PROCUREMENT POLICY

POLICY PARTICULARS DATE OF APPROVAL BY RELEVANT COMMITTEE STRUCTURE: Finance & General Purposes (F&GP) Committee of the University Council, Council DATE OF APPROVAL BY SENATE: March 2015 DATE OF APPROVAL BY COUNCIL: May 2015 COMMENCEMENT DATE: April 2016 REVISION HISTORY: Policy finalised March 2015 REVIEW DATE: 5 year intervals POLICY LEVEL: All members of the University authorised to procure goods & services

using University funds RESPONSIBILITY: Executive Director: Infrastructure, Operations & Finance

- IMPLEMENTATION & MONITORING: Policy to be operationalised through the procurement IT system (in progress). Until completed interim procedures developed by the Procurement Office are to be followed.

- REVIEW AND REVISION: Every 5 years REPORTING STRUCTURE: Executive Director: Infrastructure, Operations & Finance; Vice-Chancellor; Budget Executive Committee; F&GP; Council

2

Contents1 PART A: GENERAL PRINCIPLES ............................................................ 3

1.1 PREAMBLE ............................................................................... 31.1.1 OBJECTIVES ........................................................................ 31.1.2 PRINCIPLES ......................................................................... 4

2 PART B: PURCHASING POLICY ............................................................. 62.1 PREAMBLE ............................................................................... 62.2 DEFINITIONS AND ABBREVIATIONS ................................................... 6

SPECIFIC DEFINITION OF GOODS AND SERVICES ............................................. 72.3 CENTRALISED PROCUREMENT ADMINISTRATION ................................... 72.4 SUPPLIER SELECTION GUIDELINES ................................................... 8

2.4.1 Approval ............................................................................ 82.4.2 Sole suppliers ...................................................................... 82.4.3 Supplier selection ................................................................. 92.4.4 Professional or specialised services and supplier selection ................ 92.4.5 Collaborative purchasing ...................................................... 10

2.5 QUOTATIONS & TENDERS ........................................................... 112.5.1 Quotations ....................................................................... 12

2.6 Tenders ................................................................................ 132.6.1 Definitions ....................................................................... 132.6.2 General Principles & Concepts ................................................ 14

3 PART C: PREFERENTIAL PROCUREMENT POLICY ...................................... 253.1 PREAMBLE ............................................................................. 253.2 BBBEE SCORECARD FOR HIGHER EDUCATION .................................... 253.3 POLICY STATEMENT .................................................................. 263.4 POLICY REQUIREMENTS .............................................................. 26

3.4.1 The establishment and updating of a preferential procurement database: .................................................................................. 263.4.2 The establishment of Preferential Procurement targets: ................ 263.4.3 Introduction of preferential procurement criteria to procurement decision-making: ......................................................................... 263.4.4 To increase preferential procurement spend: .............................. 273.4.5 To establish reporting mechanism for preferential procurement compliance: ............................................................................... 27

4 IMPLEMENTATION OF POLICY ........................................................... 27

3

1 PART A: GENERAL PRINCIPLES

1.1 PREAMBLEBasedontheprinciplesofhonesty,fairnessandintegrityandthroughtheestablishmentanduseofatransparentprocurementprocessandsystem,RHODESUNIVERSITYcommitsitselftotheefficientandcost-effectiveprocurementofgoodsandserviceswhichsupporttheacademicprojectofRHODESUNIVERSITY.Thispolicythereforeappliestoallpurchasesmadewithfundsunderthecontrolofandadministered by the University and is therefore applicable to all entities (faculties,divisions,departments, institutes,centres,units)andstaff.Allmembersof theRHODESUNIVERSITY community who have any procurement function and/or responsibility areaccountableforboththeprudentuseofUniversityresourcesforcomplyingwithrelevantpolicies,proceduresandapplicablelegislation.

1.1.1 OBJECTIVES • To promote the efficient supply of goods and services through the promotion and

applicationofbestprocurementpractices.

• ToensurethatRHODESUNIVERSITYiscompliantwiththerequirementsoftheHigherEducationActof1997(asamended).

• Toensure thatRHODESUNIVERSITY is compliantwith thePreferentialProcurement

Regulations,2011pertainingtothePreferentialProcurementPolicyFrameworkAct,(ActNo.5)of2000.

• Tosetouttherulesandauthoritylevelsfortheacquisitionofgoodsandservices.

• Inaccordancewithsection217oftheConstitutionofSouthAfricatoensurethatthe

University’sprocurementactivitiesareconductedinamannerthatisequitable,transparent,competitive,efficient,andcost-effective.

• To source goods and services of a required quality at the right price from suitably

qualifiedserviceproviders/supplierswithstrongbusinessethics.

• TomeettheprocurementneedsofRHODESUNIVERSITYinaprofessionalmanner.

• To abide by RHODES UNIVERSITY’s Code of Ethics and Conduct and the Policy onPreventionofFraud/CorruptionandotherIrregularities.

• Toensuretheprocurementofgoodsandservicesfromsociallyandenvironmentally

responsiblesupplierssubscribingtocorevaluesintheareasofhumanrights, labourstandards,theenvironment,andanti-corruption.

4

1.1.2 PRINCIPLES

1.1.2.1 RestrictionsonprocurementofassetsOnlyassetsbudgetedforandapprovedbyCouncil(throughthebudgetprocess)maybepurchased.

1.1.2.2 EthicalstandardsandconflictsofinterestsAll procurement transactions and interactionswith suppliers, including supplierselection and evaluation, are subject to the provisions outlined in RHODESUNIVERSITY’sCodeofEthicsandConductandthePreventionofFraud/CorruptionPolicy.

1.1.2.3 Declarationofinteresta. Any person involved in the purchasing, public and closed tender or supplier

evaluation process must complete and sign the applicable declaration ofinterestform.

b. Anypersonwithan interest thatmayaffector couldbe seen toaffect their

impartiality should immediately declare the conflict of interest, in writing,withdrawentirelyfromtheprocessandrelinquishallfurtherrelateddutiestohis/herlinemanager.

c. Suppliersortheiremployeesmaynotinanywayparticipateinorinfluencethe

specifications or standards set for goods and services to be purchased. ADeclarationofInterestformasattachedtotheSupplierListApplicationFormmustbecompletedbyallsuppliers.

1.1.2.4 Confidentialityandaccuracyofinformationa. Theconfidentialityof informationreceived in theprocurementprocessmust

berespected.

b. Specific details of suppliers’ bids must not be divulged, unless it is inaccordancewith thePromotionofAccess to InformationAct,2000 (Act2of2000)andthenonlythroughtheOfficeoftheRegistrar.

c. All members of the Procurement Department and all committee members

servingonprocurement-relatedcommitteesorattendingprocurementrelatedmeetingsmustsigntheProcurementConfidentialityProcessForm.

