Page 1 of 78 Government Pensions Administration Agency (GPAA) REQUEST FOR PROPOSAL (RFP NO: GPAA 43/2016) FOR THE APPOINTMENT OF A MEDICAL CLAIMS ADMINISTRATION SERVICE PROVIDER FOR THE PROCESSING OF MEDICAL CLAIMS INVOICES FOR INJURY ON DUTY (IOD) AND FOR MILITARY PENSIONS MEDICAL PAYMENTS AT THE GPAA.
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Page 1 of 78
Government Pensions Administration Agency (GPAA)
REQUEST FOR PROPOSAL (RFP NO: GPAA 43/2016) FOR THE APPOINTMENT OF A MEDICAL CLAIMS ADMINISTRATION SERVICE PROVIDER FOR THE PROCESSING OF MEDICAL CLAIMS INVOICES FOR INJURY ON DUTY (IOD) AND FOR MILITARY PENSIONS MEDICAL PAYMENTS AT THE GPAA.
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Topic Page Terms of Reference 03 of 79 to 07 of 79 Evaluation Criteria 08 of 79 to 08 of 79 Annexure 1: Claims processed 16 of 79 to 20 of 79 Annexure 2: As Is Business Processes 21 of 79 to 22 of 79
SDB’s 24 of 79 to 52 of 79
SCC 53 of 79 to 58 of 79
GCC 59 of 79 to 79 of 79
INDEX
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1. Terms of Reference
1.1 Overview
The Government Pensions Administration Agency (GPAA) administers funds on
behalf of the Government Employees Pension Fund (GEPF) and National
Treasury (NT) through Service Level Agreements between the parties. The GPAA
as a component of Government accounts to the Minister of Finance as the
Executive Authority and to National Treasury in respect of the administration of
non-contributory Funds. The National Treasury Non-Contributory Funds have a
number of Acts, statutes and agreements and a total membership of about 139
000.
In terms of the Service Level Agreement signed with National Treasury, the
GPAA has the following sub-programmes which form the core delivery vehicles:
• Military Pensions and Medical Accounts
• Special Pensions
• Post-Retirement Medical Subsidies
• Injury on Duty
• VIP Pensions.
1.2 Purpose
This document outlines the scope of work, terms of reference and the criteria for
the appointment of an appropriately experienced Medical Claims Administration
(MCA) service provider to manage and process medical claims invoices for the
GPAA’s Injury on Duty (IOD) and for Military Pensions Medical Accounts Sections.
1.3 Service of administration
The GPAA is looking to appoint the services of a Medical Claims Administration
(MCA) service provider with (MCA) experience in the processing of medical
invoice administration for IOD claimants and Military pensioners.
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The current payment process is paper based and manual, and as such it is open
to errors in payments, internal and external fraud and it is difficult to monitor the
reasonability and the need for the medical services being paid for.
(See attached “AS IS” processes)
1.4 Scope of Work
The MCA’s responsibilities shall include, but not limited to the following:
1.4.1 Validating beneficiaries who claim for medical treatment;
1.4.2 Validating and reviewing all medical claims invoices for cost efficiency, over
servicing of pensioners, abuse of service, duplicate invoices, fraudulent invoices,
and lodge such invoice claims to GPAA for payment from all active registered
medical service providers i.e GP’s, Specialists, hospitals, Allied Health
professionals, and all Health Institutions or Health Service Providers who are
registered to render clinically appropriate medical services to all beneficiaries;
1.4.3 Developing and maintaining a tariff file against which claims will be paid. In the
interim use COIDA protocol and tariffs in line with ICD-10 coding.
1.4.4 Also to do the following:
1.4.5 Document and Knowledge Management
1.4.6 Fraud and Risk Management
1.4.7 Reporting and Accounting; and
1.4.8 Beneficiary and Healthcare Provider Call Centre Support
1.5 Deliverables
1.5.1 Monitor the treatment programs recommended for members by doctors, specialists
and other health care providers by reviewing all reports prepared by them
and maintaining contact with these providers as may be appropriate;
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1.5.2 Maintain a current estimate of expected total cost of various claims, and provide
for reserve calculation tracking (including initial reserve establishment and all
subsequent changes) within the claim
1.5.3 Provide narrative reports of medical invoices and settlement requests as
requested by the GPAA.
1.5.4 Provide an interface with a medical invoice data switching service and/or have the
ability to receive invoices directly from medical service providers and interface with
the GPAA electronically in an ICT environment using webservices.
1.5.5 Prepare documented notes on all claim files with respect to the initial summary
description of hospital events, expected settlement figures, admission and
discharge dates, telephone conversations, etc.
