Bid application document
TENDER N0: IAS03/11-PROVISION OF INTERNAL AUDIT SERVICES
Closing date: 18 April 2011
Time: 12h00
Document should be deposit in the Bid Box at
Isett Seta Offices
Block 2, Level 3, West Wing
Gallagher House, Gallagher Convention Centre
19 Richards Drive
Midrand
1685
11685
TABLE OF CONTENTS
1. PURPOSE ....................................................................................................................... 3
2. SUBMISSIONS .............................................................................................................. 3
3. CONDITIONS ................................................................................................................ 4
4. PURCHASES – OWNERSHIP MANAGEMENT ........................................................ 9
5. DECLARATION OF INTEREST –POTENTIAL CONFLICT OF INTEREST ........ 14
6. TERMS OF REFERENCE ........................................................................................... 15
7. EVALUATION METHODOLOGY ............................................................................ 21
8. PRICING SCHEDULE ................................................................................................. 24
9. TAX CLEARANCE CERTIFICATE ........................................................................... 27
10. ADDITIONAL COMPANY INFORMATION .......................................................... 29
11. DECLARATRION ..................................................................................................... 31
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1. PURPOSE
The purpose of this document is to ensure that:
1.1. Standardization exists with the applications received from potential service
providers;
1.2. Applicants supply all the relevant information required by Isett Seta;
1.3. Clear guidelines are given to the applicants on the process which Isett Seta
will follow, when receiving a tender application;
1.4. Supply the applicants with all the relevant information as far as the internal
mechanisms are concerned;
1.5. Ensure that all applications received are open, fair and that every entity had
an equal opportunity, in the tender process.
2. SUBMISSIONS
Bidders are hereby requested to submit tender documents in the following format, One
(1) original and three (3) hard copies, including one (1) soft copy on a CD.:
Bidders are required to submit their proposals in two (2) envelopes in the following
format:
Envelope 1: Technical Proposal
Marked with the name of the bidder
Titled: Technical Proposal for Isett Seta Tender No IAS03/11
This envelope must at least contain the following:
a) A covering letter signed by the lead person representing bid, amongst others:



Accepting the rules of bidding, evaluation of bids and bid evaluation criteria
set out in the terms of reference;
Attach a tax clearance certificate from the South African Revenue Services;
Provide full contact details;
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b) Information and motivation on the lead person, attaching his or her curriculum
vitae, setting out his or her’s;
 Suitability for this assignment;
 Relevant skills and experience;
 Outline the precise role the lead person will play;
 Availability to perform work.
c) All proposed team members, setting out:
 Professional role that each person will fulfill in this assignment;
 Suitability of each person for the proposed roles in terms of his or her
relevant skills and experience.
Envelope 2: Price and HDI Proposal:
Marked with name of bidder
Titled: Price Proposal and HDI information for Isett Seta Tender No IAS03/11
This envelope must contain:




Pricing Schedule
VAT must be specified as a separate total for each cost item.
Total estimated value of contract should be denominated in Rands.
HDI Information
Enquiries relating to the tender may be directed by email only to:
Email: [email protected]
3. CONDITIONS
3.1. Tax Clearance Certificate
3.1.1. It is an absolute requirement that the taxes of the successful bidder MUST be in
order, or that suitable arrangements must have been made with SARS to satisfy them.
3.1.2. The application for a Tax Clearance Certificate (in respect of tenders), must be
Completed by the bidder in all respects and submitted to SARS where the bidder is
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registered for income tax purposes. SARS will then issue the bidder with a Tax Clearance
Certificate that will be valid for 60 days from date of issue. This Tax Clearance Certificate
must be included in the original tender application, before the closing time and date of
the tender. Failure to submit an original and valid Tax Clearance Certificate may
invalidate your tender.
3.1.3. Each party to a Consortium / Sub-contractors must complete a separate Tax
Clearance Certificate. Copies of the Application for Tax Clearance Certificate are
available at any SARS’ office.
3.2. Instructions
3.2.1. Please follow the under mentioned instructions. They are designed so that you
will give certain important information in a specific manner to meet the requirements of
the ISETT SETA Tender Committee and the requirements set by the Compliance
department of the ISETT SETA.
3.3. Additional Information
3.3.1 Supply any extra information on the enclosed forms or separate sheets of paper if
the space provided is insufficient.
3.4. Steps to follow when filling in tender forms:
3.4.1. Check the numbers of the pages in the tender document and make sure that none
are missing or duplicated.
