To:

ALL PROSPECTIVE SERVICE PROVIDERS

Project Name:

Development Support and Maintenance of an Integrated mSCOA Financial Management and Internal Control System on APPX Platform

Requestor:

SARAH BAARTMAN DISTRICT MUNICIPALITY

QUOTATION NO.

50/2024

NOTICE NO.

78/2024

Closing Date:

12 September 2024

SPECIFICATION

PREVIOUS QUOTE ADVERTISED

Quotes 16/2024 and 47/2024: Development Support and Maintenance of an Integrated mSCOA Financial Management and Internal Control System on APPX Platform were previously advertised.

Potential service providers, who submitted quotes for Quotes 16/2024 and 47/2024 must resubmit quotes and documentation required, as any previous submissions will not be considered. 

INTRODUCTION

The Sarah Baartman District Municipality (SBDM) requires the services from a service provider for Development, Support and Maintenance of an Integrated mSCOA Financial Management and Internal Control System on APPX Platform for a period of twelve (12) Months. The service provider will be required to sign a service level agreement (SLA) to ensure that all deadlines, deliverables, and performance criteria are complied with.

Currently the Sarah Baartman District Municipality (SBDM) is situated at 32 Govan Mbeki Avenue, Central, Port Elizabeth. The decision has been made by council to relocate to Addo, Sundays River Valley Local Municipality. 

BACKGROUND

The mSCOA Chart of Accounts currently resides within the APPX budget module. The APPX financial system interfaces and synchronizes automatically with the APPX budget module. Various 3^rd party applications integrate with the APPX financial system, e.g. Sage 300 People (VIP), Central Supplier Database (CSD), Asset Management System (AMS360) .

The APPX financial system includes the following business processes:

·           Procurement Cycle: Supply Chain Management, Expenditure Management, Contract Management and Account Payable

·           Financial Accounting

·           Costing and Reporting

·           Revenue Cycle: Billing, Credit Control and Debt Collection

·           Project/Grant Accounting

·           Contract management

·           IDP/SDBIP Module

The technical services and network administration is provided in-house, and provides first line support, i.e. ensures users can connect to the Local Area Network (LAN) and client application installation.

The mSCOA APPX financial system application is installed in a Windows Server 2022 Standard operating system and the APPX Software version is 5.5.2.

SCOPE OF WORK

The objective of the project is to maintain a high-quality cost-effective Integrated mSCOA Financial Management and Internal Control System on APPX platform, including programming.

A mSCOA compliant system must, at a minimum, comply with the seven main components of municipal financial management and control. The seven components must integrate seamlessly with the mSCOA general ledger and comply at a posting level to mSCOA Regulations and GRAP. The main components are defined as follows:

• General Ledger as per mSCOA regulation

• Billing for municipalities

• Supply chain management that complies with regulation

• Assets management and tracking

• Budget module aligned to IDP as regulated

• HR and Payroll module with leave management

Fifteen major business processes have been defined within Local Government. Each business process has been fragmented into sub-processes to enable alignment to practical work streams common to municipalities. Legislative or business requirements provide further explanation of the sub-processes.

The business processes are:

• Corporate Governance;
• Municipal Budgeting, Planning and Modelling;
• Financial Accounting;
• Costing and reporting;
• Project Accounting;
• Treasury and Cash Management

• Procurement Cycle: Supply Chain Management, Expenditure Management, Contract Management and Accounts Payable;
• Grant Management;
• Full Asset Life Cycle Management including Maintenance Management;
• Real Estate and Resources Management;
• Human Resource and Payroll Management;
• Customer Care, Credit Control and Debt Collection;
• Valuation Roll Management;
• Land Use Building Control; and
• Revenue Cycle Billing.