1.5.6 Provide direct access or real-time internet based access to the GPAA that
includes all required software. Preferably the on-line access shall provide all
documentation of a claim file in a paperless environment and allow the GPAA the
ability to run management reports as needed;
1.5.7 Meet a steering committee with the GPAA at least once a month to review claims
settlements, clinical protocols and strategy, challenges etc.
1.5.8 The MCA agrees that data contained on tapes, discs, files, batch files, and other
records pertinent to the MCA’s services provided to and on behalf of the GPAA,
are the property of the GPAA and must be enabled for separate retrieval and
distribution. The GPAA must provide for the physical security of all such records.
The MCA shall provide for transfer of records currently in off-site storage at a cost
agreed to with the GPAA. The MCA shall provide the GPAA with written
procedures documenting its security and off-site storage of all such records and
such documentation shall become an attachment of the Service Level Agreement.
1.5.9 Transaction data shall be maintained for seven years after the claim is closed.
Summary data shall be maintained indefinitely. All data, including medical,
financial, and personnel information reviewed and collected in connection with the
Service Level Agreement shall be held in strict confidence and shall not be
released, disclosed, or published by the MCA without the written consent of the
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GPAA, except to the GPAA or others required to provide a service under the
Service Level Agreement.
1.5.10 The MCA shall provide the GPAA with its written Business Continuity of
Operations Plan and such documentation shall become an attachment of the
Service Level Agreement.
1.5.11 The MCA agrees that the GPAA shall have the right to audit all records maintained
by the MCA relative to the MCA’s performance under the Service Level
Agreement. The GPAA shall also maintain the right to perform financial
performance and other special audits on such records maintained by the MCA
during regular business hours throughout the Agreement period. The MCA agrees
that confidential information, including, but not limited to medical and other
pertinent information relative to claims of the GPAA, shall not be disclosed to any
person or organisation for any purpose without the written consent of MCA, except
to GPAA, or others required to provide a service under the Agreement.
1.5.12 The MCA’s administrative office shall, at a minimum, be open for
business, Monday through Friday, each week of the year excluding legal
holidays or closure due to causes beyond the reasonable control of the MCA.
1.5.13 Finalised files to be sent to the GPAA for storage or archiving as per GPAA policy.
1.5.14 The MCA is to agree to an Independent audit (when required)
1.5.15 The MCA shall consult with and assist GPAA in the establishment and
coordination of necessary procedures and practices to meet any applicable
legislative requirements and needs of the GPAA
1.5.16 The MCA shall cooperate and assist the GPAA in the event a Risk Management
Information System is established by GPAA , in the transferring of data and all
necessary information needed by the MIS system and vendor.
1.5.17 The MCA shall participate in skills transfer to personnel who are directly or
indirectly involved in the processing of medical claims throughout the term of the
Agreement. This skills transfer includes, but is not limited to, orientation of their
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personnel with regard to proper claims procedures, statutory requirements, and
other matters necessary for the effective administration of the SLA.
1.5.18 The MCA shall work closely with the GPAA including meeting with management
as requested for the purpose of furnishing requested information.
1.5.19 The MCA shall cooperate with the GPAA during the transition of the business to
the new modernized GPAA IT system. Upon request from GPAA, the MCA shall
provide all information maintained by the MCA in a time frame approved by the
GPAA ICT with no additional fees. Information provided via tape shall be in a
format approved by the GPAA ICT and shall include, but not be limited to file
layouts and legends. The MCA shall provide such explanation of the information
provided as to facilitate a smooth transition.
1.5.20 The MCA shall load and maintain all the GPAA claims data for all claims, whether
open or closed.
1.5.21 The MCA shall process all run-out claims for 180 days following the termination of
the agreement, if requested in writing by the GPAA, at the same fee as the last
year of the Agreement.
1.5.22 The MCA shall communicate to service providers and members regarding claims
accepted or rejected (The detail of such communication will be discussed with the
preferred bidder and will be included in the service level agreement).
1.5.23 The service provider is to provide an end-to-end administration solution that
covers all the deliverables stipulated in the Scope of work at 1.4 above.
Deliverables must be in accordance with best practice. The Proposal is to be
presented to GPAA and must include an implementation plan.
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Item No.
Evaluation Criteria Item : 90/10Principle
Weight
A Administrative Compliance (Phase 1) A . Administrative Compliance:
The following compulsory statutory documents: • (SBD 2);/SARS Tax status certificate with PIN number • Completed SBD 3.1;(Pricing proposal) • Completed SBD 4; • Completed SBD 8; • Completed SBD 9; • Technical Response. • Attendance of compulsory briefing session The service provider will be subjected to positive risk assessment prior award. Same as risks performance Failure to comply with the admin requirements will render the bid non responsive and will be disqualified.