3.4.2. Warning: - You are responsible for submitting the tender document correctly.
3.4.3. Ensure that all attached forms are completed in full.
3.4.4. State whether prices and delivery periods will remain firm for the whole period of
the contract.
3.4.5. Note: - The Tender Committee prefers firm prices and delivery periods.
3.4.6. Submit you’re tender on the correct forms and deliver before the closing time or
post it as specified in the tender document in good time to ensure that it reaches the
address indicated in the tender document before the closing time. As a rule tenders
submitted after the closing date and time WILL NOT be accepted.
3.4.7. Warning: - Do not submit your tender by telegram, facsimile, email or other
similar apparatus.
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3.4.8. All the conditions stated above and contained elsewhere in the documents form
part of the tender. If you do not comply with any of the conditions, your tender may be
declared not valid.
3.4.9. Any natural or legal person (that is a person capable of contracting) may make an
offer or offers in terms of this tender invitation.
This includes:
3.4.9.1. persons employed by the Isett Seta;
3.4.9.2. persons who act on behalf of the Isett Seta; and
3.4.9.3. Persons having a kinship with persons employed
by the Isett Seta, including a blood relationship.
.
3.4.10. Applicants must ensure that:
4.4.10.1. All documents are signed, where it is required.
4.4.10.2. All documents are completed according to the attached
forms and specifications. If applicants do not carry out the
requirements of Isett Seta, their tender may be declared invalid.
4.4.10.3. They do not qualify their tender with their own
conditions of tender.
3.5. ACCEPTANCE
3.5.1. By signing the tender document you, the applicant, acknowledge and accept the
terms and conditions set out herein at the prices contained herein and you declare your
interest as stated in the respective forms and also confirm that:
3.5.1.1. Their tender is correct.
3.5.1.2. The price(s) and rate(s) quoted cover all the work/items specified
in the tender documents.
3.5.1.3. The price(s) and rate(s) quoted cover all my/our obligations
under a resulting contract.
3.5.1.4. They accept that any error regarding price(s) and calculations will
be at their own risk.
3.5.1.5. They as Principal(s) accept full responsibility for the proper
execution and fulfillment of all obligations and conditions as stipulated in
the tender
3.5.1.6. Their tender price(s) is/are set out in the relevant form attached
3.6. RERERENCE TO OTHER DOCUMENTS
3.6.1. Isett Seta Annual Reports
3.6.2. Isett Seta Constitution
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3.7 BIDDING DOCUMENTS,
(Please note that these documents must be completed in conjunction with the scope
of supply and the tender application document)
3.7.1 Tax Clearance Certificate
3.7.2 Pricing Schedules
3.7.3 Filled in task directive / proposal
3.7.4 Preference Point claim form in terms of the preferential procurement Regulations
2001
3.7.5 Declaration of Interest
3.8 GENERAL DEFINITIONS
3.8.1 “Acceptable Bid” means any bid which, in all respects, complies with the
specifications and conditions of bid as set out in the bid document.
3.8.2 “Bid” means a written offer in a prescribed or stipulated form in response to an
invitation by an organ of state for the provision of goods, works or services.
3.8.3 “Comparative price” means the price after the factors of a non-firm price and all
unconditional discounts that can be utilized have been taken into consideration.
3.8.4 “Consortium or joint venture” means an association of persons for the purpose of
combining their expertise, property, capital, efforts, skills and knowledge in an activity
for the execution of a contract.
