Description
Request for Bid to Turnaround the Compensation Fund with a view to modernise its operations in line with meeting its Service Delivery expectations with improved governance and controls.
COMPENSATION FUND
Request for Bid to Turnaround the
Compensation Fund with a view to modernise
its operations in line with meeting its Service
Delivery expectations with improved
governance and controls
Briefing session
12 March 2013
Topic
Welcome & Introductions
Governance, rules and procedures
RFP overview
RFP Model
RFP Pack Content
Bidder’s Proposal Format
Pricing Templates
B-BBEE Overview
Terms of Reference
Agenda
Welcome and introduction
Briefing Session
Purpose
Explain selected concepts, procedures and other aspects of the RFP
Confirm formal registration of Bidders for notices and other
communications
It may contain
additional information
additional rules that must be adhered to
It does not
cover every item in the RFP
replace any of the issued RFP material
relax any of the RFP rules unless communicated separately in writing
The conference slides will be distributed electronically to all registered
Bidders via email.
The RFP pack remains the primary source of information for the Bidder to
respond.
Procedures during session
No questions will be answered during the
presentations.
Write down your questions and hand them in at
the end of the presentations and / or
Email questions [email protected]
Questions :- Open date 12 March 2013
Close date 15 March 2013
Question :- Response date is no later than
20 March 2013 to all registered
bidders attending the
briefing compulsory session via
email and labour.gov.za website
Procedures during session
Today....
The agenda is focused on review and the most
pertinent themes during the session that is required to
facilitate and give meaningful context to the RFP and
tender procedures.
All questions handed in will be responded to in writing
after the conference.
The session is being recorded
Registration and material
Registration –complete compulsory registration
requirements at reception desk
Attendance register
Registered address
Contact and correspondences details
Question template – will be handed out at the
session
Governance requirements
• Strict communication channels
– Bidders will be disqualified for non-
compliance
• No solicitation of information will be allowed
other than by prescribed channels
• Deadlines to be met
• Only prescribed submission format of the
response to bids will be accepted
Rules of engagement
Other than the contact for the RFP below:
Bidders may not contact CF nor Department of Labour
other than the stipulated contract person (s).
All contact relating to RFP matters are only to be
addressed to CF Procurement :
Khanyi Mthethwa - 012 3136393
[email protected]
Talifhani Netshivhangoni – 012 3136355
[email protected]
COMPENSATION FUND
Terms of Reference of the Turnaround the
Compensation Fund
Background
The Compensation Fund is a public entity of the Department of Labour.
The mandate of the Compensation Fund is derived fromSection 27 (1)(c) of the
Constitution of the Republic of South Africa. In terms of this act, all South
Africans have a right to social security. The Compensation Fund is then
mandated to provide social security to all injured and diseased employees.
The Fund administers the Compensation for Occupational Injuries and
Diseases Act no. 130/1993 as amended by the COIDA 61/1997.
The main objective of the Act is to provide compensation for disablement
caused by occupational injuries or diseases sustained or contracted by
employees, or for death resulting from such injuries or diseases, and
provide for matters connected therewith.
BUSINESS CAPABILITY CHALLENGES
PEOPLE PROCESSES SYSTEMS
? Lack of efficient performance
management and monitoring
? Low skills level and in?
sufficient training
? Lack of accountability by
managers and supervisors
? No service orientation culture
and staff motivation
? Fear of change and a
preference to doing what is
known
? Manual orientated processing
? Centralised processing
organisation
? Numerous non value and
duplicated tasks
? Highly segmented areas of
operations – no workflows or
integration
? Not structured for effective
performance
? No effective reporting or
exception reporting
mechanisms
? Highly user dependant and
based on traditional manual
processes
? Paper based \ manual input – no
electronic submission or
automation of standard
processes and rules
? No reporting functionalities ?
large reliance on service
provider
? Poor system implementation by
service provider
REFLECTIONS ON THE PROBLEM..
2 000 000 DOCUMENTS
Backlogs….
To initiate a Turnaround strategy and
implementation plan for the Compensation Fund
with a view to modernisation of its operations in
line with meeting its Service Delivery expectations
with improved, administration, governance and
controls
Strategic outcome of the project
Specific objectives - summary
PMO
• Set up a PMO ? CF and / or Labour
• Project Governance
• Manage and implement? Director General
(Sponsor)
Quick
Fix
• Stabilizing the business and the financial management
• Restoring financial administration and controls
• Audit
• Remedial plan “Business unusual plan of action plan”
Future
• Develop, design and implement the turnaround plan for the CF (Future model for the CF)
• Diagnostic, design and implement
• Legal review and update in terms of Government mandate
• Service delivery model
• Finance model ( Revenue and expenditure)
• Business Process re?engineering, systems and People
Ideally, the primary business of the Fund is to generate income, pay out claims and manage the
rehabilitation of claimants. These functions are then supported by common back?office support services
that include HR, Finance, Procurement, Information Technology, Governance and Compliance and Risk
and Audit Management.