With the individual points made up as follows: B Functionality (As per the RFP) (Phase 2) minimum
qualifying 60%
B
1. Proposed approach and methodology response to services required
2. Understanding of the requirements and objectives to be achieved.
3. Experience of company in the claims administration management sector supported by reference letters.
4. The bidder must provide at least three contactable references of the
past and present customers and the value of that particular contract.
45% 35% 15% 5%
NB Minimum 60% qualifications on functionality Total weighting 100%
C Price (Phase 3) and B-BBEE Status Level of Contributor
90% 10%
Total Points 100%
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Response Guidelines
1.8 Required Competencies At least 5 to 10 years or more experience as a medical claims administrator 1.9 Proposed services approach The service provider’s approach to providing the service described in this RFP
must meet or exceed the requirements laid down by this RFP. Examples of the areas which will be considered as part of these criteria include the following:
1.9.1 Overall understanding of the service provider’s Medical claims administration
services.
1.9.2 Implementation planning and approach.
1.9.3 Fit of service provider’s existing standards, procedures and operating
capabilities with the requirements of the GPAA.
1.9.4 Comprehensiveness and recommended approach to document
management
1.9.5 Adequacy of the service provider’s infrastructure, physical and financial
resources and expertise for supporting the GPAA ’requirements.
1.9.6 The service provider’s demonstrated ability to meet all turnaround times.
1.9 .7 The service provider’s demonstrated physical and electronic security.
1.9.8 The service provider’s demonstrated audit standards and procedures.
1.9.9 The service provider’s demonstrated ability to maintain a database according
to the GPAA’s requirements.
1.9.10 The service provider’s demonstrated ability to maintain document
management systems according to the GPAA’s requirements.
1.9.11 The service provider’s demonstrated ability to develop detailed assessment
reports and projects reporting.
1.10 General business and financial strength. 1.10.1 The general business and financial strength of the service providers
responding to this RFP is of crucial importance. Therefore, service providers must
demonstrate to the satisfaction of the GPAA its general business and financial
strength. For this purpose the service provider(s) must provide audited financial
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statements, including balance sheets and income statements for the past three
years. The service provider(s) should describe the last three year’s trends in
revenues, employees, profitability and investments. The service provider(s) must
also list its current outstanding contractual liabilities and obligations.
1.10.2 The successful service provider(s) should also be able to demonstrate a
commitment to the development, implementation and maintenance of medical
claims administration systems as an on-going line of business through the last
three years and staff that are directly committed to it. The length of time the
service provider has been in business of development, implementation and
maintenance of medical claims administration systems as well as overall business
experience will be considered.
1.11 Current and past customer references
The service provider(s) must, to the satisfaction of the GPAA, demonstrate that it
has the ability to implement and maintain medical claims administration systems.
For this purpose the service provider must provide information and references for
current and past implementation and maintenance of the medical claims
administration services. The size, industry and products of these customers must
be described as well as the types of services provided. The date of service to
each customer should be included as well as whether or not the service provider
was the primary contractor or subcontractor. If a subcontractor, the service
provider should list whom the primary contractor was/is, and should provide
information on the portion of the service (s) that they were responsible for as
subcontractors. The service provider should include a summary of all recent
reviews by its customers and should note the number and type of non-compliance
with performance levels that were identified.
1.12 Site visits to service provider’s operations
The GPAA may conduct site visits to the preferred service provider’s operations either at
the service provider’s site or at current customer sites. These visits will be
considered as part of assessment of the service provider’s capability to provide
the service levels, quality of service and operations necessary to support the
GPAA’s requirements. This will / could include live link-ups with the service
provider’s site(s).
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1.13 Presentations
1.13.1 The GPAA will notify the service provider of the date, time and venue where they
will be required to conduct a presentation as part of the due dillegence
1.14 Formats for response to bid
1.14.1 Service providers must prepare and package their bid proposals and all related
documents in accordance with the following framework: A service provider’s
proposal must be clear, factual and to the point. Brochures and other marketing
material as a response to this RFP will not be accepted. All matters addressed in
the RFP must be addressed. Should a service provider wish to provide additional
information, the said information must be appended to the specific section of the
proposal to which it pertains and/or be referred to and included in a file of
annexures.
1.14.2 Service provider Background and History.
1.14.2.1 Date that the firm was founded
1.14.2.2 Historical background
1.14.2.3 Revenue history of the firm
1.14.2.4 Certificate of Financial Soundness including the last three years audit
financial statements.
