Objectives

The Mossel Bay Municipality aims to appoint a local commercial bank to deliver comprehensive, efficient, and cost-effective commercial banking services over a five-year term commencing 1 July 2027. The primary objectives are to centralize financial operations, enhance transactional efficiency, mitigate operational risks and fraud, ensure seamless integration with the municipality’s financial systems, and optimize liquidity management.

Scope of Work

• Manage a centralized banking structure consisting of one primary current account and at least two subsidiary accounts (one for electronic transfers, one for fine deposits).
• Execute daily automatic sweeping of subsidiary balances to the primary account to maintain zero balances elsewhere.
• Process high-volume transactions, including salary disbursements, third-party payments, debit orders, and electronic collections.
• Provide real-time account enquiries, online stop-payment facilities, and downloadable statements in formats compatible with the municipality’s financial software.
• Implement robust controls, full audit trails, and updated security protocols to prevent fraud and errors.
• Supply cash-in-transit services across multiple municipal offices according to specified frequencies.
• Offer an overdraft facility of R30 million and competitive interest rates on credit balances.
• Develop and execute a phased implementation plan, including staff training, user manuals, and a dedicated service-level agreement.
• Provide beneficiary banking verification services and duplicate deposit slips upon request.

Technical Requirements

• Bidders must be registered commercial banks under the Banks Act No 94 of 1990 and achieve a minimum pre-qualification score of 80 out of 100.
• Evaluation covers four functional areas: transactional banking capabilities (39 points), implementation planning and time scales (7 points), operational efficiency and user-friendliness (39 points), and corporate structure/strength (15 points).
• Mandatory documentation includes a valid SARS tax compliance PIN, municipal rates clearance, a Compensation Commissioner Letter of Good Standing, and proof of B-BBEE status level.
• Systems must support host-to-host and desktop-direct integrations for seamless data exchange with municipal financial vendors.
• Performance metrics require daily statements delivered before 08:00, 98% achievement on daily sweeping, 95% activation of deposit identifiers, and 100% accuracy in charge allocations.
• Quarterly strategic meetings with municipal financial leadership are mandatory, with written minutes submitted within one week.
• A performance security must be furnished within thirty days of contract award.

Skills Requirements

While not explicitly itemized, the tender necessitates specialized competencies in:

• Transactional banking and electronic fund management.
• Project management for complex system migrations, interface conversions, and phased rollouts.
• IT integration and financial software interoperability.
• Risk management, fraud prevention, and cybersecurity protocols.
• Dedicated account management, including a designated Electronic Banking Manager and implementation specialists.
• Staff training and change management for municipal finance personnel.
• Cash logistics coordination and secure transit operations.

Explanation of Unusual or Complicated Terms

• Section 33 Process: A statutory municipal approval procedure required by legislation before a contract can be formally awarded and vested.
• CDI Check: Customer Deposit Identifier validation, an automated system feature that ensures incoming payments are instantly matched to the correct payer accounts using unique reference codes.
• Host-to-Host / Desktop-Direct Solutions: Technical integration methods. Host-to-host enables automated, large-scale data exchange directly between institutional computer systems, while desktop-direct supports smaller, manual, or ad-hoc transaction batches processed locally.
• Preference Points System (80/20 or 90/10): A procurement evaluation model where price accounts for 80 or 90 points, and socio-economic goals (B-BBEE compliance and local business presence) account for the remaining 20 or 10 points. The exact ratio is determined post-submission based on the lowest acceptable tender.
• Daily Sweeping: An automated treasury function that transfers excess funds from sub-accounts to a master account each business day to optimize liquidity, reduce idle balances, and simplify accounting.