Maintenance of main components and processes

The following components must be maintained on the mSCOA APPX platform, which includes programming:

·         General Ledger as per mSCOA regulation

·         Billing for municipalities

·         Supply chain management that complies with regulation

·         Budget module

·         HR and Payroll module with leave management (integration with third party application)

• Extraction and loading of the segmented transactional string directly to the National Treasury local government Database (LG Database)
• Ensure System can reflect all six (6) the mandatory mSCOA segments at a transactional level (currently in use), without any mapping or extrapolation or any other manual intervention. The seventh mSCOA segment (Costing segment) to be made mandatory at a date to be determined by National Treasury
• Extract schedules and documents in PDF format, containing ALL sheets as prescribed and with each worksheet displaying an embedded system stamp to certify that it has been produced directly from the system
• Contract management, including: – Performance contracts for senior management and all levels of municipal officials
• Ensure the system can produce seamless reporting against the service delivery-and budget implementation plan (SDBIP) inclusive of financial performance indicators
• Business intelligence reporting solutions that as a minimum assist the municipal manager to implement, monitor and comply with MFMA section 70 (Impending shortfalls, overspending and overdrafts)
• Ensure the system is able to incorporate new chart versions as and when National Treasury releases them
• Ensure the System Fulfill all legislative mSCOA requirements
• Ensure Integration with application for drafting Annual Financial Statements
• Retired GUID’s to be highlighted proactively
• Full Description of ITEM GUID (Different Levels) to be displayed on various reports and input programs
• Central Supplier Database (CSD) Flagging at Requisition Stage regarding up to date Good Standing and Service of the State employees
• Maintaining of Automation of Preferential Points
• Ensure the system can reflect on Review of Creditor Accruals
• Ensure the system can utilize and change the Automated Bank Reconciliation System
• Grant Management System Automation
• Ensure the system can produce Fund GUID Accumulation
• Investment Tracking System to feed directly into the strings
• Ensure the System can execute Trial Balance from MSCOA point of view (ITEM and FUNCTION using full Descriptions on downloads)
• M12/M13/M14/M15 Block to be implemented with date so Journals cannot be updated by mistake
• Accumulative year to date strings for actuals with controls
• The system requires internal controls and must generate automated reports.

The business processes are:

·         Municipal Budgeting

·         Financial Accounting

·         Reporting

·         Project Accounting

·         Treasury and Cash Management

·         Procurement Cycle: Supply Chain Management, Expenditure Management, Contract Management and Accounts Payable

·         Grant Management

·         Human Resource and Payroll Management; (integration with third party application)

·         Credit Control and Debt Collection

·         Revenue Cycle Billing.

Development of main components and processes

The following components must be developed on the mSCOA APPX platform:

·         Assets management and tracking

·         IDP (as regulated) must align to the budget module

·         Have a performance management system that gives effect to chapter 6 of the Municipal System Act, 2000;

·         Development of electronic Supply Chain Management (SCM) processes with regards to standard operating procedures (SOP) of approval of the Bid Specification Committee (BSC), Bid Evaluation Committee (BEC), Bid Adjudication Committee (BAC)

·         The System must record and store electronically Bid Adjudication Committee (BAC) minutes in the system

The business processes are:

·         Corporate Governance

·         Planning and Modelling

·         Costing

·         Full Asset Life Cycle Management including Maintenance Management;

·         Real Estate and Resources Management;

·         Customer Care

·         Valuation Roll Management

·         Land Use Building Control

The municipality reserves the right to amend, add or reduce main components and/or processes that require development.

Maintenance and Support

The service provider must provide maintenance and technical support on existing APPX main components and/or processes, as well as newly developed main components and/or processes.

Physical on-site support will be required when requested.

The service provider must provide support and maintenance of the APPX financial system to ensure integrity of the data, which includes programming

All third-party systems must integrate with the mSCOA financial management system.

Change Management

The bidder must provide training on the newly developed APPX main components and/or processes. Training may be requested on existing APPX main components and/or processes.

Any programing changes to the existing main components and/or processes and newly developed APPX main components and/or processes must be done in the test database, and upon approval transfer changes/development into live environment.

The service provider must provide detailed process manuals and business process documentation on newly developed APPX main components and/or processes.

A detailed change management document to be prepared and produced by the service provider.

Develop controls within the APPX financial system to assist in improving the control environment.

The service provider must provide transfer of skills for the Software Developer.

Evaluation criteria

The quotation will be evaluated on the 80/20 preferential point system as per the Preferential Procurement Regulation, 2022, where a maximum of 80 points will be allocated for price and a maximum 20 points will be allocated for specific quotes. The quotation will also be evaluated on functionality. Prospective providers that do not obtain a minimum of score of 70% on functionality criteria will be excluded from further evaluation.