1.14.2.5 Services provided by the service provider.
1.14.2.6 Applicable CV’s.
1.15 Claims administration experience
1.15.1 Description of the Medical Claims Administration experience rendered to
current/ previous customers and reasons for termination of contracts.
1.15.2.1 List of current customers and their locations.
1.15.2.2 List of contacts within these customers.
1.15.2.3 Notation as to which customers would be available for site visits /
reference details.
1.15.2.4 Public Sector clients
1.15.2.5 Companies with geographically dispersed locations
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1.15.2.6 The size, industry and products of these customers must be described
as well as the types of services provided.
1.15.2.7 The date of service to each customer
1.16 Service provider capabilities
1.16.1 Description of experience in the Medical claims administration industry.
1.16.2 Description of experience in the Public Sector (within this context it refers to
the three spheres of Government, i.e. National, provincial and local
authorities (municipalities) and the Medical claims administration industry,
both nationally and internationally (if applicable).
1.16.3 Description of current infrastructures, including, but not limited to staffing
numbers.
1.16.4 Description of current medical claims processing clients of the service
providers
1.16.5 Expertise and experience in implementing and maintaining medical client
administration systems.
1.16.6 Change management and project management skills and practices
1.16.7 Formal methodologies employed (if any)
1.16.8 Expertise in legislative and regulatory framework within which the Public
Service functions, e.g. the Public Finance Management Act, the Public
Service Act, etc.
1.17 Response to the implementation and application of the Claims
Administration Services.
The primary requirements of this part of the service provider’s proposal is that it
should demonstrate possession of the required resources, e.g. human and
financial to provide and maintain medical claims administration services to Clients
or Employers
a) The procedure that it will apply to achieve the required service levels. The
procedural descriptions should cover all the aspects of the service provider’s
responsibilities;
b) A description of staff available claims administrators to provide the services and
render support when required;
c) A description of its document management system, with due consideration of the
needs identified in this RFP;
d) A description of the help desk to be offered;
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e) A description of any additions or amendments to be incorporated into the GPAA
contact ( draft service level agreement (s); and
f) Any physical infrastructure e.g. IT services, licenses, geographical disbursed
offices, etc. to fulfil the tasks.
1.18 Response to the implementation ability.
In this section, the service provider should provide enough information about the
service provider’s approach to the implementation task to permit the GPAA to
make a valid assessment of the service provider’s qualifications and / or abilities.
At a minimum, the following information should be provided:
a) The ability of the service provider to commence with implementation within three
months of appointment.
b) A complete description of the services that the service provider would label as
implementation services.
c) An implementation work plan including detailed activities, timing and
responsibilities.
d) The proposed staff dedicated to the implementation process.
e) A description of the service provider’s experience in performing implementation
related services, i.e. previous implementations including the names and details of
clients for whom these services have been performed.
The following actual volumes of invoices were received for the periods 2014 - 2016:
• April 2014 to March 2015 – 10 161
• April 2015 to March 2016 – 10 178( includes 3750 backlog)
NB! Note the Annexures attached for more information.
Received March 2014 -‐ April 2015 Received March 2015 -‐ April 2016 Backlog as at March 2016 Series1 10161 6428 3750
0
2000
4000
6000
8000
10000
12000
INVOICES RECEIVED
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APRIL 2015 -‐ MARCH 2016 APRIL 2014 -‐ MARCH 2015 Movement Case Received 10178 10161
Movement Case Finalised 7566 6630
2000
4000
6000
8000
10000
12000
INVOICES RECEIVED VS INVOICES FINALISED
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Annexure 2: As is business processes
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CalculateCompensation
ANYAnnuity/Gratuity<R10k to be paid
Gratuity >R10k ToBe Paid
Approve payment>R10k
Payment >R10kapproved
Payment created
AND
Compensationcalculated
ApproveCompensation
Calculation
Request BankingDetails
Banking detailsrequested
AND
Receive BankingDetails
Admit (MilitaryPension)
Maintain MilitaryPensioner
AND
Initiate Payment
Scan and IndexSend Payment
Letters
Payment letterssent
Payment initiated
Applicationprocessed
Align the process so that the main flow is to left, please
Please shorten layout by minimising the spacebetween the objects. Grid size 2 needs to be applied.