1.1.2.5 BusinessgiftsandhospitalityNo RHODES UNIVERSITY employee may accept any gift, hospitality or otherinducement that may influence them in their procurement decision-makingresponsibilities, or that may be seen to influence them in their procurement

5

decision-making responsibilities. Any such attempted inducements mustimmediately be reported to the relevant Director/Dean who shall notify theDeputyDirector:OperationsAdministration,Finance&Procurement.

6

2 PART B: PURCHASING POLICY

2.1 PREAMBLEThispolicy for theacquisitionofgoodsand servicesmustbe readwith theallotherrelatedfinancialpolicies,protocolsandprocedures.

2.2 DEFINITIONSANDABBREVIATIONSAsset(s) refer(s)toitemsofacapitalnature,asdefined

inthePolicyonAssetManagement;BlackSouthAfricans means Africans, Coloureds, Indians and

Chinese who are South African citizens bybirthorwhohaveobtainedcitizenshippriorto27April1994;

Commercialpurchasing referstotheacquisitionofgoodsandservicesforbusinesspurposes,excludingemploymentofemployees;

Goods mean tangible goods of a capital nature(assets) or goods that are consumed in theoperationalactivitiesofRHODESUNIVERSITY;

Professionalservices refertoservicesrenderedbythoseregisteredwith recognised professionalbodies/institutes;

Services refertotheprovisionofskillsandexpertise;Tender/quotation means a verbal or written offer or bid in a

prescribedformatinresponsetoaninvitationby RHODES UNIVERSITY for the provision ofservicesorgoods;

B-BBEE means Broad-Based Black EconomicEmpowermentasdefined in theBroad-BasedBlackEconomicEmpowermentAct53of2003andtheCodesofGoodPractice;

BSA meansaBlackSouthAfrican;CIDB means the Construction Industry

DevelopmentBoard;EME means the Exempt Micro Enterprises as

defined by the Codes of Good Practice intermsoftheB-BBEE;

F&GP refers to the Finance and General PurposesCommitteeoftheRhodesUniversityCouncil;

BudgetExecutiveCommittee refers to the Budget Executive CommitteeconsistingoftheViceChancellor,DeputyViceChancellors, Registrar, Executive Director,Deansrepresentatives&Director:Finance;

QSE referstotheQualifyingSmallEnterpriseasdefinedbytheCodesofGoodPracticeintermsofB-BBEE.

7

PURCOPurchasingConsortiumforHigherEducation

SPECIFICDEFINITIONOFGOODSANDSERVICESFor the purpose of this policy document, goods and services are defined as allpurchasesmade fromexternal suppliers, serviceproviders and contractors usingCouncil-controlled funds (see previous point on page 3) (excluding the staffbudget).Thisincludesforexample,thefollowing:• Consumablegoods(e.g.,stationery,chemicals)• Services(e.g.,couriers,flights,carhire)• Capitalgoods(e.g.,computers,furniture,airconditioners)• Specialist research equipment (e.g., laboratory equipment, specialised

computerequipment,equipmentforfieldwork)• Building and construction work (e.g., new buildings, improvement and

maintenance)• Professional services (e.g., architects, management consultants, quantity

surveyors)• Lease contracts (e.g., copy machines, fax machines, buildings, leasing of

vehicles)• Other diverse ad hoc services (e.g., once-off purchases such as conference

attendancefees,feesforperformingartists)

FundsforthepurchaseofgoodsandservicesareallocatedfromtheUniversity’soperationalandcapitalbudgets.Developmentandso-calledexternalfunds(researchandotherwise)whicharealsousedforthepurchaseofgoodsandservicesandareatalltimesalsosubjecttothispolicy.

2.3 CENTRALISEDPROCUREMENTADMINISTRATIONProcurementatRHODESUNIVERSITYisdecentralisedasfaraspossible,i.e.,procurementauthority is delegated to the relevant cost-centre authority as far as possible, but islocatedwithinacentralcoordinatingframeworkandstructure.Thiscentralco-ordinatingstructureresideswithintheProcurementDepartmentoftheInfrastructure&OperationsDivision,whichhastheresponsibilityformanaging,overseeingandtrackingalluniversityprocurement. This requires that all purchases must be channelled through theProcurementDepartment(seeprovisionbelowforemergencypurchases).The rationale for the centralization of the procurement function is that suchcentralization:

• Leveragesandachievesbenefitsofscale;• Ensures the implementation and monitoring of procurement legislation (e.g.

preferentialprocurementandBroad-BasedBlackEconomicEmpowerment);• Rendersaprocurementsupportservice;• Standardisessuppliersandproductswhereappropriate;• Establishesandmaintainsthesupplierdatabase;• Allows black-listing of suppliers whose dealings with the University have been

foundtocontravenetherelevantpoliciesoftheUniversityand

8

• Manages and administers the University’s participation in the purchasingconsortiumforhighereducation(PURCO).

In order for a procurement contract of any kind (purchase of goods, services or leasetransactions) to be binding upon RHODES UNIVERSITY, the following criteria andconditionsmustbecompliedwith,irrespectiveofthesourceofthefunds:a. AllrequestsforgoodsandservicesatRHODESUNIVERSITYmustbedonebymeansof

an official RHODES UNIVERSITY requisition and purchase order. The University’sofficial order form or duly authorised contract is the only acceptable and bindingcontractbetweenRHODESUNIVERSITYanditssuppliers.

b. RHODESUNIVERSITYreserves theright torefusepayment foranygoodsorservices

renderedintheabsenceofanofficialpurchaseorder.

c. It is essential that orders be generated prior to the purchasing of goods and/orservices.Ifastaffmemberdoesnotadheretothisprovision,theUniversityreservesthe right to take disciplinary action with a possible sanction of such staffmemberbeingheldpersonallyliableforsuchexpenditure.

d. Nogoodsor services valued aboveR3000maybepaid for by personal credit card,chequeor cash tobe claimed for refund laterwithoutprior authorisation from thelinemanager.

e. Verbalinstructionstosuppliersarenotallowed.

2.4 SUPPLIERSELECTIONGUIDELINES

2.4.1 Approval

TheresponsibilityforthescrutinyandtheapprovalofsuppliersrestswiththeDeputyDirector:OperationsAdministration,Finance&Procurement,whomustestablishanapprovedlistofgoodsandservicesproviders.

2.4.2 Solesuppliersa. Solesupplierscanbebroadlydefinedasgoodsandserviceproviderswhose

goodsand/orservicesareuniqueandarenotobtainablefromcompetitors.

b. Registration of all sole suppliers must be referred to the ProcurementDepartmentforapprovalbytherelevantTenderCommittee.

c. Applications to appoint new sole suppliers should be accompanied by

supporting proof of completed market research, feasibility study regardingproductselection,scopeofworkandprojectplan.

