1. IMFO WORKSHOP RT25-2016: Where to from here?
Presented by National Treasury: Chief Directorate Local Government Budget Analysis

2. RT
This is a PROCUREMENT process and NOT an accreditation process
This process was driven by the OCPO and NOT the mSCOA team
There are NO “certified” or “approved” systems and all vendors are treated equally by NT and the mSCOA team

3. RT25-2016 tender request BID ADVERTISEMENT DATE: 4 March 2016
BID CLOSING DATE: 18 April 2016
NUMBER OF ITEMS IN THIS BID 7 Categories of Municipalities,
hosted on site and off site
VALIDITY PERIOD: August 2016
NUMBER AT BRIEFING SESSION 98 vendors
NUMBER OF BIDS RECEIVED: 33 vendors

4. Management performance and the availability of information
Full accounting Cycle
Cost Benefit Saturation points
mSCOA
The cost benefit associated with information is factored into the transversal pricing schedules.
This means the minimum mSCOA requirements vary according to the category of municipality.
NB! Proposals to respond only to the categories that the service provider serves.
Category A – Metros
Category B1 – Secondary cities
Category B2 – Large towns
Category B3 – Small towns
Category B4 – Mostly rural
Category C1 – Districts without billing
Category C – Districts with billing

5. RT25-2016 evaluation process
Mandatory requirements
Functional evaluation
Practical demonstrations
Pricing negotiations
BAC submission

6. RT25-2016 Mandatory requirements
Valid and original tax clearance certificate
Service provider profile
Company financial statements
Shareholding portfolio
Registration with professional bodies
Permission letters/ vendor certificates
mSCOA compliance
Pricing Schedule/ Technical questions in the original format, Excel version
Attendance of the compulsory briefing session

7. RT25-2016 Functional evaluation
110 mSCOA requirements
402 functional requirements
Local Government experience
ERP implementation vs modules only or consulting
Local vs international or government
Project implementation methodology

8. RT25-2016 Practical demonstrations
Provided a scenario which the vendor had to demonstrate in a live environment:
How the FULL chart is embedded in the solution
Budget preparation
Transactions
Reporting

9. RT25-2016 Pricing negotiations
Market research to determine current price
Price reduction of up to 20% on market price
Pricing negotiations with vendors
Recommendation within target pricing range

10. the purpose was to assist municipalities RT
As per circular 80
the purpose was to assist municipalities
that decided to upgrade/ replace their systems
with the technical ability and negotiated price.

11. Rt
The way forward

12. RT25-2016 – the way forward for municipalities
Assessment of current systems
Decision to stay or move
Notice to vendor and letter to PT/ NT
Procure from panel of vendors OR open market procurement process
Negotiate pricing and SLA according to tender outcome
REFER TO CIRCULAR 80 AND
mSCOA CIRCULAR 5 & 6 FOR GUIDANCE

13. RT25-2016 – the way forward for vendors
Assist municipalities with assessments;
Do NOT coerce or mislead municipalities!
Work with NT, PT, IMFO to roll out training and capacity building to municipalities;
Engage in above board, open and honest marketing activities;
Do NOT on board more municipalities than capacity and do NOT neglect current clients.

14. Questions?