3.8.5 “Contract” means the agreement that results from the acceptance of a bid by an
organ of state
3.8.6 “Specific contract participation goals” means the goals as stipulated in the
Preferential Procurement Regulations 2001
3.8.7 “Control” means the possession and exercise of legal authority and power to
manage the assets, goodwill and daily operations of a business and the active and
continuous exercise of appropriate managerial authority and power in determining the
policies and directing the operations of the business
3.8.8 “Disability” means, in respect of a person, a permanent impairment of a physical,
intellectual, or sensory function, which results in restricted, or lack of, ability to perform
an activity in the manner, or within the range, considered normal for a human being
3.8.9 “Equity Ownership” means the percentage ownership and control, exercised by
individuals within an enterprise
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3.8.10 “Historically Disadvantaged Individual (HDI)” means a South African citizen who,
due to the apartheid policy that had been in place, had no franchise in national elections
prior to the introduction of the Constitution of the Republic of South Africa, 1983 (Act
No 110 of 1983) or the Constitution of the Republic of South Africa, 1993, (Act No 200 of
1993) (“the interim Constitution); and/or
a) who is a female; and / or
b) who has a disability
c) provided that a person who obtained South African citizenship on or after the
coming to effect of the Interim Constitution, is deemed not to be a HDI
3.8.11 “Management” means an activity inclusive of control and performed on a daily
basis, by any person who is a principal executive officer of the company, by whatever
name that person may be designated, and whether or not that person is a director
3.8.12 “Owned” means having all the customary elements of ownership, including the
right of decision-making and sharing all the risks and profits commensurate with the
degree of ownership interests as demonstrated by an examination of the substance,
rather than the form of ownership arrangements
3.8.13 “Person” includes reference to a juristic person
3.8.14 “Rand value” means the total estimated value of a contract in Rand
denomination that is calculated at the time of bid invitations and includes all applicable
taxes and excise duties
3.8.15 “Small, Medium and Micro Enterprises (SMMEs) bears the same meaning
assigned to this expression in the National Small Business Act, 1996 (No 102 of 1996)
3.8.16 “Sub-contracting” means the primary contractor’s assigning or leasing or making
out work to, or employing another person to support such primary contractor in the
execution of part of a project in terms of the contract
3.8.17 “Trust” means the arrangement through which the property of one person is
made over or bequeathed to a trustee to administer such property for the benefit of
another person
3.8.18 “Trustee” means any person, including the founder of a trust, to whom property
is bequeathed in order for such property to be administered for the benefit of another
person
3.9 Pricing Schedule
3.9.1 All cost related to this assignment are to be allowed for in the pricing schedule and
in the formats prescribed. The proposed totals for fees and reimbursements will be
included in the contract as the maximum amount to be spent on these items.
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3.9.2. A pricing schedule with one of the specified elements (fees and reimbursements
costs) omitted from the costing, may be considered non-responsive
3.9.3 Fees
 The budgeted hours and applicable rates of all team members for the audit.
 The average charge out rate per year.
 Auditor-General rates should be used
 Costs to be inclusive of VAT and disbursements
4. PURCHASES – OWNERSHIP MANAGEMENT
Bidders who claim points in respect of equity ownership must complete the Bid
Declaration at the end of this form.
4.1 ESTABLISHMENT OF HDI EQUITY OWNERSHIP IN AN ENTERPRISE
4.1.1 Equity ownership shall be equated to the percentage of an enterprise which is
owned by individuals classified as HDIs, or in the case of a company, the percentage
shares that are owned by individuals classified as HDIs, who are actively involved in the
management and daily business operations of the enterprise and exercise control over
the enterprise, commensurate with their degree of ownership.
4.1.2 Where individuals are not actively involved in the management and daily business
operations and do not exercise control over the enterprise commensurate with their
degree of ownership, equity ownership may not be claimed.
4.2 ADJUDICATION USING A POINT SYSTEM
4.2.1 The bidder obtaining the highest number of points and who meets the criteria as
per the tender committee will be awarded the Contract.
4.2.2 Preference points shall be calculated after prices have been brought to a
comparative basis.
4.2.3 Points scored will be rounded off to 2 decimal places.
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4.2.4 In the event of equal points scored, the bid will be awarded to the bidder scoring
the highest number of points for specified goals.
4.3. PREFERENCE POINTS SYSTEM
The following preference point systems are applicable to all bids:
- the 80/20 system for requirements with a Rand value of up to R500 000; and
- the 90/10 system for requirements with a Rand value above R500 000.
- the value of this bid is estimated to exceed R500 000 and therefore
the 90/10 system shall be applicable.
4.3.1 Preference points for this bid shall be awarded for:
(a) Price; and
(b) Specific contract participation goals, as specified in the attached forms.