Incorrect rule operators. Needs to be ONLY ONE
Banking detailsreceived
Create Payment
Payment approved
Authorise Payment
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SBD1
INVITATION TO BID
Y YOU ARE HEREBY INVITED TO BID FOR REQUIREMENTS OF GOVERNMENT PENSIONS ADMINISTRATION AGENCY (GPAA)
BID NUMBER: GPAA 43/2016 CLOSING DATE: 28 October 2016 CLOSING TIME: 11:00am DESCRIPTION RENDER MEDICAL CLAIMS ADMINISTRATION SERVICES FOR THE PERIOD OF THREE YEARS WITH THE OPTION TO
EXTEND FOR TWO YEARS
T THE SUCCESSFUL BIDDER WILL BE REQUIRED TO FILL IN AND SIGN A WRITTEN CONTRACT
BID DOCUMENTS MUST BE DEPOSITED IN THE BID BOX SITUATED AT GPAA ADDRESSED TO: Government Pensions Administration Agency (GPAA) 34 HAMILTON STREET ARCADIA PRETORIA 0001 Bidders should ensure that bids are delivered to the correct address on time. If the bid is late, it will not be accepted for consideration. The bid box is generally open 8 hours a day between 08:00 to 16:30, Monday to Fridays.
ALL BIDS MUST BE SUBMITTED WITH THE STANDARD FORMS – (NOT TO BE RE-TYPED) THIS BID IS SUBJECT TO THE GENERAL CONDITIONS OF CONTRACT (GCC) AND, IF APPLICABLE, ANY OTHER SPECIAL CONDITIONS OF CONTRACT
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THE FOLLOWING PARTICULARS MUST BE FURNISHED (FAILURE TO DO SO MAY RESULT IN THE BID BEING DISQUALIFIED) ALL STANADARD BIDDING DOCUMENT AS ATTACHED
NAME OF BIDDER………………………………………………………………………………………………………………………..…...... POSTAL ADDRESS…………………………………………………………………………………………………………........................... STREET ADDRESS……………………………………………………………………………………………………………………………... TELEPHONE NUMBER CODE…………….……….…….NUMBER………………………………………………………..................... CELLPHONE NUMBER………………………………..…………………………..…………………………………………………………… FACSIMILE NUMBER CODE …………………… NUMBER………….………………………………...................................... VAT REGISTRATION NUMBER ……………………………………………………………………………………………………….......... HAS A TAX CLEARANCE CERTIFICATE BEEN SUBMITTED (SBD2)? YES/NO SIGNATURE OF BIDDER ………………………………………………………….................. DATE …………………………………………………………………........ CAPACITY UNDER WHICH THIS BID IS SIGNED ……………………………………………….……….....................
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SBD3.1 PRICING SCHEDULE – FIRM PRICES NOTE: ONLY FIRM PRICES WILL BE ACCEPTED. NON-FIRM PRICES (INCLUDING PRICES SUBJECT TO RATES OF EXCHANGE VARIATIONS) WILL NOT BE CONSIDERED IN CASES WHERE DIFFERENT DELIVERY POINTS INFLUENCE THE PRICING, A SEPARATE PRICING SCHEDULE MUST BE SUBMITTED FOR EACH DELIVERY POINT
Name of bidder…................................ Bid number: GPAA 43/2016 Closing Time 11:00am on 28 October 2016
OFFER TO BE VALID FOR 120 DAYS FROM THE CLOSING DATE OF BID. Table A: Year 1 PRICE TABLE: 3 YEAR PRICE PROPOSAL YEARS VOLUMES ESTIMATED
INCREASING VOLUMES
PRICE PER INVOICE PROCESSED
TOTAL YEARLY PRICE
Year 1-16/2017 10 178 Year 2- 17/2018 13 231 30 % Year 3- 18/2019 17 201 30% TOTAL 3 YEAR PRICING
Notes: 1. Administration payments will be price per invoice processed ready for payment by GPAA
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2. Price per invoice escalation (or increase) should not exceed the medical inflation index forecast
3. Baseline volume and percentage increases are not guaranteed and are used
only for pricing purposes
Required by: GPAA /CEO At: 34 Hamilton street Brand and model …………………………………. Country of origin …………………………………. Does offer comply with specification? *YES/NO If not to specification, indicate deviation(s) …………………………………. Period required for delivery …………………………………. *Delivery: *FIRM/NOT FIRM Delivery basis …………………………………. Note: All delivery costs must be included in the bid price, for delivery at the prescribed destination. * Delete if not applicable
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SBD 4
DECLARATION OF INTEREST
1. Any legal person, including persons employed by the state¹, or persons having a kinship with persons employed by the state, including a blood relationship, may make an offer or offers in terms of this invitation to bid (includes a price quotation, advertised competitive bid, limited bid or proposal). In view of possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons employed by the state, or to persons connected with or related to them, it is required that the bidder or his/her authorised representative declare his/her position in relation to the evaluating/adjudicating authority where-
- The bidder is employed by the state; and/or - the legal person on whose behalf the bidding document is signed, has a relationship with persons/a person who are/is involved
in the evaluation and or adjudication of the bid(s), or where it is known that such a relationship exists between the person or persons for or on whose behalf the declarant acts and persons who are involved with the evaluation and or adjudication of the bid.
