Tender Summary: Provision of Internal Audit Services

Objectives

The primary objective is to obtain independent and objective assurance and advisory services to evaluate and enhance the Municipality’s governance, risk management, and internal control processes.

A strategic secondary objective is to progressively build internal audit capacity by executing a structured transition from a fully outsourced service model to a co-sourced operational model over the contract period.

Scope of Work

• Deliver comprehensive internal audit services across the Municipality for a fixed term of three (3) years.
• Conduct systematic reviews of financial, operational, and compliance activities to provide independent assurance.
• Offer advisory support to strengthen risk management frameworks and internal control mechanisms.
• Design and implement a phased transition plan that gradually integrates municipal staff into audit functions while maintaining external expert oversight.
• Align all deliverables with the detailed technical specifications provided in the official tender documentation.

Technical Requirements

• Complete submission of all mandatory compliance and qualification documents as stipulated in the tender package.
• Achieve a minimum functionality score of 70 out of 100 points during the prequalification assessment stage.
• Demonstrate strict adherence to the Municipality’s Supply Chain Management (SCM) policy.
• Maintain up-to-date tax compliance standing and ensure the bidder is not listed on restricted state business registers or default databases.
• Ensure all submitted bids remain valid for a minimum of 120 days from the closing date.

Skills and Competency Requirements

• Proven professional competence and extensive experience in internal auditing, supported by recognized industry certifications.
• Deep expertise in governance structures, enterprise risk management, and internal control frameworks.
• Capability to develop and manage a realistic co-sourcing transition strategy, including knowledge transfer and capacity-building components.
• Strong analytical, investigative, and reporting skills to deliver actionable insights to municipal leadership.
• Ability to meet rigorous functionality evaluation thresholds and comply with statutory procurement regulations.

Key Terms and Concepts Explained

• Co-sourced Model: A hybrid operating approach where the Municipality gradually develops its own internal audit team while retaining external specialists for complex engagements, quality assurance, and mentorship. This reduces long-term reliance on full outsourcing while building sustainable institutional capacity.
• 80/20 Preference Points System: A standardized evaluation methodology applied during adjudication, where 80% of the total scoring weight is allocated to price competitiveness and 20% is reserved for socio-economic development goals, specifically targeting black ownership and historically disadvantaged persons (RDP) participation.
• Preferential Procurement Policy Framework Act (PPPFA): South African national legislation that mandates public entities to incorporate transformation and economic inclusion objectives into their procurement processes, ensuring fair market access while advancing broader developmental priorities.