Investments Registration Submissions
Claims
Management
Beneficiary
Payments
Case
Management
Pension
Rehabilitatio
n
• Employer
Registration
• Customer
Segmentation
• Monitoring
• Employer
declaration
• Contribution
Determination
• Payment
Management
(contributions)
• Claim
Registration
• Claim Pre-
processing
• Claims
Processing
• Adjudication
• Claim status
reporting
• Payment
Processing
• Approve
payment
• Beneficiary
payments
• Dispute
Management
• Investigations
• Dispute
Settlements
• Recovery of
Expenses
from 3
rd
parties
• Fraud and risk
management
• Registration
• Processing
• Payments
• Reporting
G
o
v
e
r
n
a
n
c
e
&
C
o
m
p
l
i
a
n
c
e
Revenue Management Claims Management
• Implementation
of Funds
Strategy
• Monitoring
Investments
Performance
• Managing
external
investment
managers
• Review Policy
and Framework
• Reporting
• Monitoring
• Restoration and
re-integration of
workers
• Provision of
assistive devices
• Reporting
R
i
s
k
M
a
n
a
g
e
m
e
n
t
Support Services (HR , Finance, Supply Chain, Communications, ICT, Legal services)
Rehabilitation
Management
Manage Service Delivery
IDEAL VALUE CHAIN
Source : CF Diagnostic Review
To implement a remedial plan to address
governance, controls and administration relating
to:-
1. AG queries (126 queries raised)
2. Public Protector Report
3. SCOPA’s Concerns
4. Portfolio Committee of Labour
Terms of reference
Terms of reference
3.1 Components of turnaround strategy
3.1.1 Managing the turnaround
The enabling components to manage the turnaround are
turnaround leadership, stakeholder management,
and turnaround project management.
3.1.2 Stabilisingthe business and the financial
management
The CF needs to be stabilized to ensure the short-term
future of the business, introducing predictability and
ensuring legal and fiduciary compliance (PFMA).
3.1.3 Fixing the distressed Compensation Fund
The underperforming \ distressed entity needs to be fixed in strategic,
organisational and operational terms.
3.1.4 The successful service provider will be required to:
Devise and Implement a Remedial Plan to remedy the interim
crisis :-(Business unusual plan of action)
? Identify the root cause or contributory factors to the issues and
weaknesses identified in the business process
? Perform Root Cause Analysis on finance, fraud and risk
administration and management
? Perform a diagnostic review of people and systems to identify
weaknesses to establish controls
? Develop mitigating action plan aimed to resolving, eliminating, or
minimising the incidence of identified issues, weakness and lack of
controls
Develop, design and implement the turnaround plan for the
CF (Future model for the CF):-
? Diagnostic of the alignment of the strategic objectives of
the CF against its shareholders mandate and objectives
? Perform a legal review with the aim of enhancing service
delivery. The legal review must be included in the
turnaround plan.
? Develop and implement a change management program
addressing all elements of the program
? Map and design Business Processes for the Fund for core
and support functions of the CF
? Provide and align best practice benchmark studies to the CF
? Develop, Review and Update Governance Policy and
Procedures as may be required
? Facilitate the turnaround leadership
? Develop, design and implement the turnaround approach and
plan for the CF
? Implement the turnaround plan for the CF
People
• Review Employment Contracts, Score Cards and Performance
management, and redefine these as may be necessary
• Develop appropriate organisational structure
• Develop job descriptions covering posts in the revised organisational
structure
• Perform a complete skills audit across all levels of staff and evaluate
current skills against the skills required to perform the job
requirements
• Evaluate suitability of current staff and perform a best fit
placement of staff into positions where they are best trained and able
to perform in accordance with the organisation’s goals.