9

d. Goods/services must be chosen and approved in terms of acceptable

standardisationinitiativestofacilitateoperationalefficiency.

e. The commercial and BEE rating requirements that apply to normal supplierselectionalsoappliestosolesuppliers.

2.4.3 Supplierselectiona. Allsuppliersmustbidinopencompetition.

b. Supplierswillbeevaluatedandscrutinisedonanequalbasisinrespectofquality,

price, expected service levels, B-BBEE, or any other commercial or technicalrequirements.

c. TheuseofQSE’sandEME’sistobeencouragedtostimulatethelocaleconomy.

However, local suppliers should note that this is a recommendation, not arequirement,andthatRHODESUNIVERSITYreservestherighttoseeksuppliersofgoods and services outside of the Makana municipal area when local pricesbecomeuncompetitiveorwhenthegoodsand/orservicesprovidedfail tomeetspecifiedstandards.

d. All suppliersmustbescrutinizedandapprovedbytheProcurementDepartment

which shall be responsible for developing and maintaining a list of approvedsuppliers.Theobjectiveistoco-operatewithalimitednumberofsuppliersandtopreventthenumberofcreditorstoincreaseindefinitelyandunchecked.Undernocircumstances may goods and services be purchased from unsolicited vendorsuntilsuchvendorshavebeenaddedtothelistorregisterofauthorisedsuppliers.ThelistofapprovedsupplierswillcontinuouslyberevisedinordertoensurethatB-BBEEtargetsandqualitystandardsaremaintained.

e. The Procurement Departmentmust establish a process whereby suppliers may

apply to be included on the approved list and according towhich suppliers areinvited to apply. The process shallmake provision for the annual updating andconfirmation of supplier information to ensure that RHODES UNIVERSITY iscompliantwithlegislativerequirementsatalltimes.

f. The Procurement Department is therefore expected to perform continuous

marketandproductresearchtoidentifysuitablesuppliersofgoodsandservices.

g. The approved list of suppliers is to be made be available on the RHODESUNIVERSITYintranet.

2.4.4 Professionalorspecialisedservicesandsupplierselectiona. TheUniversityfromtimetotimemakesuseofconsultants.Suchconsultantsmay

operateaspartofabusinessentity (forexamplecompany,closecorporationorpartnership), but often do so in their personal capacity. Irrespective of the

10

structurewithinwhichaconsultantprovidestheservice,theentityorconsultantwill have to be registered as a supplier on the RHODES UNIVERSITY financialsystem. The employment of guest lecturers falls outside of the scope of thispolicy(refertoHRrelevantpolicy).

b. InthecaseoftheDepartmentofFacilitiesManagement,theprofessionalservicesofconsultantsareusedinthefollowingcases:• whenprofessionalcertificationisrequired• when the nature and extent of the work requires the services of external

parties• whentheopentenderprocedureisfollowed(asappliestoprojectswherethe

scopeexceedsR500000)

c. The followingprofessional services areusually required in a large infrastructuredevelopment project: architects, quantity surveyors, engineers (civil, structure,transport, electrical, electronic, mechanical, chemical, acoustic, industrial), cityplanners,surveyors,landscapearchitectsandinteriordecorators.

d. Other specialist areas also require the appointment of consultants, such asauditors, legal advisors, experts in human resource management, medicalspecialists, professions andmanymore. Despite the specialised nature of theseappointments,theguidelinesstipulatedinTable1needtobefollowedunlessanexceptionisjustifiable.SuchexceptionscanbeauthorizedbytherelevantDeanorDirector or a member of the Executive. The Deputy Director: OperationsAdministration, Finance& Procurementmust be notified of such authorizationsforrecordpurposes.

2.4.5 Collaborativepurchasing

a. TheUniversitymayenterintocollaborativepurchasingagreementswhereitistotheadvantageoftheUniversity.

b. Wherecollaborativeagreementshavebeennegotiatedandmorethanone

supplierisidentified,quotationrequirementswillapplybutmayberestrictedtothesuppliersontheagreement.

c. PURCO:

The University is a member of PURCO (“Purchasing Consortium for HigherEducation”)whichnegotiatesagreementsforthehighereducationsectorattheregional and national level. The aim of negotiating as a collective is to ensureimproved service provision, price and quality. This applies especially to highfrequencyuser items suchaspaper. Participating institutionsarebound tobuyitemsas agreedonanannualbasis from thePURCOappointedand contractedsupplier. Coordination and contract management of these agreements arehandledcentrallyattheProcurementDepartment.NoRHODESUNIVERSITYstaffmembermaybindtheUniversitytolevelsofspendingagainstaPURCOcontract.

11

RHODESUNIVERSITY’sdecisiontoparticipateinaPURCOcontractrestswiththeDeputy Director: Operations Administration, Finance & Procurement inconsultationwiththerelevantinternalstakeholders.

2.5 QUOTATIONS&TENDERS

A primary objective of good procurement practice is the promotion of fair andtransparent competition andwide access to the procurement process.Quotations andtenders are instruments to achieve this objective. The aim is to find an appropriatebalance between competition, practical feasibility and the efficiency and cost-effectivenessoftheprocess.Very broadly, the procurement of goods and services below a set threshold requiresquotations, whereas the procurement of goods and services above a set thresholdrequiresanopentenderprocess.Aquotationisaverbalorwrittenpriceindicationforastandardproductorservicerenderedoninvitation.Atenderusuallyisforanon-standardandmorecomplexproductorserviceandisaformalwrittenindicationofprice,scheduleand other conditions. Tenders are usually provided in response to an open or closedadvertisedinvitation.ThevaluerangesforthesourcingofquotationsandtendersareaspresentedinTable1below.

