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Policy on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference:

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Policy on Supply Chain Management

Status: Approved Custodian: Director: Finance and Administration Approved by: Board Date approved: 2012-06-27 Decision No: SAQA 1896/12 Implementation date: 2012-06-28 Due for review: 2015-06-27 File Number:


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TABLE OF CONTENTS

1. Introduction …………………………………………………………………………. 4

2. Objectives ………………………………………………………………………….. 5

3. Definitions …………………………………………………………………………… 7

4. Code of Conduct …………………………………………………………………… 12

5. General procurement principles ……………………………………………...……12

6. Ethical principles …………………………………………………………………… 14

7. Format of supply chain management ………………………………………. 15

8. Demand Management – the strategic planning process …………………… 16

9. Acquisition Management …………………………………………………. 17

10. Range of procurement processes ……………………………………………… 17

11. General preconditions for consideration of written quotations or bids……….. 18

12. List of accredited prospective service providers………………………………………………………………………….. 19

13. Petty cash purchases ……………………………………………….. …………….21

14. Written quotations ……………………………………………........................... 21

15. Competitive bidding process ………………………………………………………22

16. Process for competitive bidding ……………………………………………………22

17. Bid documentation for competitive bids …………………………………………..22

18. Public invitation for competitive bids ………………………………………………. 23

19. Procedure for handling, opening and recording of bids………………………….. 24

20. Negotiations with preferred bidders ……………………………………………… 25

21. Two-stage bidding process …………………………………………………………..25

22. Committee systems for competitive bids ……………………………………………..26

23. Specification committees ……………………………………………………………….27

24. Evaluation committees ………………………………………………………………….28

25. Procurement Committee ……………………………………………………………….. 28

26. Appointment of consultants …………………………………………………………… 29

27. Deviation from procurement processes ……………………………………………… 29

28. Sole source Selection ………………………………………………………………….31

29. Unsolicited bids …………………………………………………………………………34


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30. Combating of abuse of supply chain management system………………………….35

31. Logistics Management …………………………………………………………………37

32. Disposal Management ……………………………………………………………………38

33. Risk Management ………………………………………………………………………..39

34. Managing supply chain performance ………………………………………………….39

35. Non-compliance with policy …………………………………………………………….40

36. Confidentiality …………………………………………………………………………….40

37. Inducements, rewards, gifts and favours to SAQA officials and other role players

…………………………………………………………………………………………………. 40


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1. Introduction

The responsibility to implement the Supply Chain Management (SCM) function

within the South African Qualifications Authority (SAQA) is rooted in the mandate

of National Treasury, by section 217 of the Constitution of the Republic of South

Africa Act, 1996 (Act 108 of 1996). In terms of this Treasury mandate, all organs

of state, including SAQA therefore have to contract for goods or services in

accordance with a system that is fair, equitable, transparent, competitive and

cost effective. In order to give effect to the above-mentioned principles, SAQA

has developed a Supply Chain Management policy. In addition, SAQA’s Supply

Chain Management policy has been developed and will be implemented in

accordance with the following legislation and strategies:

a) Public Finance Management Act, 1999 (Act No. 1 of 1999 as amended by

Act 29 of 1999).

b) Preferential Procurement Policy Framework Act, 2000 (Act 5 of 2000).

c) Regulations to the Preferential Procurement Policy Framework Act 2011

d) Regulations in terms of the Public Finance Management Act, 1999:

Framework for Supply Chain Management (Government Gazette Number

25767 dated 5 December 2003)

f) Construction Industry Development Board (CIDB) publications.

g) Promotion of Access to Information Act, 2000 (Act 2 of 2000).

h) Promotion of Administrative Justice Act, 2000 (Act 3 of 2000).

In accordance with SAQA’s vision and mandate and in compliance with the

Supply Chain Management Regulations published by the National Treasury,

SAQA is committed to the implementation of an integrated Supply Chain

Management Policy and related procedures. The Supply Chain Management

Policy will regulate all related aspects of demand, acquisition, logistics, disposal,

risk management and supply chain performance management.

The Board is responsible for determining and approving the Supply Chain

Management Policy and amendments to the policy.


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The Accounting Officer of SAQA will hold all officials responsible for

implementing the Supply Chain Management Policy.

This policy will apply to all transactions where money is exchanged for goods,

services and assets between SAQA and Service Providers and will be

implemented by all SAQA officials and adhered to by SAQA’s Service Providers.

2. Objectives

1 The policy aims to ensure that the manner in which SAQA procures goods,

services and assets meets the following key objectives:

a) to provide SAQA with the best value for money whilst improving service

delivery, thus moving away from the ‘lowest price’ scenario to a ‘best

value for money’ scenario;

b) to pursue specific preference, including socio-economic objectives

through a preference system that manages skills and enterprise

development in terms of Section 17(3) of the Regulation to the

Preferential Procurement Policy Framework Act;

c) to support Black Economic Empowerment amongst all service providers,

professionals and contractors thus enhancing competitiveness;

d) to implement efficient and effective procurement practices in an

integrated manner across all elements of the supply chain and develop

appropriate systems that give effect to the principles of fair dealing;

e) to eliminate fraud or any other irregularities; and


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f) to adopt a uniform procurement and information system and provide

leadership across SAQA.

g) In the case where donor funding is applicable, the donor procurement

modalities will be complied with where appropriate.