• Manage the implementation of the new Human resource
organisational structure in accordance with best HR practice
Business Processes and Systems
• Review, Map, Optimise and Define all Business Processes across
the entire value chain
• Review, Map, Optimise and Define all Systems Processes to close
the gaps in governance and controls across the entire value chain
• Develop mitigation strategies for work segmentation, Risks and
Controls
• Develop segmented workflows to optimise employee load balancing
and turnaround times on tasks and service delivery elements
• Business systems and architecture review and to make
recommendations for optimisation
• Review, design and implement business intelligent information
reports and advise a business specification to implement Business
Intelligence (BI)
• Develop Dashboards and Radars to facilitate good and timeous
management information to feed into effective management processes
3.1.5 Project Office
Establishment of a Project Office to manage projects relating to the
scope of work and delivery of the turnaround plan and to co-ordinate
activities of the remedial and turnaround implementation plan at
a location determined by the Director General of Labour.
Resource the project office with resources to manage both the
remedial and modernisation of the CF.
3.1.6 Actuarial and Audit Professional Services (remedial plan)
An analysis of the Compensation Fund conducted provides for the
estimation of ± 600 000 claims that has remained unpaid for a
number of years.
The objective of the assignment is to conduct an actuarial valuation
to determine the value of these claims as well as the impact
thereof on the financial reserves of the Fund.
A comprehensive valuation report highlighting the work carried
out, the methodology used and the findings and recommendations
arising from the valuation should be produced.
The audit is an essential component of the diagnostic study which aims
to assess the financial capacity of the C F.
Key deliverables of audit relating to the Management letter will
be to:-
1. compile or update the Fund’s action plan in response to the AG
findings and Public Protector reports,
2. conduct priority assessment of the action required to achieve the
best results within project timeframes.
3. allocate responsibilities with timelines for the priority areas
identified following the review and assessment.
4. make recommendations that are aimed at improving the financial
reporting process going forward.
Key deliverables of audit will be to:-
5. design and implement general financial management in terms
of GRAAP and PFMA
6. establish controls and procedures that are aimed to mitigate and
eliminate risk and fraud.
7. review and optimise business processes to ultimately ensure that all
amounts received by the Fund in terms of PFMA are receipted,
completely, timeously and accurately deposited and that all
monies transferred and paid by the Fund, for claims and other
Fund expenditure are accurately, efficiently and
appropriately utilized and substantiated.
3.1.7 Output Required
The project deliverables will be to manage the
implementation of the turnaround of the CF in terms
of the scope of work indicated under paragraph 3 (RFP).
METHODOLOGY
4.1. The service provider will be required to supply a methodology
statement detailing the steps that will be employed to
complete the project work, a detailed costing and the time
frames in which the project will be completed in line with the
expected completion date.
The methodology statement should reflect the following aspects
which would be used as criteria for functionality during assessment of
the submission:
(a) Proof and expertise must be demonstrated of a successful
turnaround of a company/ public entity/ government
department.
(b) Provide the approach (how) your company will deliver the
scope of work outlined under paragraph 3. Provide reference
sites.
(c) Proof of expertise and experience of the core project
team covering business management, governance and
audit compliance with IFRS, PFMA and Treasury
Regulations, Monitoring & Evaluation, Data
Management, Software Systems Design, Configuration
and Implementation across Wide Area Networks for
distributed processing
Technical resource skills and experience in:-
• Project and programme management,
• Auditing,
• Accounting & Governance in public sector, (PFMA and GRAP)
• Fund and portfolio management
• Pension fund management
• Revenue management
• Financial modelling
• Risk management
• Change management
• All aspects of Human Resource management,
• Organisational development
• Legal Services
• Business analytical skills
• Business process re-engineering
• At least 1 team leader to be qualified actuary, 10 years of experience in
relevant actuarial work and supported by a Chartered Accountant with
experience in internal audit work
• Experts in actuarial science (bachelor’s degree in actuarial science, 5 years
of experience in pension fund evaluations and determination of fund
provisions)
TIME FRAME
The project will be completed based on the project plan that
will be developed with the successful bidder. However, it is
estimated that the project is estimated to be completed in
24 months from the date of commencement.
COSTING
8.1 The service provider must provide a comprehensive project
costing outlining the following:
Detailed costing showing items and categories of costs / expenditure
The calculation of rates charged and / or a breakdown of
amounts against all the envisaged consulting time
8.2. All amounts stated (for goods, products and / or services to be
rendered or to be developed) must be clearly stated showing the
net amount excluding VAT, the VAT charged, and the Full
Contract amount inclusive of VAT.
8.3 All subsistence, travel and accommodation costs for the staff
engaged in the fieldwork of the project shall be approved by both
the CF’s designated project manager (within delegation of authority)
and the Service Provider’s Project Manager in accordance with a
project plan approved by the Director General of Labour.
