COMPONENT C: CORPORATE GOVERNANCE
2.4.7 SUPPLY CHAIN MANAGEMENT
The Supply Chain Management Policy applicable to the 2019/20 financial year was revised and adopted by Council on 29 May 2019 (as APPENDIX 29 of the budget-related policies) in terms of section 17(1) – (3) of the MFMA.
The changes alluded to above will ensure that the Supply Chain Management Unit (SCMU) has the required legislative mandate to further streamline procedures and processes in order to promote more efficient and effective service delivery to all our internal and external stakeholders.
2.4.7.1 Competitive bids in excess of R200 000
Bid Committee Meetings
The following table details the number of Bid Committee meetings held for the 2019/20 financial year:
Table 2:69: Bid Committee Meetings
Bid Specification Committee Bid Evaluation Committee Bid Adjudication Committee
41 139 43
The attendance figures of members of the Bid Specification Committee are as follows:
Table 2:70: Attendance of Members of Bid Specification Committee
Member % Attendance
Supply Chain Management Representative 100
Relevant technical expert responsible for a function 100
The attendance figures of members of the Bid Evaluation Committee are as follows:
Table 2:71: Attendance of Members of Bid Evaluation Committee
Member % Attendance
Senior Accountant: SCM or SCM Practitioner 100
Relevant technical expert responsible for a function 100
The attendance figures of members of the Bid Adjudication Committee are as follows:
Table 2:72: Attendance of Members of Bid Adjudication Committee
Member % attendance
Director Financial Services (Chairperson) 100%
Director Planning and Economic Development 82.93%
Director: Infrastructure Services 97.56%
Director: Community and Protection Services 92.68%
Director: Corporate Services 90.24%
The percentages indicated above include the attendance by those officials acting in the position of a bid committee member and / or chairperson.
2.4.7.2 Awards made by the Bid Adjudication Committee
The Bid Adjudication Committee awarded 66 bids with a value of R 224 283 067.49, excluding annual tenders awarded on the basis of approved rates. The ten highest bids awarded by the bid adjudication committee are as follows:
Table 2:73: Ten Highest Bids Awarded by Bid Adjudication Committee
Bid number Title of bid Directorate and
section Successful Bidder Value of bid awarded BSM 30/19 The upgrade and extension of the Pniel
wastewater treatment works: mechanical
and electrical installation Infrastructure Services Inenzo Water (Pty) Ltd Option 1. R63 909 796 BSM 29/19 The upgrade and extension of the Pniel
wastewater treatment works: civil works Infrastructure Services CSV Mazarin JV
Option 1. R61 871 692
BSM 16/20 The steps / Orlean lounge, Cloetesville,
Stellenbosch: rectification of 161 houses Human and informal
settlements Tops Construction cc. R17 045 724
Bid number Title of bid Directorate and
section Successful Bidder Value of bid awarded
BSM 18/20
Maintenance and operation of public ablution facilities at Stellenbosch and Jamestown informal settlements: period ending 30 June 2022.
Infrastructure Services Ibhunga Cleaning
and Bricks Paving. R10 022 338
BSM 17/20 Upgrading of Stellenbosch Municipality
fire station. Community Services Ilitha Painters and
Decorators t/a The
Construction co. R87 64 666
BSM 07/20 Supply and Delivery of Major 4 X 4 Rescue Pumper with CAFS Pump and
Medium 4 X 4 Pumper / RIV. Community Services
Marce Projects - MAJOR 4X4 Rescue Pumper CAFS (Compress Air Foam System) PUMP option 2.
R5 165 305
Marce Projects - MAJOR 4X4 Rescue Pumper CAFS (Compress Air Foam System).
R1 868 972
BSM 13/20
Maintenance and operation of public ablution facilities at Franschhoek and Klapmuts informal settlements: period ending 30 June 2022.
Infrastructure Services Primaj Construction
Works (PTY) Ltd. R5 819 556
BSM 38/20
Emergency supply, fit and maintenance of tyres for solid waste management, as and when required for the period ending 30 June 2022.