2.2 Strategic Goal

The goal of this Policy is to provide a mechanism to ensure sound, sustainable

and accountable supply chain management within SAQA, whilst promoting black

economic empowerment, which includes general principles for achieving the

following socio-economic objectives:

� to stimulate and promote local economic development in a targeted and

focused manner;

� to promote resource efficiency, greening and environmental sustainability

practices;

� to promote the competitiveness of local businesses;

� to increase the small business sector access, in general, to procurement

business opportunities created by SAQA; and

� to increase participation by small, medium and micro enterprises (SMME’s)

.

The Policy will achieve the above by enabling socio-economic transformation

objectives to be linked to fair, transparent, equitable, competitive and cost

effective procurement practices.


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3. Definitions

‘Accounting Authority’ means the Board appointed by the Minister of

Education.

‘Accreditation’ means the official approval for an individual organisation to be

registered on the Service Provider Database.

‘Adjudication’ means the award of a quotation or a bid.

‘Act’ means the SAQA Act, 1995.

‘All applicable taxes’ includes value-added tax, pay as you earn, income tax,

unemployment insurance fund contributions and skills development levies;

‘B-BBEE’ means broad-based black economic empowerment as defined in

section 1 of the Broad-Based Black Economic Empowerment Act.

‘B-BBEE status level of contributor’ means the B-BBEE status received by a

measured entity based on its overall performance using the relevant scorecard

contained in the Codes of Good Practice on Black Economic Empowerment,

issued in terms of section 9(1) of the Broad-Based Black Economic

Empowerment Act.

‘Broad-Based Black Economic Empowerment Act’ means the Broad-Based

Black Economic Empowerment Act, 2003 (Act No. 53 of 2003);

‘Bid’ means a formal offer by a service provider for the provision of goods,

services or assets to SAQA. The various types of bids are:

a) Negotiated bid means a bid offer solicited from a single bidder (sole

service provider only).

b) Open bid means the solicitation of bids extended as open invitations in


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the market. Any prospective service provider may respond to the

invitation to bid.

c) Qualified bid means a call for expressions of interest that is advertised.

Only the service providers who responded to the expressions of interest

and who satisfy several additional criteria are then invited to bid.

d) Two-envelope bid means technical and financial proposals submitted by

bidders in two envelopes. The financial proposal is only opened if and

when the technical proposal is accepted.

e) Two-stage bid means a bid where first non-financial proposals are called

for. Bid offers are then invited from those bidders that submit acceptable

proposals based on revised procurement documents. Alternatively, a

contract is negotiated with a bidder scoring the highest number of

evaluation points.

‘Bid Document’ means the documentation prepared by SAQA when procuring

goods, services or assets, which is used to initiate and conclude a contract.

‘Bid Specification Committee’ means the committee that is appointed to develop

and approve the bid specifications or terms of reference.

‘Certificate of Service’ means a document completed by the project manager

certifying that the required goods, services or assets have been submitted or

rendered satisfactorily or not.

‘CEO’ means the official occupying the rank of Chief Executive Officer.

‘CFO’ means the official occupying the rank of Chief Financial Officer.

‘Comparative price’ means the price after the factors of a non-firm price and all

unconditional discounts that can be utilized have been taken into consideration;

‘Consortium or joint venture’ means an association of persons for the purpose

of combining their expertise, property, capital, efforts, skill and knowledge in an

activity for the execution of a contract;


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‘Contract’ means the agreement that results from the acceptance of a tender by

an organ of state;

‘Demand Management Plan’ means a plan that incorporates an annual strategy

to identify requirements for goods, services and assets in alignment with the

strategic and operational plans.

‘End user’ means the person requiring the goods, services or assets.

‘EO’ means Executive Office.

‘Evaluation’ means assessment of bids according to set criteria as per bid

documentation.

‘Evaluation Committee’ means the panel of members selected to evaluate bids.

‘Functional Requirements’ means the measurement according to

predetermined norms, as set out in the tender documents, of a service or

commodity that is designed to be practical and useful, working or operating,

taking into account, among other factors, the quality, reliability, viability and

durability of a service and the technical capacity and ability of a tenderer;

‘Non-preferred Service Provider’ means a service provider who has performed

inadequately and has consequently been identified as a non-preferred service

provider by SAQA and blacklisted by National Treasury. The service provider

must not be utilised for the entire period of the blacklisting.

‘PPPFA’ means the Preferential Procurement Policy Framework Act, Act 5 of

2000.


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‘Preferential Procurement’ means the strategy used to secure the participation

of preferred groups in line with the PPPFA as a primary driver to stimulate the B-

BBEE development.

‘Price’ means the financial offer in the bid or quotation.

‘Procurement’ means the process that creates, manages and fulfils contracts

relating to the provision of goods, services or assets, the hiring of anything,

disposals and the acquisition or granting of any rights and concessions.

‘Procurement Committee’ means the adjudication team who are authorized to

deal with all supply chain management matters and finalize bids in accordance

with the delegated powers of the Accounting Officer.

‘Public Private Partnership’ means the procurement of goods, services or

assets through partnership between public and private institutions, in terms of

section 16 of the Public Finance Management Act.

‘Quotation’ means procurement in terms of which SAQA may solicit quotations

from service providers listed on the service provider database without

advertisement.

‘Rand value’ means the total estimated value of a contract in South African

currency, calculated at the time of tender invitations, and includes all applicable

taxes and excise duties;

‘Sub-contract’ means the primary contractor’s assigning, leasing, making out

work to, or employing, another person to support such primary contractor in the

execution of part of a project in terms of the contract;

‘Receiving official’ means the person who accepts delivery of goods and

assets.


