new cover and back.indd 2-3 3/19/10 7:04:19 PM · † Automating Procurement is further enabling...
Transcript of new cover and back.indd 2-3 3/19/10 7:04:19 PM · † Automating Procurement is further enabling...
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
VisionAn open opportunity society for all
MissionThe Western Cape Government will promote freedom and opportunityfor the people of the province through the following strategic objectives:• policies and practices that strenghten the constitution and• deliver clean, effi cient, cost effective, transparent and responsive public administration
THE DEPARTMENT STRATEGIC GOALS ALIGNED WITHPROVINCIAL STRATEGIC OBJECTIVES:
• modernisation of service delivery• improving governance• creating opportunities
MODERNISATION:MODERN IN APPEARANCE AND BEHAVIOUR
ProvincialSTRATEGIC DIRECTION
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VisionA self-reliant society
MissionTo ensure the provision of a comprehensive network of social development services that enables and empowers the poor, the vulnerable and those with special needs.
ValuesThe department is committed to the following social development principles:E Equitable Access and EqualityM Mutual RespectP People fi rst (Batlopele)O Ownership and AccountabilityW Working togetherE Effectiveness, effi ency and economyR Rights and responsibilitiesS Sustainability
The work of the department will also be underpinned by theProvincial Values and Principles
Values: Truth Accountability
Principles:
• choice• personal responsibility• excellence• fi t for purpose
DepartmentalSTRATEGIC DIRECTION
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
Mandate• The Department of Social Development derives its mandate from several pieces of
legislation and policies.
• Constitutional Mandate Act 108 of 1996.Supreme Law of the Republic of South Africa
• Based on its mandate the department of Social Developmentdevelops and implements programmes for the eradication of poverty, social protection and social development amongst the poorest of the poor and the most vulnerable and marginalised.
• The department effectively implements this through its partnerships with its primary customers/clients and all those sharing its vision
• Transformation
• The Integrated Service Delivery Model (ISDM)
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
OBJECTIVES OF THE MODERNISATION OF SERVICE DELIVERY
• Its implementation must be a collective effort in the true spirit of an open opportunity society for all • Poverty Alleviation and Eradication• Transformation• Job Creation
IMPLICATIONS OF THE ABOVE-MENTIONED OBJECTIVES POSETHE FOLLOWING CHALLENGES
• The need to:
- Keep revenue circulating within the Province without compromisingservice standards
- Implement BBBEE in a signifi cant and quantifi able manner
- Utilize available fi nancial resources effectively and effi ciently
- Operate on sound business principles in our strive for improved service delivery to the poor / opportunity to society
- Involvement of Supplier / Service Providers as a Strategic Partner isa MUST
- To realize these objectives we have to ensure that Supplier Databaseis fairly representative of the Western Cape demographics
- We have to shape the future together in order to build and maintainethical long-term partnerships.
Modernising Service DeliveryCentral in responding to delivery challenges, is modernising the service delivery machinery of the department. Strategic priorities for this department will be:
• Effi cient, effective and transparent business processes and practices.
• Continuing the transformation of departmental bidding processes.
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
VisionTo be the Centre of Excellence in Supply Chain Management(An effi ciently, effectively and economically managed integrated Supply Chain Management function in partnership with all Departmental Stakeholders wherein an appropriate procurement and provisioning system is fair, equitable, transparent, competitive and cost effective to all)
MissionTo ensure the provision of a comprehensive network of Supply ChainManagement service through an integrated and coherent social andeconomic development process consistent with Preferential Procurement Policy Framework Act and Broad-Based Black Economic Empowerment that directly contributes to Local Economic Development.
Aim To develop a World Class Supply Chain Management organization through forging and facilitating relationships successfully between stakeholders
Supply Chain Management has been identifi ed as a collaborativestrategy that aims to integrate procurement and provisioning processes to:
• optimize costs• improve service delivery and• addressing socio-economic goals
In order to realise the vision, mission and aim of the Province, Department and Supply Chain Management,it is necessary to operationalise the strategic objectivesat four levels namely:
(i) Awareness(ii) Early intervention(iii) Statutory(iv) Re-integration
Awareness
Promote access to Supply Chain Management information to SCM Practitioners and other stakeholders through design, develop and deliver SCM Awareness Programmes and disseminate it via existing channels
SUPPLY CHAIN TO THE DEPARTMENTAL
STRATEGIC DIRECTION
Alignment of
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FOCUSED ON SERVICE EXCELLENCE AND CONTINUOUS IMPROVEMENT
Customer Excellence
• Exceeding expectations• Having integrity• Taking accountability
Superior Performance
• Continuous improvement
• Bold to try new things• Striving for excellence
Openness
• To respect others• To share knowledge• To embrace change
Teamwork
• Work with diversity• Act with integrity• Be trustworthy
Make a Difference
• Serve with pride• Professionalism• Deliver excellence
Early Intervention
Mobilize, empower and co-ordinate a network of institutions and persons to support the Public Sector Supply Chain Management nationally, provincial and distric level.
Statutory
Transformation – To ensure effective economic participation of BBBEE enterprises, especially SMME’s in Departmental Procurement of goods and services.
Reintegration
An impact analysis results documented regarding the implementation of the SCM Concept and if necessary re-strategise.
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
DEPARTMENTAL SUPPLIER DAY
Objectives of the
1. To promote access to Supply Chain Management information.
2. To provide a clear view of direction of how Supply Chain Management links with National and Provincial requirements with respect to implementation.
3. To raise awareness on the fundamentals of Supply Chain Business Management.
4. To improve business relations between Suppliers/Service Providers and the Department of Social Development and other stakeholders.