ConsumablegoodsandservicesR1–R5001 Pettycash–noquotationrequiredR501–R10000 AtleastoneelectronicquotationfromtheapprovedsupplierlistR10001–R30000 AtleasttwowrittenquotationsfromtheapprovedsupplierlistR300001–R100000 AtleastthreewrittenquotationsfromtheapprovedsupplierlistR100001–R250000 AtleastthreesealedquotationsfromtheapprovedsupplierlistR250001–R1000000 ClosedtenderprocessR1000001andabove OpentenderprocessCapitalgoodsR1000–R10000 AtleastoneelectronicquotationfromtheapprovedsupplierlistR10001–R50000 AtleasttwoelectronicquotationsfromtheapprovedsupplierlistR50001–R100000 AtleastthreeelectronicquotationsfromtheapprovedsupplierlistR100001–R250000 AtleastthreesealedquotationsfromtheapprovedsupplierlistR250001–R2000000 ClosedtenderprocessR2000001andabove AnopentenderprocedureneedstobefollowedBuilding, Construction and Maintenance work, Small Capital works and ImmovableEquipmentasapplicabletotheInfrastructure&OperationsDivisionR1–R500 Pettycash–noquotationrequiredR501–R10000 AtleastoneelectronicquotationfromtheapprovedsupplierlistR10001–R50000 AtleasttwoelectronicquotationsfromtheapprovedsupplierlistR50001–R250000 AtleastthreewrittenquotationsfromtheapprovedsupplierlistR250001–R1000000 AtleastthreesealedquotationsfromtheapprovedsupplierlistR1000001andabove Anopentenderprocedurehastobefollowed. 1 As a guide, amounts below R500 should be paid from a department’s petty cash (if available) and amounts up to R3 000 may be claimed through the general claims procedure. The latter only applies if the supplier is not on the University’s financial system and when such a purchase represents an approved once-off purchase.

12

Table1PrescribedmonetaryvalueforquotationsandtendersThe monetary values/ranges in the table may be changed from time to time by theUniversity’sBudgetExecutiveCommittee,withratificationbytheCouncilF&GPCommittee.

2.5.1 Quotations

a. Any purchase of assets, consumables and services requires valid and comparablequotations from bona fide suppliers. A bona fide supplier can be defined as aregisteredentitywithvalidCIPC,SARSregistrationandtaxclearancecertification.

b. Departments & Divisions may obtain quotations up to R50 000, but quotations

exceedingR50000mustbeobtainedbytheProcurementDepartment.c. An end-user may make recommendations regarding the assets, consumables and

services they require, but the Procurement Department has the right to verifyinformationanduponconsultationappointanothersupplier.

d. ProposalswillbesubmittedtotheProcurementDirectorateandwillbeevaluatedby

aworkingcommitteeconvenedasperpublictenderprocedureandsubmittedtotheTenderCommitteeforconsideration.

e. The following general rules apply to negotiations or discussions on technical &

commercialaspectsofquotes:

• The technical staff nominated by the end-user will carry out negotiations ontechnicalmatters.

• ThePurchasingOfficerwillcarryoutnegotiationsoncommercialmatters.• Wheretechnicalandcommercialmattersareinterlinked,negotiationsshouldbe

inthepresenceofbothtechnicalandcommercialrepresentatives. f. Ifanerror ismadeinthequotationoranapparenterror isdetected,theprocessof

obtainingrevisedquotationswillbeoverseenbytheProcurementDepartment.g. Revisedquotationswillonlybeallowedunderexceptionalcircumstancesasevaluated

by theDeputyDirector:Operations Administration, Finance& Procurement and ontheunderstandingthatallbidderswillbegiventhisopportunity.

h. FormerRHODESUNIVERSITYemployeesarewelcometosubmitquotationsorseekto

dobusinesswithRHODESUNIVERSITYprovidedthataperiodoftwoyearshaselapsedsince conclusion of their employment with RHODES UNIVERSITY. Such previousemployment, including the date of voluntary resignation or retirement, must bedeclaredinwriting. Theemploymentofretiredacademicsforacademicpurposes isexcludedfromthispolicy(refertorelevantHRpolicy).

13

i. An emergency is a sudden, urgent usually unexpected occurrence or occasion thatrequiresimmediateactionwheresafetywillbecompromisedordamagewilloccurorthere will be loss of reputational credibility if not attended to immediately. In thefollowinghighlyexceptionalcases,quotationsortenderrequirementswillnotapply:

• emergencyrepairsandservicese.g.brokengaspipes,networkbreakdowns,

etc;• verifiedsolesuppliersofgoods/servicesorwhereanagreementandduly

signedcontractisinplace.Thenatureoftheemergencyorexceptionmustbeindicatedinwritingontherequisition.j. Althoughthequotationprocessdescribedin2.5.1a-haboveisthedefaultprocedure

tobefollowedforprocurement,someinstancesexistwheretheprocedurewillnotbefollowed.Thesecasesinclude:• Emergencypurchases(asdescribedinparagraph2.5.1i);• Procurement of products and/or services where RHODES UNIVERSITY has

contracted with specific suppliers (for example products that are procuredregularly and which are supplied at an agreed-upon price/rate from selectedsuppliers);

• Purchasesmadefromtermcontractorsbasedonthecampus(forexamplerepairactivities carried out by term contractors on instruction from the FacilitiesManagementDepartments);

• Purchases on contract negotiated by the Purchasing Consortium for HigherEducation (PURCO) and to which RHODES UNIVERSITY, after a thoroughevaluationofthebenefitsandneedforthespecifiedproductand/orservice,hascommittedanexpectedannualspend;

• Specialised purchases (for example for research purposes)where only a sole orsingle supplier exists for the required product/service (e.g., bulk purchases of atextbooksfromthesolepublisherforresaletostudents);

• Ad hoc once-off purchases such as conference attendance and the use ofperformingartists.

In the abovementioned exceptions it is the responsibility of the Department/Divisiondeviatingfromtheprescribedquotationprocess(seeTable1)tojustifythedeviationfromtheprocess.Thisjustificationisespeciallyrelevantshouldanaudit(internalorexternal)beconducted on the financial management practices of the Department/Division. TheexceptionsapplyonlyuptoanamountofR100000.ShouldtheamountinvolvedexceedR100 000, approval must be obtained in writing from the Executive Director:Infrastructure,Operations&Finance.

2.6 Tenders

2.6.1 Definitions

14

Approval/approved refers to the University’s written recommendation of thetender by the Tender Committee and subsequentManagementCommitteeapproval;

B-BBEEobjectives aretheobjectivessetoutinPartCofthispolicydocument;Buyer refers to RHODES UNIVERSITY, including its own duly

authorisedrepresentative,successorsandassignees;Contractcontents refer to theUniversity’s tenderconditionsandspecifications

asagreedwiththesuccessfultenderer;Contractprice meansthepricequotedbythetendererandacceptedbythe

Universityfortheexecutionofthecontract;Deliverydate meansthedateasstipulated inthecontract forthedelivery

ofgoods,renderingofservicesorcompletionofprojects;Goodsand/orservices refers to the machinery, equipment, apparatus, rental of

buildings, materials, services or consultancy/professionalservicesthatmustbeprovidedintermsofthecontract;

LegalAdvisor referstoalegalauthorityappointedbytheUniversity;Month meansacalendarmonth;Specifications refertoanyspecificationsasdrawnupbytheUniversitythat

areprovidedtogetherwithtenderdocuments;Tenderclosingdate referstothespecificfinaldayandtimeforsubmissionofthe

tenderTenderregister Refers to the electronic database in which the details of

tenders received are recorded and are electronically signedfor by the Deputy Director: Operations Administration,Finance&Procurementorhis/hernomineeandtheManager:Purchasingorhis/hernominee;

TenderCommittee referstotheCommitteeconstitutedbytheAdminCommitteeof Council to administer the tender process of RHODESUNIVERSITY;

Tenderer isapersonwhorespondstoaspecificinvitationtotenderbyformallysubmittingatenderatthedesignatedtenderaddressbefore the closing date, including the tenderer’s personallegalrepresentative,heir,successorandassignees;

Tenderaddress istheaddressasstipulatedinthetenderadvertisement;Tenderdocuments are documents (forms) as prescribed by the Tender

Committee,includinganyotherdocumentationsubmittedbythe tenderer to the University in response to a specificinvitationtotender;

VAT ValueAddedTax.