Functionality will be evaluated as follows:

Where: 1 = Poor; 2 = Acceptable; 3 = Good; 4 = Very Good; and 5 = Excellent

A)  Experience and Qualifications of project manager in software development on an APPX Platform

(i)    The number of years of experience of the project manager in the software development/programming on APPX Platform.

Detailed CV of the project manager must be attached, including number of years of relevant experience.

(ii)   Highest qualifications

Copy/s of the highest qualification/s must be attached.

“A” above will be evaluated on above two (2) areas, i.e. number of years of experience and highest qualification/s. The total score will be added and then averaged (split 50/50), to determine the final score for experience and qualifications of project manager in the software development/programming on APPX Platform.

B)  Experience of project manager in the support of mSCOA requirements on an APPX platform

Supply a list of projects completed in the past five (5) years where a mSCOA compliant system was developed and maintained on an APPX Platform.

Reference letters on official letterheads must be attached to support the list of projects.

C)  Experience of project manager in implementing MSCOA on a financial system

Supply a list of projects completed in the past five (5) years where a mSCOA compliant system was developed and maintained on an financial system.

Reference letters on official letterheads must be attached to support the list of projects.

Only those qualifying quotes will be evaluated in terms of the 80/20 preference points systems, where the 80 will be used for price (VAT inclusive) and a maximum of 10 points allocated for locality and a maximum of 10 for points allocated for B-BBEE status level of contribution as follows:

NB: In order to claim for these points, Bidders are required to submit an original and valid B-BBEE Status Level Verification Certificates or certified copies or the Sworn Affidavits together with their Bids to substantiate their B-BBEE rating claims.

Points allocated for Locality.

NB: To claim points for locality, prospective bidders are required to submit proof of address of office dealing with the project. A valid lease agreement/municipal account in the name of the bidder or a municipal billing clearance certificate must be submitted. Failure will result in preference points not being allocated.

Pricing

Pricing must be completed on Pricing Schedule available on the website (www.sarahbaartman.co.za)

Payment For Services

Payment will be issued after the service has been rendered.

The service providers must complete the attached pricing schedule and provide an hourly rate inclusive of the VAT if you are a VAT Vender

General

• Prospective bidders to be registered on the central Supplier database (CSD) failure to comply will render the quotation non-responsive.

• It is compulsory that all suppliers to quote on all items.

• Quotations to be valid for 60 days from the closing date.
• The municipality reserves the right not to accept the lowest or any quotation and no reason for the acceptance or rejection of a quotation will be furnished.
• The municipality reserves the right to accept full or part of the quote.
• All relevant information must accompany all quotations submitted. No late or incomplete quotation will be accepted for consideration.

Formal written price quotations should be submitted in a sealed envelope, clearly marked “Quote 47/2024: Development Support and Maintenance of an Integrated mSCOA Financial Management and Internal Control System on APPX Platform”, which must be placed in the quotation box, 4th Floor, Govan Mbeki Avenue, Port Elizabeth, before 12h00 noon on 12 September 2024.

Quotes may also be submitted by means of an email: This email address is being protected from spambots. You need JavaScript enabled to view it. with subject “Quote 47/2024: Development Support and Maintenance of an Integrated mSCOA Financial Management and Internal Control System on APPX Platform” before 12h00 noon on 12 September 2024.

For further enquiries with regard to the Request for Quotation, please contact the Project Manager, Mr. C Mabindla on (041) 508 7054, email:  This email address is being protected from spambots. You need JavaScript enabled to view it.

All suppliers are required to register on the Central Supplier Database (CSD), as well as submit a Declaration of Interest form (downloadable from the Sarah Baartman District Municipality’s website; www.sarahbaartman.co.za) on the date of submission of their Formal Quote. Information on the CSD is available on the CSD website: www.csd.gov.za.

Should you have any enquiries please contact the Supply Chain Management Unit;

·         Khanyisile Notshulwana at (041) 508 7007 or email This email address is being protected from spambots. You need JavaScript enabled to view it.

Please download the pricing schedule below.