4.3.2 The points for this bid are allocated as follows:
POINTS
90
PRICE
SPECIFIC CONTRACT PARTICIPATION GOALS
10
(a) Historically Disadvantaged Individuals:
(i) who had no franchise in national elections before
the 1983 and 1993 Constitutions
(ii) who is a female
(iii) who has a disability
(3)
(3)
(2)
(b) Other specific goals (goals of the RDP- plus local manufacture)
(I) Contracting to SMME’s
(2)
Total points for Price, HDIs and other RDP
goals must not exceed
100
4.3.3 POINTS AWARDED FOR PRICE
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4.3.3.1 THE 80/20 OR 90/10 PREFERENCE POINT SYSTEMS
A maximum of 80 or 90 points is allocated for price on the following basis:
80/20
Ps = 80( 1-
90/10
Pt - P min
)
P min
or
Ps = 90( 1-
Pt - P min
)
P min
Where
Ps = Points scored for price of bid under consideration
Pt = Rand value of bid under consideration
Pmin = Rand value of lowest acceptable bid
4.3.4 Points awarded for historically disadvantaged individuals
4.3.4.1 In terms of Regulation 13 (2) preference points for HDI’s are calculated on their
percentage shareholding in a business, provided that they are actively involved in and
exercise control over the enterprise. The following formula is prescribed in Regulation
13 (5) (c):
NEP = NOP x
EP
100
Where
NEP = Points awarded for equity ownership by an HDI
NOP = The maximum number of points awarded for equity ownership by an HDI
in that specific category
EP = The percentage of equity ownership by an HDI within the enterprise or
business, determined in accordance with the definition of HDI’s.
4.3.4.2 Equity claims for a trust will only be allowed in respect of those persons who are
both trustees and beneficiaries and who are actively involved in the management of the
trust.
4.3.4.3 Documentation to substantiate the validity of the credentials of the trustees
contemplated above must be submitted.
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4.3.4.4 Listed companies and tertiary institutions do not qualify for HDI preference
points.
4.3.4.5 A consortium or joint venture may, based on the percentage of the contract
value managed or executed by their HDI-members, be entitled to preference points in
respect of an HDI.
4.3.4.6. A person awarded a contract as a result of preference for contracting with, or
providing equity ownership to an HDI, may not subcontract more than 25% of the value
of the contract to a person who is not an HDI or does not qualify for the same number
or more preference for equity ownership.
4.4. EQUITY OWNERSHIP CLAIMED IN TERMS OF PARAGRAPH 4.3.2 ABOVE. POINTS TO
BE CALCULATED FROM INFORMATION FURNISHED IN PARAGRAPH 4.10.
Ownership
4.4.1 Equity ownership by persons who
had no franchise in the national
elections
Percentage owned
Points claimed
%
4.4.2 Equity ownership by women
%
4.4.3 Equity ownership by disabled persons *
%
*If points are claimed for disabled persons, indicate nature of impairment
……………………………………………………………………………………………………………………………………….
4.5 DECLARATION WITH REGARD TO EQUITY
4.5.1 Name of firm
:...........................................................................................
4.5.2 VAT registration number :...........................................................................................
4.5.3 Company registration number : .…………………………………………………………………………….
4.6 TYPE OF FIRM
� Partnership
� One person business/sole trader
� Close corporation
� Company
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� (Pty) Limited
[TICK APPLICABLE BOX]
4.7 DESCRIBE PRINCIPAL BUSINESS ACTIVITIES
…………...................................................................................................................................
.............……………….................................................................................................................
........................……………........................................................................................................
....................................
4.8 COMPANY CLASSIFICATION
� Manufacturer
� Supplier
� Professional service provider
� Other service providers, e.g. transporter, etc.
[TICK APPLICABLE BOX]
4.9 TOTAL NUMBER OF YEARS THE FIRM HAS BEEN IN BUSINESS?
……………………………………
4.10 List all Shareholders by Name, Position, Identity Number, Citizenship, HDI status
and ownership, as relevant. Information to be used to calculate the points claimed in
paragraph 4.4.
* HDI Status
Name
Date/Position
occupied in
Enterprise
ID Number
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Date RSA
Citizenship
obtained
13
No
franchise
prior to
elections
Women
Disabled
% of
business/
enterprise
owned
4.11 Consortium / Joint Venture
4.11.1 In the event that preference points are claimed for HDI members by consortia /
joint ventures, the following information must be furnished in order to be entitled to
the points claimed in respect of the HDI member:
Name of HDI member (to be consistent with
paragraph 4.4)
Percentage (% of the contract value managed or
executed by the HDI member
5. DECLARATION OF INTEREST –POTENTIAL CONFLICT OF
INTEREST
5.1. Any legal person, including persons employed by the principal, or persons having a
kinship with persons employed by the principal, including a blood relationship, may
make an offer or offers in terms of this invitation to bid. In view of possible allegations
of favouritism, should the resulting bid, or part thereof, be awarded to persons
employed by the principal, or to persons connected with or related to them, it is
required that the bidder or his/her authorised representative declare his/her position in
relation to the evaluating/adjudicating authority and/or take an oath declaring his/her
interest, where –
a) The bidder is employed by the principal; and / or
b) the legal person on whose behalf the bidding document is signed, has a relationship
with persons/a person who are/is involved in the evaluation and or adjudication of the
bid(s), or where it is known that such a relationship exists between the person or
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persons for or on whose behalf the declarant acts and persons who are involved with
the evaluation and or adjudication of the bid.