The Proposal must include:
Methodology / Approach covering issues captured
under 3 and 4 of the terms of reference:-
• CV’s of Key Team Members
• A High Level Project Plan
• A detailed Project Costing
• Submission of all required compliance documentation
• Provision to meet with and / or brief CF’s management
team on a regular basis
During the Bid Evaluation Stage, Service providers may be required to
make presentations on their proposal if required to do so by CF.
COMPENSATION FUND
Structure of bid documents and
procurement process
Open tender
The RFP has mandatory requirements
Bidder must meet these before Bidder’s Tender will be considered for
evaluation.
Bidder is strongly advised to make sure it complies fully
before making decision to bid.
The CF reserves the right to exclude companies and or persons from the
bidding process in terms of good governance outlined under Treasury
Regulations 16.A.8.4 and 19.A.9.
Organisation, companies and / or persons who have worked and are
currently working within the operations for past 4 consecutive years of
the CF from 1 April 2008 till to date, will be excluded from the bidding
process and bids will be disqualified.
Evaluation process
Pre?qualification
Functional (80/100)
Price (90 )& B?BBEE
(10)
Any mandatory ground paragraph 16 and 17.
No valid tax compliance certificate
Incomplete SBD’s
…etc.
Qualify
Qualify
Disqualify
Unacceptable solution / risk e.g.
Don’t meet threshold points
Rejection of key contract terms …etc.
Disqualify
Not able to evaluate pricing e.g.
Incomplete pricing
Unable to calculate price
Etc.
Disqualify
1
2
3
Qualify Appoint
Evaluation : Functionality
The 90/ 10 Principle for Bid Evaluation will apply as reflected in the table
below.
Bidders who score less than 80 % of the 100 % points of the
Functionality Points available for their Technical Proposal, will be
considered materially unresponsive, and will not be evaluated further,
having being considered to not meet the minimum threshold score.
Evaluation Category Maximum Points Threshold Score Weighted Score
Technical Proposal 1890 1512 100%
Total Score 1890 = 80 % out of 100 % 100%
Evaluation Category Maximum Points Threshold Score Weighted Score
Technical Proposal 1890 1512 100%
Total Score 1890 = 80 % out of 100 % 100%
Evaluation: Price and B-BBEE
90/10 evaluation in terms of PPPFA
1
on contract value.
B?BBEE evaluation performed on the basis of the submitted B?BBEE certificate.
2
Statutory formula
2
applied to the Bidder’s submitted pricing.
1
Preferential Procurement Policy Framework Act 5 of 2000
2
National Treasury Regulations 2011 to the PPPFA
ELIMINATION OF PROPOSALS ON GROUNDS OF
FUNCTIONALITY
Bids that score less than 80% of the 100% available
for functionality will be eliminated from further
consideration. Points will therefore not be awarded for
their cost proposals or for B-BBEE Status Level of
Contribution
Points Awarded for BBBEE Contribution
B-BBEE Contributor Level
Number of Points
(80/20 system)
Number of Points
(90/10 system)
1 20 10
2 18 9
3 16 8
4 12 5
5 8 4
6 6 3
7 4 2
8 2 1
Non-Compliant Contributor 0 0
Price
APPENDIX H
Price should give a cost per resource in terms of levels
Note: any cost not reflected on the pricing schedule will be
excluded from the evaluation process and the approved fee
structure
Prices must include VAT.
(value add services proposed will be in favour of the points
allocation to the bidder)
PAYMENTS WILL BE ON ORIGINAL DOCUMENTS ONLY
RFP Pack Contents
RFP pack is organised into 6 Sections
Section 1 COMPULSORY COMPLIANCE DOCUMENTATION
Section 2 COMMENTS ON APPENDIX A (SLA)
COMPLETED APPENDICES B,C,D,E
Section 3 EXECUTIVE SUMMARY
COMPANY EXPERIENCE
Section 4 CV’S OF TEAM
REFERENCE SITES
VALUE ADDED SERVICES
Section 5 TECHICAL / FUNCTIONAL RESPONSE
APPENDIX F
Section 6 COMPLETED APPENDIX H (PRICE)
Bidder’s Proposal
Each Proposal section must be separately
wrapped and must contain:
Two hardcopy
A4, ring binders
One electronic copy
CD or DVD
The hardcopy must be signed and must
contain the original signatures.
