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TERMS OF REFERENCE

FOR

CONSUMER DEBTOR DATA CLEANSING

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NAME OF THE PROJECT: CONSUMER DEBTOR DATA CLEANSING

1. INTRODUCTION OF THE PROJECT:

The Alfred Nzo District Municipality seeks to create erf files with property owners’ information and account owners information to update customer details on billing system and pre-paid water system.

2. PROJECT BACKGROUND:

The municipality took over consumer debtors accounts from it respective local municipalities, being Umzimvubu, Tabankulu, Bizana and Matatiele with no erf files for levying of water and sanitation charges. However, some of the erf files have not been updated with the new customer information after the transfer due to inter alia sale of property, subdivisions, consolidations, etc. as well as any other information pertaining to the property like building plans, owners information and services account holders (who are not owners of the property e.g. tenants). Erf files need to be created with customer information and deeds enquiries on property information and sub-divisions.

The customer information in the billing system and pre-paid water is not complete for all the customers and some information is not accurate, e.g. postal addresses, ID numbers, telephone and cell phone numbers, credit meter numbers, pre-paid water meter numbers, etc. Status of municipal accounts:

Town Prepaid Credit Total

Mount Frere 0 1207 1207

Tabankulu 0 356 356

Mount Ayliff 0 692 692

Bizana 0 539 539

Cedarville 19 19

Matatiele 326 1552 1878

Maluti 0 1159 1159

Total 326 5524 5850

3. PURPOSE OF THE PROJECT:

The purpose of the project is to create erf files and update customer data on the billing system and pre-paid water system.

4. SCOPE OF WORK:

The support of a service provider is required to assist with the following tasks relating to all areas where municipal services are offered, being Mount Frere, Tabankulu, Mount Ayliff, Bizana, Cedarville, Matatiele and Maluti, in terms of specifications indicated:

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Verify all billing data in relation to ownership data (e.g. accuracy of ID numbers, meter numbers, erf numbers, physical and postal addresses, etc.).

Verify occupancy in relation to all services sites, through facilitating the signing of an extension of credit agreement per serviced sites, run a deeds search for all properties and ensuring that they are billed

Check any pieces of land owned by the municipality and verify their existence in the asset register and general valuation roll

Identify any land parcels that are municipal and those that are owned by members of the community which may not be appearing in the municipality’s billing system

Verify all debtors’ types through conducting physical (door to door) verification per registered erf and against zoning data

Verify service coverage per site, through assessing billing status per registered erf against scheme coverage and a level of service

Verify all meter installations – domestic, commercial, industrial, through assessing meter information as per billing system against all meter audit data per registered erf

Identify areas where meters are required

Review service and tariff code structure and provide documentary evidence to support the validity and completeness of all billable charges per debtors as it relates to the financial period 2013/2014

Determine households in need of indigent support and that not in need or no longer qualifying for an indigent support must be listed separately for being removed from the indigent register

Analyze the arrear debt in the municipal books in order to determine whether there are accounts that are untraceable, inaccurate, etc. and require some writing offs or any adjustments

Prepare a list of all accounts that may require to be written off for a Council approval (e.g. accounts with no movement, etc. for a long time as per the analysis in terms of the previous bullet point

Identify account holders whose water meters may not have been read for a long time

Identify and report houses operating as businesses and provide information plus also verify as well if owners are not recipients of indigent support

Analyze data on pre-paid water system and ensure that all customer details are captured and match customer information in the billing system and erf files (particularly meter numbers, erf numbers, physical and postal addresses, ID numbers and names, etc.)

Identify and verify accounts in pre-paid water system that are redundant and have not purchases water over a period of time and make recommendations for such

Based on results of above mentioned assessment and verification analysis, table a gap analysis for consideration and approval, above mentioned assessment and verification must be undertaken using a recognized data management system, capable of providing detailed extracts, running various complex queries, and present data spatially, pre and post verification update

Undertake and update of master file information on the billing system, based

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on the table gap analysis

Conduct door to door field surveys to verify customer information details on all properties that are receiving municipal services:

- Name of registered owner(s) - Contact details - Street and postal addresses - Occupancy of all properties that are receiving municipal services - Type of services per property - Status of occupants, indigents – non indigents - Sub-division details - Existence and accuracy of meters – matching meters against municipal

master file - Current usage (zoning) – business, domestic

5. DELIVERABLES

Correct billing data in relation to ownership data (e.g. accuracy of ID numbers, physical and postal addresses, contact numbers)

