Government Pensions

Confidential

Government Pensions

Administration Agency

(GPAA)

Request for proposals (RFP) for the Evaluation of the Efficiency and Effectiveness of Benefit Administrationin the GPAA

INDEX

Section / Page

Guide to Responses

/ 03 of 47 to 03 of 47

Terms of Reference

/ 04 of 47 to 09 of 47

Evaluation Criteria

/ 10 of 47 to 11 of 47

SBD Forms

/ 12 of 47 to 31 of 47

Special Conditions of Contract

/ 32 of 47 to 35 of 47

General Conditions of Contract

/ 36 of 47 to 47 of 47
Index to Administrative Annexure
Annexure / Topic
A / SBD Forms
B / Special Conditions of Contract
C / General Conditions of Contract

GUIDE TO RESPONSES

The tender documentation must address and/ or contain the following information:

Company experience

The service provider must demonstrate extensive and proven experience in conducting similar projects with the following experience:

A minimum of five years company experience in business analysis with work performed in the employee benefits and pensions administration industry (Attach at least three reference letters from current or previous clients reflecting similar work previously undertaken);
Experience in evaluation of Information, Communication and Technology (ICT) systems;
Experience in Risk Management; and
Experience in Client Relationship Management.

The project team should have the following minimum qualifications:

The team leader should have a Masters in Business Administration (MBA) or a Masters in Business Leadership (MBL); and
Team members should have:

A three year qualification or equivalent in Business Analysis;
A three year qualification or equivalent in Information Technology (IT);
A three year qualification or equivalent in Risk Management;
Athree year qualification or equivalent in Client Relationship Management.

Scope, Design & Methodology

The service provider is required to provide the following:

A detailed Project Plan/Work-Plan that demonstrates an understanding of the assignment;
A costing structure (Refer to SBD3.3).

A response of not more than 5 pagesfor each element must be prepared. Prospective bidders may include an Annexure, but the response to each element must be summarized in no more than 5 pages.

TERMS OF REFERENCE

INTRODUCTION AND BACKGROUND

The Government Pensions Administration Agency (GPAA) is responsible for administering funds on behalf of the Government Employee Pension Fund (GEPF) in terms of the Government Employees Pension (GEP) Law of 1996,and National Treasury (NT) funds and schemesthrough Service Level Agreements between the parties.

Core activities of the GPAA

The GPAA as an entity is structured into two main Programmes, namely: Programme1 - Support Services,which provide support to Programme 2 for improved service delivery and governance; and Programme 2 - Benefits Administration. The core services of the GPAA are delivered through Programme 2, which is divided into three Sub-Programmes as follows:

Sub-Programme 2.1: Special, Military and other pensions (National Treasury’s Programme 7)

Thissub-programme provides benefitpayment administration services fornon-contributory pensions that are funded by National Treasury to the beneficiaries of various public sector bodies in terms of different statutes. Military Pensions, Post-Retirement Medical Subsidy and Injury on Duty payments are benefits administered under this sub-programme.Sub-programme 2.1 also provides administrative duties for the followingfunds:

The Associated Institutions Pension Fund(AIPF) in terms of the Associated Institutions Pension Fund Act,1963;

The Temporary Employees Pension Fund(TEPF) in terms of the Temporary Employees Pension Fund Act,1979;
The military pensions in terms of the Military Pensions Act,1976;
Injury on duty payments in terms of the Compensation for Occupational Injuries and Diseases Act,1993;
Post-retirement medical subsidies as provided for and regulated by PSCBC resolutions; and
Special pensions in terms of the Special Pensions Act,1996 as amended.

Sub-Programme 2.2:Government employees (GEPF)

This sub-programme provides administrative services on behalf of GEPF. These services include member admissions, collection of monthly contributions, the management of membership, as well as the administration and payment of benefits. These services can be summarised as follows:

Collection of monthly contributions

Contributions collected consist of both employer and employee contributions and are collected from registered Persal and Persol Financial Institutions (PFIs) through the government’s transversal systems on a monthly basis. In addition, manual contributions are collected from registered Parastatals and public entities whose employees are not remunerated through government’s transversal systems.