2.6.2 GeneralPrinciples&Concepts

2.6.2.1 Invitationtotender• RHODESUNIVERSITY invitessupplierswhomeet thecriteria to tender for the

provisionofgoodsortherenderingofservices.

15

• Aninvitationfortendersismadetothepublicbymeansofanadvertisementinlocal, regional and/or national newspapers and the RHODES UNIVERSITYwebsitewhereapplicable.

2.6.2.2 Tenderdocuments• Tenderdocumentsaresuppliedinsinglecopiesandtenderersmustmaketheir

owncopiesforpersonalreference.• These documents will be distributed at or before the public information

session.• Anadministrationfeewillbelevied.

2.6.2.3 Administrationoftenders• RHODES UNIVERSITY’s public tenders will be administered, assessed and

managedinaccordancewiththisPolicy,butwillalsobeguidedbytheB-BBEEprinciples(PartCofthisPolicy).

• For thepurposeofbuildings,engineeringandconstructionworks thegradingrangesoftheConstructionIndustryDevelopmentBoard(CIDB)maybeusedasthebasicrequirementindicatorinthetenderinvitationprocess.

• TheTenderCommitteemustensurethattendersareadministeredintermsofthis policy and that any deviations are reported to the Executive Director:Infrastructure,Operations&Finance.

• TheDeputyDirector:OperationsAdministration,Finance&Procurementmustensure that administration procedures are developed in linewith this policy,andmustprovideadministrativesupporttotheTenderCommittee.

2.6.2.4 Submissionoftenders

2.6.2.4.1 Requirements• Tendersmustcomplywiththespecificrequirementsandconditionsasset

out in the advertisement, which may include the conditions as set outbelow.

2.6.2.4.2 Submissionsoftenders• Properly and fully completed tender documentsmust be submitted in a

sealedenvelope.• The tender number, closing time and date, and a description of the

relevant goods/services tendered for, must be clearly indicated on theenvelope.

• The sealed envelope may not contain any documents other than thoseindicatedontheenvelope.

2.6.2.4.3 Wheretosubmitatender

16

• Tenderdocumentsmustbeposted inthetenderboxasstipulated intheadvertisement,onorbeforethestipulatedcut-offtimeanddate.

• Tendersreceivedafterthecut-offtimeonthestipulateddatewillnotbeconsidered.

2.6.2.4.4 Documentsincludedinthetender• The tenderer must include applicable information (by means of

appropriatedocuments)substantiatingtherequirementsassetoutintheadvertisement in order to enable the University to consider andinvestigate any technical particulars that require clarification in thetender.

2.6.2.4.5 Schedules• Where applicable, annexures as referred to in the document must be

properlycompletedandincluded,sincethesewillbebinding.• Whenthetendersareevaluated,thesescheduleswillbeusedinorderto

comparethemeritsofcompetingtenders.

2.6.2.4.6 Format• Tenderdocumentsmustbetyped,printedand/orcompletedinblackink.• Anytenderdocumentcompletedinpencilwillnotbeaccepted.

2.6.2.4.7 Signingoftenderdocuments• All tender documents, as well as all annexures, must be signed by a

properly authorised signatory of the tenderer. Failure to do so willdisqualifyatender.

• Anyalterationsmustbeproperlyinitialedbythetenderer.Failuretodosowilldisqualifyatender.

• No correction fluid may be used on the tender documents. Failure toadheretotheseconditionswilldisqualifyatender.

2.6.2.4.8 Signatoriesguarantee• Thetenderermustconfirmthatitssignatoryhastheauthorityofthelegal

entity to sign the applicable documents, by attaching a certified copy ofthe relevant resolutionof the legalentity. Failure todo sowilldisqualifythetender.

2.6.2.4.9 SupplierListApplicationForm• Completion of the supplier list application form and submission of all

substantiatingdocumentationiscompulsoryinthecaseofnewsuppliers.• Failuretocompletethisformorproviderequireddocumentationoutlined

thereonwilldisqualifyatender.

17

2.6.2.5 SpecificationandPrices

2.6.2.5.1 Documentation• No tender will be considered unless it is accompanied by adequate or certified

documentationindicatingthatthegoodsofferedcomplywiththespecifications.• Tenderersmuststipulatethecountryoforiginandthenameofthemanufacturer(s)

ofthearticlesoffered.

2.6.2.5.2 Substitutes• Tenderers must clearly indicate, in a separate annexure together with applicable

substantive documentation, alternative equivalents or substitutable articles thatcomplywiththespecifications.

2.6.2.5.3 SANSspecifications• Tenderersmustindicatewhetherthearticlesofferedaremanufacturedaccordingto

SouthAfricanNationalStandards(SANS)specifications,and,ifso,acertifiedcopyofthelatestSANScertificatemustbeattachedtothetenderdocument.

• PreferencewillbegiventoarticlesbearingtheSANSstamp.• Incaseswhereatendererhasindicatedthatthearticle(orarticles)offeredcomplies

with SANS specifications, the University retains the right to have the article (orarticles)testedbytheSANSatthetenderer’sexpenseif,accordingtotheUniversity,ithasbeenfoundthatthearticle(orarticles)offereddoes(do)notcomplywiththespecifications.ThetestsmustbecarriedoutbeforetheTenderCommitteemakesitsrecommendation.

2.6.2.5.4 Priceinformation• Tenderers must indicate clearly whether prices are fixed or are in any way

conditional,subjecttoescalation,confirmationoraparticularrateofexchange.• Ifpricesquotedarenotfixed,priceincreaseswillbeacceptedonlyifthetenderercan

submit documentary proof to the satisfaction of the Tender Committee that suchpriceincreasesareanticipatedandareunavoidable.Proofofsuchconditionsmustbesubmittedwiththetender.

• In the absence of such information, prices will be regarded as fixed for the fulldurationofthecontract.

