A SURVEY TO GAUGE PUBLIC OPINION ON TAX

COMPLIANCE

• Briefing Session : 15 September 2014, 14h00

• RFP No. : RFP 14/2014

• Closing Date : 8 October 2014, 11h00

Table of Contents

2

1. Welcome and Introduction

2. Background

3. Scope of Work

4. RFP Timelines

5. Bid Evaluation

6. Pricing Schedule and BBBEE

7. RFP submission and contact details

8. Q&A

3

Procurement

Senior Manager – Professional Services

Project Manager – Professional Services

Commodity Leader – Professional Services

Finance Evaluator – Value Delivery Plan

BBBEE Specialist – Support Services

Operations Specialist – Governance, Compliance & Risk

Contract Specialist – Professional Services

SARS - Strategy and Risk

Executive – Strategy and Risk

Specialist – Strategy and Risk

Senior Manager – Strategy and Risk

Specialist – Strategy and Risk

Senior Manager - Finance

Corporate Legal Services

Legal Specialist

Welcome and Introduction: Bid Evaluation Committee

4

1. Welcome and Introduction

2. Background

3. Scope of Work

4. RFP Timelines

5. Bid Evaluation

6. Pricing Schedule and BBBEE

7. RFP submission and contact details

8. Q&A

Table of Contents

Background

5

As an organ of state, SARS’s mandate outlines its obligations towards the state and

its people by:

Background Cont…

6

PURPOSE OF THE RFP

The purpose of this RFP is to solicit proposals from potential Bidder(s) for conducting a

survey to gauge public opinion on tax compliance.

The study will seek to establish the following:-

The drivers of taxpayer compliance from the public perspective through a survey of

randomly selected individuals.

A South African ‘attitude to tax compliance’ index on the public’s attitudes, motivations

and behaviour towards tax compliance.

The impact of the power of authority in driving public opinion on tax compliance.

DURATION OF CONTRACT

The successful bidder will be appointed for a period of 36 months. SARS reserves an

option to renew the contract for two (2) successive periods of twelve (12) months each.

7

1. Welcome and Introduction

2. Background

3. Scope of Work

4. RFP Timelines

5. Bid Evaluation

6. Pricing Schedule and BBBEE

7. RFP submission and contact details

8. Q&A

Table of Contents

Scope of Work: Background (Refer to 8.1 of the RFP doc)

8

Revenue administrators in the world are realising the importance of identifying

factors driving taxpayer compliance. Taxpayer compliance behaviour is influenced by

several factors, including amongst others, national and global economy, and

legislative framework, physical, administrative, social, demographic and attitudinal

environment.

These factors can at times, combine to influence tax compliance and/or compliance

behaviour. Some of these extend even beyond the bounds of tax administration and

relate to changing social and economic conditions.

Observed global trends show that tax administrations are increasingly monitoring the

public opinion and its impact on tax compliance behaviour in order to maintain a

sustained balance on the compliance strategy. These additional obligations form part

of the context within which SARS operate and represent a real imposed on resource

allocation and usage.

The public opinion survey on tax compliance will provide key input to the formulation

of compliance strategy at the same time afford SARS a complementary view on the

drivers of tax compliance behaviour. One way of understanding the operating context

is through measuring, tracking and monitoring tax compliance through public opinion

survey.

Scope of Work (Refer to 8.2 of the RFP doc)

9

The following are SARS requirements for the provision of survey services on tax

compliance and the successful Bidder will be required:

To survey a representative sample of 2 800 persons (economically active group)

who will be randomly selected from demographic variables that include but not

limited to age, income categories, education levels, industry type, employment

segments, region / province / municipalities;

To design survey instruments, in conjunction with SARS, that will be used to

conduct public opinion survey;

To establish the power of authority in driving compliance by conducting in-depth

interviews with thirty (30) influential figures in politics, business, public service,

academia and special interest groups;

To compile a public opinion index on knowledge, attitudes, motivations and

behaviour towards taxpayer and trader compliance;

To hand over to SARS the data collection tool used in the survey. The successful

Bidder will be required to transfer knowledge to SARS personnel on how the

study was conducted and how the results have been analysed.

