eThekwini Supply Chain Management by Bongi Blose


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eThekwini Supply Chain Management by Bongi Blose

  2. 2. Why Procurement/ Supply Chain Management Direction?  To ensure the provision of a cost effective and efficient procurement services, and the facilitation of City wide Economic Empowerment to all Clusters and Units, to enable them to effectively deliver to Municipal Customers, resulting in successful Service Delivery and Economic Empowerment.
  3. 3. Improving the economy through Procurement  The need and requirements of a procurement strategy.  The information and communication requirements for both internal and external users and all those involved.  The process involved efforts to empower, build capacity and increase number of black owned businesses participating in government tenders is consistent with National Government’s objectives and is embraced.  Engagements with major contractors and development of partnerships to provide broader economic development and deliver better service.
  4. 4. Supply Chain Management/ Procurement Key Deliverables  Co-ordination of Tenders and Contracts  Effective facilitation of BEE  Compliance monitoring and timeous accreditation.  Creation and maintenance of an up to date Centralized Procurement Supplier Database  Enforcing compliance with the council’s SCM policy, TTP policy and other relevant legislations.  Determination of uniform standards/documentation and procedures for the procurement of all goods, services, engineering and construction works.
  5. 5. Range of procurement Activities  Goods: stationery, staff uniforms, medical supplies, material supplies, etc.  Services: insurance, banking, vehicle repairs, cleaning contracts, software development, etc.  Professional services: engineering consultants, auditors, attorneys, etc.  Engineering and construction work: civil, building, electrical, structural, etc  Disposal of movable & immovable assets: office furniture, computers, vehicles, land, etc  Hiring and renting of assets: plant hire  Acquiring and granting of rights as applicable to procurement: copy righting, etc
  6. 6. PROCUREMENT THRESHOLDS Lower Limit Upper Limit Procurement Method/Quotes Tender Charge Sureties (10%) R0 R500(vat incl) Petty Cash N/A N/A (Note reg. 12) R0 R5 000.00 One Quote No No R5 000.01 R30 000.00 Formal Written Quote No No R30 000.01 R200 000 Formal Written Quotes No No >R200 0000 Public Tender Yes Yes (>R500,000)
  7. 7. Procurement Processes  What are the Contract Types/Limits within eThekwini?  ¨ A list of centres where these quotations are outlined on the last page.  q Contracts/Quotations within these limits are to be to BBE’s, and preferably PBE’s  wherever available/possible.  v For the sale of movable assets a tender charge of R50 will be levied.  These limits/requirements apply to all procurement activities except the  Professional Consulting Services that have been catered for in the Siyakhana  Consultants Roster.  Lower Limit Upper Limit  Minimum  Procurement  Method/Quotes  Tender  Charge  Sureties  (10%)  · R0 R10 000.00 i 1 Quote · No No  R10 000.01 R200 000.00 i Written  Quotes · No No  R200 000.01 R200 000.00 Public Tender R50 No  R200 000.01 R1 million Public Tender R100 >R500 000  >R1 million R5 million Public Tender R250 Yes  >R5 million R10 million Public Tender R500 Yes  >R10 million Public Tender R1000 Yes
  8. 8. Conditions for consideration of written quotations or bids  A written quotation or Public Tender may not be considered unless the bidder has furnished as follows:  Full name  Company registration number  Tax clearance certificate- clearly stating that the bidder/provider’s tax affairs are in order.  Statement providing that water, electricity, rates are up to date or formal arrangements  Documents filled in as expected and signed properly.  Has indicated that:  Whether he or she is in the service of the state, or has been in the service in the previous twelve months.  If the provider is not a natural person, whether any of its directors, managers, principal shareholders or stakeholders is in the service of a state, or has been in the previous twelve months; or  Whether a spouse, child or parent of the provider or of a director, manager, shareholder or stakeholder referred to in subparagraph above is in the service of the state, or has been in the service of the state in the previous twelve months.
  9. 9. Database registration requirements  Company is legally registered (CIPC)  Owners/Principal Shareholders not in service of the state  Company not in NT’s database of restricted suppliers  Check Declarations (interest, municipal fees, independent bidder, etc – at tender stage)  Valid Tax Clearance  Valid BEE Certificate  No fee registration
  10. 10. Guideline to an enterprise that is ready to tender.  Must be a registered business  Must be able to deliver- on time and according to specifications  Is up to date with its taxes, rates, electricity and water accounts  Is pro-active, actively looking for business opportunities  Registered with the eThekwini Municipality’s central Procurement Supplier’s database  Has registered with relevant professional body, such as CIDB, NHBRC, SETA, etc.  Has registered its employees with the department of Labour ( UIF, Skills Development Levy, Women's Compensation etc.)
  11. 11. Tendering opportunities and Information Communication  All contracts under R200 000.00 Quotations; Advertised on the SSS(Online Supplier Self Service) for the following departments 1. City Engineers Unit, 166 Old Fort Road 2. Water Services, 3 Prior Road 3. Corporate Procurement (MMB), 166 Old Fort Place, Ground floor All contracts under R200 000.00 Quotations; Advertised on the notice boards for the following department Electricity , 1 Jelf Taylor Crescent, Ground Floor Housing Unit, 90 Shepstone Road, New Germany  All contracts above R200 000.00, PUBLIC TENDERS tenders are advertised in the eThekwini Municipality’s own free newspaper , eThekwini website:, Metro Ezasegagasini, which is issued every 2nd Friday. Copies of these can be obtained at the City Hall basement Churchwalk Entrance, and
  12. 12. KEY THINGS ABOUT SCM SCM Ensures goods & services are delivered in the following manner:  Right Place  Right Quantity  Right Quality  Right Cost  Right Time
  13. 13. Supply Chain Management Contacts DESIGNATION NAME TELEPHONE Head Andre’ Petersen 031-311 1705 Deputy Head: Operations Sandile Ngcobo 031-322 7001 Deputy Head: vacant Customer Relations Bongi Blose 031-311 7153 Corporate Procurement vacant 031-311 7530 Water Procurement Tarryn Bartholomew 031-311 8619 Electricity Procurement Tumo Mpetsane 031-311 9420 Performance and Risk Mdu Mkhize 031-311 7289 Tenders & Contracts Bongiwe Nyandeni 031-322 7015 Compliance Monitoring Zandile Sithole 031-322 7007 Business & Administration Yacob Khan 031-311 7449
  14. 14. All Supply Chain Related Queries/ Complaints/ Information; Central Contact  Manager : Bongi Blose 031-3117153-telephone 031-3117330- fax :email contact  Supplier Liaison Administrator: Sandile Biyela :031 3227155  Silindile Ngwenya: 031 311 7082