• All quoted pricesmust be itemised indicating specifics such as handling, insurance,deliveryandinstallationcosts,packagingcostsandtransaction-relatedcoststhatwillaffectthetotalcosttoRHODESUNIVERSITY.

• VATmust be indicated separately. If not stated, the bid will be accepted as beinginclusiveofVAT.

2.6.2.5.5 Currency• AllpricesmustbequotedinSouthAfricancurrencyandmustbeinaccordancewith

VATlegislation.

2.6.2.5.6 Discounts

18

• AnydiscountsgrantedtotheUniversitymustbeindicated.

2.6.2.5.7 Deliveryconditions• Tenderersmuststipulatedeliveryconditionsclearly,forexample:F.O.R(freeonrail),

buyerstationordeliveredRHODESUNIVERSITY,etc. (check text?)

2.6.2.6 AcceptanceoftheTenders

2.6.2.6.1 Openingoftenders• Tenders will be collected from the tender box by the Deputy Director: Operations

Administration,Finance&Procurementorher/hisnomineeandtherepresentativeoftheTenderCommitteeorhis/hernominee.

• Tenders will be opened after the advertised cut-off date and time by the aboveRHODESUNIVERSITYofficialsandwillbeenteredinthetenderregister.

2.6.2.6.2 Confidentiality• Undernocircumstancesmustthecontentsandpriceofonetenderbemadeknown

toothertenderers.• AllmembersoftheProcurementDepartmentandallcommitteemembersservingon

procurement-relatedcommitteesorattendingaprocurement relatedmeetingmustsigntheconfidentialityprocurementprocessform.

• Anyemployeewhobreachesthisprovisionwillbeguiltyofgrossmisconductandanytendererbreachingconfidentialitywillbedisqualified.

2.6.2.6.3 RightsreservedbyRHODESUNIVERSITYregardingtenders• TheUniversityreservesthefollowingrightsregardingtheacceptanceoftenders:

o Toaccept,atitssolediscretion,anytenderinitsentiretyoronlypartly.o Toacceptanytender,irrespectiveofwhetherornotitisthelowestbid.o The University will not be liable for any financial expenditure incurred in

drawing up the tender, or in respect of any steps taken by the tenderer indrawingupsuchtender.

o TheUniversityreservestherightnottoawardatender.o TheTenderCommitteedecisioninawardingatenderisfinal.Theoutcomeof

the tender will be communicated to all participating tenders. No additionalcorrespondencewillbeenteredintoregardingtheadjudicationprocess.

2.6.2.6.4 BlackEconomicEmpowerment• RHODES UNIVERSITY subscribes to the principles of Broad-Based Black Economic

EmpowermentAct53of2003and theCodesofGoodPractice. Fordetails, refer tothePartCofthisPolicy.

19

• The Executive Director: Infrastructure, Operations & Finance shall monitorexpenditure on suppliers to ensure adherence to Broad-Based Black EconomicEmpowermentAct53of2003andtheCodesofGoodPracticetargets.

2.6.2.7 WithdrawalofaTender

2.6.2.7.1 Validityperiod• Tendersmustbevalidforaminimumperiodofninetycalendardays,orasotherwise

specified in the tender documents calculated from the closing date of the tender.Duringthisperiod,atendermaynotbewithdrawn.

2.6.2.7.2 Withdrawaloftender• If a tender accepted by the Tender Committee is withdrawn, the tenderer will be

liableforthedifferencebetweenhis/hertenderpriceandthepriceofthenexttenderthatmustofnecessitybeaccepted.

• However,ifdocumentaryevidencecanbesubmittedtothesatisfactionoftheTenderCommittee of RHODES UNIVERSITY to justify the withdrawal, no such liability willexist.

2.6.2.7.3 Communicationofthetenderresult• Successfulandunsuccessfultendererswillbeadvisedoftheoutcomeofthetenders

within fourteen days of the date of the final decision being made by the TenderCommittee.

• RHODES UNIVERSITY will not accept responsibility for incorrect supplier’s contactdetails provided in the tender documentation and the subsequent failure ofcommunicationofthetenderoutcomes.

2.6.2.7.4 Cancellationofcontractowingtofalseinformation• Anycontractawardedonaccountof false information furnishedby the tenderer in

order to secure a tendermay be cancelled at the sole discretion of theUniversity,withoutprejudicetoanyotherremediestheUniversitymayhave.

2.6.2.8 DeliveryandSupplyofGoodsandServices

2.6.2.8.1 Order/Contract• Orderswillbeplacedasandwhenrequired.• It is an explicit condition that no goods and/or servicesmaybe suppliedbefore an

officialorderordulysignedcontracthasbeenissuedbytheUniversity.

2.6.2.8.2 Deliveryperiod• Successful tenderers must execute all orders strictly within the delivery period as

specified.• Should the tendererdefault in this respect, theUniversity retains the right toplace

orderselsewhereandalladditionalexpenseswillbefortheaccountofthetenderer.• Insuchcase,thetendererwillbeheldinbreachofcontract.

20

• Goodsorderedbeforeoron the lastdayof the tenderperiodmustbedeliveredattenderprice,eventhoughdeliveryisafterthetenderperiod.

2.6.2.8.3 Goodsdelivered• Goods and materials supplied must be equivalent in all respects to the samples

supplied,orasstipulatedinthespecificationsoftheinvitationtotender.• Any goods/services that do not comply with the specifications or which, for any

reason,proveunsatisfactorywillberejected.• Thetendererwillbeinformedofsuchaction,uponwhichthegoodsmustberemoved

immediatelyatthecostofthetenderer.• Thefactthatnoobjection isrecordedondeliverywillnotprejudicetheUniversity’s

rightsintermsofthisclause.

2.6.2.8.4 Permits• Unlessotherwise indicated, itmustbeassumedthattheUniversitydoesnothavea

permittoimportgoods.

2.6.2.8.5 Disputearisingfromtheabove• All agreements and contracts with tenderers and other suppliers must contain an

arbitration clause as follows: “Should any dispute, disagreement or claim arisebetween the parties (called hereafter “the dispute”) concerning this agreement, thepartiesshalltrytoresolvethedisputebynegotiation.Thisentailsthattheonepartyinvitestheotherinwritingtoameetingandtoattempttoresolvethedisputewithin7(seven)daysfromdateofthewritteninvitation.Ifthedisputehasnotbeenresolvedbysuchnegotiation,thepartiesshallsubmitthedisputetoArbitrationFoundationofSouthernAfricaadministeredmediation,uponthetermssetbytheAFSASecretariat.Failingsucha resolution, thedispute, ifarbitrable in law, shallbe finally resolved inaccordance with the Rules of the Arbitration Foundation of Southern Africa by anarbitrator or arbitrator appointed by the Foundation The parties agree that thearbitrationwill take place inGrahamstown, that itwill be conducted in the Englishlanguage,andthatthearbitrator’sawardwillbefinalandbindingontheparties.”