2. In order to give effect to the above, the following questionnaire must be completed and submitted with the bid. 2.1 Full Name of bidder or his or her representative: ……………………………………..………… 2.2 Identity Number: …………………………………………………………………………..…………
2.3 Position occupied in the Company (director, trustee, shareholder²): …………………...………
2.4 Company Registration Number: ……………………………………………………………………
2.5 Tax Reference Number: ……………………………………………………………………..……… 2.6 VAT Registration Number: ………………………………………………………………………… 2.6.1 The names of all directors / trustees / shareholders / members, their individual identity numbers, tax reference numbers and, if
applicable, employee / persal numbers must be indicated in paragraph 3 below.
¹“State” means –
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(a) Any national or provincial department, national or provincial public entity or constitutional institution within the meaning of the Public Finance Management Act, 1999 (Act No. 1 of 1999);
(b) Any municipality or municipal entity; (c) Provincial legislature; (d) National Assembly or the national Council of provinces; or (e) Parliament.
²”Shareholder” means a person who owns shares in the company and is actively involved in the management of the enterprise or business and exercises control over the enterprise.
2.7 Are you or any person connected with the bidder YES / NO Presently employed by the state?
2.7.1 If so, furnish the following particulars:
Name of person / director / trustee / shareholder/ member: ……....……………………… Name of state institution at which you or the person connected to the bidder is employed :……………………….……………………………………… Position occupied in the state institution: …………………………… Any other particulars: ……………………………………………………………… ……………………………………………………………… ………………………………………………………………
2.7.2 If you are presently employed by the state, did you obtain YES / NO
the appropriate authority to undertake remunerative Work outside employment in the public sector?
2.7.2.1 If yes, did you attached proof of such authority to the bid YES / NO
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document?
(Note: Failure to submit proof of such authority, where applicable, may result in the disqualification of the bid.
2.7.2.2 If no, furnish reasons for non-submission of such proof:
2.9 Do you, or any person connected with the bidder, have YES / NO any relationship (family, friend, other) with a person
employed by the state and who may be involved with the evaluation and or adjudication of this bid?
2.9.1 If so, furnish particulars. ……………………………………………………………... …………………………………………………………..…. ………………………………………………………………
2.10 Are you, or any person connected with the bidder, YES/NO
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aware of any relationship (family, friend, other) between any other bidder and any person employed by the state who may be involved with the evaluation and or adjudication of this bid?
2.10.1 If so, furnish particulars. ……………………………………………………………… ……………………………………………………………… ………………………………………………………………
2.11 Do you or any of the directors / trustees / shareholders / members YES/NO
of the company have any interest in any other related companies whether or not they are bidding for this contract?
2.11.1 If so, furnish particulars: ……………………………………………………………………………. ……………………………………………………………………………. …………………………………………………………………………….
3 Full details of directors / trustees / members / shareholders.
Full Name Identity Number Personal Tax Reference Number
State Employee Number / Persal Number
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4 DECLARATION
I, THE UNDERSIGNED (NAME)…………………………………………………………….
CERTIFY THAT THE INFORMATION FURNISHED IN PARAGRAPHS 2 and 3 ABOVE IS CORRECT. I ACCEPT THAT THE STATE MAY REJECT THE BID OR ACT AGAINST ME IN TERMS OF PARAGRAPH 23 OF THE GENERAL CONDITIONS OF CONTRACT SHOULD THIS DECLARATION PROVE TO BE FALSE.
………………………………….. ..…………………………………………… Signature Date …………………………………. ……………………………………………… Position Name of bidder
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SBD 6.1
PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT REGULATIONS 2011
This preference form must form part of all bids invited. It contains general information and serves as a claim form for preference points for
Broad-Based Black Economic Empowerment (B-BBEE) Status Level of Contribution
NB: BEFORE COMPLETING THIS FORM, BIDDERS MUST STUDY THE GENERAL CONDITIONS, DEFINITIONS AND DIRECTIVES
APPLICABLE IN RESPECT OF B-BBEE, AS PRESCRIBED IN THE PREFERENTIAL PROCUREMENT REGULATIONS, 2011.