Please hand in your questions
and/or email questions to
[email protected]
doc_663614583.pdf
Request for Bid to Turnaround the Compensation Fund with a view to modernise its operations in line with meeting its Service Delivery expectations with improved governance and controls.
COMPENSATION FUND
Request for Bid to Turnaround the
Compensation Fund with a view to modernise
its operations in line with meeting its Service
Delivery expectations with improved
governance and controls
Briefing session
12 March 2013
Topic
Welcome & Introductions
Governance, rules and procedures
RFP overview
RFP Model
RFP Pack Content
Bidder’s Proposal Format
Pricing Templates
B-BBEE Overview
Terms of Reference
Agenda
Welcome and introduction
Briefing Session
Purpose
Explain selected concepts, procedures and other aspects of the RFP
Confirm formal registration of Bidders for notices and other
communications
It may contain
additional information
additional rules that must be adhered to
It does not
cover every item in the RFP
replace any of the issued RFP material
relax any of the RFP rules unless communicated separately in writing
The conference slides will be distributed electronically to all registered
Bidders via email.
The RFP pack remains the primary source of information for the Bidder to
respond.
Procedures during session
No questions will be answered during the
presentations.
Write down your questions and hand them in at
the end of the presentations and / or
Email questions [email protected]
Questions :- Open date 12 March 2013
Close date 15 March 2013
Question :- Response date is no later than
20 March 2013 to all registered
bidders attending the
briefing compulsory session via
email and labour.gov.za website
Procedures during session
Today....
The agenda is focused on review and the most
pertinent themes during the session that is required to
facilitate and give meaningful context to the RFP and
tender procedures.
All questions handed in will be responded to in writing
after the conference.
The session is being recorded
Registration and material
Registration –complete compulsory registration
requirements at reception desk
Attendance register
Registered address
Contact and correspondences details
Question template – will be handed out at the
session
Governance requirements
• Strict communication channels
– Bidders will be disqualified for non-
compliance
• No solicitation of information will be allowed
other than by prescribed channels
• Deadlines to be met
• Only prescribed submission format of the
response to bids will be accepted
Rules of engagement
Other than the contact for the RFP below:
Bidders may not contact CF nor Department of Labour
other than the stipulated contract person (s).
All contact relating to RFP matters are only to be
addressed to CF Procurement :
Khanyi Mthethwa - 012 3136393
[email protected]
Talifhani Netshivhangoni – 012 3136355
[email protected]
COMPENSATION FUND
Terms of Reference of the Turnaround the
Compensation Fund
Background
The Compensation Fund is a public entity of the Department of Labour.
The mandate of the Compensation Fund is derived fromSection 27 (1)(c) of the
Constitution of the Republic of South Africa. In terms of this act, all South
Africans have a right to social security. The Compensation Fund is then
mandated to provide social security to all injured and diseased employees.
The Fund administers the Compensation for Occupational Injuries and
Diseases Act no. 130/1993 as amended by the COIDA 61/1997.
The main objective of the Act is to provide compensation for disablement
caused by occupational injuries or diseases sustained or contracted by
employees, or for death resulting from such injuries or diseases, and
provide for matters connected therewith.
BUSINESS CAPABILITY CHALLENGES
PEOPLE PROCESSES SYSTEMS
? Lack of efficient performance
management and monitoring
? Low skills level and in?
sufficient training
? Lack of accountability by
managers and supervisors
? No service orientation culture
and staff motivation
? Fear of change and a
preference to doing what is
known
? Manual orientated processing
? Centralised processing
organisation
? Numerous non value and
duplicated tasks
? Highly segmented areas of
operations – no workflows or
integration
? Not structured for effective
performance
? No effective reporting or
exception reporting
mechanisms
? Highly user dependant and
based on traditional manual
processes
? Paper based \ manual input – no
electronic submission or
automation of standard
processes and rules
? No reporting functionalities ?
large reliance on service
provider
? Poor system implementation by
service provider
REFLECTIONS ON THE PROBLEM..
2 000 000 DOCUMENTS
Backlogs….
To initiate a Turnaround strategy and
implementation plan for the Compensation Fund
with a view to modernisation of its operations in
line with meeting its Service Delivery expectations
with improved, administration, governance and
controls
Strategic outcome of the project
Specific objectives - summary
PMO
• Set up a PMO ? CF and / or Labour
• Project Governance
• Manage and implement? Director General
(Sponsor)
Quick
Fix
• Stabilizing the business and the financial management
• Restoring financial administration and controls
• Audit
• Remedial plan “Business unusual plan of action plan”
Future
• Develop, design and implement the turnaround plan for the CF (Future model for the CF)
• Diagnostic, design and implement
• Legal review and update in terms of Government mandate
• Service delivery model
• Finance model ( Revenue and expenditure)
• Business Process re?engineering, systems and People
Ideally, the primary business of the Fund is to generate income, pay out claims and manage the
rehabilitation of claimants. These functions are then supported by common back?office support services
that include HR, Finance, Procurement, Information Technology, Governance and Compliance and Risk
and Audit Management.