Scope of Work (Refer to 8.2 of the RFP doc) (cont…)

10

The project is envisaged to be executed in 2 phases. SARS estimates the project

would be conducted over a period of 6 months each year.

Phase I – General Public Attitudes, Perceptions and Motivations

Survey questionnaire design

Fieldworkers training

Sample design

Sign-off of the project plan and survey questionnaires

Potentially evaluating scale reliability and validity

Face to face interviews

Observations of actual interviews being conducted

Data cleaning and text analytics

Pivotal tool design

Data analysis

Analysing the survey results (text analytics)

Index design

Report writing

Recommendations

Scope of Work (Refer to 8.2 and 8.3 of the RFP doc) (cont…)

11

Phase II – Power of Authority

Develop a questionnaire

Face to face interviews

Analysing the survey results (text analytics)

Report submissions

Recommendations

DOCUMENTATION REQUIRED (Refer to 8.3 of the RFP doc)

Service providers are required to submit and:

Clearly demonstrate ability to design a national representative sample frame for

surveys;

Demonstrate the ability to deliver on the primary objectives in driving compliance

Provide relevant and secondary value-adding analysis techniques used to process

data;

Provide resources and information of the project team to be assigned for the project;

and

Demonstrate data management and reporting capabilities and how transfer of relevant

knowledge and skills will be implemented to SARS personnel for the provision of

public opinion survey and related services.

The proposals submitted by Bidders must be as comprehensive as possible. Please refer

to Annexure A1 – Technical Scorecard which clearly outlines how the bids will be

evaluated for functionality.

Scope of Work (Refer to 8.4 and 8.5 of the RFP doc) (cont…)

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REFERENCES (Refer to 8.4 of the RFP doc)

Bidder(s) must provide the name(s) of at least three (3) current/recent customers

where survey services similar to SARS requirements have been delivered. You

must include: company name, contact name, address, phone number, duration of

contract, a brief description of the services which you provided.

TECHNICAL COMPLIANCE CHECKLIST (Refer to 8.5 of the RFP doc)

Bidders must complete the compliance checklist as outlined in Annexure A2.

13

1. Welcome and Introduction

2. Background

3. Scope of Work

4. RFP Timelines

5. Bid Evaluation

6. Pricing Schedule and BBBEE

7. RFP submission and contact details

8. Q&A

Table of Contents

14

RFP Timelines

ACTIVITY DUE DATE

RFP Advertisement in Sunday Times 07 September 2014

Tender documents on SARS website 07 September 2014

RFP Advertisement in Government Bulletin 05 September 2014

Non – compulsory briefing session 15 September 2014, 14H00

Questions relating to RFP 26 September 2014

RFP Closing Date 08 October 2014, 11h00

Notice to bidders December 2014 /January 2015*

15

1. Welcome and Introduction

2. Background

3. Scope of Work

4. RFP Timelines

5. Bid Evaluation Process

6. Pricing Schedule and BBBEE

7. RFP submission and contact details

8. Q&A

Table of Contents

16

Pre-Qualification

Gate 0

Bid Evaluation Process Gate 0: Pre-Qualification Criteria

Name of Document that must be submitted Non-submission may result in

disqualification?

Tax Clearance Certificate – SBD 2 YES

SARS’ s Oath of Secrecy YES

Invitation to Bid – SBD 1 YES

Pricing Schedule – Annexure B YES

Declaration of Interest – SBD 4 YES

Preference Point Claim Form - SBD 6.1 NO

Declaration of Bidder’s Past Supply Chain Management Practices – SBD 8 YES

Certificate of Independent Bid Determination – SBD 9 YES

Bidder Compliance form for Technical evaluation – Annexure A 2 YES

17

Desktop Technical

Evaluation 70 points

Gate 1

Bid Evaluation Process Gate 1

Annexure A – Technical

Scorecard

Presentation 30 points

Only Bidder(s) that have met the Pre-Qualification Criteria in (Gate 0) will be evaluated in Gate 1 for functionality.