Do you, as tenderer, or any person connected with the tenderer, have any relationship (family, friend,
other) or are you aware of any relationship, (family, friend, other) with any BOARD MEMBER, COUNCIL
MEMBER or STAFF MEMBER of the SETA?
YES
NO
If yes, please supply particulars
SIGNATURE
DATE
6. TERMS OF REFERENCE
REQUEST FOR PROPOSAL FOR PROVISION OF INTERNAL AUDIT SERVICES
6.1. REQUEST
The objective of this bid is to appoint a suitable independent Internal Audit Service
Provider firm that can establish and maintain an appropriate Internal Audit service to
the Finance and Audit Committee and Management of the Information Systems,
Electronics and Telecommunications Technologies Sector Education and Training
Authority (Isett Seta).
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6.2. ROLE AND OBJECTIVES OF INTERNAL AUDIT
Internal Audit should be an independent appraisal function within Isett Seta, which
provides management with a systematic review and evaluation of operations for
determining efficiency, economy and effectiveness of policies, practices and control.
The objective of internal auditing is to add value by assisting the Finance and Audit
Committee and Management in effectively discharging their responsibilities, including
the promotion of effective internal control at reasonable costs.
6.3. ORGANISATIONAL STATUS OF INTERNAL AUDIT
Internal Audit will report to the Finance and Audit committee and the Chief Executive
Officer of Isett Seta and will help to promote and ensure:




· the independence of the internal audits;
· broad audit coverage;
· adequate consideration of audit reports;
· the implementation of audit recommendations.
6.4. SCOPE OF INTERNAL AUDIT WORK
The scope of internal audit work entails evaluating the adequacy and effectiveness of
the organization systems of internal control. This includes:
6.4.1 reviewing the reliability and integrity of financial and operating information and
the means used to identify, measure, classify and report such information;
6.4.2 reviewing the systems established by management to ensure compliance with
those policies, plans, procedures, laws and regulations that could have a significant
impact on operations, and determine whether the organisation is in compliance;
6.4.3 reviewing the means of safeguarding assets and verifying the existence of assets;
6.4.4 appraising the economy and efficiency with which resources are employed and
identifying opportunities to improve operating performance;
6.4.5 reviewing operations or programmes to ascertain whether results are consistent
with established objectives and goals and whether the operations or programmes are
being carried out as planned;
6.4.6 reviewing the planning, design, development, implementation and operation of
major computer-based systems to determine whether:
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6.4.6.1 adequate controls are incorporated in systems;
6.4.6.2 thorough systems testing is performed at appropriate stages;
6.4.6.3 system documentation is complete and accurate; and
6.4.6.4 the needs of users are met.
6.4.7 Reporting to the Finance and Audit Committee in writing annually on the scope of
reviews of good governance and any significant findings.
6.5. SCOPE OF INTERNAL AUDIT SERVICES
The audit service will be an outsourced function. The scope of the internal audit service
shall consist of:
6.5.1 the performance of the following assignments:
Assignment no.
A
B
C
D
E
F
G
Scope
Review and update the Internal Audit Charter
Carry out a risk analysis
Prepare a Three Year Internal Audit Coverage Plan
Perform Audit assignments
Perform Computer audits / IT Security
Performance Finance and controls audits
Develop a fraud prevention plan
6.5.2 the performance of such other assignments as the Finance and Audit Committee
may (from time to time) authorise, which will constitute an addition to the scope of
services in clause 6.5.1 above.
6.6 CONTENT OF BID PROPOSAL
The proposal should include:
6.6.1 all relevant perceived strengths and weaknesses of the firm bidding for the service,
e.g.similar previous experience, in-house skills etc, providing information which will
assist Isett Seta to assess its capabilities, capacity, competitive advantages etc;
6.6.2 the summary of the Bidder’s mission statement, the vision statement, values and
long term strategies and objectives as comprehensively as possible;
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6.6.3 a proposed plan of action to achieve the objectives of Internal Audit function. Such
plan should cover short and medium term steps to manage the Internal Audit function;
6.6.4 a list of references of previous and current Internal Audit appointments;
6.6.5 an organogram or list of partners, managers, specialists and clerks, together with
the curriculum vitae of the staff who will be available for the duration of the work; any
staff changes regarding staff allocated to Isett Seta must be done in consultation with
Isett Seta.
