terms of reference - welcome to … 1 of 29 terms of reference appointment as a co-sourced internal...

of 29

TERMS OF REFERENCE

APPOINTMENT AS A CO-SOURCED INTERNAL

AUDIT SERVICE PROVIDER/PARTNER OF THE

IDT FOR A PERIOD OF THREE (3) YEARS.

Reference: IAU01/2015

Issue Date: 19th October 2015

Closing Date: 10th November 2015

Closing Time: 12h00

Bid Validity Period: Ninety (90) days from closing date

1. BACKGROUND AND OVERVIEW

1.1 The IDT is a leading public sector programme management and

development agency mandated to support Government with the delivery

of the strategic priority outcomes, focusing on Social Infrastructure and

Social Development Programmes. In terms of the Public Finance

Management Act (PFMA) (Act 1 of 1999), as amended, the IDT is listed as

of 29

a Schedule 2 Major Public Entity. The Accounting Authority of the IDT, the

Board of Trustees, reports to Parliament through its Executive Authority,

the Minister of Public Works. The nature of the relationship between the

Accounting Authority and its Executive Authority is set out in a

Shareholder‘s Compact and implemented through the IDT‘s Corporate

Business Plan and Budget, which constitute a performance agreement

between the Minister and the IDT, and comprises the basis for

assessments of the IDT‘s performance and impact as a Public Entity.

1.2 The IDT has its Head Office in Pretoria with Regional Offices in all the

nine (9) Provinces of the Republic of South Africa. The Regional Offices

implement the various number of programmes and projects the IDT

manages (estimated to be 164 programmes and 4466 projects) with the

Head Office playing a coordinating and oversight role. The Regional

Offices have the authority to go out on tenders for Projects (hiring of

Consultants and Contractors for the projects) and Overheads (the IDT’s

goods and services), as well as issue requests for quotations, perform

evaluations of proposals received, adjudicate and appoint, as well as

make recommendations to the Head Office Adjudication Committees for

final approval (within the delegation levels). Invoices from service

providers are also received in the Regional Offices with payments being

prepared and authorised there whilst the actual release of funds and

accounting are done from the Head Office. The Head Office also does its

own procurement and payments.

1.3 Accordingly the IDT is seeking to procure the services of a qualified,

experienced and professional internal audit service provider with

demonstrated capability to assist with the management and performance

of activities in the Internal Audit Function that will ensure the Function

meets the responsibilities inherent to it for a three (3) year period. The

Function currently has a Head: Internal Audit and will be appointing an

of 29

Assistant Internal Audit Manager and Internal Auditor before or during the

service provider’s contract period.

1.4 The IDT Annual Reports, Strategic Plans and Annual Performance Plans

are available on the IDT website (reference should be made to these in

order for bidders to understand the size of the entity and specialised skills

that may be required for audits). Additional information with regards to the

governance structures and functional activities of the IDT can also be

obtained from the IDT website (www.idt.org.za).

2. TERMS AND CONDITIONS

This Terms of Reference (henceforth referred to as TOR) has been compiled by

the IDT. It is being made available, on the same basis, to all Bidders. Bidders

submitting a Bid in response to this TOR will be deemed to do so on the basis

that they acknowledge and accept the terms set out below:

2.1 The IDT reserves the right to amend, modify or withdraw this TOR if

deemed necessary.

2.2 The IDT reserves the right to carry out site inspections or call for

supporting documentation in order to confirm any information provided by

a Bidder in its Bid.

2.3 This TOR does not constitute an offer or recommendation to enter into

such transaction.

2.4 For purposes of Bid evaluation the Bid should be valid for a period of 90

days after the closing date.

http://www.idt.org.za/

of 29

2.5 Distribution of this TOR outside the Republic of South Africa may be

restricted or prohibited by the laws of other countries. Recipients of this

TOR are advised to familiarise themselves with and comply with all such

restrictions or prohibitions applicable in those jurisdictions, and neither the

IDT, nor any of their respective directors, officers, employees, agents,

representatives or advisors, accepts liability to any person for any

damages arising out of or in connection with the breach of any restriction

or provision outside the Republic of South Africa. Persons contemplating

submitting a Bid are advised to obtain legal advice as to the possible

consequences thereof in terms of the law of the jurisdictions in which they

are located.

2.6 This document is confidential and should not be distributed to any non-

bidding party without the proper authorisation of the IDT.