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 R1 000 000 (all applicable taxes included); and
- the 90/10 system for requirements with a Rand value above R1 000 000 (all applicable taxes included).
1.2 The value of this bid is estimated to exceed/not exceed R1 000 000 (all applicable taxes included) and therefore
the………90/10……………system shall be applicable.
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1.3 Preference points for this bid shall be awarded for:
(a) Price; and
(b) B-BBEE Status Level of Contribution.
1.3.1 The maximum points for this bid are allocated as follows:
POINTS
1.3.1.1 PRICE 90
1.3.1.2 B-BBEE STATUS LEVEL OF CONTRIBUTION 10
Total points for Price and B-BBEE must not exceed 100
1.4 Failure on the part of a bidder to fill in and/or to sign this form and submit a B-BBEE Verification Certificate from a Verification Agency
accredited by the South African Accreditation System (SANAS) or a Registered Auditor approved by the Independent Regulatory
Board of Auditors (IRBA) or an Accounting Officer as contemplated in the Close Corporation Act (CCA) together with the bid, will be
interpreted to mean that preference points for B-BBEE status level of contribution are not claimed.
1.5. The purchaser reserves the right to require of a bidder, either before a bid is adjudicated or at any time subsequently, to substantiate
any claim in regard to preferences, in any manner required by the purchaser.
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2. DEFINITIONS
2.1 “All applicable taxes” includes value-added tax, pay as you earn, income tax, unemployment insurance fund contributions and skills
development levies;
2.2 “B-BBEE” means broad-based black economic empowerment as defined in section 1 of the Broad -Based Black Economic
Empowerment Act;
2.3 “B-BBEE status level of contributor” means the B-BBEE status received by a measured entity based on its overall performance
using the relevant scorecard contained in the Codes of Good Practice on Black Economic Empowerment, issued in terms of section
9(1) of the Broad- Based Black Economic Empowerment Act;
2.4 “Bid” means a written offer in a prescribed or stipulated form in response to an invitation by an organ of state for the provision of
services, works or goods, through price
quotations, advertised competitive bidding processes or proposals;
2.5 “Broad-Based Black Economic Empowerment Act” means the Broad-Based Black Economic empowerment Act, 2003 (Act No. 53 of
2003);
2.6 “Comparative price” means the price after the factors of a non-firm price and all unconditional discounts that can be utilized have been
taken into consideration;
2.7 “Consortium or joint venture” means an association of persons for the purpose of combining their expertise, property, capital, efforts,
skill and knowledge in an activity for the execution of a contract;
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2.8 “Contract” means the agreement that results from the acceptance of a bid by an organ of state;
2.9 “EME” means any enterprise with a total annual revenue of R5 million or less.
2.10 “Firm price” means the price that is only subject to adjustments in accordance with the actual increase or decrease resulting from the
change, imposition, or abolition of customs or excise duty and any other duty, levy, or tax, which, in terms of the law or regulation, is
binding on the contractor and demonstrably has an influence on the price of any supplies, or the rendering costs of any service, for the
execution of the contract;
2.11 “Functionality” means the measurement according to predetermined norms, as set out in the bid documents, of a service or
commodity that is designed to be practical and useful, working or operating, taking into account, among other factors, the quality,
reliability, viability and durability of a service and the technical capacity and ability of a bidder;
2.12 “Non-firm prices” means all prices other than “firm” prices;
2.13 “Person” includes a juristic person;
2.14 “Rand value” means the total estimated value of a contract in South African currency, calculated at the time of bid invitations, and
includes all applicable taxes and excise duties;
2.15 “Sub-contract” means the primary contractor’s assigning, leasing, making out work to, or employing, another person to support such
primary contractor in the execution of part of a project in terms of the contract;
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2.16 “Total revenue” bears the same meaning assigned to this expression in the Codes of Good
Practice on Black Economic Empowerment, issued in terms of section 9(1) of the Broad-Based
Black Economic Empowerment Act and promulgated in the Government Gazette on 9 February 2007;
2.17 “Trust” means the arrangement through which the property of one person is made over or
bequeathed to a trustee to administer such property for the benefit of another person; and
2.18 “Trustee” means any person, including the founder of a trust, to whom property is bequeathed in order for such property to be
administered for the benefit of another person.
3. ADJUDICATION USING A POINT SYSTEM
3.1 The bidder obtaining the highest number of total points will be awarded the contract.
3.2 Preference points shall be calculated after prices have been brought to a comparative basis taking into account all factors of non-firm
prices and all unconditional discounts;.
3.3 Points scored must be rounded off to the nearest 2 decimal places.
3.4 In the event that two or more bids have scored equal total points, the successful bid
must be the one scoring the highest number of preference points for B-BBEE.