Functionality will be evaluated as follows:

• Desktop Technical Evaluation – Only Bidders who have met the minimum threshold of 49 out of 70 and are ranked in the

top five (5) will be shortlisted and invited for a presentation. The evaluation criteria for presentation will only be sent to the

shortlisted bidder.

• Presentation – Evaluation criteria for the presentation will only be send out to the shortlisted Bidders.

Bidders that have obtained a combined score (Desktop Technical Evaluation and Presentation) of

70 out of 100 points will proceed to Price and BBBEE evaluations.

• Methodology and Sample Frame

• Analysis

• Demonstrate the ability to deliver on

the primary objectives

• Resources and Project Management

• Data Management and reporting

• Client references/testimonials

• Presentation

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The Bidder(s)’ information will be scored according to the following points system:

Functionality Maximum Points

Achievable

Minimum

Threshold

Desktop Technical Evaluation 70 49 and top 5

Presentation 30 N/A

Overall Combined Score 100 70

Bid Evaluation Process Gate 1 Cont…

19

1. Welcome and Introduction

2. Background

3. Scope of Work

4. RFP Timelines

5. Bid Evaluation

6. Pricing Schedule and BBBEE

7. RFP submission and contact details

8. Q&A

Table of Contents

20

Price Evaluation

10 points

Gate 2

Bid Evaluation Process Gate 2: Price & BBBEE Evaluation

BBBEE Evaluation

90 points

Price Evaluation (90 points)

Adjudication Criteria Points

Price Evaluation

90

BBBEE Evaluation (10 Points)

Adjudication Criteria Points

BBBEE Evaluation

(BBBEE Certificate and/or submission

of SBD 6.1)

10

Where:

Ps = Points scored for price of Bid under

consideration

Pt = Rand value of Bid under consideration

Pmin = Rand value of lowest acceptable Bid

21

Pricing Schedule (Refer to Annexure B)

RFP14/2014: PRICING SCHEDULE - A SURVEY TO GAUGE PUBLIC OPINION ON TAX COMPLIANCE

Notes

5. All prices must be inclusive of VAT

Year 1 Year 2 Year 3 Year 4 Year 5

Ph

ase

1 A representative sample of 2800 randomly

selected, to reflect the demographics of the

country profile

Demographic variables to be considered include amongst others,

age, income categories, education levels, industry type,

employment segments, region / province / municipalities

Ph

ase

II 30 in-depth interviews with influential

figures to assess the impact of key

stakeholders/media/communication in

shaping tax compliance

Target: politicians /parliamentarians; senior business leaders;

lobbyists; senior public servants; scholars and academics;

average citizens; and special interest groups

R 0.00 R 0.00 R 0.00 R 0.00 R 0.00

R 0.00 R 0.00 R 0.00 R 0.00 R 0.00

R 0.00 R 0.00 R 0.00 R 0.00 R 0.00

R 0.00 R 0.00GRAND TOTAL

1. No variations to the pricing model template will be entertained. Any changes to the template, will be regarded as "Non-responsive"

2. Pricing should include all cost to be incurred i.e Management , travelling, intellectual property rights, license etc

4. SARS reserves the right to negotiate quoted prices with the successful bidders.

Contract Extension - 2 years

3. The quoted prices MUST be all inclusive. This means, All direct and indirect related costs must be include in the price. No additional costs will be considered post award.

TOTAL INCLUDING (VAT)

TOTAL EXCLUDING VAT

VAT @ 14%

Total Contract Term - 3 years   Face to face Interviews

Assess the Power of Authority : Price should reflect the following aspect of the instrument

SARS BBBEE Requirements

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Turnover Classification Submission Requirement

Below R5 million p.a Exempted Micro

Enterprise (EME)

BEE Rating Certificate or Letter from

Auditors/Accounting Officer to verify that

accredited EME and percentage of black

ownership.

Between R5 million and R35

million p.a

Qualifying Small

Enterprise (QSE)

BBBEE Rating Certificate from an Accredited

Rating Agency

Above R35 million p.a Large Entity (LE) BBBEE Rating Certificate from an Accredited

Rating Agency

Joint Venture (JV) – Certificates of both companies must be included.

http://www.thedti.gov.za/bee/notice32467.pdf Notice from the Minister of Trade & Industry on the

accredited verification agencies.

http://www.sanas.co.za/directory/bbee_default.php List of SANAS Accredited Verification Agencies on

behalf of the DTI.

