Bid Number:ZNB 0238 E / 18/19.
Bid Description:APPOINTMENT OF A SERVICE PROVIDER TO ASSIST THE DEPARTMENT TO COLLECT OUTSTANDING DEBT FOR A PERIOD OF THREE (3) YEARS FROM DATE OF AWARD FOR THE DEPARTMENT OF EDUCATION: KWAZULU-NATAL
Name of Institution: Department of Education
Place where goods, works or services are required:KwaZulu-Natal Department of Education
Date Published: 09/11/2018
Closing Date / Time: 13/12/2018 at 11h00am
Contact Person: Mr F.E. Radebe
Telephone number: 033-8465436
Where bid documents can be obtained:
Physical Address:Department of Education, 228 Pietermaritz Street, Fourth Floor, Room 437, Pietermaritzburg
Where bids should be delivered:
Physical Address:Department of Education Building (formerly NED Building), 228 Pietermaritz Street located next to the security cubicle.
A compulsory / Optional briefing session will be held on:
TERMS OF REFERENCE FOR APPOINTMENT OF A SERVICE PROVIDER FOR DEBT COLLECTION
1. DEPARTMENT NEEDS
1.1 The KwaZulu-Natal Department of Education has approximately 22 581 out of service debts.
1.2 As at 30 June 2018, the debtors book of the KwaZulu-Natal Department of Education reflects the following:
1.2.1 Ex-employees : R450 million
1.2.2 Suppliers : R1,5 million
1.2.3 Debts emanating from forensic investigations and/or disciplinary hearings.
1.3 The Department is intending to appoint a reputable and competent service provider to undertake the recovery of the debts and cleansing of the debtors account.
2. SCOPE OF WORK
2.1 Assess and establish the current situation regarding revenue management within the Department.
2.2 Conduct data cleansing, using both computer software technology and experienced personnel in the use of this technology.
2.3 Correct debtor’s data in relation to out of service debts (e.g. accuracy of ID numbers, physical and postal addresses, contact numbers, etc.).
2.4 Identify key anomalies that require correction, e.g. duplication of debts, missing documents, etc.
2.5 Update key debtor information with the assistance of departmental staff.
2.6 Correctly categorise each debtor account according to the appropriate district classification, which includes ex- employees, suppliers, schools etc. and reclassify debtors that are incorrectly identified on the BAS system.
2.7 Determine the correct debtors’ age analysis, debtors’ classification by debt type, service and days outstanding.
2.8 Produce account reconciliation for each debtor account.
2.9 Investigate all debts which appear to have no follow ups
2.10 Follow up on debtors’ details which appear incomplete and/or returned by the Post Office (i.e. Names, postal address, contact details and physical address etc.).
2.11 Reconcile migration data (V4/V5 to eliminate inaccurate records.
2.12 Identify all debtors that may require to be written off (for discussion of the Chief Financial Officer/Finance Staff and subsequently for the HOD approval).
2.13 Ensure/demonstrate skills transfer during project execution.
2.14 Identify and assist with other key areas that may affect revenue management within the department.
2.15 Perform debt collection on the out of service debtors.
2.16 Pursue legal collections including summonses, judgements, letter of execution.
3.1 Registered companies with reputable track record on performing data cleansing and debt collection should submit their proposal to the department as per the details provided for in the advert.
3.2 Only companies registered at the Central Supplier Database of National Treasury shall be eligible for submission of proposals.
3.3 The bidder must supply information on permanent staff (experience, etc.) to be utilised for customer care and enquiries at the following points: KwaZulu-Natal Department of Education Head Office.
4. RETURNABLE DOCUMENTS
4.1 The information requested from bidders in this tender has been identified by the KwaZulu-Natal Department of Education as necessary in order for them to be able to evaluate the commitment, capability, suitability and capacity of the bidders. Therefore the following should be returned / submitted with your proposal
a) Proof of registration of the company
b) Tax clearance or SARS pin
c) BBBEE Certificate to claim Points
d) Municipal service account
e) SBD Forms attached
f) Reference letters from companies where data cleansing has been undertaken
4.2 None submission of this information shall lead to your proposal being rejected by the Department.
5. COSTING OF THE PROPOSAL
5.1 There will be no advance payment by the department for the services to be rendered. The successful service provider will be appointed on a risk basis where the payment will be made based on the money collected by the service provider from the debtors.
5.2 Therefore, each service provider should indicate the percentage that will be charged for each rand collected by the service provider (e.g. 7% of each rand collected).
6. MANAGEMENT OF THE CONTRACT
6.1 The Service Provider and the KwaZulu-Natal Department of Education will conclude a Service Level Agreement (“SLA”) based on mutually agreed performance measures.
6.2 The KwaZulu-Natal Department of Education reserves the right to include all the deliverables and performance measures that will ensure successful data cleansing and debt collection. Should the service provider not agree to such, the KwaZulu-Natal Department of Education reserves the right to terminate the contract (cancel the appointment).
6.3 The Contractor’s performance in terms of the SLA will be reviewed as and when necessary and deliverables may be amended.
7. CONTRACT DURATION
7.1 The contract shall be for the duration of one year from the date of appointment. The successful service provider should not expect that the contract will be extended beyond this point. Such extension will be the prerogative of the KwaZulu-Natal Department of Education within the prescripts of the legislation governing supply chain management.
8. PRE-QUALIFICATION CRITERIA FOR PREFERENTIAL PROCUREMENT
Bidders who fail to meet the abovementioned requirements will be disqualified from further evaluation.
Date Posted: 2018-11-09
Closing Date: Dec 13, 2018