1. ROAD ACCIDENT FUND COMPULSORY BRIEFING SESSION RFP /2013/00027
Date: 20 August 2013
Time: 11:00

2. AGENDA Background of the RFP Purpose of the RFP Evaluation Criteria
Mandatory Documents
Disqualification of Bids
Submission of Bids
Contact details
Questions and Answers

3. 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 at 11h00 (AS PER THE CLOCK AT THE RAF RECEPTION AT MENLYN)

4. 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)

5. 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

6. 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

7. RATIONALE BEHIND THE RFP
The RAF is experiencing a lack of capacity to effectively deal with the current claims backlog of approximately 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.

8. OPERATING MODEL

9. OPERATING STRUCTURE

10. PROJECT WAY FORWARD

11. 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.

12. 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.
The

13. 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
The

14. 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 
The bidder must provide public liability insurance in the amount of R5 000 000.00

15. Contract TERMS Contract Duration Conflict of Interest
Performance Guarantee
Insurance / Limitation of Liability
Penalties
Pricing Structure
Performance Measurement
Litigation
Skills Transfer

16. Mandatory Documents Standard Bidding Document (SBD)
Valid Original Tax Clearance Certificate
Bid Conditions
BEE Certificate

17. 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.

18. MANDATORY EVALUATION CRITERIA
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
Comply
Not Comply
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.

19. MANDATORY EVALUATION CRITERIA
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
Comply
Not Comply
Bidder must submit a proposal to demonstrate the capability to deliver on all relevant medico legal investigations required to quantify all relevant claims.

20. MANDATORY EVALUATION CRITERIA
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
Comply
Not Comply
Bidder must furnish the Fund with bid security in the sum of R substantially in the format of Annexure H.

21. MANDATORY EVALUATION CRITERIA
Comply
Not Comply
The bidder must submit a proposal to demonstrate the capability to deliver effective claims management, in respect of a portfolio of claims numbering to 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.

22. Technical Evaluation Criteria
Functional criteria
Points
PROPOSAL 30
PORTFOLIO OF EVIDENCE 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
BIDDERS SCORING AT LEAST 60 OUT OF 70 will be required to do a presentation
PRESENTATION

23. 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

24. 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)

25. 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

26. Contact Details All queries must be forwarded to mthobag@raf.co.za
Enquiries and clarification will close on the 25 August 12H00.
Q and A pack will be published on RAF website on 29 August 2013.

27. Thank you
Questions and Answers