presentation: breakfast briefing meeting with built environment professionals: 2009/07/07

Presentation by: NN Vilakazi1

PRESENTATION: BREAKFAST BRIEFING MEETING WITH BUILT ENVIRONMENT PROFESSIONALS: 2009/07/07

KwaZulu-Natal Department of Public Works

Department of Public Works

PROVINCE OF KWAZULU-NATAL


BACKGROUND:

For years DPW was utisiling Roster System, well known as “Roster”, for procurement of Professional service providers i.e. Architects, QS, Engineers etc.

The consultants roster had the following shortcomings.

– Dominated by non targeted groups,– Not aligned with Procurement Legislations, BBBEE, CIDB

etc. A new system (PSP) for procurement of Professional

Service Provider’s services, which is aligned to the Government mandate was therefore developed.


PURPOSE:PURPOSE:

The establishment of a roster system for the procurement of Professional Service Providers for appointments up to R1,500,000.00 including Value-Added Tax, which will address the Policy Strategies and Reform Processes issued by the National Treasury and adopted by the KwaZulu-Natal Department of Public Works Policy Development and Control Division.


POLICY STRATEGY AND POLICY STRATEGY AND REFORM PROCESSES:REFORM PROCESSES:

To adopt a supply chain management function and a systematic competitive procedure for the appointment of Professional Service Providers

To adopt Procurement Procedures provided for in the CIDB Standard for Uniformity in Construction Procurement

To embrace the KwaZulu-Natal BBBEE strategy in respect of empowerment of target group enterprises through preferential procurement


FORMATION:FORMATION:

The compilation of an up to date database of Professional Service Providers registered within the Service Categories for which they qualify

The implementation of the roster system to operate in alignment with the Standard Procurement Policies and Procedures adopted by the KwaZulu-Natal Department of Public Works


OBJECTIVES:OBJECTIVES:

To ensure the database of qualified Professional Service Providers is up to date

To simplify, automate and standardise the procurement procedures

To ensure consistent, fair, equitable, transparent and cost effective procurement procedures

To align with KwaZulu-Natal BBBEE Strategies To facilitate short time frames in the tendering

process To increase the utilisation of targeted groups


SCOPE:SCOPE:

Architectural Services Construction Services Dispute Resolution Engineering Services Environmental Impact Studies Landscape Architectural Services Management Services Quantity Surveying Services Surveying Transportation Planning Town Planning Valuations Arbitrations


TERMS OF REFERENCE:

DPW/ Ron Watermeyer

Procedures For The Appointment Of Professional Service Providers

6 August, 2006 (fourth draft)

Ron Watermeyer DISCUSSION PAPER: The Proposed CIDB System For The Competitive Selection Of Professional Service Providers

(November 2007)

Ron Watermeyer Recently Launched National Standards For Construction Procurement

South African National Standards

Implementing Preferential Construction Procurement Policies Using Targeted Procurement Procedures

SANS 10396:2003

Edition 1 2003

KZN Dept of Works

Standardized Construction Procurement Documents For Professional Services

(August 2006)

KZN Dept of Works

KZN BBBEE Strategy

KZN Dept of Works

Service providers briefing meeting

Dept of Trade & Industry

Construction Sector Charter On Black Economic Empowerment

Notice 111 of 2007

Government Gazette No. 29616 Version 6 (Final)

09 February 2007


TERMS OF REFERENCE … (continued)

CIDB Standard Professional Services Contract (Second Edition of CIDB document 1014)

(September 2005)

CIDB Standard For Uniformity In Construction Procurement

Board Notice 94 of 2006

(Government Gazette No. 29138 of 18 August 2006)

06 August 2008

CIDB Scaling Up Delivery And Accelerating Empowerment

Practice Note # 1 (Version 1 - August 2006)

06 August 2008

CIDB Procuring Best Value In Construction Works Practice Note # 4 (Version 1 - May 2007)

07 May 2008

CIDB Evaluating Tender Offers Practice Note # 5 (Version 1 – May 2007)

07 May 2008

CIDB Competitive Selection Of Professional Service Providers

Practice Note # 6 (Version 1 - May 2007)

07 May 2008

CIDB Code Of Conduct For All Parties Engaged In Construction Procurement - In Terms Of The Construction Industry Development Board Act

(Act no.38 of 2000) 03 October 2008

CIDB Construction Procurement Best Practice (Act no.38 of 2000) Government Gazette No. 26427 Notice 63 Of 2004

09 June 2004


DURATION:DURATION:

Registration will be valid for a period to be determined by the Department.

Changes of particulars relevant to registration status will be required during the life of programme

Renewal of Registration will be required on expiry of the programme.


ELIGIBILITY:ELIGIBILITY:

1. Primary business is to provide independent professional services

2. 50% of the principals to be registered Professionals

3. At least one full time professional employee suitably qualified and registered in the required Service area

4. Have an office in the KwaZulu-Natal Province manned by at least one full time person


ELIGIBILITYELIGIBILITY … (continued)

5. Original Tax Clearance Certificate

6. Registered on the KZN Suppliers Database/ ZNT No.

7. Proof of Professional Indemnity Cover

8. Demonstrate sustained economic activity

9. Provide a documented Quality Management System


ELIGIBILITYELIGIBILITY … (continued)

10. Not be listed on the Register of Tender Defaulters

11. Not have abused the Supply Chain Management System or failed to perform on any previous contract.

12. Free of potential conflicts of interest13. Submit all relevant supporting documents

required.