6.6.6 details of staff training and development policies and procedures, with specific
mention of affirmative action policies;
6.6.7 a breakdown of the hourly tariff inclusive for services rendered. Expenditure
incurred without the prior approval of Isett Seta will not be reimbursed;
6.6.8 in so far as is possible, a comprehensive budget, showing the service activities
proposed, with charge-out rates and budgeted hours per activity, detailing all
assumptions made in arriving at a proposed budget, including all costs factors such as
traveling. Preference will be given to Tenders which show ingenuity in conducting the
work;
6.6.9 How the Bidder proposes to provide governance assistance to Isett Seta;
6.6.10 In so far as is possible, provide an overview of the methodology to be applied.
6.6.11. Submission of financial statements for the last two years.
6.7. VALIDITY OF PROPOSALS
The Bidder is required to confirm that it will hold its proposal valid for 90 days from the
closing date of the submission of proposals, during which time it will maintain without
change, the personnel proposed for the services together with their proposed rates.
6.8. APPOINTMENT, COMMENCEMENT AND DURATION
The successful bidder will be appointed for a period of three (3) years effective from the
date of signing the service level agreement. The contract will be reviewed annually.
6.9. PACKAGE APPROACH
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Isett seta would prefer to conclude an agreement with a Bidder who is able to provide a
complete internal audit service.
The successful Bidder will be expected to be visible at all times during the tenure of the
contract.
The successful Bidder will have access to all information of isett seta within the normal
working hours of Isett Seta. Isett Seta will provide the successful Bidder with an office
equipped with a telephone, which will be allocated a PIN code for accountability
purposes. Isett Seta will also reserve two parking bays for the successful Bidder.
6.10. DESCRIPTION AND EXTENT OF WORK
6.10.1 Performance of audit assignments
Assignments are to be performed in accordance with the Consultant’s internal audit
procedures. However, each assignment should consist of the following tasks:
1. audit preparation;
2. preliminary survey;
3. review of internal controls;
4. audit testing;
5. development of findings and recommendations;
6. obtaining management responses; and
7. reporting
All procedures and working papers must be made available on request within one
working day, to Isett Seta as well as the Finance and Audit Committee on request.
6.10.2 Timing of assignments
The Finance and Audit Committee shall approve the three-year audit coverage plan
before implementation. The performance of each assignment that is not in the audit
coverage plan shall be agreed to by the Finance and Audit Committee by not later than
1(one) month before work is due to commence.
6.10.3 Quality assurance reviews of the work
The Successful Bidder shall ensure that all work conforms to the Standards for the
Professional Practice of Internal Auditing (Institute of Internal Auditors).
6.10.4 Independence and objectivity of Audit Staff
In carrying out the work, the Successful Bidder must ensure that its staff maintains
objectivity by remaining independent of the activities they audit.
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6.10.5 Monitoring progress of assignments
On a quarterly basis, the Successful Bidder shall meet with the Finance and Audit
Committee to report on progress of the Work.
6.10.6 Report of audit results
The report(s) on findings and recommendations should be sent to the Senior Manager
of the Department (auditee) responsible for implementing those recommendations for
their review and comment. Within 10 (ten) working days of sending the report(s), the
Successful Bidder shall meet with the auditee to discuss the findings and obtain written
responses to recommendations together with implementation dates. If the findings
have not been addressed these shall then be incorporated into the relevant report.
The structure of the report is to be as follows:
 ¨ Introduction;
 ¨ audit objective and scope;
 ¨ background;
 ¨ executive summary;
 ¨findings, recommendations and
implementation dates);
 ¨ conclusion; and
 ¨ method of proceeding.
management
response
(including
6.10.7 Fraud and irregularities
In planning and conducting its work, the successful bidder should seek to identify
serious irregularities, which might result in possible fraud; any such irregularities must
be reported immediately to the Chief Executive Officer of Isett Seta as well as the
Finance and Audit Committee without disclosing these to any other members of the
staff.
6.10.8 Authorised delegate(s)
Nothing as stipulated in these terms of reference may be amended without the written
confirmation of the Chief Executive Officer of Isett Seta.
6.10.9 Professional Membership
Professional body membership is mandatory (SAICA, IIA or any other recognizable
accounting or auditing body, please attached proof).
