ROAD ACCIDENT FUND
COMPULSORY BRIEFING SESSION
RFP /2013/00027
Date: 20 August 2013
Time: 11:00
AGENDA
Background of the RFP
Purpose of the RFP
Evaluation Criteria
Mandatory Documents
Disqualification of Bids
Submission of Bids
Contact details
Questions and Answers
BACKGROUND
• RFP/2013/00027: Request For Proposal:
This bid invites proposals from
bidders to describe in detail their ability to administer claims on behalf of the
Road Accident Fund within a prescribed time frame to meet the service delivery
standards of the RAF in the nine (9) provinces of the Republic of South Africa.
Advertised on 08 , 11 and 12 August 2013
Closing on 10 September 2013 at 11h00 (AS PER THE CLOCK AT THE
RAF RECEPTION AT MENLYN)
MANDATE OF THE RAF
•Legal Mandate
Motor Vehicle Insurance Act 29 of 1942 was the first compulsory motor vehicle
insurance
 Road Accident Fund Act, 1996 (Act No. 56 of 1996) was amended by the RAF
Amendment Act, 2005 (Act No. 19 of 2005)
•
“The object of the Fund shall be the payment of compensation in accordance
with this Act for loss or damage wrongfully caused by the driving of a motor
vehicle”
•
Responsible for providing appropriate cover to all road users within the borders
of South Africa and to rehabilitate and compensate persons injured as a result of
the driving of motor vehicles in a timely and caring manner
 Shaped by Constitutional Rulings and legal precedents
 National public entity (schedule 3A of the PFMA)
MANDATE OF THE RAF
•The Road Accident Fund’s main functions:
The Road Accident Fund (RAF) provides a social security safety net to the country
and economy by making available compulsory social insurance cover to all users
of South African roads.
 The RAF is responsible for:
• Providing compulsory insurance cover to all users of South African roads,
citizens and foreigners,
•
Rehabilitating and Compensating persons injured
•
Actively promoting the safe use of all South African roads
 Citizens can claim from the RAF: Directly or alternatively they can use an
attorney
MANDATE OF THE RAF
• Compensation covered by the RAF:
•




Past and future hospital, medical and related expenses
Funeral expenses
Past and future loss of support
Past and future loss of earning
 Pain & suffering, disability, disfigurement and loss of amenities of life
RATIONALE BEHIND THE RFP
 The RAF is experiencing a lack of capacity to effectively deal with the current
claims backlog of approximately 250 000 claims. As part of the backlog
elimination strategy of the RAF, the Board approved several initiatives which
will assist in the backlog elimination.
 One of the strategies approved by the Board of the RAF was to outsource a
portion of the backlog.
 A full outsource model for specific claims over a defined period was chosen as
it will assist the Fund to identify efficient claim processing models which may
be adopted by the Fund.
OPERATING MODEL
OPERATING STRUCTURE
PROJECT WAY FORWARD
DELIVERABLES
 This bid invites proposals from bidders to describe in detail their ability to administer claims on
behalf of the Road Accident Fund within a prescribed time frame to meet the service delivery
standards of the RAF in the nine (9) provinces of the Republic of South Africa.
 The RAF will award a contract to three (3) successful bidders for an initial period of one year,
renewable annually, subject to performance, for up to three (3) years at the election of the RAF in
respect of the following deliverables:
− Validate and verify claim information;
− Investigate and assess merits;
− Investigate and assess medical records and reports relating to injuries sustained by the
Claimant;
− Investigate and assess quantum;
− Negotiate settlement;
− Deal with all litigation arising on a specific matter after instruction;
− Accurate record keeping and timeous reporting; and
− Communication with claimants, attorneys and the RAF.
LITIGATION
 The Fund has a panel of attorneys who generally deals with litigated
claims.
 The main focus of this bid is not on litigation, but on finalising claims.
The appointed service providers must be able to deal with the
outsourced claims irrespective of whether the claim is litigated or not.
 Provision is made in the SLA to deal with the eventuality of a claim
becoming litigated.
 The service provider is expected to negotiate settlement with claimant
attorneys where claims are litigated and to represent the Fund in Court.
PRICING MODEL
 Bidders must provide pricing in respect of two categories:

Direct Claims

Represented Claims
 Pricing must cover all services and disbursements
 NO ADDITIONAL AMOUNTS WILL BE PAYABLE IN EXCESS OF
THE PRICING TENDERED
SERVICE STANDARDS AND QUALITY
 The RAF reserves the right to vet the service standard and quality of representation by the
bidders in terms of the contract terms and conditions contained in the bid documents.
 The bidder will be required to sign a Service Level Agreement with the RAF.
 The bidder shall not communicate with any third party on behalf of the Fund, other than for
purposes of delivering the services.
 The bidder must minimize all identified risks and costs.
 The bidder must provide details of its organisational structure and capacity.
 Should the RAF suffer any loss due to the actions of the bidder, the loss will be recovered
from the bidder in terms of the PFMA and the RAF’s financial control policies.
 The bidder must provide Bid Security, in a form acceptable to the Fund (Annexure H), in the
amount of R500 000.00.
 The bidder must provide public liability insurance in the amount of R5 000 000.00
CONTRACT TERMS
 Contract Duration
 Conflict of Interest
 Performance Guarantee
 Insurance / Limitation of Liability
 Penalties
 Pricing Structure
 Performance Measurement
 Litigation
 Skills Transfer
MANDATORY DOCUMENTS
 Standard Bidding Document (SBD)
 Valid Original Tax Clearance Certificate
 Bid Conditions
 BEE Certificate
[Insert presentation title]
Page 16
EVALUATION CRITERIA
 The bid will be evaluated based on the following requirements:
− Mandatory (Comply or Not Comply) – Bidders who do not meet the
mandatory requirements will be disqualified.
− Technical Functional requirements (100 points).
−
Price and BEE (90/10 points).
 Bidders who score 60 out of 70 points will be required to do a presentation.
 Bidders who score 90 out of 100 points will be evaluated on Price and BEE.
 The Three (3) bidders who score the highest points on Price and BEE will be
listed on a panel.
MANDATORY EVALUATION CRITERIA
Mandatory
Comply
Not Comply
Comply
Not Comply
The bidder must confirm that they have read and understood the
terms and conditions set out in the attached Service Level
Agreement (Annexure G) which terms and conditions the bidder
accepts, in the event that the RAF awards the contract to the
bidder pursuant to this bid.
Mandatory
The successful bidder shall be required to sign the final SLA
within 7 (seven) days of receiving same from the RAF. Failure to
comply will result in the bid being deemed to be non-responsive
which will then entitle the RAF to consider other responsive bids
and award the tender to another bidder or bidders.
MANDATORY EVALUATION CRITERIA
Mandatory
Comply
Not Comply
Comply
Not Comply
The bidder must have at least 5 (five) years Claims
Management Experience. In evidence hereof, the bidder must
submit a profile detailing its claims management experience.
Mandatory
Bidder must submit a proposal to demonstrate the capability to
deliver on all relevant medico legal investigations required to
quantify all relevant claims.
MANDATORY EVALUATION CRITERIA
Mandatory
Comply
Not Comply
Comply
Not Comply
Bidder must be willing to do knowledge transfer to RAF. The
bidder shall provide the RAF with a detailed working process
which will be used to achieve the goal of early settlement.
Mandatory
Bidder must furnish the Fund with bid security in the sum of
R 500 000.00 substantially in the format of Annexure H.
MANDATORY EVALUATION CRITERIA
Mandatory
The bidder must submit a proposal to demonstrate the capability to
deliver effective claims management, in respect of a portfolio of
claims numbering 10 000 to 15000 at any point in time, from
verification to settlement. The proposal must include the following:
 Claims Management Strategy;
 Detailed Claims Management Processes in respect of the
following:
• Validation and verification;
• Merits determination;
• Repudiation;
• Quantum determination;
• Offer and acceptance;
 Staff Capacity including;
• Organogram of staff who will be involved in the delivery of
the RAF’s requirements; and
• Average years of relevant claims management experience of
the above staff;
 Infrastructure in respect of IT hardware and software;
 Communications technology;
 Office facilities; and
 Document management.
Comply
Not Comply
TECHNICAL EVALUATION CRITERIA
Functional criteria
PROPOSAL
•PORTFOLIO OF EVIDENCE
Points
30
20
INFRASTRUCTURE
 Hardware
 Software
Communication capabilities
 Other:
•Demonstrate capabilities to provide document and messenger services
• Courier
• Docex = Provide Docex number
• Postal services = Provide box/private bag address
 Document Management
 Premises
20
•BIDDERS SCORING AT LEAST 60 OUT OF 70 WILL BE REQUIRED TO DO A PRESENTATION
•PRESENTATION
30
DISQUALIFICATION OF BIDS
Bidders shall be disqualified if they fail to:
Submit a valid and original tax clearance certificate
Complete questionnaires in full
Submit true and correct information
Comply with mandatory requirements
Comply with prescribed response format
Attend the compulsory briefing session
SUBMISSION OF RFP RESPONSES
Original signed bid document and Proposal clearly marked and
indexed with all pages numbered.
One (1) original and two (2) hard copies, submitted in a sealed, clearly
marked (RFB/2013/00027) envelope , to the address provided below.
Submission Address :
RAF Menlyn Reception
38 Ida street Menlo Park Pretoria
CLOSING TIME : 11:00 am (PER THE CLOCK AT THE RAF RECEPTION)
[Insert presentation title]
Page 24
SUBMISSION OF RFP RESPONSES
Bid responses sent by courier must reach the reception at least 36
hours before the closing date (10 September 2013, at 11h00 – AS
PER CLOCK AT RAF RECEPTION), to be deposited into the Bid box.
Submission Register must be signed at the reception by bidder
when submitting bid documents.
Important note:
Please ensure that the attendance register has been signed
Name of company
Contact details
Late response will not be considered
CONTACT DETAILS
 All queries must be forwarded to mthobag@raf.co.za
 Enquiries and clarification will close on the 25 August 2013 @
12H00.
 Q and A pack will be published on RAF website on 29 August
2013.
Thank you
Questions and
Answers