Infrastructure Services
/ Solid Waste BBBEE Tyres Holdings
Pty Ltd. R5 355 425
BSM 58/20 Upgrading of Eikestad Hall, Cloetesville. Corporate Services Ismail Davids and
Associates. R4 733 195
BSM 39/20 Construction of a new clubhouse at La
Motte, Stellenbosch. Corporate Services LJA Construction. R4 550 539
2.4.7.3 Awards made by the Accounting Officer
In terms of paragraph 2.4 of Council’s Supply Chain Management policy, only the Accounting Officer may award a bid which is in excess of R 10 million. The authority to make such an award may not be sub-delegated by the Accounting Officer. The bids awarded by the Accounting Officer are as follows:
Table 2:74: Awards made by the Accounting Officer
Bid number Title of bid Directorate and section Value of bid awarded
BSM 30/19 The upgrade and extension of the Pniel wastewater treatment works: mechanical and
electrical installation. Infrastructure Services R63 909 796
BSM 29/19 The upgrade and extension of the Pniel
wastewater treatment works: civil works. Infrastructure Services R61 871 692
BSM 16/20 The steps / Orlean lounge, Cloetesville,
Stellenbosch: rectification of 161 houses. Human and informal
settlements R17 045 724
BSM 18/20 Maintenance and operation of public ablution facilities at Stellenbosch and Jamestown informal
settlements: period ending 30 June 2022. Infrastructure Services R10 022 338
BSM 47/20
Provision of licensed and compliant waste disposal facilities to receive and dispose of general waste and asbestos from the Stellenbosch Municipal Area.
Infrastructure Services Rates
2.4.7.4 Objections lodged
The municipality received sixteen (16) general enquiries pertaining to the awarding of bids.
The municipality also had eighteen (18) appeals which were resolved together with two (2) objections which were also dealt with.
2.4.7.5 Formal quotations (above R 30 000 and below R 200 000) procurement processes
The number of formal quotations approved by the Head: Supply Chain Management for the year under review follows:
Formal Quotations (above R 30 000 and below R 200 000)
Description
Financial Years Increase/
Decrease 2016/17 – 2017/18
Increase / Decrease 2017/18 – 2019/20
2015/16 2016/17 2017/18 2018/19 2019/20
Number of Awarded Formal Quotations
246 274 206 203 145 -33.01% -40%
Total Formal Quotations
advertised 322 378 264 249 159 -43.18% -56.60%
Percentage
awarded 76.40 72.49 78.03 81.53 91.19% +7.1% +10.59%
2.4.7.6 Deviation from normal procurement processes
Paragraph 4.36 of Council’s Supply Chain Management Policy allows the Accounting Officer to dispense with the official procurement process. The following table indicates the number of certificates of emergencies and deviations approved in terms of section 4.36 of the SCM Policy.
Table 2:75: Deviation from Normal Procurement Process Description
Financial Years Increase /
Decrease 2016/17 – 2017/18
Increase / Decrease 2017/18 – 2019/20 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Certificate of Emergencies:
Approved by the Directors i.t.o.
Section 4.36.4 of the SCM Policy
58 0 0 0 0 0 0 0 0
Deviations:
Approved by the Accounting Officer i.t.o.
Section 4.36.1 of the SCM Policy
97 68 26 54 54 42 32 0% -31.25%
TOTAL 173 155 68 26 54 54 32 0% -31.25%
Deviations from the normal procurement processes have been monitored closely to mitigate the risk associated with it.
2.4.7.7 Disposal Management
The system of disposal management envisages the following:
immovable property is sold only at market related prices except when the public interest or the plight of the poor demands otherwise;
movable assets are sold either by way of written price quotations, a competitive bidding process, auction or at market related prices, whichever is the most advantageous;
firearms are not sold or donated to any person or institution within or outside the Republic unless approved by the National Conventional Arms Control Committee;
immovable property is let at market related rates, except when the public plight of the poor demands otherwise;
all fees, charges, rates, tariffs, scales of fees or other charges relating to the letting of immovable property are annually reviewed;
where assets are traded in for other assets, the highest possible trade-in price is negotiated; and
in the case of the free disposal of computer equipment, the provincial department of education is first approached to indicate within 30 days whether any of the local schools are interested in the equipment.
The municipality complies with section 14 of the MFMA which deals with the disposal of capital assets as well as with the Asset Transfer Regulations.
2.4.7.8 Supply Chain Management Performance Management
The SCM policy requires that an internal monitoring system be established and implemented in order to determine, on the basis of retrospective analysis, whether the SCM processes were followed and whether the objectives of the SCM policy were achieved.
Monitoring of internal processes is an on-going process. Procedure manuals for various SCM processes have been developed, approved and are being implemented.