Objectives

The primary objective of this tender is to appoint a qualified service provider to administer and waive insurance excess costs associated with merSETA’s motor vehicle fleet. The initiative aims to streamline claims handling, reduce administrative overhead, and eliminate out-of-pocket excess payments for the organization when insurance claims are lodged.

Scope of Work

The procurement covers approximately 200 vehicles and requires bidders to submit firm pricing for two distinct coverage periods:

• Six-month cover from 01 October 2026 to 31 March 2027
• Twelve-month cover from 01 April 2026 to 31 March 2028

Bidders will base their pricing on historical claim data provided in the specifications, which details numerous past excess payments ranging from nominal amounts to over R10,000. The appointed provider will be responsible for processing and waiving these excess fees across the specified fleet throughout the contracted term.

Technical Requirements

Bidders must strictly comply with the following technical and administrative conditions:

• Complete and sign all mandatory Standard Bidding Document (SBD) forms, specifically SBD 4 (Bidder Disclosure), SBD 6.1 (Preference Points Claim Form), and SBD 7.1 (Contract Form)
• Provide a valid Central Supplier Database (CSD) registration number and confirm that tax affairs are in order
• Submit a valid Broad-Based Black Economic Empowerment (B-BBEE) certificate or affidavit to substantiate preference point claims
• Use the official merSETA pricing schedule; all prices must be firm, inclusive of VAT, delivery charges, and incidental costs, with no allowance for exchange rate fluctuations
• Maintain quotation validity for a minimum of 60 calendar days from the closing date
• Pass a three-stage evaluation: administrative compliance, specification functionality, and price/preference scoring

Skills Requirements

Although not explicitly enumerated, the nature of the procurement necessitates providers demonstrating proficiency in:

• Insurance excess waiver administration and high-volume claims processing
• Financial risk assessment and actuarial pricing for multi-vehicle insurance portfolios
• Accurate cost forecasting and structured pricing models aligned with public sector procurement frameworks
• Regulatory compliance with South African supply chain management and public finance legislation
• Documentation management, audit readiness, and transparent reporting mechanisms

Unusual or Complicated Terms Explained

• Excess Waiver: An insurance arrangement where the appointed provider covers or reimburses the compulsory excess fee that policyholders would normally pay at the time of a claim. This shifts the immediate financial burden away from merSETA during incident reporting.
• 80/20 Preference Point System: A South African preferential procurement scoring model allocating 80 points for competitive pricing and 20 points for socio-economic transformation goals, including black ownership, black women/youth ownership, white women ownership, and disability ownership.
• SBD Forms: Standardized government bidding templates used to verify bidder eligibility, disclose conflicts of interest, claim transformation preferences, and formalize contract acceptance.
• CSD Registration: Mandatory enrollment in the National Treasury’s Central Supplier Database, serving as the official national registry for all entities seeking to contract with South African public sector organizations.