That Council ADOPT the revised Buffalo City Metropolitan Municipality Supply Chain Management Policy 2015/2016 as required by Municipal Supply Chain Management Regulations 3(b) of the Municipal Financial Management Act. Ministry of Finance guidance' means any guidance on supply chain management issued by the Minister within the meaning of section 168 of the Act.
Amendment of the Supply Chain Management Policy
Delegation of Supply Chain Management Powers and Duties
Sub-delegations
This paragraph shall not be construed to permit an official to whom the authority to accept final awards has been further delegated to accept the final award in a competitive bidding process other than through the committee system provided for in paragraph 26 hereof.
Oversight Role of Council
The training of officials involved in the implementation of this policy should be in accordance with the Ministry of Finance guidelines for supply chain management training. This policy provides systems for:. i) Demand Management (ii) Procurement Management (iii) Logistics Management (iv) Disposal Management (v) Risk Management.
Demand Management
System of Demand Management
Acquisition Management
System of Acquisition Management
Range of Procurement Processes
In determining transaction values, a claim for goods or services consisting of different parts or items shall, as far as possible, be treated and treated as a single transaction.
General Preconditions for Consideration of Written Quotations or Bids
In determining transaction values, a requirement for goods or services consisting of different parts or items should, as far as possible, be treated and treated as a single transaction. iii) whether a spouse, child or parent of the supplier or of a director, manager, shareholder or stakeholder referred to in sub-paragraph 13 (1) (c) (ii) is in the service of the state, or in was the service of the state in the preceding 12 months.
Lists of Accredited Prospective Providers
Petty cash purchases
Written quotations
Formal Written Price Quotations
If it is not possible to obtain at least three offers, the reasons must be noted and approved by the finance manager or a possibly competent person.
Procedures for Procuring Goods or Services Through Written Quotations and Formal Written Price Quotations
Competitive Bids
Process for Competitive Bidding
Bid Documentation for Competitive Bids
If the value of the transaction is expected to exceed R10 million (including VAT), bidders should be required to deliver. i) if the bidder is required by law to prepare financial statements for audit, their audited financial statements. aa) for the past three years; or. bb) since their incorporation if they have been incorporated within the last three years;. ii) a certificate signed by the bidder confirming that the bidder has no undisputed commitments for municipal services to a. municipality or other service provider whose payment is more than 30 days in arrears; iii) details of contracts awarded to the tenderer by a state entity during the past five years, including details of any material non-compliance or dispute over the performance of such contract;. iv) a statement indicating whether any portion of the goods or services is expected to be sourced from outside the Republic, and if so, what portion and/or part of the payment of the. municipality or municipal entity is expected to be transferred from the Republic; And. v) in addition to the above requirements, the following documents must accompany the submission of a bid, failing which the bid may be disqualified:. aa) Fully completed and signed bid form (bb) MBD 1 Invitation to bid. Audited financial statements for bids over R10 million (including VAT). aaa) for the past three years; or. aab) since their inception if established within the past three years;. nn) Proof of CIDB registration, if applicable;. e) Determining that disputes must be settled by mutual agreement.
Public invitation for competitive bids
In case an extension of the bid validity period is required, the accounting officer or a duly delegated official may approve a communication to request from the bidders a further extension in writing, before the expiry of the bid validity period.
Procedure for Handling, Opening and Recording of Bids
Any bidder or the public has the right to request that the names of the bidders who have submitted timely bids be read and, if practicable, also the total bid price of each bidder.
Negotiations with Preferred Bidders
Two-stage bidding process
Committee System for Competitive Bids
Bid Specification Committees
The 90/10 priority points system applies to offers with a Rand value above 1 million Rand (including all applicable taxes). iv) All tenders should not be invited on the basis of functionality as a criterion, but only those where the nature of the goods or services required must take into account the quality, reliability, viability and sustainability of the service and the technical capacity of the tenderers and the ability to perform the contract. v) When the municipality invites to submit an offer, which will also be evaluated on the basis of functionality as a criterion, the accountant or authorized officer or committee must clearly state the following aspects in the tender documentation:. aaa). Evaluation criteria may include criteria such as the provider's relevant experience for the task, quality of methodology; qualifications of key personnel; transfer of knowledge etc.;. bb) Weight of each criterion. The weight assigned to each criterion should not be general, but should be determined separately for each offer on a case-by-case basis; cc) Valid values that will be used in the scoring of each criterion; dd) The minimum qualifying score that must be obtained for the functionality in order for the offer to be considered further must not be general and must be determined separately for each offer on a case-by-case basis. ee) Tenders for services, works or goods that have been specified for local production and content must contain a special tender condition that only locally produced goods, services or works or locally produced goods with a certain minimum threshold for local production will be considered and content as specified in MBD 6.2. g) It must be approved by the accountant or an authorized official before the invitation to tender is published in the sense of paragraph 22 of these regulations. h).
