Profile – Ownership & Composition

Please enclose a brief Company Profile detailing HDI / BEE status.

 

 

 

 

 

 

 

 

 

 

 

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Revenue Management and Debt Collection

INVITATION FOR REVENUE MANAGEMENT ASSESSMENT

AND COLLECTION TERMS OF REFERNCE

The KOUGA Municipality is embarking on a project to optisme its revenue management and collection process to improve service and service delivery to its citizens. The process would be broken into two phases:

• PHASE 1 : An assessment of the current revenue management practices

and recommendations on revenue management improvements.

• PHASE 2 : A Debt collection process to improve revenue management and

Provide advice on how to improve collection.

SELECTION CRITERIA:

A. Requirements for Applicants

• The Applying service provider must have a valid Tax Clearance Certificate
• The applying service provider must have the requisite competence and

Experience to successfully undertake this project

B. Tender Documents

Tender documents can be collected or downloaded from the Kouga Municipality Supply Chain management Department or http://www.kouga.gov.za/

C. Important Dates

• The submission date of the tender is ……………………..
• The closing date of the tenders ……………………………

ENQUIRIES

Contact person: ……………………………….

Telephone ……………………………….

Fax ………………………………..

Email …………………………………