Administration of benefits payments

Benefits offered and paid to members are determined in terms of the rules of the GEP Law and can be classified as follows:

a)Normal retirement benefits,

b)Early retirement benefits,

c)Late retirement benefits,

d)Resignation benefits,

e)Ill-health and other retirement (discharge) benefits,

f)Death benefits,

g)Spouses and dependants benefits,

h)Funeral benefits,

Payments to pensioners, members, their dependants and beneficiaries are facilitated through the Automatic Clearing Bureau (ACB), the South African Post Office (SAPO) and Electronic Fund Transfers (EFT’s). Foreign benefit payments are effected though the Forex Division of First National Bank (FNB).

Management of membership

Membership management centres on the maintenance of individual member records, including the admission of new entrants and the processing of exits payment on behalf of theGEPF.

Investment of surplus funds (Accumulation of reserves/assets)

Surplus funds are invested with the Public Investment Corporation (PIC), who acts as the investment portfolio manager for the GEPF whose funds are administered by the GPAA. The PIC is wholly owned by Government and is registered with the Financial Services Board (FSB) in terms of the Financial Services Act.

Sub-Programme 2.3: Client Relationship Management (CRM)

This sub-programme manages relationships with the GPAA stakeholders including clients, third parties and employer departments. It comprises of service channels in the form of Walk-in-Centres and the Call Centre, which ensure effective support between the GPAA and its clients by receiving, resolving and monitoring service requests from clients. The Client Relations Management unit (CRM)has also developed a document management system to support the GPAA’s core functions. CRM also provides training to employer departments through regional and employer liaison units.

The aforementioned sub-programme is therefore responsible for the delivery of services in the benefits payment value chain.

In light of all of the above, the GPAA requires the services of an independent service provider to conduct an evaluation study toestablish the contributing factors towards inefficiencies in the admission and payment of benefits process which lead to delays in payments. The GPAA has identified the following areasfor the evaluation:

The admission and benefit payment value chain;
Productivity levels;
Processes;
Requisite skillsand;
Benchmarking against other market players

The service provider will also be required to benchmark elements of productivity against similar pension industry market players. This evaluation should translate into strategies to efficiently manage and improve benefits administration at the GPAA.

OBJECTIVE

The main objectives of the tender are as follows:

To identify factors that contribute to delayed payments in the value chain, backlogs and productivity thereof,
To evaluate the admission and benefit payment value chain,
To assess the efficiency of standard operating procedures in theadmission and benefits payments value chain,
To assess andidentify gaps in admission and benefit payment resources,
To identify best practices in efficient benefitsadministrationagainst other institutions in the pensions industry.

This evaluation has the following principal tasks:

(i)Review all relevant documentsand systems related to admission andbenefits payment,

(ii)Identify and conduct interviews with key stakeholders in the project area,

(iii)Identify efficient admission andbenefit payment methods and systems in the GPAA,

(iv)Identify bottlenecks forefficient and effective benefit administration,

(v)Analyse underlying factors within and beyond the control of the GPAA that can affect the admission andpayment of benefits,

(vi)Provide recommendations to key project stakeholders for improvement in the admission and payment of benefits.

(vii)Recommend strategies for reducingthe benefitsadministration turnaroundtimes.

SCOPE OF WORK

Deliverables

The outputs of the evaluation will be:

A report with findings and recommendations regarding the following:
End-to-end benefitsadministration value chain analysis;
The efficiency of benefitsadministrationproductivity.

PROJECT TIME FRAME

The assignment is to be carried out over a period of three months (3) months and is scheduled to commence within one week of signing the SLA. A detailed workplan indicating time frames should be provided with the proposal. Progress will be monitored based on the workplan and timeframes provided by the service provider and approved by the GPAA.

The basic scope of services is as follows:

The service provider will analyse thebenefit administration value chain from admission to theexit and payment of benefits;
The service provider will design a report template that will show progress directly linked to the project plan.
The bulk of the project will be performed at the GPAA Head Office.
The service provider is expected to visit three GPAA regional offices in Free State, Kwa-Zulu Natal (KZN) and EasternCape provinces.
The service provider is expected to visit three provincial employer departments in Free State, Kwa-Zulu Natal (KZN) and EasternCape provinces.
The service provider is expected to visit the head offices of three National departments in Pretoria.
The service provider is expected to benchmark with threeof the top pensions industry market players.