2.7 Neither the IDT nor any of their respective directors, officers, employees,

agents, representatives or advisors will assume any obligation for any

costs or expenses incurred by any party in or associated with preparing or

submitting a Bid in response to the TOR.

2.8 No entity may be involved, whether directly or indirectly, in more than one

Bid in response to this TOR. A failure to comply with this requirement will

result in disqualification of the relevant entity.

2.9 Any requirement set out in this TOR that stipulates the form and/or content

of any aspect of a bid, is stipulated for the sole benefit of the IDT, and

save as expressly stated to the contrary, may be waived by the IDT in its

sole discretion at any stage in the TOR process.

2.10 The IDT and its advisors may rely on a Bid as being accurate and

comprehensive in relation to the information and proposals provided

therein by the Bidders.

of 29

2.11 All Bids submitted to the IDT will become the property of the IDT and will

as such not be returned to the Bidder unless if received after the closing

date and time. The IDT will make all reasonable efforts to maintain Bids in

confidence. Proprietary information should be identified as such in each

Bid.

2.12 If the IDT amends this TOR, the amendment will be sent to each Bidder in

writing. No oral amendments by any person will be considered or

acknowledged.

2.13 This document is released for the sole purpose of responding to this TOR

and must be considered confidential. In addition, the use, reproduction or

disclosure of the requirements, specifications or other material in this TOR

is strictly prohibited.

2.14 All Bids must be formulated and submitted in accordance with the

requirements of this TOR.

2.15 The requirements of the Preferential Procurement Policy Framework Act,

2000 (Act No. 5 of 2000) and Preferential Procurement Regulations, 2011

will be applicable to the selection process in respect of this TOR.

2.16 The service provider will be required to sign confidentiality agreements

with the IDT.

2.17 The service provider may not cede or assign any part of its agreement

with the IDT nor subcontract any part of the work assigned to them without

the prior written authorisation of the IDT.

2.18 The service provider must declare any possible conflict of interest with the

IDT in the pursuance of the proposed assignment.

of 29

2.19 In the event that any conflict of interest is discovered during the

assignment, the IDT reserves the right to summarily cancel the agreement

and demand that all information, documents and property of the IDT be

returned forthwith.

2.20 The general conditions of contract and any written instructions will be

applicable to this TOR.

2.21 Internal Audit service providers who are already on the IDT’s supplier

database should also submit their bids.

3. EXPERTISE AND SKILLS REQUIRED

3.1 The IDT requires the services of a qualified, experienced and professional

internal audit service provider.

3.2 The service providers’ team should consist of staff that are registered with

the following professional bodies IIA, ISACA and any other relevant

professional bodies to render the internal audit services.

3.3 The service provider must have proficient knowledge and experience in

the following areas; internal audit, financial reporting, risk management,

compliance, corporate governance, forensic auditing, IT auditing and

performance auditing. As well as public sector legislation and regulations.

4. LOCALITY

Internal Audit is situated at the IDT Head Office, in order to effectively and

efficiently serve the IDT, the successful bidder should have an office in the

Gauteng province. Regional location to serve the IDT Regional Offices is

important to the IDT as various operations are conducted in each Region and as

of 29

a result of this a number of audits and/or procedures will need to be conducted in

the Regions. The Bidder must therefore demonstrate regional presence,

including the Internal Audit team within each office.

5. SCOPE OF SERVICES

5.1 The Internal Audit partner is required to assist in providing independent

reasonable assurance on the effectiveness and efficiency of the internal

control, risk management and governance processes of the IDT. Pursuing

a risk based approach to planning is key as a risk based internal audit has

a benefit of assessing whether the process intended to serve as a control

is an appropriate risk measure. The partner will also be required to assist

in the improvement of the IDT operations as well as provide value-add to

management.

5.2 The successful Bidder will be required at all times to work to the

standards, code of conduct, guidelines and pronouncements set out by

the Institute of Internal Auditors SA. As well as comply with the

International Professional Practices Framework (IPPF), and all other

applicable laws and regulations (for example, PFMA, National Treasury

Regulations and King 3) to ensure an adequate and effective Internal

Audit Function. The selected service provider must be able to review the

entire operations of the IDT.