6.10.10 Disclaimer
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ISETT SETA reserves the right not to appoint a service provider and is also not obliged to
provide reasons for the rejection of any proposal. ISETT SETA reserves the right to:

Award contract or any part thereof to one or more Service Providers;

Reject all bids;

Consider any bids that may not conform to any aspect of the bidding
requirements;

Decline to consider any bids that do not conform to any aspect of the bidding
requirements;

Request further information from any Service Provider after the closing date;

Cancel this tender or any part thereof at any time.
7. EVALUATION METHODOLOGY
Bidders that do not meet the Administrative Compliance Requirements (completion and
attachment of Compulsory documents), shall not be considered for Stage 1 evaluation.
Points will be awarded in accordance with the Preferential Procurement Policy
Framework Act (PPPFA)
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Stage 1 : FUNCTIONALITY
No
1
2
3
4
5
6
7
8
9
Criteria
The ability to carry out specialised audits e.g. information
system,forensic investigation, fraud limitation and performance
auditing.
The ability to identify, evaluate and facilitate the minimisation of
exposure to risks associated with inadequate and ineffective
internal controls
A proposed plan of action to achieve the objectives of the
outsourced internal audit function. This plan should cover short,
medium and long terms objectives.
General experience in the field of internal auditing and in
particular within listed public entities. A list of references of
Internal Audit appointments should be provided.
The qualification and competence of the personnel proposed to
provide the service. Assessment of the condensed curricula vitae
of personnel involved on the projects.
Progress made in affirmative action policies.
Comprehensive budget for the proposed period, providing
assumptions used to derive at the budgeted amounts.
Ability to provide corporate governance assistance.
The methodology/ies to be employed as part of the audit technique.
TOTAL SCORE
Minimum Threshold for functionality
Points
15
20
20
15
10
5
5
5
5
100
70
Bidders who fail to meet the minimum score of 70 points out of 100 points in Stage 1
shall not be considered for evaluation in terms of Stage 2 (Price and HDI).
Stage 2: PRICE AND HDI
Criteria for Price and HDI Status
Bid Price
Preference Points
TOTAL
Points
90
10
100
Bidders are required to use the two envelope bidding system, whereby the Technical
Proposal (Stage 1) and Pricing and HDI (Stage 2) be placed in two separate envelopes
marked:
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Stage One
Stage Two
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Technical Proposal
Price and HDI
23
8. PRICING SCHEDULE
8.1 Pricing Schedule
NAME OF BIDDER:
OFFER TO BE VALID FOR 90 DAYS FROM THE CLOSING DATE OF BID.
ITEM
NO
DESCRIPTION
BID PRICE IN RSA CURRENCY INCLUSIVE OF
VALUE ADDED TAX
1
The accompanying information must be used for
the formulation of proposals.
2
Bidders are required to indicate a ceiling price
based on the total estimatged time for completion
of all phases and including all expenses inclusive Amount Excluding
of VAT for the project
VAT
R
Disbursements
Total
VAT @ 14%
R
Total Inclusive of
VAT
R
3
Persons who will be involved in the project and
rates applicable (certified invoices must be
rendered in terms hereof)
Person and position
4
Hourly rate
R
R
R
R
Hours
Cost/phase
R
R
R
R
Hours
Phases according to which the project will be
completed, cost per phase/ and person-days to be
spent
Phase or description activity (audit committee
meetings, internal audits, etc)
Totals
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NAME OF BIDDER:
ITEM
NO
DESCRIPTION
5
Travel expenses (specify, for example rate/km
and total km, class or air travel, etc). Only actual
costs are recoverable. Proof of the expenses
incurred must accompany certified invoices
Description of expense to be incurred
Travel (km)
6
BID PRICE IN RSA CURRENCY INCLUSIVE OF
VALUE ADDED TAX
Rate
Quantity
TOTAL
TOTAL
R
R
Amount
R
R
Period required for commencement with project
after acceptance of bid
7
Estimate person-days for completion of the project
8
Are rates quoted firm for the full period of the
contract?
9
If not firm for the full period, provide details of the
basis on which adjustments will be applied for, for
example consumer price index
8.2 Please indicate the period required for commencement of project after acceptance of tender
8.3 Are the rates quoted firm for the full period of the contract?
Note: The Tender Committee prefers firm prices and delivery periods
YES
NO
8.4 Have you included your payment terms in your proposal?
YES
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NO
NOTE: if your Tender is accepted by the Isett Seta, the SETA reserves the right to include
a penalty clause on the final contract for non-performance and non-delivery on the
period stated above.