Investments Registration Submissions
Claims
Management
Beneficiary
Payments
Case
Management
Pension
Rehabilitatio
n
• Employer
Registration
• Customer
Segmentation
• Monitoring
• Employer
declaration
• Contribution
Determination
• Payment
Management
(contributions)
• Claim
Registration
• Claim Pre-
processing
• Claims
Processing
• Adjudication
• Claim status
reporting
• Payment
Processing
• Approve
payment
• Beneficiary
payments
• Dispute
Management
• Investigations
• Dispute
Settlements
• Recovery of
Expenses
from 3
rd
parties
• Fraud and risk
management
• Registration
• Processing
• Payments
• Reporting
G
o
v
e
r
n
a
n
c
e
&
C
o
m
p
l
i
a
n
c
e
Revenue Management Claims Management
• Implementation
of Funds
Strategy
• Monitoring
Investments
Performance
• Managing
external
investment
managers
• Review Policy
and Framework
• Reporting
• Monitoring
• Restoration and
re-integration of
workers
• Provision of
assistive devices
• Reporting
R
i
s
k
M
a
n
a
g
e
m
e
n
t
Support Services (HR , Finance, Supply Chain, Communications, ICT, Legal services)
Rehabilitation
Management
Manage Service Delivery
IDEAL VALUE CHAIN
Source : CF Diagnostic Review
To implement a remedial plan to address
governance, controls and administration relating
to:-
1. AG queries (126 queries raised)
2. Public Protector Report
3. SCOPA’s Concerns
4. Portfolio Committee of Labour
Terms of reference
Terms of reference
3.1 Components of turnaround strategy
3.1.1 Managing the turnaround
The enabling components to manage the turnaround are
turnaround leadership, stakeholder management,
and turnaround project management.
3.1.2 Stabilisingthe business and the financial
management
The CF needs to be stabilized to ensure the short-term
future of the business, introducing predictability and
ensuring legal and fiduciary compliance (PFMA).
3.1.3 Fixing the distressed Compensation Fund
The underperforming \ distressed entity needs to be fixed in strategic,
organisational and operational terms.
3.1.4 The successful service provider will be required to:
Devise and Implement a Remedial Plan to remedy the interim
crisis :-(Business unusual plan of action)
? Identify the root cause or contributory factors to the issues and
weaknesses identified in the business process
? Perform Root Cause Analysis on finance, fraud and risk
administration and management
? Perform a diagnostic review of people and systems to identify
weaknesses to establish controls
? Develop mitigating action plan aimed to resolving, eliminating, or
minimising the incidence of identified issues, weakness and lack of
controls
Develop, design and implement the turnaround plan for the
CF (Future model for the CF):-
? Diagnostic of the alignment of the strategic objectives of
the CF against its shareholders mandate and objectives
? Perform a legal review with the aim of enhancing service
delivery. The legal review must be included in the
turnaround plan.
? Develop and implement a change management program
addressing all elements of the program
? Map and design Business Processes for the Fund for core
and support functions of the CF
? Provide and align best practice benchmark studies to the CF
? Develop, Review and Update Governance Policy and
Procedures as may be required
? Facilitate the turnaround leadership
? Develop, design and implement the turnaround approach and
plan for the CF
? Implement the turnaround plan for the CF
People
• Review Employment Contracts, Score Cards and Performance
management, and redefine these as may be necessary
• Develop appropriate organisational structure
• Develop job descriptions covering posts in the revised organisational
structure
• Perform a complete skills audit across all levels of staff and evaluate
current skills against the skills required to perform the job
requirements
• Evaluate suitability of current staff and perform a best fit
placement of staff into positions where they are best trained and able
to perform in accordance with the organisation’s goals.