5.3 IT and Performance Audits, Audit of Pre-determined Objectives, value for

money testing, risk management and governance issues are just as

important to the IDT as general assurance reports. Bidders should

therefore ensure that their proposal clearly set out how their service will

assist the IDT in these areas.

of 29

5.4 The appointed service provider will report to the Head: Internal Audit who

has the overall responsibility for the function within the IDT. The Assistant

Internal Audit Manager will assist in the management and facilitation of

this reporting.

In this regard tenderers should at least provide for:

Performing a needs assessment and risk assessment to inform the

completeness of the audit universe, and if appropriate, suggest

changes to the current year’s (2015/16) plan to ensure risks are

adequately addressed;

Perform an organisational maturity assessment to ensure that the

Function maps its audit approach to the maturity of the organisation;

Assist in the development of subsequent years risk based 3 year

strategic rolling audit plans and detailed annual operational audit plans

indicating scope and budget before the start of each new financial

year;

Assist with the review of the annual operational plans taking into

account relevant emerging risks;

Assist in presenting the risk based audit plans to the IDT Sub-Unit

Heads, EXCO and the Audit & Risk Committee;

Assist with the annual reviews of the Internal Audit and Audit & Risk

Committee Charters, for approval and recommendation by the Audit &

Risk Committee;

Performance of risk based audits (including but not limited to,

Financial, Human Resources, Supply Chain Management), Corporate

Governance Reviews, Risk Management Reviews, Compliance Audits,

IT Audits, Performance Audits and Audit of Pre-determined Objectives;

Use of integrated and continuous auditing;

Knowledge transfer plan to in-house employees and a bi-annually

detailed progress report on the transfers (including challenges and

improvements);

of 29

Reporting the detailed results of audits to Management and staff of the

relevant Regions/Sub-units/Units;

Assist in preparing the quarterly reports to EXCO and the Audit & Risk

Committee (report to include, performance against plan, critical &

significant audit findings on audits completed, overview of the control

environment and management of risks);

Attendance at the Audit & Risk Committee meetings and any other

Management meetings as requested by the Head: Internal Audit;

Perform Follow-Up audits for both Internal Audit and External Audit

reports timely;

Annual conclusion of the audited control environment to be submitted

to the Audit & Risk Committee;

Provide a written assessment of the effectiveness of the system of

internal controls and risk management to the Board. The assessment

regarding internal financial controls should be reported specifically to

the Audit & Risk Committee.

Value added advice to management regarding management of risk;

Assist with the facilitation of risk assessments;

Conduct risk and audit awareness workshops together with the

Compliance and Risk sub-unit;

Perform ad hoc / specialist assignments such as preliminary & forensic

investigations and supply chain management compliance reviews at

the request of management and the Audit & Risk Committee through

an engagement letter at contract rates (that is Bid rates);

Monthly prepare an activity progress report and have bi-weekly

progress meetings with the Head: Internal Audit;

Provide quarterly activities plan for the quarter (including hours,

timeframes and resources to execute the reviews) 2 - 3 weeks before

the starting of the quarter;

of 29

Perform any other work deemed necessary by the Head: Internal Audit

outside of the approved annual operational plan at contract rates (that

is Bid rates);

Fulfil all requirements pertaining to internal audit as reflected in the

PFMA, Treasury Regulations, King 3 and other applicable regulations;

and

Assist the Head: Internal Audit to develop and implement a combined

assurance model to best optimise costs, avoid duplication and prevent

assurance overload and assessment fatigue.

6. SPECIAL CONDITIONS

6.1 The successful service provider will enter into a formal contract / service

level agreement (SLA) with the IDT and be required to complete the IDT

Supplier Questionnaire.

6.2 To ensure appropriate performance management, this SLA will serve as a

tool to measure, monitor and assess the service provider’s performance

and ensure delivery of services, quality and value-add to the IDT’s

business.

6.3 The tenderer should confirm that they are able to meet performance

targets normally associated with the profession and as set out by the IDT

and set out the processes that they have in place to ensure that they are

achieved. The successful service provider will be required to comply with

this condition and provide a scorecard on how this service offering is being

measured to achieve its objectives.

6.4 Over and above the annual performance review, the service provider’s

performance will be reviewed on a regular basis and if unsatisfactory the

SLA maybe terminated.

of 29

6.5 The Auditor-General (SA) approved rates must be used as a guide in

costing the project.