Bid evaluation committees
In any tender where it is alleged or alleged that there is only one or no company that meets the tender specifications, the specification committee may seek the opinion of a technical expert. i) Must be set up in such a way that the targets and objectives of Chapter 3: Promoting Black Economic Empowerment through Metro procurement strategies are effectively achieved. In the event of failure to comply with the tender specification or any general tender requirement, the evaluation committee has the right to issue instructions for re-tendering. f) Check the National Treasury's database before awarding any contract to ensure that no recommended bidder or any of its directors is listed as a person prohibited from doing business with the government.
Bid Adjudication Committees
If the bid evaluation committee decides to award a bid different from the one recommended by the bid evaluation committee, the bid evaluation committee must, before awarding the bid: i) Check with respect to the preferred bidder that the municipal fees and taxes and municipal service charges of that bidder are not in arrears; and; ii) Notify the accounting officer. i) after due consideration of the reasons for the deviation, to ratify or reject the decision of the bid adjudication committee referred to in subsection (a); and. ii) if the decision of the bid judging committee is rejected, it returns the decision of the judging committee for reconsideration. The accounting officer at any stage of a bidding process may refer any recommendation made by the evaluation committee or adjudication committee to that committee for reconsideration of the recommendation.
Procurement of Banking Services
Procurement of IT-related Goods and Services
In the event that a contract will impose financial obligations on the municipality beyond the three years covered in the annual budget for that financial year, the accounting officer must adhere to the provisions set forth in Article 33 of the Municipal Finance Management Act. c) A Service Level Agreement must be signed by BCMM and the Service Provider, which clearly specifies the technical specifications and requirements as well as the applicable terms and conditions.
Procurement of Goods and Services under Contracts Secured by Other Organs of State
Procurement of Goods Necessitating Special Safety Arrangements
Proudly SA Campaign
Appointment of Consultants
In addition to all requirements prescribed by this policy for competitive bidding, bidders must provide details of:. a) all advisory services provided to a state body in the past five years; And.
The Accounting Officer has the right to ratify any minor breach of procurement procedures by an officer or committee acting in relation to delegated powers or duties which are of a purely technical nature. I). The accounting officer must record the reasons for any deviations under subsections 36(1)(a) and 26(1)(b) of this policy and report them to the next meeting of the council. In order to deviate from and ratify any minor breaches of the procurement processes, the following procedures must be strictly followed:. a) The Directorate requesting a deviation from or ratification of minor breaches of the procurement process under subsections 36(1)(a) and 36(1)(b) above shall provide detailed reasons why such deviation or ratification is required and submits a 10-point memo to the General Manager of the Supply Chain Management Unit for support or otherwise.
Unsolicited Bids
§ 36 (3) Subsection 36, subsection 2, does not apply to the purchase of goods and services contemplated in subsection 11, subsection 2, in this policy. (a) Failure to comply with the provisions of subsections 36(1) and 36(2) above may lead to irregular expenses incurred when the non-. compliance is linked to a financial transaction. Pursuant to section 113 of the Act, there is no obligation to take unsolicited offers into consideration outside of a normal tender process.
Combating of abuse of Supply Chain Management System
Logistics management
Disposal management
Risk management
Performance Management and Contract & Contract Management
A deviation from the normal procurement process may be required where it is necessary to carry out additional and unforeseen work under an existing contract and it is impractical and/or not cost effective to separate such work from the main contract. A request for variation in such cases must be considered on a case-by-case basis and must be dealt with in accordance with the general or special conditions of contract for the contract in question or, alternatively, be accompanied by a convincing argument as to why it is impractical and/or not cost-effective for such work to be separated from the main contract. In addition, the local community must have at least seven (7) days”. notification of the intention to change the contract or agreement and be invited to make statements to the municipality. e) The content of the above paragraph does not apply to specific time-limited contracts (annual contracts) which refer to orders placed as goods are needed and at the time of contract award the required quantities were unknown.
Other matters
- Prohibition on awards to persons whose tax matters are not in order
- Prohibition on awards to persons in the service of the state
- Ethical standards
- Sponsorships
- Resolution of disputes, objections, complaints and queries
- Contracts providing for compensation based on turnover
- Fronting
- Public Private Partnerships
- STRATEGY FOR ACHIEVING PPPFA OBJECTIVES IN LINE WITH BROAD BASED BLACK ECONOMIC EMPOWERMENT
- CONTRACTOR DEVELOPMENT PROGRAMME
- EXPANDED PUBLIC WORKS PROGRAMME
- UNBUNDLING
Persons who have been adversely affected by decisions or actions taken to implement this chain management system can submit a written objection or complaint against the decision or action within 14 days of the decision or action. If any disputes arise in any projects above R10 million, the Director: Legal Services will recommend an independent and impartial person to the Accounting Officer to mediate the dispute. A major socio-economic goal is to facilitate job creation for the people within Metro's jurisdiction by increasing employment opportunities through procurement by specifying labor intensive technologies and/or construction methods in the bidding documents.
