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Preferential Procurement Policy Framework Act Leila Moonda
Preferential Procurement Policy Framework Act Regulations  and BBBEE
[object Object],[object Object],PPPFA  and BBBEE
Designated  Sector  ,[object Object]
Designated  Sector  ,[object Object],[object Object],[object Object]
Local  Content ,[object Object]
Imported  Content ,[object Object],[object Object],[object Object],[object Object]
Functionality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
PPPFA  and BBBEE ,[object Object]
PPPFA  and BBBEE ,[object Object],[object Object],[object Object],[object Object]
PPPFA  and BBBEE ,[object Object],[object Object],[object Object]
Formula ,[object Object],[object Object],[object Object]
Formula ,[object Object],[object Object],[object Object],[object Object]
[object Object],PPPFA  and BBBEE
[object Object],PPPFA  and BBBEE
Awarding of  points 80:20 points system BEE Level Number of points 1 20 2 18 3 16 4 12 5 8 6 6 7 4 8 2 Non-Compliant 0
Awarding of  points 90:10 points system BEE Level Number of points 1 10 2 9 3 8 4 5 5 4 6 3 7 2 8 1 Non-Compliant 0
Not scoring  the highest points ,[object Object]
Equal Points ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],PPPFA  and BBBEE
[object Object],[object Object],[object Object],PPPFA  and BBBEE
Joint  Ventures ,[object Object]
Local  Content ,[object Object]
Local  Content ,[object Object]
Local  Content ,[object Object]
Local  Content ,[object Object]
Local  Content ,[object Object]
Local  Content ,[object Object],[object Object],[object Object]
Tertiary Institutions and  Public Entities ,[object Object],[object Object]
Fronting ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Procurement and preferential procurement
Procurement vs.  Preferential Procurement ,[object Object],[object Object]
Procurement vs.  Preferential Procurement Procurement Preferential Procurement Cost Cost  + Service Service  - Quality Quality  -  vs
Total Cost  of Ownership Acquisition cost Change Cost Operating Cost TCO
Total BEE Cost  of Ownership Acquisition cost Change Cost BEE  Cost Operating Cost TCO
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Total Cost  of Ownership
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Total Cost  of Ownership
Developing a BEE Strategy
Dynamics  of BEE Time BEE Score Your BEE score Pressure from competitors, customers, public perception…. Limit of your BEE capabilities Practical minimum score 30 (40)
Approaching  BEE ,[object Object],[object Object],[object Object],[object Object],[object Object]
Initial Target  Score ,[object Object],[object Object],[object Object],[object Object]
SUSTAINABLE BEE™  APPROACH ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Buy-in from  Senior Management ,[object Object],[object Object]
Socio- Economic Development Enterprise Development Preferential Procurement Value Chain  Committee
[object Object],[object Object],[object Object],[object Object],Value Chain  Committee
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Value Chain  Committee
A Structured  Pref Proc Process
A Structured  BEE Process  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Structured  BEE Process  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Establishing a  Pref. Proc. strategy  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Establishing BBBEE  targets and plan ,[object Object],[object Object],[object Object],[object Object],[object Object]
Preferential Procurement  Process Phase 1 Phase 2 Phase 3 Extract Vendor List Update vendor list with contact details Undertake Supplier analysis:  80:20 principle, SMME ’ s, BO ’ s BWO ’ s Kraljic analysis Survey suppliers Request BEE scorecards Receive scorecards and capture information Calculate BEE procurements figures and score
Segmenting the Spend Price of Commodity Risk to the Business ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],First Segment   the spend, the n  ... Leverage Non-critical Stationery Cleaning Garden Service Fuel Office Automation Cellphones IT Hardware Travel Strategic Bottleneck Transportation Raw Materials Core Components Low Low High ,[object Object],[object Object],High
THANK YOU LEILA MOONDA 011 726 3052 [email_address]

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PPPFA forum

  • 1. Preferential Procurement Policy Framework Act Leila Moonda
  • 2. Preferential Procurement Policy Framework Act Regulations and BBBEE
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16. Awarding of points 80:20 points system BEE Level Number of points 1 20 2 18 3 16 4 12 5 8 6 6 7 4 8 2 Non-Compliant 0
  • 17. Awarding of points 90:10 points system BEE Level Number of points 1 10 2 9 3 8 4 5 5 4 6 3 7 2 8 1 Non-Compliant 0
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 32.
  • 33. Procurement vs. Preferential Procurement Procurement Preferential Procurement Cost Cost + Service Service - Quality Quality - vs
  • 34. Total Cost of Ownership Acquisition cost Change Cost Operating Cost TCO
  • 35. Total BEE Cost of Ownership Acquisition cost Change Cost BEE Cost Operating Cost TCO
  • 36.
  • 37.
  • 38. Developing a BEE Strategy
  • 39. Dynamics of BEE Time BEE Score Your BEE score Pressure from competitors, customers, public perception…. Limit of your BEE capabilities Practical minimum score 30 (40)
  • 40.
  • 41.
  • 42.
  • 43.
  • 44. Socio- Economic Development Enterprise Development Preferential Procurement Value Chain Committee
  • 45.
  • 46.
  • 47. A Structured Pref Proc Process
  • 48.
  • 49.
  • 50.
  • 51.
  • 52. Preferential Procurement Process Phase 1 Phase 2 Phase 3 Extract Vendor List Update vendor list with contact details Undertake Supplier analysis: 80:20 principle, SMME ’ s, BO ’ s BWO ’ s Kraljic analysis Survey suppliers Request BEE scorecards Receive scorecards and capture information Calculate BEE procurements figures and score
  • 53.
  • 54. THANK YOU LEILA MOONDA 011 726 3052 [email_address]

Editor's Notes

  1. Policy describes what it is you want to do CSA tells you where you are Targets tell you where you want to be Audit tells you what's missing Strategy is how you going to get where you want to be Plan, is the what, how, by when, by whom and how much