6.6 All copyright and intellectual property rights that may result as

consequences of the work to be performed on behalf of the IDT shall

become the property of the IDT.

6.7 The IDT expects to be invoiced when service level targets have been

achieved during this period (submission of quality controlled audit file and

report). Bidders should note that the IDT expects rates to remain constant

for the duration of the contract.

6.8 The successful service provider will be required to make use of the

necessary specialised personnel (for example, Construction & SHEQ) on

audits. The IDT has some of these skills (e.g. Quantity Surveyors,

Engineers and Architects) and the service provider will be required to

make use of these as guest auditors on audits, if not available (this must

be confirmed in writing by the official) the service provider will have to

source these specialised skills and charge the IDT at contract rates (that is

Bid rates). The service provider should ensure that the necessary steps

are taken in order to address the use of other parties and conflicts of

interest.

6.9 It is expected that for the successful Bidder, the team presented in the Bid

shall be the team that will work on the IDT assignment, if any changes are

made, the service provider should inform the IDT in writing and ensure

that the replacement has the same proficiency and professionalism. The

IDT reserves the right to disagree with any changes to the personnel.

6.10 The successful service provider will be required to provide the IDT their

Internal Audit Manual which should include the methodology, all policies

and procedures as required by the standards and should be willing to

engage with the IDT on the adoption of this as the IDT’s going forward.

of 29

6.11 The IDT has a cost containment strategy (which is in line with the National

Treasury Regulations), the successful Bidder will be required to use this

strategy for any costs that might be incurred.

6.12 The IDT shall not be liable for travelling kilometers from the service

provider’s offices to the IDT Head Office and Regional Offices where the

service provider has an office in the Province.

6.13 The IDT will only be liable for the actual total cost for any travel from the

IDT Head Office to the Regional Offices were the service provider does

not have an office in the Province, and also only for the travelling

kilometers incurred for site visits. The kilometers travelled claim will be in

line with the IDT travel policy and cost containment strategy.

6.14 The IDT will only be liable for the actual travel costs for any of the key

members of the project team that will need to travel to the Regional

Offices were the service provider does has an office in the Province, the

travel will need to be communicated to the IDT and agreed on.

6.15 The actual travel costs relate to flights, accommodation and car hire.

These will be in line with the IDT travel policy and cost containment

strategy which is in line with the National Treasury Cost containment

regulations.

6.16 The IDT is a development agency and hence encourages the

development of small entities by a larger entity, therefore larger entities

are encouraged to partner with a small entity in their Bids.

7. IMPORTANT NOTES FOR BIDDERS:

Maintain full support services which include management of resources,

guarantee of quality of work and contractual control over resources applied.

of 29

Establish mutual confidence and maintain constructive working relationships with

the IDT Community.

Cooperation between internal and external audit is key and periodic meetings will

be required to discuss activities.

Service providers are to indicate ways they will educate the IDT Community on

Internal Audit.

The IDT may undertake re-organisation of its strategic & operational activities

and procedures during the contract period. This could result in changes in

management and administration arrangements which may impact on audit

requirements. The service provider should therefore commit to flexibility in the

delivery of the service.

8. TENDER BREIFING SESSION

A compulsory briefing session will be held at the IDT Head Office, Glenwood

Office Park, Cnr Oberon & Sprite Street, Faerie Glen, Pretoria on 23rd October

2015 at 10:30am.

9. MANDATORY RETURNABLE DOCUMENTS

The following compulsory returnable documents must be submitted with the

proposal in the following sequence. Failure to supply any of these documents will

lead to disqualification from this Bid:

a) Company registration documents;

b) Original Valid Tax Clearance Certificate;

c) In Bids where Joint Venture / Sub-contractors are involved each party

must submit a separate Original Valid Tax Clearance Certificate;

d) A Valid and Original B-BBEE Certificate or originally certified copy of the

B-BBEE Certificate must be submitted to qualify for preference points.

Note: Failure to submit will not eliminate the service provider but will result

of 29

in no points for B-BBEE being awarded to the service provider during

evaluation;

e) In the case of a Joint Venture a consolidated valid and original or originally

certified copy of the B-BBEE Scorecard must be submitted to qualify for

preference points.

f) Certified ID copies (not older than 3months) of the key team members

who will be working on the project;

g) The SBD (1, 2, 3.3, 4, 6.1, 7.1,8 and 9) documents attached to this TOR

must be completed, signed and returned with the Bid response;

h) All prices shall be quoted in South African currency and be VAT inclusive.

i) The winning bidder will be required to complete the IDT supplier

questionnaire (if the company is already on the IDT database, information

provided will be used to update the company information or records on the

system).

j) Proof of registrations with the following professional bodies IIA and ISACA

for key members of the team.

k) A Joint Venture Agreement, where applicable.