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‘Segments’ means different trade sectors in the market.

‘Senior-manager’ means official occupying the rank of Director and above.

‘Service Provider’ means a consultant, contractor or a service provider of

general goods, services and assets.

‘SMME’ means small, micro and medium enterprises.

‘Special services’ means the provision of independent advice on the most

suitable approaches, methodologies and solutions of projects.

‘Specification’ means the specific functional requirements for the acquisition of

goods and assets.

‘Supplier Register’ means a register of all suppliers or service providers that intend

doing business with SAQA.

‘Terms of reference’ means the specific functional requirements for the

acquisition of goods, services and assets.

‘Transversal Contracts’ means period contracts that are arranged for more than

one entity to participate in.

‘Unsolicited bid’ means a proposal presented to SAQA by a contractor or

consultant, on his or her own initiative, without having been invited to do so by

SAQA.

4. Code of conduct

In any procurement related negotiations or evaluation, all officials must deal fairly

with all quotations and bids in a manner that reflects the ethical principles


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in the Code of Conduct for SCM practitioners as contained in Chapter 2 of

the Public Service Regulations, 2001 and Practice note number SCM4 of

2003.

5. General procurement principles

5.1 Goods and services for and on behalf of SAQA, the hiring or letting of

anything or the acquisition or granting of any right for and on behalf of

SAQA and the disposal of movable or immovable property shall be

procured, arranged or disposed of in accordance with the Supply Chain

Management Policy approved by the Board.

5.2 A bid or quotation other than the lowest in price or the highest in points

shall not be accepted, unless a written report from the Evaluation

Committee, stating fully the reasons for such a recommendation, has

been considered.

5.3 No contract may be awarded to a person who has failed to submit an

original Tax Clearance Certificate from the South African Revenue

Service (“SARS”) certifying that the taxes of that person to be in order or

that suitable arrangements have been made with SARS.

5.4 The Director: Finance and Administration shall be responsible for

facilitating the development and maintenance of a formal policy in regard

to general conditions and procedures for procurement and bidding and

shall submit such documented policy or amendments thereto to the Board

for approval through the appropriate channels including the Finance

Committee.

5.5 With the approval of the CEO or his delegate, period contracts, defined as

contracts entered into for the supply of repetitive goods requirements, the

rendering of services or the disposal of movable property over a specified

period of time, may be arranged by the relevant Director.


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5.6 The appointment of a person, institution or body in terms of a contract

concluded for that specific purpose, in order to perform any work on

behalf of SAQA, shall be authorised by the CEO or his delegate, provided

that –

5.6.1 the CEO or his delegate is convinced that SAQA is not capable or

does not have the capacity to render the relevant service;

5.6.2 the assignment and extent of work are properly defined in writing

in terms of time and cost by way of a formal agreement;

5.6.3 the tariff at which the services will be paid for is reasonable in

comparison with current market tariffs; and

5.6.4 funds in the approved budget are available for this purpose.

5.7 All goods and services with a value above the petty cash level shall be

procured by way of an official purchase order.

5.8 No official order for the purchasing of goods or services shall be placed

on behalf of SAQA or shall be valid unless it has been signed at the

relevant level of authority.

5.9 Interest by all parties in the process must be declared to determine actual

or perceived conflict of interest.

5.10 The criteria as set out in the PPPFA on which preference is based, will

form the criteria for preference to be used by SAQA in determining the

preferred supplier list and for the purposes of the bid evaluation

procedures to be adopted by SAQA.


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5.11 The principle of break-out procurement may be applied to promote

purchases from SMME’s, but requirements may not be broken down into

smaller portions in order to facilitate the utilisation of a specific

procurement mechanism.

5.12 Information must be kept centrally in order to determine when repetitive

requirements exist so that period contracts may be entered into in order

to negotiate on larger quantities if this is deemed appropriate for SAQA.

6. Ethical principles

6.1 In addition to SAQA’s Charter of Ethics and Values, the following ethical

principles are applicable:

a) In any procurement related negotiations or evaluation, SAQA must

deal fairly with all bids.

b) Confidentiality of information, particularly intellectual property,

must be observed during the procurement process.

c) Information provided by a supplier relating to a bid must not be

divulged to any other supplier at any stage during the procurement

process or after it has been concluded.

d) All aspects of procurement must be conducted with honesty and

fairness.

e) Bidders must not engage in any form of collusive practice, and

must be prepared to declare their interest.

f) Any party involved in a bid or the evaluation thereof with a

potential conflict of interest must declare that interest as soon as it

is known.

g) Bidders and any other party involved in a bid must not engage in

any practice that gives one party an improper advantage over

another.

h) Bidders and any other party involved in a bid must conform to all

legislative requirements.


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i) Bidders must not seek or submit bids without a firm intention to

perform in terms of the contract.

j) Responsiveness and evaluation (adjudication) criteria must be

defined in the advertisements and contract documents.

k) Evaluation of bids must be based only on the responsiveness and

evaluation (adjudication) criteria defined in the advertisements and

contract documents.

l) Conditions for bidding must be the same for each bidder on any

particular contract.

7. Format of supply chain management

This Supply Chain Management Policy provides systems for –

(i) demand management;

(ii) acquisition management;

(iii) logistics management;

(iv) disposal management;

(v) risk management; and

(vi) performance management

8. Demand Management - the strategic planning process

Demand Management is intended to build discipline into how SAQA plans for its

business requirements.