SOURCING APPLICANTS FOR THE ASSESSMENT

The service provider must have:

A proven track record of business analysis skills, with work performed in theemployee benefits and pensions administration industry (Attach at least three reference lettersfrom current or previous clients reflecting similar work previously undertaken);
Knowledge and understanding of the employee benefits and pensions administration environment;
Proven experience in project evaluation in the ICT sphere, with experience in the programming environment;
A member within the project team with the necessary qualifications and experience in conducting evaluation studies(three years minimum experience);
Evaluation experience within the South African government system, which will be considered an added advantage;
Excellent writing skills;
Competency and sufficient capacity of personnel to carry out this assignment (Attach copies of staff profile indicating qualifications); and
The service provider is required to provide a detailed Project Plan / Work-Plan that demonstrates an understanding of the assignment.

REPORTING AND TRANSFER OF EXPERTISE

The GPAArecognisesthe importance ofthe transfer of expertise and knowledge by theappointedservice provider. The service provider should indicate how they will ensure skills transfer to key project staff.

Person Specification

Bidder Selection

The GPAA reserves the right to select the appropriate bidders based on its requirements.The decision of the adjudication panel and the CEO of the GPAA will be considered to be final.

Pricing and BEE scorecard

The pricing and BEE scoring will be evaluated on a 90% Price and 10% B-BBEE status basis.

The GPAA reserves the right not to accept the lowest quotation, as the elements listed in the evaluation matrix will play a major role when evaluating proposals. Similarly, the GPAA is not bound to select any of the organisations or individuals submitting a proposal.

EVALUATION CRITERIA

Phase 2 = Minimum 60% qualification on functionality
Item No. / Evaluation Criteria Item: 90/10 Principle / Weight
Phase 1 / Administrative requirements
Attendance of compulsory briefing session
Tax clearance certificate, SARS pin certificate or CSD certificate
Technical proposal
Completion of SBD3.3, SBD4, SBD8 and SBD9
Failure to comply will lead to disqualification
Bidders will be subjected to positive risk assessment
With the individual points made up as follows:
Phase 2 / Functionality
Experience
The service provider should conduct the assessment with the requisite level of skill, integrity and professional competence at all times. The service provider is required to provide a detailed Project Plan / Work-Plan that demonstrates an understanding of the assignment.
The service provider must demonstrate extensive and proven experience in conducting similar projects with the following experience:

A minimum of five years company experience in business analysiswith work performed in theemployee benefits and pensions administration industry (Attach at least three reference lettersfrom current or previous clients reflecting similar work previously undertaken); (5)

Experience in evaluation of Information, Communication and Technology (ICT)systems; (5)
Experience in Risk Management; (5)
Experience in Client Relationship Management.(5)

The project team should comprise of members with the following minimum qualifications:

Team leader:
Masters in Business Administration (MBA) or Masters in Business Leadership (MBL).(5)

Other members:
A three year qualification or equivalent in Business Analysis;(5)
A three year qualification or equivalent in Information Technology(IT); (5)
A three year qualification or equivalent in Risk Management;(5)
A three year qualification or equivalent in Client Relationship Management.(5)

/ 45
Scope, Design & Methodology
The service provider is required to provide:

A detailed Project Plan/Work-Plan that demonstrates understanding of assignment

/ 55
Phase3 / Price / 90
B / B-BBEE Status Level of Contribution / 10
Total / 100

Annexure A

(GPAA)

SCM

Standard Bid Document

SBD1

INVITATION TO BID

YOU ARE HEREBY INVITED TO BID FOR REQUIREMENTS OF GOVERNMENT PENSIONS ADMINISTRATION AGENCY (GPAA)

BID NUMBER:GPAA 03/2017CLOSING DATE: 10 FEBRUARY 2017

CLOSING TIME: 11:00 am

DESCRIPTION Render services for the evaluation of the efficiency and effectiveness of the benefits payment in the GPAA

THE SUCCESSFUL BIDDER WILL BE REQUIRED TO FILL IN AND SIGN A WRITTEN CONTRACT

BID DOCUMENTS MUST BE DEPOSITED IN THE BID BOX SITUATED AT GPAA ADDRESSED TO:

Government PensionsAdministration (GPAA)

34 HAMILTON STREET

ARCADIA

PRETORIA

0001

Bidders should ensure that bids are delivered timeously to the correct address. If the bid is late, it will not be accepted for consideration. The bid box is generally open for 8 hours a day between 08:00 to 16:30, Monday to Fridays. ALL BIDS MUST BE SUBMITTED WITH THE STANDARD FORMS – (NOT TO BE RE-TYPED)

THIS BID IS SUBJECT TO THE GENERAL CONDITIONS OF CONTRACT (GCC) AND, IF APPLICABLE, ANY OTHER SPECIAL CONDITIONS OF CONTRACT

THE FOLLOWING PARTICULARS MUST BE FURNISHED (FAILURE TO DO SO MAY RESULT IN THE BID BEING DISQUALIFIED) ALL STANADARD BIDDING DOCUMENT AS ATTACHED

NAME OF BIDDER………………………………………………………………………………………………......

