Artificial Intelligence in Philippine Local Governance: Challenges and Opport...
eThekwini Supply Chain Management by Bongi Blose
1.
2. OUTLINE
WHY PROCUREMENT
IMPROVING ECONOMY THROUGH
PROCUREMENT
SUPPLY CHAIN DELIVERABLES
RANGE OF OPPORTUNITIES
PROCESSES, CONDITIONS AND GUIDELINES
DATABASE REGISTRATION REQUIREMENTS
KEY THINGS ABOUT SCM
CONTACTS
3. 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.
4. 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.
5. 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.
6. 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
7. 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)
8. 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
9. 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.
10. 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
11. 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.)
12. 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: www.durban.gov.za, Metro
Ezasegagasini, which is issued every 2nd Friday. Copies of these can
be obtained at the City Hall basement Churchwalk Entrance, and
13. KEY THINGS ABOUT SCM
SCM Ensures goods & services are delivered in the following manner:
Right Place
Right Quantity
Right Quality
Right Cost
Right Time