Directors must, annually, align activities in their strategic plan, operational plan

and approved budget allocations, with their goods, services and assets

requirements to develop a demand management plan.


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The SCM Unit must analyse key issues, assess the appropriateness of existing

goods, services and assets and identify the need and timeframes for new goods,

services and assets required in support of service delivery.

The Director: Finance and Administration is required to approve the demand

management plan prior to the commencement of any procurement.

The SCM Unit must develop sourcing strategies and buying mechanisms to

address the integrated demand management plan.

The SCM Unit must consider the following alternative strategies prior to the

acquisition process:

a) acquisition of redundant / obsolete material, goods and assets from other

institutions;

b) sourcing of expertise from other institutions;

c) utilisation of transversal contracts administered by other institutions;

d) public private partnerships.

9. Acquisition Management

Acquisition Management provides guidance on how goods, services and assets

should be procured from the market place.

All procurement must be in line with the demand management plan.

Service providers must be selected on the basis of best value for money, taking

into account functionality and price.

All officials must comply with the standard supply chain management policy,

which includes obtaining quotations and bids.

The appointment of consultants must adhere to standard supply chain

management policy.

It is the responsibility of SAQA’s officials to finalise detailed terms of reference

and/or specifications and manage the appointed consultants/contractors.


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10. Range of procurement processes

The procurement of goods and services through this policy is provided by way of -

Petty cash purchases, up to a transaction value of R2,000.00 (VATincluded) - no

quotations are required.

Written price quotations for procurements of a transaction value over R2,000.00

up to R30,000.00 (VAT included) – minimum of three written price quotations are

required.

Written price quotations for procurements of a transaction value over R30,000.00

up to – minimum of three written price quotations are required and the 80/20

preference point system must be applied.

A competitive bidding process for procurements of a transaction value over

R500,000.00 up to R1 million (VAT included) – Competitive bids must be invited,

unless written approval to do otherwise is obtained as per delegated powers, and the

80/20 preference point system must be applied.

A competitive bidding process for procurements of a transaction value over R1

million (VAT included) – Competitive bids must be invited, unless written approval to

do otherwise is obtained as per delegated powers, and the 90/10 preference point

system e must be applied.

Goods or services may not deliberately be split into parts or items of a lesser value

merely to avoid complying with the requirements of policy. When determining transaction

values, a requirement for goods or services consisting of different parts or items must as

far as possible be treated and dealt with as a single transaction.

11. General preconditions for consideration of written quotations or bids

A written quotation or bid may not be considered unless the provider who


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submitted the quotation or bid –

(a) has furnished that provider’s

(i) full name;

(ii) identification number or company or other registration number; and

(iii) tax reference number and VAT registration number, if any;

(iv) tax clearance from the South African Revenue Services that the

provider’s tax matters are in order; and

(b) has indicated –

(i) whether he or she is in the service of the state, or has been in the

service of the state in the previous twelve months;

(ii) if the provider is not a natural person, whether any of its directors,

managers, principal shareholders or stakeholder is in the service

of the state, or has been in the service of the state in the previous

twelve months; or

(iii) whether a spouse, child or parent of the provider of of a director,

manager, shareholder or stakeholder referred to in subparagraph

(ii) is in the service of the state, or has been in the service of the

state in the previous twelve months.

12. Supplier Management and Register (Service Provider Database)

12.1 Purpose of the Supplier Register

SAQA’s Register of Suppliers is a key instrument to ensure that SAQA has sufficient

appropriately qualified suppliers to provide SAQA with goods or to perform required

services, and at the same time aid development amongst emerging businesses. The

objectives of the Supplier Register are to:

a. assess the profile of suppliers available in the market;

b. maintain an approved list of suppliers to aid the quotation method of acquisition;

c. reduce administrative and bidding/quotation costs for both SAQA and the supplier;

d. support SAQA’s preference policy;

e. support promotion of emerging suppliers and supplier development programmes;


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f. monitoring supplier performance by establishing a track record for suppliers;

g. target supply side support resources to emerging suppliers;

h. reduce risks relating to the selection of suppliers; and

i. report on the implementation of preference, black economic empowerment, and budget

spending.

To meet these objectives supplier management processes must be supported by a

single, credible and consolidated register of SAQA’s suppliers.

12.2 Supplier Policy Principles

A supplier is a provider of goods or services, which meets the criteria of SAQA, is

registered on the SAQA’s supplier register and who is able to perform services or provide

goods for SAQA. Suppliers to be registered on SAQA’s supplier register include

consultants, professional and specialist service providers, and general goods and

services providers. Contractors registered with the CIDB will not be required to re-register

with SAQA.

The following key principles will apply to the supplier register:

a. The use of the register will be mandatory for the acquisition through the quotation

procedure for all goods and services.

b. The use of the CIDB Register of Contractors is mandatory for the construction sector.

SAQA’s officials are not allowed to operate any form of supplier register other than the

official supplier register.

c. Registration of a supplier on the supplier register does not guarantee that the said

supplier will receive any work or contract from SAQA.

d. The register will categorise the different service sectors and register suppliers for the

respective service category or categories applied for.

e. Suppliers registered with SAQA must be compliant with all relevant legal and statutory

requirements.

f. The register will facilitate access by the small and emerging enterprises to work and

development opportunities.

g. Suppliers who do not meet the following criteria as stipulated in the invitation to register

will not be registered on the supplier register:

� Supplier should have a valid physical business address


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� Supplier should have a valid postal address

� Supplier should have a valid telephone/cellular number

� Supplier should have a valid fax number

� Supplier should submit a business profile together with the application form for

consulting and professional services

� Supplier should provide SAQA with valid banking details

o Personal banking details will not be acceptable except in the case where the

supplier is a sole trader

� Supplier should submit an Original valid Tax Clearance Certificate

o Personal Tax Clearance Certificates will not be acceptable except in the case

where the supplier is a sole trader

� Suppliers other than Exempted Micro-Enterprises should submit their original and

valid B-BBEE status level verification certificate or a certified copy thereof,

substantiating their B-BBEE rating

� Supplier should submit a VAT number if registered for VAT.