3.5 However, when functionality is part of the evaluation process and two or more bids have
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scored equal points including equal preference points for B-BBEE, the successful bid must be the one scoring the highest
score for functionality.
3.6 Should two or more bids be equal in all respects, the award shall be decided by the
drawing of lots.
4. POINTS AWARDED FOR PRICE
4.1 THE 80/20 OR 90/10 PREFERENCE POINT SYSTEMS
A maximum of 80 or 90 points is allocated for price on the following basis:
80/20 or 90/10
or
Where
Ps = Points scored for comparative price of bid under consideration
Pt = Comparative price of bid under consideration
Pmin = Comparative price of lowest acceptable bid
⎟⎠
⎞⎜⎝
⎛ −−=
minmin180
PPPtPs ⎟
⎠
⎞⎜⎝
⎛ −−=
minmin190
PPPtPs
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5. Points awarded for B-BBEE Status Level of Contribution
5.1 In terms of Regulation 5 (2) and 6 (2) of the Preferential Procurement Regulations, preference points must be awarded to a bidder for
attaining the B-BBEE status level of contribution in accordance with the table below:
B-BBEE Status Level of
Contributor
Number of points
(90/10 system)
Number of points
(80/20 system)
1 10 20
2 9 18
3 8 16
4 5 12
5 4 8
6 3 6
7 2 4
8 1 2
Non-compliant contributor 0 0
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5.2 Bidders who qualify as EMEs in terms of the B-BBEE Act must submit a certificate issued by an Accounting Officer as contemplated in
the CCA or a Verification Agency accredited by SANAS or a Registered Auditor. Registered auditors do not need to meet the
prerequisite for IRBA’s approval for the purpose of conducting verification and issuing EMEs with B-BBEE Status Level Certificates.
5.3 Bidders other than EMEs must submit their original and valid B-BBEE status level verification certificate or a certified copy thereof,
substantiating their B-BBEE rating issued by a Registered Auditor approved by IRBA or a Verification Agency accredited by SANAS.
5.4 A trust, consortium or joint venture, will qualify for points for their B-BBEE status level as a
legal entity, provided that the entity submits their B-BBEE status level certificate.
5.5 A trust, consortium or joint venture will qualify for points for their B-BBEE status level as an unincorporated entity, provided that the
entity submits their consolidated B-BBEE scorecard as if they were a group structure and that such a consolidated B-BBEE scorecard is
prepared for every separate bid.
5.6 Tertiary institutions and public entities will be required to submit their B-BBEE status level certificates in terms of the specialized
scorecard contained in the B-BBEE Codes of Good Practice.
5.7 A person will not be awarded points for B-BBEE status level if it is indicated in the bid
documents that such a bidder intends sub-contracting more than 25% of the value of the
contract to any other enterprise that does not qualify for at least the points that such a
bidder qualifies for, unless the intended sub-contractor is an EME that has the
capability and ability to execute the sub-contract.
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5.8 A person awarded a contract may not sub-contract more than 25% of the value of the contract to any other enterprise that does not
have an equal or higher B-BBEE status level than the person concerned, unless the contract is sub-contracted to an EME that has the
capability and ability to execute the sub-contract.
6. BID DECLARATION
6.1 Bidders who claim points in respect of B-BBEE Status Level of Contribution must complete the following:
7. B-BBEE STATUS LEVEL OF CONTRIBUTION CLAIMED IN TERMS OF PARAGRAPHS 1.3.1.2 AND 5.1
7.1 B-BBEE Status Level of Contribution:………… = …………(maximum of 10 or 20 points)
(Points claimed in respect of paragraph 7.1 must be in accordance with the table reflected in paragraph 5.1 and must be substantiated by means of
a B-BBEE certificate issued by a Verification Agency accredited by SANAS or a Registered Auditor approved by IRBA or an Accounting
Officer as contemplated in the CCA).
8 SUB-CONTRACTING
.1 Will any portion of the contract be sub-contracted? YES / NO (delete which is not applicable)
8.1.1 If yes, indicate:
(i) What percentage of the contract will be subcontracted? ............……………….%
(ii) The name of the sub-contractor?………………………………………………
(iii) The B-BBEE status level of the sub-contractor?
(iv) Whether the sub-contractor is an EME? YES / NO (delete which is not applicable)
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9 DECLARATION WITH REGARD TO COMPANY/FIRM
9.1 Name of company/firm ....................................................................................
9.2 VAT registration number ....................................................................................
9.3 Company registration number …………………………………………………………………… :