POSTAL ADDRESS…………………………………………………………………………………………………………......

STREET ADDRESS…………………………………………………………………………………………………………......

TELEPHONE NUMBER CODE…………………………….…NUMBER………………………………………………......

CELLPHONE NUMBER…………………………………………………….…………………………………………………………

FACSIMILE NUMBERCODE ………………………...… NUMBER…………………………………......

VAT REGISTRATION NUMBER …………………………………………………………………………......

HAS A TAX CLEARANCE CERTIFICATE BEEN SUBMITTED (SBD2)?

YES/NO

SIGNATURE OF BIDDER ……………………………………………………......

DATE……………………………………………………......

CAPACITY UNDER WHICH THIS BID IS SIGNED ……………………………………………......

SBD 3.3

PRICING SCHEDULE

(Professional Services)

NAME OF BIDDER: ………………………………………………………………………………………………BID NO.: ……………………………………
CLOSING TIME 11:00 am CLOSING DATE…………………………...

OFFER TO BE VALID FOR …………DAYS FROM THE CLOSING DATE OF BID.

ITEM DESCRIPTIONBID PRICE IN RSA CURRENCY

NO **(ALL APPLICABLE TAXES INCLUDED)

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

estimated time for completion of all phases and including all

expenses inclusive of all applicable taxes for the project. R………..………………………………

3.PERSONS WHO WILL BE INVOLVED IN THE PROJECT AND

RATES APPLICABLE (CERTIFIED INVOICES MUST BE

RENDERED IN TERMS HEREOF)

4.PERSON AND POSITION HOURLY RATE DAILY RATE

------R------

5.PHASES ACCORDING TO WHICH THE PROJECT WILL BE

COMPLETED, COST PER PHASE AND MAN-DAYS TO BE

SPENT

------R------days

5.1 Travel expenses (specify, for example rate/km and total km, class

of air travel, etc). Only actual costs are recoverable. Proof of the

expenses incurred must accompany certified invoices.

DESCRIPTION OF EXPENSE TO BE INCURREDRATEQUANTITYAMOUNT

------……………….……………..R………………..

TOTAL: R......

** ”all applicable taxes” includes value- added tax, pay as you earn, income tax, unemployment insurance fund contributions and skills development levies

5.2Other expenses, for example accommodation (specify, eg. Three

star hotel, bed and breakfast, telephone cost, reproduction cost,

etc.). On basis of these particulars, certified invoices will be checked

for correctness. Proof of the expenses must accompany invoices.

DESCRIPTION OF EXPENSE TO BE INCURREDRATEQUANTITYAMOUNT

------……………….…………….. R………………..

TOTAL: R......

6.Period required for commencement with project after

Acceptance of bid ……………………………………….

7.Estimated man-days for completion of project………………………………………..

8.Are the rates quoted firm for the full period of contract?*YES/NO

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.…………………………………………

…………………………………………

*[Delete if not applicable]

Any enquiries regarding bidding procedures may be directed to the –

(INSERT NAME AND ADDRESS OF DEPARTMENT/ENTITY)

Tel:

Or for technical information –

(INSERT NAME OF CONTACT PERSON)

Tel:

SBD 4

DECLARATION OF INTEREST

1.Any legal person, including persons employed by the state¹, or persons having a kinship with persons employed by the state, including a blood relationship, may make an offer or offers in terms of this invitation to bid (includes a price quotation, advertised competitive bid, limited bid or proposal). In view of possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons employed by the state, or to persons connected with or related to them, it is required that the bidder or his/her authorised representative declare his/her positionin relation to the evaluating/adjudicating authority where-

-the bidder is employed by the state; and/or

-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 persons for or on whose behalf the declarant acts and persons who are involved with the evaluation and or adjudication of the bid.