10. BID SUBMISSION

10.1 The bids must be neatly bound, preferably in a sealed envelope and be

deposited into the tender box of the IDT Head Office located at the reception

area on or before 12:00 pm on 10th November 2015. The address is: IDT

Head Office, Glenwood Office Park, Cnr. Oberon & Sprite Streets, Faerie

Glen, Pretoria. No late submissions of Bids will be accepted and/or

considered. The bid will be valid for 90 days from the closing date.

10.2 Two (2) hard copies of the Bid must be submitted, with one file marked

“original” and the other marked “copy”.

10.3 Bids submitted by means of e-mail, telegram, telex, facsimile, electronic or

similar means will not be accepted and/or considered.

10.4 The IDT is not obliged to accept the lowest bid and reserves the right to

accept any bid in whole or part.

of 29

10.5 The duly authorised representative of the bidding entity must sign the bid

document.

11. EVALUATION CRITERIA AND PROCESS

BID EVALUATION

The Bid evaluation will be done as per the phases below:

Phase 1 will be the screening of mandatory documents, ensuring

compliance thereof and evaluation of specific goals. Bidders must submit

all mandatory documents to qualify to phase two of the evaluation, failure

to do so will lead to disqualification.

Phase 2 will be an evaluation on functionality wherein tenderers who do

not meet the threshold of 70% of total functionality points will be

disqualified and will not be further considered for phase 3 of the

evaluation. The Bid Evaluation Committee will, if necessary, contact

Bidders to seek clarification of any aspect of the bid and may request

presentations from Bidders if deemed necessary.

Phase 3 will be evaluation on B-BBEE and price as per the preferential

procurement regulations, 2011.

11.1 Phase 2 - Evaluation Criteria for Functionality

of 29

Bids will be assessed and scored according to the following functionality, criteria and

weighting:

# Criteria Sub - Weight

Allocation

Elements Total Weight

1. References 5 Contactable references including

testimonial letters for internal audit

projects successfully undertaken from

at least five (5) of your current and

previous clients of which at least three

(3) should be from the public sector,

including the following:

o name of the client;

o the responsible manager;

o his/her position;

o contact telephone numbers

or email address;

o description of work

performed;

o dates of engagement ; and

o value of work conducted.

The service provider should have

received positive feedback from clients

for internal audit activities including

value- adds.

5

2. Qualifications

&

competencies

of the entire

proposed team

5

- Provide a complete organogram

including the CV’s of key staff that

will be assigned to the project

including their defined roles and

responsibility. CV’s to include

30

of 29

5

15

qualifications and relevant

experiences. The key / core

management team should at least

have a CIA and possess current

knowledge of standards.

- Proposed team members must be

registered and in good standing

with the IIA and ISACA, and/or any

other relevant professional bodies.

- The project team (including the

service provider’s provincial office

team members that will serve the

IDT’s Regional Offices) must

consist of the following:

a) Identify the position(s)

that will be involved in

the direct delivery of

the service to be

provided, and the

overall management of

the work;

b) Name of the person to

fulfil the positions

listed above. The

resources provided for

the project should

ideally be available for

the duration of the

project and should any

be replaced, it must be

with a person of the

of 29

same or higher level at

no extra cost to the

IDT.

c) Description of tasks,

duties to be performed

by staff in the positions

above;

d) Project manager and

director in the team

with a minimum of ten

(10) years’ experience

in public sector internal

audit, attach certified

copy of qualification

CIA and or Chartered

Accountant;

e) Internal audit manager

with a minimum of

eight (8) years’

experience in public

sector internal audit,

attach certified copy of

qualification CIA;

f) IT Auditor with five (5)

years IT audit

experience, attach

certified copy of

qualification CISA;

g) Other key personnel to

be assigned to the

project with tertiary

of 29

5

audit qualification in

internal audit and

minimum three (3)

years’ experience in

public sector internal

audit. Years of

experience should

exclude

internship/training

learnerships;

h) Specialised personnel

CV’s (for example

Construction, SHEQ,

Forensic) with years’

experience and

certified copy of

qualifications attached.