ADMISSION:ADMISSION:

The initial information submitted in the “Application Form for Registration on the Professional Service Providers Electronic Database” and the supporting documents will be evaluated by the Departmental Evaluation Committee, approved by the Bid Awards Committee and validated by the Accounting Officer. An applicant will only be admitted to the electronic database when all the requirements as stated in the eligibility criteria have been complied with.

Going forward: The application will be submitted to the CCM directorate for screen and onward submission to AOCC for approval to be in the database, attached registration formPSPApplicationforRegistrationVers1(2) (2).doc .


PROCUREMENT PROCEDURES:PROCUREMENT PROCEDURES:

Nominated (Negotiated) ProcedureNominated (Shortlist) ProcedureApproach the Market


Nominated (Negotiated) Procedure:Nominated (Negotiated) Procedure:

Roster 1:

The selection process shall identify a single Professional Service Provider to negotiate a contract having an estimated fee per discipline not exceeding R500 000 including VAT.


Nominated (Shortlist) Procedure:Nominated (Shortlist) Procedure:

Roster 2:

The selection process shall identify five Professional Service Providers from which to invite tender offers where the estimated fee per discipline exceeds R500 000 including VAT but is less than or equal to R1 500 000 including VAT.


Approach the Market:Approach the Market:

Open Market:

Where the value of estimated fees per discipline is over R1 500 000 including VAT, the selection process shall be outside of the Professional Service Providers Roster. The Open Market Procedure will be stipulated as the procurement procedure.


CRITERIA FOR SELECTION:CRITERIA FOR SELECTION:

Service TypeGeographic Location of OfficesRatio of Appointments to Date

(Fee Value)EPWP Eligibility where required


Service Areas:Service Areas:

The default Service shall be the Service Type:

Service Area (e.g. ENGINEERING SERVICES) Service Type (e.g. Civil Engineering Services) Service Category (e.g. C01, C02, C03, etc.)


Geographic Location:Geographic Location:

The default location shall be the municipality where the project is located:

MUNICIPALITYMUNICIPAL DISTRICTREGION

Note: Start from Municipality instead of Town in-order to increase the base/ accommodate more service providers.


AppointmentsAppointmentsto Date (Fee Value):to Date (Fee Value):

The Professional Services Providers appointments to date are measured as a ratio of an amount set as the Fees Value Ceiling Per Annum for comparative scoring purposes.


EPWP Eligibility EPWP Eligibility where required:where required:

NQF7NQF level 7 unit standard “Develop and Promote Labour Intensive Construction Strategies

NQF5NQF level 5 unit standard “Manage labour intensive Construction Projects

Note:The EPWP compliance has not been implemented


SELECTION SCORING:SELECTION SCORING:

Maximum Ceiling Value

Maximum No of

PositionsMaximum Proximity

Weighting Factor

Weighting Factor

Weighting Factor

3,000,000.00 6 3 1 1 1

Service Type ConsultantAppointment Fees to Date

Position on Roster

Proximity to Site

Ceiling Value Point Score

PositionPoint Score

Proximity Point Score

Total Point Score

Civil Engineer Consultant F 150,000.00 2 3 0.95 0.67 1.00 2.62

Civil Technologist Consultant C 1,450,000.00 1 2 0.52 0.83 0.67 2.02

Civil Engineer Consultant E 900,000.00 5 3 0.70 0.17 1.00 1.87

Civil Technologist Consultant A 450,000.00 3 1 0.85 0.50 0.33 1.68

Civil Engineer Consultant B 250,000.00 6 2 0.92 0.00 0.67 1.58

Civil Technologist Consultant D 330,000.00 4 1 0.89 0.33 0.33 1.56


ACCELERATED ROTATIONACCELERATED ROTATION:

The rotation of the Professional Service Providers in the electronic database will be structured so as to accelerate the rotation of the targeted groups and thereby increase the utilisation of targeted groups in the procurement of professional services


PROCUREMENT TARGETS:PROCUREMENT TARGETS:

EQUITY OWNERSHIP

Points

Black AfricansFemale = 40

Male = 20

Black, Coloured, AsianFemale = 10

Male = 10

WhiteFemale = 5

Male = 0

Disabled = 5

Youth = 10

100


TARGET GROUPS:TARGET GROUPS:

The electronic database is programmed to rotate in such a manner that those Professional Service Providers that fall within the target groups (Level 1 to 4) rotate at a faster rate than those that are not (Level 5). The rotation is determined by the roster position which is calculated using the rotation formula


PREFERENCE LEVELSPREFERENCE LEVELS

Empowerment status applied for:

Level 1: Total score of 45 points and above

Level 2: Total score of 30 points and above but less than 45 points



Level 5: Total score of less than 5 points


ROSTER POSITIONS:ROSTER POSITIONS:

