Objectives

The Greater Kokstad Municipality aims to appoint a qualified Travel Management Company (TMC) to centrally manage all official travel and accommodation arrangements for councillors, staff, consultants, and contractors. The primary objectives are to deliver reliable, cost-effective, and fully compliant travel services, maximize traveller satisfaction, enforce strict adherence to municipal travel policies, and implement measurable cost-saving strategies aligned with National Treasury directives.

Scope of Work

The successful bidder will provide end-to-end travel management services covering domestic, regional, and international trips. Core responsibilities include:

• Processing travel requisitions, securing airfare, accommodation, vehicle rentals, shuttle services, conference bookings, and foreign exchange.
• Providing dedicated after-hours and emergency support outside standard business hours (17h00–08h00 weekdays) and 24/7 coverage on weekends and public holidays.
• Implementing an Online Booking Tool for domestic travel to streamline approvals and bookings.
• Consolidating third-party supplier invoices, managing vendor relationships, resolving complaints, and ensuring timely refund processing.
• Delivering accurate monthly, quarterly, and annual performance reports aligned with National Treasury templates.
• Conducting training workshops for travel bookers and enforcing the municipality’s travel policy.

The contract duration is 36 months, subject to annual performance reviews. Continuation depends on satisfactory service delivery and compliance with agreed key performance indicators.

Technical Requirements

Bidders must navigate a two-stage evaluation process:

• Stage 1 (Functionality): A minimum threshold of 60 points out of 100 is required to proceed. Evaluation covers company experience, key personnel qualifications, proposed methodology, and industry registration.
• Stage 2 (Price & Specific Goals): An 80/20 preferential point system is applied, allocating 80 points to competitive pricing and 20 points to designated socio-economic transformation goals.

Mandatory pre-qualifications include valid Central Supplier Database (CSD) registration, SARS Tax Compliance Status verification, proof of IATA membership, and clearance certificates confirming neither the company nor its directors owe municipal rates exceeding 90 days. Bidders must submit three alternative pricing models (management fee, percentage-based commission, or fixed transaction fee), with the municipality retaining discretion to select the most suitable option. Financial proposals must follow an open-book policy, requiring the return of any override commissions earned through municipal volumes.

Skills Requirements

The tender demands proven industry expertise and specialized staffing capabilities:

• Corporate Experience: Verification through 3–4 appointment letters/orders and reference letters from similar government or municipal travel contracts.
• Key Personnel: Comprehensive CVs demonstrating certified qualifications and relevant experience in tourism, marketing, or finance. Required roles include senior/intermediate/junior consultants, a dedicated travel manager, finance/accounting manager, administrative back-office staff, a strategic account manager, and a system administrator.
• Methodology Presentation: Shortlisted bidders must present a technical proposal covering eight mandated areas: travel workflows, regulatory compliance, cost-savings frameworks, global risk management, technology integration, data security, 24/7 support structures, and information protection protocols.

Key Terms & Concepts Explained

• ASATA: Association of Southern Travel Agents, a professional certification body verifying travel agents’ competence, ethics, and industry standards. Registration is mandatory for functionality scoring.
• IATA: International Air Transport Association. Membership grants licences authorizing companies to issue airline tickets, access global distribution systems, and negotiate carrier fares.
• Online Booking Tool (OBT): A secure digital platform enabling authorized travellers to independently search, compare, and book approved travel options within established policy limits and budget caps.
• Service Level Agreement (SLA): A formal contract clause defining precise performance metrics, response timeframes, reporting standards, and financial penalties for non-compliance.
• 80/20 Preferential Point System: A public procurement evaluation method where 80% of scoring prioritizes competitive pricing, and 20% rewards designated socio-economic goals such as black ownership and local business presence.
• CSD & TCS: The Central Supplier Database is the national registry for all public sector suppliers. Tax Compliance Status is a SARS verification confirming a business meets all statutory tax obligations.