2.6.2.9 OtherTenderMatters

2.6.2.9.1 General• Bysubmittingatender,thetendererconfirmsthathe/sheisawareofallprescriptions

andcircumstancespertainingtothetender,andthatthegoods/servicesofferedareasstipulatedbythespecifications.

2.6.2.9.2 Samples• Wheresubmissionsofsamplesarearequirementofthetender,suchsampleswillbe

submittedtotheProcurementDirectorateasandwhenrequested.Failuretoadheretothisrequirementwillrenderthetenderinvalid.

21

• Suchsampleswillberetainedforthefulldurationofthecontractsothattheymaybereferredtointheeventofadispute.

• Tenderersmust state clearlywhetherornot the samplesmustbe returned.Shouldtherebenoindicationinthisregardthesampleswillberetainedwithoutanyliabilitybeingassumedforthem.

• Anycostsincurredinreturningthesampleswillbefortheaccountofthetenderer.• RHODESUNIVERSITYwill not be held responsible for any loss or damages suffered

due to the destruction of loss of the samples whilst in the possession of theProcurementDirectorate.

2.6.2.9.3 Inspectionrights• The University retains the right to test or inspect, at any time during the

manufacturingprocess,allgoodstobedeliveredaccordingtoacontracttoascertainthequalityofthematerialusedaswellasthefinishingoftheproducts.

• Suchinspectionand/ortestwillbedeemedtobemerelyforthepurposeofsatisfyingtheUniversityastotheaforementionedandwill innowayrelievethecontractorofanyobligationsintermsofthecontract.

2.6.2.9.4 Contract/sub-contracting• A contract is entered into onlywith the tenderer and the contract, or any portion

thereof,oranyshareorinteresttherein,maynotbetransferred,assignedorgrantedto someone else without the specific written permission and conditions of theUniversity.

2.6.2.9.5 Interpretation• AllcontractsenteredintobytheUniversitymustcontainaclausespecifyingthatthe

partiestothecontractsubmittotheauthorityofanarbitratorassetoutinparagraph2.6.2.8.5 of the University’s procurement policy, and that in the event that thedispute cannot be arbitrated, the parties submit to the jurisdiction of the SouthAfricancourts.

2.6.2.9.6 Cancellationofcontract• TheUniversityretainstherighttocancelthecontractsummarilyshouldthetenderer

inanywayfailtocomplywithhis/hercommitments.• Any loss incurred as a result of such cancellation shall be recovered from the

tenderer.• TheUniversityfurthermorereservestherighttocancelthecontractshoulditcometo

the attention of the University that the successful tenderer is involved in criminalactivities,illegalbusinesspractices,corruptionorotherunethicalbehaviour.

2.6.2.9.7 Sequestration/liquidation• Thefollowingwillapplyshouldoneormoreofthestatedeventsoccur:

22

SHOULD… THEN…• Anorderbemadefortheattachmentofthe

tenderer’sestate,whetherprovisionallyorfinally,insequestration.

• Anapplicationbemadeforsuchorder.

• Thetendererappliesforvoluntarysurrenderof

estate.

• ThetenderercommitsanyactofinsolvencyascontemplatedinSection8oftheInsolvencyAct24of1936,asamended.

• Thetendererterminatebusiness.

• Acourtorderbemadefortheliquidationofsuch

company/closecorporation.

The University has the right toterminate the contract summarilywithout any legal recourse by thetenderer foranycompensationandwithoutprejudicetotherightoftheUniversity to institute legalproceedings because of one ormoreofthesaidevents.

2.6.2.9.8 Contracting• Thecontractsarisingfromtendersmust incorporateall legalmattersandprovisions

setoutinthisPolicyandmustbereviewedbytheRegistraroftheUniversitypriortosigning.

• CompletionandsignatureoftheDueDiligenceCertificatemustprecedethesigningofanycontract.

2.6.2.9.9 Acceptanceofconditions• Failureonthepartofthetenderertosignthetenderform,andthustoacknowledge

and accept the conditions in writing, or to complete the attached forms,questionnairesandspecificationsinallrespects,mayinvalidatethetender.

• TendersmustbesubmittedontheofficialformsandmustcomplywiththeconditionsofthetenderasstipulatedbyRHODESUNIVERSITY.

• Failuretocomplywiththeserequirementsortorenouncespecificallythetenderer’sownconditionsoftenderwhencalledupontodoso,willinvalidatethetender.

2.6.2.10 EvaluationProcess

2.6.2.10.1 BidSpecificationCommittee• ThisisasubcommitteeoftheTenderCommittee.Thecommitteeshouldconsistofat

threeofthefollowingmembers:o One(1)membermustbe fromtherequestingDivisionorDepartmentas

delegatedbytheHeadoftheDepartmentorDivision.o One(1)delegatedmemberoftheProcurementDepartment.o Any other individual within Rhodes University with the relevant

procurementexperienceand/orlegalbackground.

23

o An independentexpert:Whenanexternal independentexpert is sought,priorapprovalmustbeobtainedfromtheDeputyDirector:Administration,Finance and Procurement must be obtained. The expert must declareinterest and possible conflict of interest. The expert (representingcompany)maynotsubmitanybidforwhichhe/shehasbeenpartofitsBidSpecificationsCommittee.

• TheBidSpecificationCommitteewillperformthefollowingfunctions:

o Compilebidspecificationsandadvertisementsofallbids;o Thedetailedspecificationdocumentmustcontainsufficientdetailsofthe

specific goods or services desired, aswell as the nature of the eventualcontract,e.g.yearcontract;

o Thebidspecificationsmustbedrawnup inanunbiasedmannertoallowpotentialsupplierstooffertheirgoodsandservices;

o Takeintoaccountbroaderpolicyobjectives,i.e.preferentialprocurement;o Specifyevaluationcriteriaandweightings;o PriortoadvertisingtheChairpersonoftheTenderCommitteehastosign

offonthefollowingdocumentation:a) Thefinalbidspecifications;b) Theproposedadvertisement;c) Theevaluationcriteriawithpointsallocation.