8.5 If prices are not firm for the full period of the contract, provide details of the basis on which
adjustments will be applied.
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9. TAX CLEARANCE CERTIFICATE
IT IS A CONDITION OF BIDDING THAT –
1. The taxes of the successful bidder must be in order, or that satisfactory arrangements
have been made with the Receiver of Revenue to meet his / her tax obligations.
2. The attached form “Application for Tax Clearance Certificate (in respect of bidders)”
must be completed in all respects and submitted to the Receiver of Revenue where the
bidder is registered for tax purposes. The Receiver of Revenue will then furnish the
bidder with a Tax Clearance Certificate that will be valid for a period of six (6) months
from date of issue. This Tax Clearance Certificate must be submitted in the original
together with the bid. Failure to submit the original and valid Tax Clearance Certificate
may invalidate the bid.
3. In bids where Consortia / Joint Ventures / Sub-contractors are involved each party
must submit a separate Tax Clearance Certificate. Copies of the Application for Tax
Clearance Certificates are available at any Receiver’s Office.
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APPLICATION FOR TAX CLEARANCE CERTIFICATE
(IN RESPECT OF BIDDERS)
1. Name of taxpayer / bidder: ................................................................................................................................................................................................
2. Trade name: ........................................................................................................................................................................................................................
3. Identification number
4. Company / Close Corporation registration number:
5. Income tax reference number:
6. VAT registration number (if applicable):
7. PAYE employer’s registration number (if applicable):
Signature of contact person requiring Tax Clearance Certificate: .........................................................................................................................................
Name:
Telephone number: Code:………………… Number: .....................................................................................................................................................................
Address: ...................................................................................................................................................................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
DATE: 20_____ / ______ / ______
PLEASE NOTE THAT THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE (SARS) WILL NOT EXERCISE HIS DISCRETIONARY POWERS INFAVOUR
OF ANY PERSON WITH REGARD TO ANY INTEREST, PENALTIES AND / OR ADDITIONAL TAX LEVIABLE DUE TO THE LATE- OR UNDERPAYMENT OFTAXES,
DUTIES OR LEVIES OR THE RENDITION RETURNS BY ANY PERSON AS A RESULT OF ANY SYSTEM NOT BEING YEAR 2000 COMPLIANT.
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10. ADDITIONAL COMPANY INFORMATION
10.1. Are you registered in terms of section 23(1) or 23(3) of the
Value Added Tax Act (Act No 89 of 1991)
YES
NO
10.2. Are you registered in terms of Section 28 of the Unemployment
Insurance Act of 1966?
YES
NO
YES
NO
10.3. Are you registered in terms of Section 80 of the Compensation
for Occupational Injuries and Diseases Act, 1993?
10.4. Type of company ( Partnership, One person
business/sole trader, Close Corporation,
Company, (Pty) Limited)
10.5. Describe principle business activities
10.6. Total number of years the firm has been in business
10.7. Do you have an Employment Equity Plan in place?
YES
NO
NOTE: If YES, please supply a SUMMARIZED copy of your Employment Equity Plan to the
SETA Tender Board.
If NO, please detail the objectives of the firm to align itself with Employment Equity
practices and regulations
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10.8. Please provide at least 3 references
Company Name
Contact Person
1.
2.
3.
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Contact Details
11. DECLARATRION
I/we, the undersigned, who warrants that he/she is duly authorized to do so on behalf
of the firm, certifies that the item(s) mentioned in part of the foregoing certificate
qualifies/qualify for the preference(s) shown and acknowledge(s) that:
• The information furnished is true and correct
• Not more than 25% of the value of the contract at the time of award, exclusive of VAT
and all allowances for contingencies and escalation, will be subcontracted to other
parties.
• This tender document does not in any way bind the ISETT SETA to engage the services
of the TENDERER.
• This tender document is entirely an invitation to the TENDERER to express its interest
in providing management services as detailed in the Terms of Reference.
This tender document is intended only as a basis for evaluation and in no way
constitutes an offer of assignment and/or warranty of success for the applicant
TENDERER.
Name:
Capacity
Identification No:
Trade Name:
Postal Address:
Physical Address:
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Company /CC
Registration No:
Income Tax Ref No:
VAT Registration No:
PAYE employer
Registration No:
Postal Address:
Signature's of tenderer
Signature's of tenderer
Date
Contact Details (tel)
(fax)
E-mail address
Signed for and on behalf of
TENDERER(S)
Witness
Name:
Name:
Date:
Date:
Address:
Address:
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