• Manage the implementation of the new Human resource
organisational structure in accordance with best HR practice
Business Processes and Systems
• Review, Map, Optimise and Define all Business Processes across
the entire value chain
• Review, Map, Optimise and Define all Systems Processes to close
the gaps in governance and controls across the entire value chain
• Develop mitigation strategies for work segmentation, Risks and
Controls
• Develop segmented workflows to optimise employee load balancing
and turnaround times on tasks and service delivery elements
• Business systems and architecture review and to make
recommendations for optimisation
• Review, design and implement business intelligent information
reports and advise a business specification to implement Business
Intelligence (BI)
• Develop Dashboards and Radars to facilitate good and timeous
management information to feed into effective management processes
3.1.5 Project Office
Establishment of a Project Office to manage projects relating to the
scope of work and delivery of the turnaround plan and to co-ordinate
activities of the remedial and turnaround implementation plan at
a location determined by the Director General of Labour.
Resource the project office with resources to manage both the
remedial and modernisation of the CF.
3.1.6 Actuarial and Audit Professional Services (remedial plan)
An analysis of the Compensation Fund conducted provides for the
estimation of ± 600 000 claims that has remained unpaid for a
number of years.
The objective of the assignment is to conduct an actuarial valuation
to determine the value of these claims as well as the impact
thereof on the financial reserves of the Fund.
A comprehensive valuation report highlighting the work carried
out, the methodology used and the findings and recommendations
arising from the valuation should be produced.
The audit is an essential component of the diagnostic study which aims
to assess the financial capacity of the C F.
Key deliverables of audit relating to the Management letter will
be to:-
1. compile or update the Fund’s action plan in response to the AG
findings and Public Protector reports,
2. conduct priority assessment of the action required to achieve the
best results within project timeframes.
3. allocate responsibilities with timelines for the priority areas
identified following the review and assessment.
4. make recommendations that are aimed at improving the financial
reporting process going forward.
Key deliverables of audit will be to:-
5. design and implement general financial management in terms
of GRAAP and PFMA
6. establish controls and procedures that are aimed to mitigate and
eliminate risk and fraud.
7. review and optimise business processes to ultimately ensure that all
amounts received by the Fund in terms of PFMA are receipted,
completely, timeously and accurately deposited and that all
monies transferred and paid by the Fund, for claims and other
Fund expenditure are accurately, efficiently and
appropriately utilized and substantiated.
3.1.7 Output Required
The project deliverables will be to manage the
implementation of the turnaround of the CF in terms
of the scope of work indicated under paragraph 3 (RFP).
METHODOLOGY
4.1. The service provider will be required to supply a methodology
statement detailing the steps that will be employed to
complete the project work, a detailed costing and the time
frames in which the project will be completed in line with the
expected completion date.
The methodology statement should reflect the following aspects
which would be used as criteria for functionality during assessment of
the submission:
(a) Proof and expertise must be demonstrated of a successful
turnaround of a company/ public entity/ government
department.
(b) Provide the approach (how) your company will deliver the
scope of work outlined under paragraph 3. Provide reference
sites.
(c) Proof of expertise and experience of the core project
team covering business management, governance and
audit compliance with IFRS, PFMA and Treasury
Regulations, Monitoring & Evaluation, Data
Management, Software Systems Design, Configuration
and Implementation across Wide Area Networks for
distributed processing
Technical resource skills and experience in:-
• Project and programme management,
• Auditing,
• Accounting & Governance in public sector, (PFMA and GRAP)
• Fund and portfolio management
• Pension fund management
• Revenue management
• Financial modelling
• Risk management
• Change management
• All aspects of Human Resource management,
• Organisational development
• Legal Services
• Business analytical skills
• Business process re-engineering
• At least 1 team leader to be qualified actuary, 10 years of experience in
relevant actuarial work and supported by a Chartered Accountant with
experience in internal audit work
• Experts in actuarial science (bachelor’s degree in actuarial science, 5 years
of experience in pension fund evaluations and determination of fund
provisions)
TIME FRAME
The project will be completed based on the project plan that
will be developed with the successful bidder. However, it is
estimated that the project is estimated to be completed in
24 months from the date of commencement.
COSTING
8.1 The service provider must provide a comprehensive project
costing outlining the following:
Detailed costing showing items and categories of costs / expenditure
The calculation of rates charged and / or a breakdown of
amounts against all the envisaged consulting time
8.2. All amounts stated (for goods, products and / or services to be
rendered or to be developed) must be clearly stated showing the
net amount excluding VAT, the VAT charged, and the Full
Contract amount inclusive of VAT.
8.3 All subsistence, travel and accommodation costs for the staff
engaged in the fieldwork of the project shall be approved by both
the CF’s designated project manager (within delegation of authority)
and the Service Provider’s Project Manager in accordance with a
project plan approved by the Director General of Labour.