2.6.2.11CompositionandscopeoftheTenderCommittee2.6.2.11.1CompositionoftheTenderCommittee

• TheTenderCommitteeshallatthediscretionoftheAdminCommitteeofCouncilbecomposedasfollows:

o TheExecutiveDirector:Infrastructure,Operations&Finance(chair)fortendersaboveR1m;

o TheDeputyDirector:Administration,Procurement&Finance(Chair)fortendersbelowR1m;

o Director:FinancefortendersaboveR1m,nomineefortendersbelowR1m;o Representative(s)oftheFaculty,Division,DepartmentorSectiongenerating

thetender;o TheTenderCommitteewillco-optadditionalmembersfortheirparticular

expertiseforaparticulartenderprocess.2.6.2.11.2ScopeoftheTenderCommittee

• Toadjudicatetendersubmissions;

24

• TheTenderCommitteemustmakearecommendationordoanapprovalbasedonthevalueandnatureofthetender,inaccordancewiththePolicyofAuthorityandScheduleofAuthorisationLevels.

• Arecommendationmustbemadewhentenderswithareputationalrisk,institutionalorstrategicareinvolved.

• Toensurecompliancewiththespirit,intentionandspecificrequirementsofthe

University’sProcurementPolicyinalltenderprocesses;

• ToensurethatrelationshipswithsuppliersaredeclaredandmanagedappropriatelyinaccordancewiththisPolicyandtheprinciplesofgoodgovernance;.

• ToensurethatSMME’s,B-BBEEsuppliersaresupportedtoparticipatefullyinthe

tenderingprocess;

• Toensurethataformal,objectivescoringsystemisusedintheevaluationprocesswhichcomplieswithpreferentialprocurementlegislation;

• Toensurethatalldeliberationsandoutcomesareconfidentialandthatall

communicationisviatheProcurementSectionorotherperson/divisiondelegatedbyCouncilashavingtheauthoritytodoso.

25

3 PARTC:PREFERENTIALPROCUREMENTPOLICY

3.1 PREAMBLESouth Africa’s future depends on the economic empowerment of its population. RhodesUniversity believes that the institution and operation of a preferential procurement policycontributestoawiderandmeaningfulempowermentofthepreviouslydisadvantagedpartofthe population and promotes sustainable development, job creation and general welfare.TheCounciloftheUniversitythereforeendorsestheprincipleofpreferentialprocurementtopromoteBroad-BasedBlackEconomicEmpowerment.Thepolicyaimsto:

• Provide organisationswith black ownership access to theUniversity’s procurementactivities.

• Contributetothedevelopmentandgrowthofblack-ownedorganisationsbystrivingfor a compliance target and by purchasing goods and services from suchorganisations.ThecompliancetargetsareprescribedbytheCodesofGoodPracticeonBroad-BasedBlackEconomicEmpowerment.

• Manageandmonitorprogressagainstthepurchasingobjectivesandestablishregularreportingonthisaspect.

• Encourage non-black empowered organisations to establish and implementaffirmativeactionpractices.

OperatingapreferentialprocurementsystemattheUniversityissubjectto:

• Section217oftheConstitutionofSouthAfricawhichstipulatesthatthegovernmenthastoinstituteaprocurementsystemthatisfair,equitable,transparent,competitiveandeffective.

• TheDepartmentofTradeandIndustry’sCodeofGoodPracticeapplicabletoBroad-Based Black Economic Empowerment published in the Government Gazette of 9February 2007. The University follows the prescribed scorecard of the Codesapplicabletouniversities.Therequirementsarebasedontherelevantlegislation(Act53/2003).

• The Preferential Procurement Regulations, 2011 pertaining to the PreferentialProcurementPolicyFrameworkAct,ActNo5of2000.

3.2 BBBEESCORECARDFORHIGHEREDUCATIONThe BBBEE scorecard for Higher Education aswell as theweightings for preferentialprocurement as determined by the Department of Trade and Industries shall beapplicableasindicatedintheprecedingsection.

26

3.3 POLICYSTATEMENT

a. ThepreferentialpolicyshouldnotcompromisetheUniversitywhen it involvespriceorqualityofgoodsandservices.

b. All University suppliers must provide information to the Procurement Departmentindicating the degree towhich the organisationmeets the requirements of Broad-BasedBlackEconomicEmpowerment.TheUniversitywillprescribetheformatoftheinformation.

c. TheProcurementDepartmentwillmaintainaregisterwithinformationontheBroad-BasedBlackEconomicEmpowermentstatusofall itsactivesuppliers.Onlysupplierswhohaveprovidedthisinformationwillbeconsideredforquotingandtendering.

d. Inaccordancewith thepreferentialprocurement targetsasstipulated in theCodes,theUniversitywillstrivetoachieveatargetof50%forpreferentialprocurementby2014and70%by2017.

e. Bymeansofdiscerningpurchasing,theUniversitywillactivelyattempttodevelopthebasisofblacksupplierstomeetnationalgoalsinempowerment.

f. When and if possible, the University will assist local businesses to become BBBEEcompliant.

g. The Executive Director: Infrastructure, Operations & Finance is responsible forensuring that the University’s BBBEE assessment and certification is carried outannuallybyanaccreditedverificationagency.

3.4 POLICYREQUIREMENTS

3.4.1 Theestablishmentandupdatingofapreferentialprocurementdatabase:AllUniversitysupplierswillberequiredtoprovideinformationtotheDeputyDirector:Operations Administration, Finance & Procurement indicating the degree to whichthe organisation meets the requirements of Broad-Based Black EconomicEmpowerment.TheUniversitywillprescribetheformatoftheinformation.Whenthisinformationchanges, thesupplier is responsible forprovidingthe latest informationto the University. The Deputy Director: Operations Administration, Finance &Procurement is responsible forestablishingandmaintaininga registerof theBBBEEstatusofallactivesuppliers.

3.4.2 TheestablishmentofPreferentialProcurementtargets:In accordance with the preferential procurement targets prescribed by the Codes,RhodesUniversitywillseektoachieveatargetof50%forpreferentialprocurementby2014and70%by2017.

3.4.3 Introductionofpreferentialprocurementcriteriatoprocurementdecision-making:The BBBEE procurement status of any provider of goods and services to RHODESUNIVERSITY must be added to the procurement criteria specified in Part B of thispolicy in accordance with the requirements of the Preferential ProcurementRegulations,2011PertainingtothePreferentialProcurementPolicyFrameworkAct,ActNo5of2000.

27

3.4.4 Toincreasepreferentialprocurementspend:Bymeansofdiscerningpurchasing,theUniversitywillactivelyattempttoidentifyanddevelopthenumberofblackempoweredsuppliers tomeetnationalempowermentgoals.

3.4.5 Toestablishreportingmechanismforpreferentialprocurementcompliance:The Executive Director: Infrastructure, Operations & Finance will ensure that theUniversity’s BBBEE status is presented annually to the F&GP and Council forconsideration.

4 IMPLEMENTATION OF POLICY Allprocurementprocedures,protocolsandpracticesatRHODESUNIVERSITYwhichwere inforce prior to the commencement of this Policy must become compliant with this policywithintwelvemonthsofthedateonwhichCouncilapprovesthisPolicy.