Provider track record

a) At the completion stage of each project, an assessment of the

service and service provider must be undertaken by the relevant

Directorate and this assessment must be available for future

reference.

b) A record of all service providers’ performance must be maintained

by the SCM Unit

c) The Procurement Committee must approve the listing of service

providers as non-preferred on the supplier register .

13. Petty cash purchases


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The Accounting Officer must establish the conditions for the procurement of

goods by means of petty cash purchases referred to in paragraph 10 of this

policy, which must include conditions –

(a) determining the terms on which a Directors may delegate responsibility for

petty cash to an official reporting to the Director;

(b) requiring monthly reconciliation reports from each Director to the Chief

Financial Officer, including –

(i) the total amount of petty cash purchases for that month; and

(ii) receipts and appropriate documents for each purchase.

14. Written quotations

The Accounting Officer must establish the conditions for the procurement of

goods and services through written quotations, which must include conditions

stating –

(a) that quotations must be obtained from at least three different providers

preferably from, but not limited to, providers whose names appear on the

list of accredited prospective providers of SAQA, provided that if

quotations are obtained from providers who are not listed, such providers

must meet the listing criteria in the Supply Chain Management Policy; and

(b) that if it is not possible to obtain at least three quotations, the reasons

must be recorded and reported.

15. Competitive bidding process

Goods and services above a transaction value of R500,000.00 (VAT

included) may only be procured through a competitive bidding process,

subject to paragraph 9 of this policy.


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No requirements for goods or services above an estimated transaction

value of R500,000.00 (VAT included), may deliberately be split into parts

or items of lesser value merely for the sake of procuring the goods and

services otherwise than through a competitive bidding process.

16. Process for competitive bidding

The Accounting Officer must establish procedures for a competitive bidding

process for each of the following stages:

(a) the compilation of bidding documentation;

(b) the public invitation of bids;

(c) site meetings or briefing sessions, if applicable;

(d) the handling of bids submitted in response to public invitation;

(e) the evaluation of bids;

(f) the award of contracts;

(g) the administration of contracts; and

(h) proper record keeping.

17. Bid documentation for competitive bids

The Accounting Officer must establish the criteria to which bid documentation for

a competitive bidding process must comply, which in addition to paragraph 11 of

this policy, the bid documentation must –

(a) take into account –

(i) the general conditions of contract;

(ii) any Treasury guidelines on bid documentation; and

(iii) the requirements of the Construction Industry Development Board,

in the case of a bid relating to construction, upgrading or

refurbishment of buildings or infrastructure;


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(b) include evaluation and adjudication criteria, including any criteria required

by other applicable legislation;

(c) compel bidders to declare any conflict of interest they may have in the

transaction for which the bid is submitted;

(d) if the value of the transaction is expected to exceed R10 million (VAT

included), require bidders to furnish –

(i) if the bidder is required by law to prepare annual financial

statements for auditing, their audited annual financial statements –

(aa) for the past three years; or

(bb) since their establishment if established during the past

three years;

(ii) particulars of any contracts awarded to the bidder by an organ of

state during the past five years, including particulars of any

material non-compliance or dispute concerning the execution of

such contract;

(iii) a statement indicating whether any portion of the goods or

services are expected to be sourced from outside the Republic,

and, if so, what portion and whether any portion of payment from

SAQA is expected to be transferred out of the Republic; and

(iv) stipulate that disputes must be settled by means of mutual

consultation, mediation (with or without legal representation), or,

when unsuccessful, in a South African court of law.

18. Public invitation for competitive bids

The accounting officer must determine the procedure for the invitation of

competitive bids, which must stipulate that:

(1) (a) Any invitation to prospective providers to submit bids must be by means

of a public advertisement in the Government Tender Bulletin or any

other appropriate ways (which may include an advertisement in

newspapers); and


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(b) the information contained in the advertisement, must include –

(i) the closing date for the submission of bids, which may not be less

than 30 days in the case of transactions over R10 million (VAT

included), or 21 days in any other case, from the date on which the

advertisement is placed, subject to subparagraph (2) hereafter; and

(ii) a statement that bids may only be submitted on the bid

documentation provided by SAQA.

(2) The Procurement Committee may approve a closing date for the submission

of bids which is less than the 30 or 21 days requirement, but only if such

shorter period can be justified on the grounds of urgency or emergency or

any exceptional case where it is impractical or impossible to follow the official

procurement process.

(3) Bids submitted must be sealed.

(4) A non-refundable deposit for bid documents may be levied.

19. Procedure for handling, opening and recording of bids

The Accounting Officer must determine the procedures for the handling, opening

and recording of bids, which must stipulate that:

(a) bids must be opened at the same time and as soon as possible after the

period for the submission of bids has expired;

(b) any bidder or member of the public has the right to request that the

names of the bidders who submitted bids in time, made available; and

(c) The Accounting Officer must –

(i) record in a register all bids received in time; and

(ii) publish the entries in the register and the bid results on the

website.