The Proposal must include:
Methodology / Approach covering issues captured
under 3 and 4 of the terms of reference:-
• CV’s of Key Team Members
• A High Level Project Plan
• A detailed Project Costing
• Submission of all required compliance documentation
• Provision to meet with and / or brief CF’s management
team on a regular basis
During the Bid Evaluation Stage, Service providers may be required to
make presentations on their proposal if required to do so by CF.
COMPENSATION FUND
Structure of bid documents and
procurement process
Open tender
The RFP has mandatory requirements
Bidder must meet these before Bidder’s Tender will be considered for
evaluation.
Bidder is strongly advised to make sure it complies fully
before making decision to bid.
The CF reserves the right to exclude companies and or persons from the
bidding process in terms of good governance outlined under Treasury
Regulations 16.A.8.4 and 19.A.9.
Organisation, companies and / or persons who have worked and are
currently working within the operations for past 4 consecutive years of
the CF from 1 April 2008 till to date, will be excluded from the bidding
process and bids will be disqualified.
Evaluation process
Pre?qualification
Functional (80/100)
Price (90 )& B?BBEE
(10)
Any mandatory ground paragraph 16 and 17.
No valid tax compliance certificate
Incomplete SBD’s
…etc.
Qualify
Qualify
Disqualify
Unacceptable solution / risk e.g.
Don’t meet threshold points
Rejection of key contract terms …etc.
Disqualify
Not able to evaluate pricing e.g.
Incomplete pricing
Unable to calculate price
Etc.
Disqualify
1
2
3
Qualify Appoint
Evaluation : Functionality
The 90/ 10 Principle for Bid Evaluation will apply as reflected in the table
below.
Bidders who score less than 80 % of the 100 % points of the
Functionality Points available for their Technical Proposal, will be
considered materially unresponsive, and will not be evaluated further,
having being considered to not meet the minimum threshold score.
Evaluation Category Maximum Points Threshold Score Weighted Score
Technical Proposal 1890 1512 100%
Total Score 1890 = 80 % out of 100 % 100%
Evaluation Category Maximum Points Threshold Score Weighted Score
Technical Proposal 1890 1512 100%
Total Score 1890 = 80 % out of 100 % 100%
Evaluation: Price and B-BBEE
90/10 evaluation in terms of PPPFA
1
on contract value.
B?BBEE evaluation performed on the basis of the submitted B?BBEE certificate.
2
Statutory formula
2
applied to the Bidder’s submitted pricing.
1
Preferential Procurement Policy Framework Act 5 of 2000
2
National Treasury Regulations 2011 to the PPPFA
ELIMINATION OF PROPOSALS ON GROUNDS OF
FUNCTIONALITY
Bids that score less than 80% of the 100% available
for functionality will be eliminated from further
consideration. Points will therefore not be awarded for
their cost proposals or for B-BBEE Status Level of
Contribution
Points Awarded for BBBEE Contribution
B-BBEE Contributor Level
Number of Points
(80/20 system)
Number of Points
(90/10 system)
1 20 10
2 18 9
3 16 8
4 12 5
5 8 4
6 6 3
7 4 2
8 2 1
Non-Compliant Contributor 0 0
Price
APPENDIX H
Price should give a cost per resource in terms of levels
Note: any cost not reflected on the pricing schedule will be
excluded from the evaluation process and the approved fee
structure
Prices must include VAT.
(value add services proposed will be in favour of the points
allocation to the bidder)
PAYMENTS WILL BE ON ORIGINAL DOCUMENTS ONLY
RFP Pack Contents
RFP pack is organised into 6 Sections
Section 1 COMPULSORY COMPLIANCE DOCUMENTATION
Section 2 COMMENTS ON APPENDIX A (SLA)
COMPLETED APPENDICES B,C,D,E
Section 3 EXECUTIVE SUMMARY
COMPANY EXPERIENCE
Section 4 CV’S OF TEAM
REFERENCE SITES
VALUE ADDED SERVICES
Section 5 TECHICAL / FUNCTIONAL RESPONSE
APPENDIX F
Section 6 COMPLETED APPENDIX H (PRICE)
Bidder’s Proposal
Each Proposal section must be separately
wrapped and must contain:
Two hardcopy
A4, ring binders
One electronic copy
CD or DVD
The hardcopy must be signed and must
contain the original signatures.
Please hand in your questions
and/or email questions to
[email protected]
doc_663614583.pdf