Signing of an extension of credit agreement per serviced sites to ensure that they are billed

Register of a piece of land owned by the municipality and exist in the asset register and valuation roll

List of pieces of land that are municipal and those that are owned by community which may not be appearing in the municipal billing system

Debtors types through conducting physical (door to door) verification per registered erf against zoning data

Report on service coverage per site, through assessing billing status per registered erf against scheme coverage and level of service

Schedule of all meter installations – domestic, business, industrial, through assessing meter information as per billing system against all meter audit data per registered erf

List of areas or properties where meters are required

A report on tariff code structure and documentary proof to support the validity and completeness of all billable charges per debtor as it relates to the financial period 2013/2014

An indigent report of households in need of indigent support and that no in need or no longer qualifying for an indigent support must be listed separately for being removed from the indigent register and billing system

A schedule of arrear debt in the municipal books reflecting untraceable, inaccurate, etc. and require some writing off or any adjustments

All accounts that may require to be written off for a Council approval

A list of account holders whose meters may not have been read for a long time

A report of domestic houses operating as business

Fully completed door to door field survey forms with customer and property details:

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- Name of registered owner(s)

- Contact details

- Street and postal addresses

- Occupancy of all properties that are receiving municipal services

- Type of services per property

- Status of occupants, indigents – non indigents

- Sub-division details

- Existence and accuracy of meters – matching meters against municipal master file

- Current usage (zoning) – business, domestic

Updated files with relevant information pertaining to property, property ownership, and account holders

Updated billing system customer information (to also include pre-paid water meter numbers)

Updated pre-paid water system customer details

6. KEY COMPETENCIES

Service providers appointed to undertake this project should demonstrate the following competencies:

a) Proven record of undertaking a similar project in another municipality b) Technical skills to interpret the requirements of the Terms of Reference c) In-depth knowledge and experience in the field of municipal billing

7. PROJECT MANAGEMENT

The service providers will work very closely with the Alfred Nzo District Municipality.

Any losses or damages incurred by the contracting authority due to any negligence by any service provider will be borne by the company concerned. Such amounts will be recovered from the monthly payment to the service provider by the contracting authority.

8. PROJECT TIME FRAME

The project contract is for a period of four months.

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9. PROJECT BUDGET

Service providers must present a work plan and budget consistent with the amount of work as specified in the ‘scope of work’.

10. EXPECTED OUTCOME

The updated customer data on billing system

Updated accurate customer details and property information in the billing system

Updated accurate customer information in the pre-paid water system

Extensive report on each deliverable

11. EVALUATION CRITERIA The proposals will be evaluated in two stages, namely:

Stage 1- Functionality

Stage 2- Price and BBBEE Points

Only Bidders who score 80% or more on stage 1 would be evaluated further and therefore eligible for the award.

40 Points for Capacity and Expertise are spread as follows:

-Proposed project team with the following expertise:-

Financial Management Qualification of at least NQF Level 6 / Equivalent

Qualification, maximum of 20 points may be awarded.

Geographical Information System (GIS) Qualification of at least NQF Level 6 /

Equivalent Qualification, maximum of 05 points.

Information Technology Qualification of at least NQF Level 6, maximum of 10

points may be awarded.

ITEM Weight

STAGE 1 OF EVALUATION – FUNCTIONALITY

Functionality 100

Previous Experience 40

Capacity and Expertise 40

Methodology 20

STAGE 2 OF EVALUATION – PRICE & PREFERENTIAL POINTS

BBBEE POINTS 10

PRICE 90

TOTAL 100

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Project Management Qualification, maximum of 05 points may be awarded.

40 Points for previous experience are spread as follows:

Traceable record for successfully completed projects of similar nature (data

cleansing) for a minimum of Five (5) institutions, maximum of 40 points may be

awarded.

Traceable record for successfully completed projects of similar nature (data

cleansing) for a 3-4 institutions, maximum of 30 points may be awarded.

Traceable record for successfully completed projects of similar nature (data

cleansing) for 1-2 institution’s, maximum of 20 points may be awarded.

20 Points for Methodology are spread as follows:

Clear proposal covering at least following all the items set in the terms of

references (Scope of Work).

Upon request by the Employer, the Bidder undertakes to provide adequate documentation to fully justify his points claim. Failure to provide any justification shall result in the tender being rejected. The Employer may evaluate the justification documentation independently and shall in such cases, in his evaluation of the tender, determine, at his sole discretion, the quality points applicable.

END