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20. Negotiations with preferred bidders

The Accounting Officer may negotiate the final terms of a contract with bidders

identified through a competitive bidding process as preferred bidders, provided

that such negotiation –

(a) does not allow any preferred bidder a second or unfair opportunity;

(b) is not to the detriment of any other bidder; and

(c) does not lead to a higher price than the bid as submitted.

Minutes of such negotiations must be kept for record purposes.

21. Two-stage bidding process

A two-stage bidding process allows for –

(a) large complex projects; or

(b) projects where it may be undesirable to prepare complete detailed technical

specifications

In the first stage technical proposals on conceptual design or performance

specifications should be invited, subject to technical as well as commercial

clarifications and adjustments.

In the second stage final technical proposals and priced bids should be invited.


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22. Committee system for competitive bids

The Accounting Officer is required to –

(a) establish a committee system for competitive bids consisting of at least –

(i) a bid specification committee;

(ii) an evaluation committee; and

(iii) a procurement committee;

(b) The Bid Specification Committee will be approved by the Director that is

responsible for procurement of the specific goods or services.

(i) Specifications, terms of reference and evaluation criteria must be

determined for every bid and approved prior to the invitation of

bids by the Bid Specification Committee. The evaluation criteria

must be clearly indicated in the bid document.

(c) Each Evaluation Committee will be approved by the Procurement

Committee

(i) The Evaluation Committee may include independent experts to

participate in the evaluation process.

(d) The Procurement Committee will be approved by the CEO

(i) The Procurement Committee must consider the report and

recommendations of the Evaluation Committee


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23. Bid Specification Committees

(1) The bid specification committees must compile the specifications for each

procurement of goods or services by SAQA.

(2) Specifications –

(a) must be drafted in an unbiased manner to allow all potential

providers to offer their goods or services;

(b) must take account of any accepted standards such as those issued

by Standards South Africa, the International Standards Organisation,

or an authority accredited or recognised by the South African National

Accreditation System with which the equipment or material or

workmanship should comply;

(c) where possible, be described in terms of performance required rather

than in terms of descriptive characteristics for design;

(d) may not create trade barriers in contract requirements in the forms of

specifications, plans, drawings, designs, testing and test methods,

packaging, marking or labeling of conformity certification;

(e) may not make reference to any particular trade mark, name, patent,

design, type, specific origin or producer unless there is no other

sufficiently precise or intelligible way of describing the characteristics

of the work, in which case such reference must be accompanied by

the words “equivalent”;

(f) must indicate each specific goal for which points may be awarded in

terms of the points system set out in the Preferential Procurement

Regulations 2011; and


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(3) The bid specification committee must be chaired by the Director

responsible for the function involved and composed of one or more officials

of SAQA, and may, when appropriate, include external specialist advisors.

The external specialist advisors must be appointed in writing.

(4) No person, advisor or corporate entity involved with the specification

committee may bid for any resulting contracts.

24. Evaluation Committees

(1) The Evaluation Committees must comprise of a chairperson, and at least

three other members. The members must as far as possible be officials

from directorates requiring the goods or services and at least one supply

chain management practitioner.

(2) The chairperson of the Evaluation Committee must be a SAQA official with

rank of Deputy Director or above.

(3) The Evaluation Committees must evaluate bids in accordance with the

specifications for a specific procurement and the points system set out in terms of

paragraph 23 (f) and submit a report and recommendations regarding the award

of the bid or any other related matter to the Procurement Committee.

(4) Members of the Evaluation Committees must have relevant

skills and knowledge and must be free of any conflict of interest.

25. Procurement Committee

(1) The Procurement Committee must be chaired by the Deputy Chief

Executive Officer and have at least three other Directors as members.


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(2) The Deputy Chief Executive Officer must appoint the members of the

Procurement Committee.

(3) The Supply Chain Management must supply secretariat functions

(4) The Procurement Committee are established in terms of Regulation 16A

to the PFMA to provide a control function to assess and award bids. The

responsibility of the Procurement Committee is to ensure that the process

of soliciting and evaluating bids is fair, equitable, transparent, competitive

and cost effective. If the Committee considers it was not, the Committee

must refer the matter back to the Evaluation Committee with comments.

26. Appointment of consultants

(1) The accounting officer may procure consulting services provided that any

Treasury guidelines in respect of consulting services are taken into account

when such procurements are made.

(2) Consultancy services must be procured through competitive bids if the

value of the contract exceeds R500 000 (VAT included)

(3) In addition to any requirements prescribed by this policy for competitive

bids, bidders for Consulting Services must furnish particulars of –

(a) all consultancy services provided to an organ of state in the last five

years; and

(b) any similar consultancy services provided to an organ of state in the

last five years.

(4) The accounting officer must ensure that copyright in any document

produced, and the patent rights or ownership in any plant, machinery, thing,

system or process designed or devised, by a consultant in the course of the

consultancy service is vested in SAQA.

27. Deviation from procurement processes


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(1) The accounting officer may –

(a) dispense with the official procurement processes established by this

policy and to procure any required goods or services through any

convenient process, which may include direct negotiations, but only –

(i) if such goods or services are produced or available from a single

provider only;

(ii) for the acquisition of special works of art or historical objects

where specifications are difficult to compile;

(iii) for the acquisition of special services, services where limited

capacity in the market exists, for example due to copyright or

patents and investigations that require specialized testing and

expertise;

(iv) in any other exceptional case where it is impractical or impossible

to follow the official procurement processes; and

(v) cases of urgency and emergency -

- Urgent procurement is where early delivery is of critical

importance and the invitations of competitive bids are either

impossible or impractical.