Total Number of PSP's on Roster 100

Number of Preferred PSP's on Roster 10 20 30 40 50 60 70 80 90 100

Drops to Position on Roster after tender opportunity:

Position from the top:

Weighting factor Level 1 1.00 30 40 50 60 72 85 100 100 100 100





ROTATION FORMULA*ROTATION FORMULA*

N = Position on roster from top =T*A/100*W

for N = Maximum of T

where

NTE = Total number of preferred active PSP's on database

T = Total number of active PSP's on database

A = =100/(6.01-1.18*LN((NTE*100)/T))

A Min for A = Minimum 20

A Max for A = Maximum 100

W = Weighting factor* SANS 10396:2003 Implementing preferential construction procurement policies using

targeted procurement procedures 5.2.8 Electronic rotating databases (rosters)


WEIGHTING FACTORSWEIGHTING FACTORS:

The target groups / levels of Professional Service Providers will be rotated according to the weighting factor applied to that level:

Level 1 1.0

Level 2 1.3

Level 3 1.6

Level 4 1.9


RATE OF ROTATION:RATE OF ROTATION:

Total Number of PSP's on Roster 100

Number of Preferred PSP's on Roster 10 20 30 40 50 60 70 80 90 100

Weighting factor Level 1 1.00 3.3 2.5 2.0 1.7 1.4 1.2 1.0 1.0 1.0 1.0





EVALUATION OF TENDER OFFERS:EVALUATION OF TENDER OFFERS:

Nominated (Negotiated) Procedure

Guideline tariff of fees published by councils such as ECSA may be used either as a basis to establish the reasonableness of the tender offer or as the basis for tendering, in which case, tenderers will be required to tender a percentage deviation from published guideline tariffs.


EVALUATION OF TENDER OFFERSEVALUATION OF TENDER OFFERS

Nominated (Shortlist) Procedure

The requirements set out in the Preferential Procurement Policy Framework Act (PPPFA) will apply to the evaluation of tender offers


CONDITIONS OF CONTRACTCONDITIONS OF CONTRACT:

The Conditions of Contract and Procedures under which professional Service Providers are commissioned shall be in accordance with the Department of Works Standard Documents.

– CIDB Standard Conditions of Contract, Standard contract proc_doc_cidb_services_edition_2.pdf

– Appointment letter with milestones and timelines.– PSP bid document

SPD-professional services-KZN-2009 (2).doc


DEFAULT AND PENALTIES:DEFAULT AND PENALTIES:

Normal Projects

A penalty will be levied for poor performance or failure to meet a submission date as set out in the letter of appointment of 0.1% subject to a maximum amount of the total fees payable per stage.

Special High Priority Projects

A penalty will be levied for poor performance or failure to meet a submission date as set out in the letter of appointment of 0.25% subject to a maximum amount of 50% of the total fees payable.


APPLICATIONS…

241 Enterprises 318 Branch Offices 765 Principals 1706 Registered Professionals 8012 Service Categories


Equity Ownership Percentage

HDI Black (Coloured / Indian / Asian) 54.33%

HDI (Women) 14.67%

HDI (Disabled) 1.58%

Youth 13.19%

(PPG) 43.30%

Continued…


SERVICE TYPES:

Service Type No.

Architectural Services 79

Construction Services 55

Dispute Resolution 76

Engineering Services:

- Civil Engineering Services 99

- Electrical Engineering 36

- Geotechnical Engineering 35

- Mechanical Engineering 32

- Miscellaneous Engineering Services 47

- Structural Engineering 83

Environmental Impact Studies 29

Landscape Architectural Services 8

Management Services 199

Quantity Surveying Services 89

Surveying 9

Town Planning 17

Transportation Planning 15


TARGETED PREFERENCE LEVELS:

Level Score No. %1 Total score of 45 points and above 14 5.81%

2 Total score of 30 points and abovebut less than 45 points

68 28.22%

3 Total score of 15 points and above butless than 30 points

32 13.28%

4 Total score of 5 points and above butless than 15 points

29 12.03%

5 Total score of less than 5 points 98 40.66%


PROGRESS TO-DATE:

Milestone ProgressDevelopment of PSP Policy & Application form Done in 2008/09

Closing date for registration May 2008

Advertisement, Briefing Workshops Done, March - August 2008

Screening, Evaluation & Adjudication by Departmental committees

August –December 2008

Development of IT software Done, March 2009

Development and adoption of Procedure document, standard contract documents

Done, April 2009

Programme testing Done

Programme presentation Done, AOCC meetings


PENDING ISSUES:

Milestone ProgressRegistration of late applications ± 100 Received to-date.

Submission to next AOCC by end July 2009.

Use of Professional Technologist Pending Engage CBE & ESCA in July 2009

Breakfast briefing meeting/ Launch

Scheduled for the 07th July 2009.


NGIYABONGA/ THANK YOU

presentation: breakfast briefing meeting with built environment professionals: 2009/07/07

Documents

nn vilakaziscope

nn vilakazibackground

nn vilakaziduration

nn vilakazieligibility

nn vilakaziformation

nn vilakaziobjectives

nn vilakazipurpose

procurement legislations