COMPONENT C: CORPORATE GOVERNANCE
2.4.7 SUPPLY CHAIN MANAGEMENT
The Supply Chain Management Policy applicable to the 2018/19 financial year was revised and adopted by Council on 28 May 2018 (as APPENDIX 29 of the budget-related policies) in terms of section 17(1) – (3) of the MFMA (Act 56 of 2003).
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 2018/19 financial year:
Table 2:69: Bid Committee Meetings
Bid Specification Committee Bid Evaluation Committee Bid Adjudication Committee
43 132 53
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 81.1%
Director: Infrastructure Services 84.9%
Director: Community and Protection Services 81.1%
Director: Corporate Services 84.9%
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 90 bids with a value of R 241 703 592.30, 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 B/SM 70/19 Financing of Approved Projects
By Means Of An External Loan Financial Services Nedbank R 322 855 001,00
B/SM 40/19 Jamestown Bulk Services:
Construction Of Bulk Sewer and
Associated Infrastructure Infrastructure Services Exeo Khokela Civil
Eng. R 68 274 878,41
B/SM 65/18 Construction of Idas Valley/
Merriman Outfall Sewer And
Associated Works Infrastructure Services Jvz Jv R 38 522 000,00
Bid number Title of bid Directorate and section Successful Bidder Value of bid awarded B/SM 10/19 Construction of A Materials
Recovery Facility And Public
Drop-Off in Stellenbosch Infrastructure Services Exeo Khokela Civil Engineering
Construction R 27 278 113,83
BSM 112 /18 Supply And Delivery of Aerial Ladder / Platform 30m With
Articulated Cage Boom Community Services Rosenbauer South
Africa (Pty) Ltd R 12 355 117,00 B/SM 90/18 Upgrading of Cloetesville Flats,
Erf 6767, Stellenbosch Corporate Services Premier Attraction
988 Cc R 10 881 309,20
B/SM 110/18 Testing Repairs and Installation of
Substation Protection Installations Infrastructure Services Eya Bantu Professional
Services R 8 965 593,43
BSM 107 /18
The Supply, Deliver And Installation Of A Capped Geographic Information System (Gis) Enterprise Licence Agreement And
Support/Maintenance for a Period Ending 30 June 2021
Planning And Economic
Development Esri South Africa
(Pty) Ltd R 8 410 054,08
B/SM 14/19
Web Based Power Quality Monitoring / Management System, for a Contract Period Ending 30 June 2021
Infrastructure Services Ct Lab (Pty) R 8 366 457,00
B/SM 72/19
The Provision of Debtor Management Software And Administrative Support to Stellenbosch Municipality
Financial Services Geodebt Solutions
Cc R 7 385 521,80
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
B/SM 62/18
Supply, Delivery and Off Loading of Building Material, Plant and
Waterproofing Material for a Contract Period, Ending 30 June 2021
Financial Services Rates
B/SM 65/18 Construction of Idas Valley/Meriman
Sewer & Associated Works Engineering Service Rates
B/SM 14/18 Supply and Delivery of Aerial Ladder / Platform 30m with Articulated Cage Boom
Community And Protection Services: Fire
And Rescue Services R 6 749 817.42
B/SM 39/18
THE Establishment of a Roster for Professional Engineering Services, for a Contract Period, Ending 30 June 2020 contract Period Of 24 Months
Engineering Service:
Roads, Storm Water
and Traffic Engineering R 5 584 872.72
B/SM 87/18
Rendering of Security Services for Various Areas within the Wc024 Municipal Jurisdiction, until 30 June 2021.
Community and protection services: Law
Enforcement Rates
B/SM 90/18 Upgrading of Cloetesville Flats, Erf
6767, Stellenbosch Property Management R 10 881 309.20
Bid number Title of bid Directorate and section Value of bid awarded
B/SM 111/18
(A) Supply of Materials And (B) Hire of Equipment For Roads, Stormwater and Other Infrastructure Requirements, for a Contract Period of 2 Years.
Materials such as Bitumen, Sand, Gravel, Road Stone, Stormwater Pipes, Manhole Covers and Frames, Traffic Signage, Road Marking Paints, Bollards, Bicycle Stands, Herbicides and Equipment such as Excavators, Digger Loaders, Jetvac Machines, Road Rollers Etc.
Engineering Services:
Roads, Storm Water
and Traffic Engineering Rates
B/SM 05/19 Works on Traffic Signals Until 30 June 2021
Engineering Services:
Roads, Storm Water
and Traffic Engineering Rates
B/SM 109/18
Supply and Delivery Of 11kv Miniature Substations and Distribution
Transformers With A Rating of Up To 1 Mva, for a Contract Period Ending 30 June 2021.
Engineering Services Rates
B/SM 04/19 Parking Management System For
Stellenbosch Municipality For A Contract Period Ending 30 June 2021.
Community and protection services:
Traffic services Rates
B/SM 07/19 Alien Clearing In The Wc024 Area, For A Contract Period Ending 30 June 2021
Community and
protection services Rates
B/SM 70/19 Financing Of Approved Projects By
Means Of An External Loan FINANCIAL SERVICES R 322 855 001,00
B/SM 40/19 Jamestown Bulk Services: Construction
Of Bulk Sewer And Associated Infrastructure
Engineering services:
Waterworks R 68 274 878, 41
B/SM 10/19 Construction Of A Materials Recovery
Facility And Public Drop-Off In Stellenbosch.
Engineering services:
Solid waste
management R 27 278 113.83
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 – 2018/19
2014/15 2015/16 2016/17 2017/18 2018/19
Number of Awarded Formal Quotations
257 246 274 206 203 -33.00% -1.48%
Total Formal Quotations
advertised 350 322 378 264 249 -43.18% -5,68%
Percentage
awarded 73.42 76.40 72.49 78.03 81.53 +7.09% +4.2%
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 – 2018/19 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19
Certificate of Emergencies:
Approved by the Directors i.t.o.
Section 4.36.4 of the SCM Policy
109 58 0 0 0 0 0 0% 0%
Deviations:
Approved by the Accounting Officer i.t.o.
Section 4.36.1 of the SCM Policy
64 97 68 26 54 54 42 0% -28.57%
TOTAL 173 155 68 26 54 54 42 0% -28.57%
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.