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BID DECLARATION 6.1 Bidders who claim points in respect of B-BBEE Status Level of Contribution must complete the following:

7. B-BBEE STATUS LEVEL OF CONTRIBUTION CLAIMED IN TERMS OF PARAGRAPHS 1.3.1.2

AND 5.1

7.1 B-BBEE Status Level of Contribution: …………. = ……………(maximum of 10 or 20 points)

(Points claimed in respect of paragraph 7.1 must be in accordance with the table reflected in paragraph 5.1 and

must be substantiated by means of a B-BBEE certificate issued by a Verification Agency accredited by SANAS

or a Registered Auditor approved by IRBA or an Accounting Officer as contemplated in the CCA).

8 SUB-CONTRACTING 8.1 Will any portion of the contract be sub-contracted? YES / NO (delete which is not applicable)

8.1.1 If yes, indicate:

(i) what percentage of the contract will be subcontracted? ............……………….…%

(ii) the name of the sub-contractor? …………………………………………………………..

(iii) the B-BBEE status level of the sub-contractor? ……………..

(iv) whether the sub-contractor is an EME? YES / NO (delete which is not applicable)

BBBEE Key Sections to complete in SBD

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B-BBEE Contributor Level Number of Points

(80/20 system)

Number of Points

(90/10 system)

1 20 10

2 18 9

3 16 8

4 12 5

5 8 4

6 6 3

7 4 2

8 2 1

Non-Compliant Contributor 0 0

Points Awarded for BBBEE Contribution

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1. Welcome and Introduction

2. Background – Public Opinion on Tax

3. Scope of Work

4. RFP Timelines

5. Bid Evaluation

6. Pricing Schedule and BEE

7. RFP submission and contact details

8. Q&A

Table of Contents

26

+

TENDER BOX SARS Brooklyn Bridge,570 Fehrsen Street, Linton

House, Brooklyn

Any enquiries must be referred, in writing via email to:

rft-professionalservices@sars.gov.za or tenderoffice@sars.gov.za

1 2

Bidders must submit copies of each file (Original and Duplicate) and a CD-ROM with

content of each file by the 15 September 2014 at 11:00

Original Duplicate

Bid Submission

+ File 1 & File 2 content

Note: Pricing Schedule must be in Excel

Not PDF

27

Section1 Pre-qualification (SBD documents)

Name of the document that must be

submitted

Non-submission may result in disqualification?

Tax Clearance Certificate – SBD 2 YES – Please submit a valid and original copy of the certificate.

SARS’s Oath of Secrecy YES – Please complete and sign the supplied pro forma document in the presence of

Commissioner of Oaths and initial every page.

Invitation to bid – SBD 1 YES – Please complete and sign the supplied pro forma document.

Pricing Schedule YES – Please submit full details of pricing proposal to SARS on Annexure B.

Declaration of Interest – SBD 4 YES - Please complete and sign the supplied pro forma document.

SBD 6.1 – Preference Point Claim Form No – Non-submission will lead to a zero score on BEE.

Declaration of Bidder’s Past Supply Chain Management

Practices – SBD 8

YES - Please complete and sign the supplied pro forma document.

Certificate of Independent Bid Determination – SBD 9 YES - Please complete and sign the supplied pro forma document

Section 2

Technical Responses (Nomination and/or Payment Platforms)

Supporting documents for technical response

Testimonials/references

Section 3

Section 4 Signed GCC and SLA Draft with proposed amendments, which SARS reserves the right to accept or reject.

Company Profile and Supplementary Information

File 1: Prequalification and Technical Response

28

File 2: Pricing Schedule and BEE

Section1 Pricing Schedule

Section 2 BEE Certificate or Accountant letter for SMEs

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1. Welcome and Introduction

2. Background

3. Scope of Work

4. RFP Timelines

5. Bid Evaluation

6. Pricing Schedule and BEE

7. RFP submission and contact details

8. Q&A

Table of Contents

30