- Emergency procurement is due to imminent or transpired

crises, disaster or tragedy, immediate action being

necessary in order to avoid or minimize the impact of a

dangerous or risky situation, misery or want.

Emergency or urgent procurement must not be used to circumvent

normal procurement procedures, as a result of poor or inadequate

planning or as a result of no or insufficient internal communication.

(2) The conditions warranting emergency or urgent procurement, include the

existence or imminent danger of occurrence of the following:


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- The possibility of human injury or death.

- The prevalence of human suffering or deprivation of rights.

- The possibility of damage to property.

- The interruption of essential services, including communications

facilities or support services critical to the effective functioning of the

organisation as a whole.

- The possibility that the security of the State could be compromised.

- The possibility of serious damage occurring to the natural

environment.

- The possibility that failure to take necessary action may result in

SAQA not being able to render an essential community service.

- The prevailing situation, or imminent danger, is of such a scale and

nature that it could not readily be alleviated by interim measures, in

order to allow time for normal procurement policies to be used.

- Available details of the nature and extent of work and services

required are insufficient to permit an accelerated, or normal

procurement policy to be used.

At least three quotations should be obtained, failing which reasons should

be provided as to why it is not possible to obtain the required number of

quotations. The contract should be adjudicated on the same basis as any

other contract and the supply chain management policy should be applied

as far as possible.

(2) The reasons for deviating from the normal procurement procedures must be

recorded and approved in accordance with the delegations.

28. Sole source Selection

Sole source selection of service providers does not provide the benefits of competition in

regard to quality and cost and lacks transparency in selection and could encourage


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unacceptable practices. Therefore, sole source selection should be used only in

exceptional cases. The justification for sole source selection should be examined in the

context of the overall interests of SAQA and the project.

Sole source selection may be appropriate only if it presents a clear advantage over

competition:

for tasks that represent a natural continuation of previous work carried out by the

firm;

- where a rapid selection is essential (for example, in an emergency operation);

- for very small assignments; or

- when only one provider is qualified or has experience of exceptional worth for

the assignment.

The reasons for a sole source selection should be recorded and approved by the

accounting officer or delegate prior to the conclusion of a contract.


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When continuity for downstream work is essential, the initial should outline this prospect

and if practical, the factors used for the selection of the service providers should take the

likelihood of continuation into account. Continuity in the technical approach, experience

acquired and continued professional liability of the same consultant may make

continuation with the initial consultant preferable to a new competition, subject to

satisfactory performance in the initial assignment. For such downstream assignments,

the bid specification committee should ask the initially selected consultant to prepare

technical and financial proposals on the basis of terms of reference TOR furnished by

the accounting officer of delegate, which should than be negotiateIf the initial assignment

was not awarded on a competitive basis or was awarded under tied financing or

reserved procurement or it the downstream assignment is substantially larger in value, a

competitive process acceptable to the accounting officer or his delegate should normally

be followed in which the consultant carrying out the initial work is not excluded from

consideration if it expresses interest


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29. Unsolicited bids

(1) In accordance with section 113 of the Act there is no obligation to

consider unsolicited bids received outside a normal bidding process.

(2) The accounting officer may decide in terms of section 113(2) of the Act to

consider an unsolicited bid, only if –

(a) the product or service offered in terms of the bid is a demonstrably

or proven unique innovative concept;

(b) the product or service will be exceptionally beneficial to, or have

exceptional cost advantages;

(c) the person who made the bid is the sole provider of the product or

service; and

(d) the reasons for not going through the normal bidding processes are

found to be sound by the accounting officer.

(3) If the accounting officer decides to consider an unsolicited bid that

complies with subparagraph (2) of this policy, the decision must be

advertised in the Government Tender Bulletin together with –


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(a) reasons as to why the bid should not be open to other competitors;

(b) an explanation of the potential benefits if the unsolicited bid were

accepted; and

(c) an invitation to the public or other potential suppliers to submit their

comments within 30 days of the notice.

(4) All written comments received pursuant to subparagraph (3), including

any responses from the unsolicited bidder, must be submitted to the

National Treasury for comment.

(5) The Procurement Committee must consider the unsolicited bid and may

award the bid or make a recommendation to the accounting officer,

depending on its delegations.

(6) A meeting of the Procurement Committee to consider an unsolicited bid

must be open to the public.

(7) When considering the matter, the Procurement Committee must take into

account –

(a) any comments submitted by the public; and

(b) any written comments and recommendations of the National

Treasury.

(8) If any recommendations of the National Treasury are rejected or not

followed, the accounting officer must submit to the Auditor General and

the relevant National Treasury the reasons for rejecting or not following

those recommendations.

(9) Such submission must be made within seven days after the decision on

the award of the unsolicited bid is taken, but no contract committing


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SAQA to the bid may be entered into or signed within 30 days of the

submission.