- The service provider to provide

proof of quality assurance reviews

of internal audit work performed by

an external independent accredited

service provider within the last five

(5) years.

3. Locality 10 Preference will be given for service

providers with offices and operations in

the following provinces – KwaZulu-

Natal, Eastern Cape, Limpopo and

Gauteng. Include:

- The office’s organisational chart;

and

- Names of the Internal Audit team in

10

of 29

each of the offices that will be

involved in the direct delivery of

services to the IDT (these should

be part of the project team noted

above).

4. Capacity to

Deliver

10

5

5

5

5

Company profile, including the

organisational chart. This should

include:

- Company experience in internal

audit, including how long these

services have been offered by the

service provider

- Company experience in the public

sector (including experience in a

public entity);

- Company experience in IT Audits,

Performance Audits, risk

management, forensic audits, value

for money audits and Audit of Pre-

determined Objectives-AOPO;

- Demonstrate use of specialised

skills on audits, for example,

Construction skills (external

personnel contracted by the service

provider).

- Demonstrate use of specialised

skills on audits. for example,

Construction skills (being IDT

personnel used as guest auditors)

- Quality is a key concern to the IDT.

30

of 29

Bids to set out the arrangements within the service provider for ensuring that quality exists throughout the internal audit processes.

5. Systems in

place

5 Provide audit software and techniques

to be used for work to be performed.

5

6. Methodology 10

- Proposed methodology statement

and approach to conduct this

project, including:

o Detail on what activities will

need to be carried out to

achieve the responsibilities

of Internal Audit;

o Table of contents for the

service provider’s Internal

Audit Manual

o Risk assessment

methodology/ies to be used

to develop audit plans;

o An example of reports that

will be presented to

Management and the Audit

& Risk Committee. The

reports to include

conclusions;

o Identifying possible

challenges that may deter

delivery and how these could

be addressed.

o Use of integrated and

continuous auditing; and

20

of 29

5

5

o Use of CAATs.

o Indicate the process to be

followed should there be a

request to conduct special

assignments and

investigations into any

matter or activity affecting

the probity, interest and

operating efficiency of the

IDT.

- Demonstrate in-depth

understanding in risk based audits,

focus to also be put on value add

activities.

- Demonstrate how you will assist the

IDT in developing and

implementing an effective

combined assurance model.

- Demonstrate how there will be a

knowledge transfer of skills to the

in-house team during the contract.

- Description of ways to bring

innovation, best practices to the

Function to assist in enhancing

performance and ensuring

continuous improvement, influence

and value add to the IDT.

11.2 Phase 3 - Preference Point System

of 29

For comparative purposes, Bidder’s costing will be assessed based on the criteria

under Annexure 1 – Pricing Schedule.

11.2.1 The formula below will be used to calculate the preference procurement

points for price:

Where

Ps = Points scored for comparative price of bid under consideration

Pt = Comparative price of bid or offer under consideration

Pmin = Comparative price of lowest acceptable bid

11.2.2 Depending on the bidder’s level of Broad-Based Black Economic

Empowerment contribution, a maximum of 10 points may be allocated to a

bidder. The points scored by a bidder for Broad-Based Black Economic

Empowerment contribution must be added to the preference procurement

points allocated for price. In terms of Regulation 5 (2) and 6 (2) of the

Preferential Procurement Regulations, preference points must be awarded

to a bidder for attaining the B-BBEE status level of contribution in

accordance with the table below:

BBEE Status Level of the bidder

Number of points

1 10

2 9

3 8

4 5

5 4

6 3

7 2

of 29

8 1

Non-compliant contributor

0

11.2.3 Bidders who qualify as EMEs in terms of the B-BBEE Act must submit a

certificate issued by an Accounting Officer as contemplated in the CCA or

a Verification Agency accredited by SANAS or a Registered Auditor.

Registered auditors do not need to meet the prerequisite for IRBA’s

approval for the purpose of conducting verification and issuing EMEs with

B-BBEE Status Level Certificates.

11.2.4 Bidders other than EMEs must submit their original and valid B-BBEE

status level verification certificate or originally certified copy thereof,

substantiating their B-BBEE rating issued by a Registered Auditor

approved by IRBA or a Verification Agency accredited by SANAS.

