Appointment of Service Providers for Debt Collection Services – Vaal Orange Catchment Management Agency
Tender Details
- Tender Number: VO 015 2026/2027
- Department: Department of Water and Sanitation
- Entity: Vaal Orange Catchment Management Agency
- Tender Type: Request for Bid (Open Tender)
- Province: Free State
- Location: Charlotte Maxeke and East Burger, Bloemfontein, Free State, 9301
- Contract Period: 36 months
- Closing Date: 27 October 2026 at 11:00
- Briefing Session: No briefing session
- Submission Method: eSubmission
- Enquiry Contact: Kayleen Jooste
- Email: joostek@dws.gov.za
- Telephone: 083 417 4196
Tender Summary
Objective
The Vaal Orange Catchment Management Agency seeks to appoint professional debt collection service providers for a period of 36 months to recover long-outstanding debts owed by individuals, businesses, institutions and organs of state.
The objective is to improve revenue collection, strengthen financial controls, reduce non-compliance and promote accountability while ensuring that all collection activities comply with applicable legislation and ethical standards.
Scope of Work
The appointed service providers will be responsible for:
- Identifying and tracing debtors.
- Collecting overdue debts through professional and non-coercive communication.
- Providing itemised debt information.
- Conducting credit assessments.
- Negotiating and managing appropriate payment arrangements.
- Operating a dedicated call centre for debtor engagement.
- Using compliant debt collection software to record activities and verify balances.
- Tracking repayments and managing disputes.
- Initiating hard collection processes where standard collection methods are unsuccessful.
- Obtaining court orders where necessary.
- Pursuing asset attachment processes.
- Listing defaults with credit bureaus where applicable.
- Handling associated legal matters.
- Providing comprehensive monthly reports on collection activities and recoveries.
Debt categories may include municipal, business, staff, student, grant and irregular expenditure debts.
Technical Requirements
Bidders must meet the specified regulatory, experience, personnel and technology requirements, including:
- Valid Council for Debt Collectors (CFDC) registration certificate or a Legal Practitioner’s Fidelity Fund Certificate.
- Proof of an active subscription to a compliant debt collection software system.
- Documented experience in debt or revenue collection projects completed within the past five years.
- Client reference letters or standardised performance assessment forms confirming relevant experience.
- A Project Manager with a relevant tertiary qualification and at least 8 years’ experience.
- A Call Centre Manager with at least 3 years’ experience.
- Five Call Centre Agents with accredited training certificates or NQF Level 6 or higher qualifications.
- Certified CVs and supporting qualifications for key personnel.
- Certified identity documents and applicable work permits for foreign nationals.
Mandatory Administrative Requirements
Bidders should provide the required procurement and compliance documentation, including:
- CSD registration.
- Valid Tax Compliance Status PIN.
- Completed Standard Bidding Documents (SBD).
- Mandatory procurement forms.
- Valid B-BBEE certificate or sworn affidavit.
- All supporting documentation specified in the bid documents.
- Required regulatory registration certificates.
- Evidence of relevant previous experience and client references.
Pricing Requirements
Pricing must be submitted as a fixed commission-based percentage applied to successfully collected debts that are 90 days or older.
This means the appointed service provider’s remuneration will be based on successful debt recovery rather than upfront collection fees.
Evaluation Criteria
The tender will use an 80/20 preference point system, with:
- 80 points: Price
- 20 points: Preference / socio-economic development objectives
- Minimum functionality threshold: 65%
Only bidders meeting the required functionality threshold will proceed to the applicable preference-point evaluation.
Skills Requirements
The service provider’s team should demonstrate:
- Excellent communication skills.
- Strong negotiation abilities.
- Advanced problem-solving skills.
- Empathy and active listening.
- Emotional intelligence.
- Knowledge of the Debt Collectors Act and applicable Code of Conduct.
- Credit assessment and payment-plan development skills.
- Conflict resolution.
- Resilience when dealing with challenging debtors.
- Data management and reporting capabilities.
- Professional legal correspondence skills.
- Ability to handle court documentation.
- Coordination with financial institutions and government departments.