30. Combating of abuse of supply chain management system

The accounting officer or delegate must establish measures for the combating of

abuse of the supply chain management system, which must stipulate the

following:

(1) The accounting officer must–

(a) take all reasonable steps to prevent abuse of the supply chain

management system;

(b) investigate any allegations against an official or other role player of

fraud, corruption, favouritism, unfair or irregular practices or failure

to comply with this supply chain management policy, and when

justified –

(i) take appropriate steps against such official or other role

player; or

(ii) report any alleged criminal conduct to the South African

Police Service;

(c) take all reasonable steps to ensure that no recommended bidder,

or any of its directors, is listed as a person prohibited from doing

business with the public sector;

(d) reject any bid from a bidder if any municipal rates and taxes or

municipal service charges owed by that bidder or any of its

directors to the municipality, or to any other municipality or

municipal entity, are in arrears for more than three months; or

(e) reject a recommendation for the award of a contract if the

recommended bidder, or any of its directors, has committed a

corrupt or fraudulent act in competing for the particular contract;

(f) cancel a contract awarded to a person if –


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(i) the person committed any corrupt or fraudulent act during

the bidding process or the execution of the contract; or

(ii) an official or other role player committed any corrupt or

fraudulent act during the bidding process or the execution of

the contract that benefited that person; and

(g) reject the bid of any bidder if that bidder or any of its directors –

(i) has abused the supply chain management system of SAQA

or has committed any improper conduct in relation to such

system;

(ii) has been convicted for fraud or corruption during the past

five years;

(iii) has willfully neglected, reneged on or failed to comply with

any government, or other public sector contract during the

past five years; or

(iv) has been listed in the Register for Tender Defaulters In

terms section 29 of the Prevention and Combating of Corrupt

Activities Act (No 12 of 2004).

(2) The accounting officer or delegate must inform the National Treasury in

writing of any actions taken in terms of subparagraphs (1)(b)(ii), (e) or (f)

of this policy.

31. Logistics Management

Logistics Management refers, amongst others, to coding of items, setting of inventory

levels, placing of orders, receiving and distributing of goods and generation of

payments.


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All goods and assets must be coded in accordance with the procurement

systems’ functional requirements to be included on SAQA’s Asset Register.

Minimum and maximum inventory levels must be set.

All goods and assets delivered must be inspected to verify quality and quantity before

they are accepted.Records of all goods and assets issued must be

accuratelymaintained.

A register of guarantees and warranties must be maintained by the Supply Chain

Management for all goods, assets and services acquired.

No payment may be generated without proof of the services, goods or assets having

been delivered satisfactorily.

Payments must be made to the contractor only.

Payment must be made within 30 days of receipt of all the required, valid

documentation as prescribed by SAQA’s General Conditions of Contract which must be .

Suppliers are entitled to payment on time for goods or services duly rendered.

For all contracts, the payment period will be not more than thirty calendar days from the

date of submission of a claim by the contractor.

Where a dispute on payment has been declared every endeavour must be made to

resolve the dispute amicably before the payment period expires.

Assistance may be given to emerging contractors in the form of reduced payment

periods, should they so request it.

No payment in less than seven calendar days will however, be made to contractors.

The payment conditions must be clearly specified in the contract documentation.

32. Disposal Management


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Disposal Management refers to the disposal of assets as registered on the asset

register.

All assets must be disposed of in accordance with one of the following methods:

- Sale;

- Lease;

- Transfer;

- Donation;

- Destruction

An Asset Disposal Committee (Procurement Committee acts as Asset Disposal

Committee) must be established to oversee the disposal of assets in accordance with

the approved methods.

Assets must be sold via a bidding process.

The assets guarantees and warranties register must be considered before disposing of

an asset.

Where computer equipment is to be disposed of, the Department of Education should

be approached to make arrangements for free transfer of such assets to educational

institutions.

33. Risk Management

All officials involved in Supply Chain Management must adopt a systematic approach to

prevent, detect and correct any related risks.

The responsibilities of reporting any known fraudulent or non-compliant activity will rest

with all officials.


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Disciplinary action will be instituted against officials who fail to report fraudulent or non-

compliant activities.

34. Managing supply chain performance

The Supply Chain Management Unit must set indicators for the assessment of the

Supply Chain Management process.

The following criteria must be utilised to measure effectiveness and efficiency:;

a) Achievement of goals;

b) Compliance with norms and standards;

c) Savings generated;

d) Cost variances per item;

e) Contract breach;

f) Cost efficiency of the procurement processes;

g) Consistency of supply chain objectives with

Government’s broader policy practice (socio-economic objectives);

h) Observation of the principles of co-operative

governance as expounded in the Constitution;

i) Promotion of the reduction of the regional economic

disparities.

The Supply Chain Management Unit must report, on a monthly basis, to Senior

Management and National Treasury on the performance of Supply Chain Management.

35. Non-compliance with policy

Where an employee is suspected of breaching the policy, an internal investigation will be

undertaken, and depending on the outcome, Departmental, civil and criminal legal action

will be taken against the employee.

Any disciplinary action arising from breach of this policy will be undertaken according to

the disciplinary code and grievance procedure of SAQA.

36. Confidentiality


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All employees are expected to comply with the Code of Conduct of SAQA:

• An employee honours the confidentiality of matters, documents and

discussions, classified or implied as being confidential or secret.

• An employee does not disclose any official information for personal gain or

the gain of others

37. Inducements, rewards, gifts and favours to SAQA officials and other role

players

(1) No person who is a provider or prospective provider of goods or services,

or a recipient or prospective recipient of goods disposed or to be disposed

of may either directly or through a representative or intermediary promise,

offer or grant –

(a) any inducement or reward to SAQA for or in connection with the

award of a contract; or

(b) any reward, gift, favour or hospitality to –

(i) any official; or

(ii) any other role player involved in the implementation of the supply

chain management policy.

policy on supply chain management 24_a_ scm policy approved 201… · objectives to be linked to...

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