11.2.5 A trust, consortium or joint venture, will qualify for points for their B-BBEE

status level as a legal entity, provided that the entity submits their B-BBEE

status level certificate.

11.2.6 A trust, consortium or joint venture will qualify for points for their B-BBEE

status level as an unincorporated entity, provided that the entity submits

their consolidated B-BBEE scorecard as if they were a group structure and

that such a consolidated B-BBEE scorecard is prepared for every

separate bid.

11.2.7 A person will not be awarded points for B-BBEE status level if it is

indicated in the bid documents that such a bidder intends sub-contracting

more than 25% of the value of the contract to any other enterprise that

does not qualify for at least the points that such a bidder qualifies for,

unless the intended sub-contractor is an EME that has the capability and

ability to execute the sub-contract.

of 29

11.2.8 A person awarded a contract may not sub-contract more than 25% of the

value of the contract to another enterprise that does not have an equal or

higher B-BBEE status level than the person concerned, unless the

contract is sub-contracted to an EME that has the capability and ability to

execute the sub-contract.

12. ENQUIRIES

12.1 Should it be necessary for a Bidder to obtain clarity on any matter arising

from or referred to in this TOR, please refer your enquiries, in writing, to the

contact person(s) listed below:

12.2 Head: Internal Audit - Ms. Vimbai Chagonda at: [email protected]

13. STANDARD CONDITIONS OF TENDER

IDT’s standard conditions of tender applies for this Bid (See appended).

Additional special terms and conditions of contract will be developed for the

project during appointment stage.

14. GENERAL CONDITIONS OF CONTRACT

14.1 The IDT’s general conditions of contract shall apply for this Bid.

14.2 The information contained in this document are of a confidential nature

and should only be used for bidding for this Bid.

14.3 In addition to the information contained herein, the appointed Bidder will

be required to sign special conditions of contract with the IDT.

14.4 It is the responsibility of the Bidder to ensure that all documents

supporting his/her Bid are submitted on time and as required.

mailto:[email protected]

of 29

Annexure 1 – Pricing Schedule

The IDT understanding is there that audit activities are based on hourly rates and that budgets are compiled once the appointed service provider has assessed the likely extent of the work. Service providers are required to indicate their hourly rates on table 1 below as well as use these to calculate the total estimated cost based on the following estimated hours (these hours do not include any ad-hoc / specialist assignments); 8000 hours (2015/16), 8000 hours (2016/17) and 8000 hours (2017/18) on table 2 provided below. Rates should be inclusive of VAT. No excess charges on this project will be paid for. Should the cost of the project exceed the estimated fees due to delays in the completion of work and missing of deadlines, the extra hours worked will be to the account of the successful service provider. Payments for invoices will be based on output produced or targets reached (e.g. submission of a quality controlled audit file and finalised audit reports etc.). All assumptions made in drawing the proposal must be detailed, including: - detailed project team; - audits to be performed; - other activities to be performed (for example attending meetings, review of charters,

development of plans); and - overheads and administration expenses.

Table 1

Title

Hourly Rate 2015/16 (incl. VAT)



Partner /Director

Senior Manager

Manager

Supervisor

Senior Internal Auditor

of 29

Internal Auditor

Specialist 1 – (e.g. Performance Auditor etc.)

Specialist 2 – Construction/Engineering Personnel

Specialist 3 – IT and Risk

Specialist 4 – Forensic

Note:

The Auditor-General (SA) approved rates must be used as a guide for costing the

project.

Table 2

Financial Year

Description

Bid Price in RSA Currency (including VAT)

2015/16 Estimated annual audited hours – 8000

R


R


R

Total Amount

R

of 29

Service providers must provide a typical distribution of time for members of the audit

team. This is to be expressed in terms of the total-hours billed (estimate of 200 hours

should be used) on a particular project as per table 3 below.

Table 3

Title Time allocation per assignment in percentage (Regularity and other Audit)

Time allocation per assignment in percentage (IT Audit)

Partner /Director

Senior Manager

Manager

Supervisor

Senior Internal Auditor

Internal Auditor

Specialist 1 – (e.g. Performance Auditors etc.)

Specialist 3 – IT and Risk

________________________________________________________________________________________________________________________________________________________

terms of reference - welcome to … 1 of 29 terms of reference appointment as a co-sourced internal...

Documents