WESTERN CAPE PROVINCIAL GOVERNMENT / DOSDEXPECTATIONS AS A PREFERRED CLIENT REQUIRES
• Quality Service and Products
• Delivered on time as contracted
• Providing the most competitive price
• That empowered companies further pursue objectives of BBBEE within their organisations
• We believe in trust, fairness, open communication and information sharing
• We want to ensure that BBBEE’s as new players are entirely familiar with the government’s strategy and policies, meaning:
- The total cost of service or product must be fair and justifi ed
- This way we will ensure that the equitable share to Western Cape is fairly distributed.
PUBLIC SECTOR PROCUREMENT REFORM A NATIONAL PRIORITY
• National Government has identifi ed Reform in Public Procurement as a priority and acknowledged that previously there had been many inconsistencies inits system resulting in irregularities, confl icting legislation and a non-inclusiveapproach to suppliers
• It was imperative to take incremental steps towards building a vision forSupply Chain Management Directorate.
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
PUBLIC SECTOR TRANSFORMATION
• Procurement Transformation requires re-organisation of the procurementenvironment and re-engineering of processes
• Extensive training to develop new competencies and skills, integration of technology systems and adaptation to new methodologies, such as strategic sourcing where necessary
• Automating Procurement is further enabling the Transformation process andproviding the reporting ability needed to measure progress ofprocurement transactions and operations
• Proper and successful procurement rests on four pillars of procurement namely: Value for Money, Open and Effective Competition, Ethics and Fair Dealing, Reporting & Accountability (Citizens Report)
• Ensure policy responsiveness, uniformity and adjustment in all spheres of Government (procurement)
• On-going mainstreaming of gender, disability, youth and children’s rights
• Decentralization ensuring that decision-making happens closer to the service delivery point.
• Re-engineering of Business Processes so that they can address the peculiar circumstances of SCM within the DOSD and SMME Supplier development (Modernization of Service Delivery)
• Develop scarce skill for both the Public Sector and the Western Cape Market.
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
(1) INTRODUCTION
• In practice, both Public and Private Administration are guided by specifi cnormative factors that when applied serve as aids to distinguish whether oneis dealing with public or private administration.
(2) COMMON CHARACTERISTICS
• A major concern of Administrators in Public and Private Institutions is inthe maintenance of harmony.
• Whether it is in harmony with the legislators and public at large or it is inharmony with the Board of Directors, shareholders and clients.
• The maintenance of harmony is necessary to promote the general welfare of institutions and maximize profi ts for private institution.
(3) COLLABORATION
• The public and private sectors cannot function without each other. Whatever their immediate aims, in the end they serve the same customer or client.
• A proper relation between the two sectors is important and should provide for a free market system. Therefore the aim is to incorporate the SMME’s & HDI’s in the main stream of the business through Government Tenders.
(4) CONFRONTATION
• The main purpose of public institutions in general is to renderuninterrupted commuity services essential to the maintenance of a satisfi ed community and the promotion of their general welfare.
• Public Institutions have the legal obligation to render servicesirrespective of who the client is.
• The public wants public offi cials to be paragons of virtue – honest, trustworthy, hard-working, loyal, competent and compassionate.
• In the private sector the profi t motive is the decisive factor therefore a private concern that fails to show any profi t will soon be in liquidation or be abandoned by its owners.
• Private institutions can determine which goods to produce, which services to offer, and for which clients.
PRIVATE ADMINISTRATION
Public versus
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
IN THE PUBLIC SECTOR SUPPLY
CHAIN MANAGEMENT
Overview of Role Players
STAKEHOLDER’S EXPECTATIONS• To be transparent in the process of bidding / tendering• Procured goods and services to be fi t for purpose• Empowerment• Simplicity• Responsiveness of the procurement team• Feedback, be kept in the loop with their orders & changes• Good relationship with existing suppliers• Control of the purchasing environment and supply base• Less bureaucracy
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY11
Legislative environment
NTR / PTIChapter 16A
SCM FrameworkSCM Practice Notes
BBBEEAct 53 of 2003
AccountingOffi cers System
(AOS)
PFMASect 38(1)(a)(iii)
76(4)(c)
PPPFAAct No. 5 of 2000
+AssociatedRegulations
S.A. Constitution
Act 108 of 1996
Sec. 217
OBJECTIVE PREFERENTIAL PROCURE POLICYFRAMEWORK ACT (PPPFA)
It is the objective of the Act to:
• address the inequalities of the past. It provides for categories of preferences in the allocation of contracts and the protection or advancement of persons disadvantaged by unfair discrimination.
• allow for more fl exibility. Where the 88/10/2 point system only made provision for equity ownership and women equity, the new systems includes the allocation of points for goals such as contracting with fi rms with HDI status on the basis of race, gender and disability, stimulation of local economy, transfer of skills, training, sub-contracting to HDIs etc.
• eliminate fronting and corruption. Preference points can only be claimed by HDI’s who own a company, or hold a percentage of shares and are actively involved in the management of the business.
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
The BBBEE Act no 53 2003 (section 10) requires the Public Sector to utilize its leverage to promote BBBEE and binds the Public Sector to utilize Codes of Practice issued in terms of the Act.
• The Act defi nes BBBEE, while • The Codes of Practice provide detailed and complex measurement indicators
and a generic scorecard against which to measure suppliers.
BROAD BASED BLACK ECONOMICEMPOWERMENT KEY PRINCIPLES
BBBEE is broad based
Deracialisation must be accelerated
and re-entry of HDIs into the
mainstream economy fast tracked.
BBBEE is an inclusiveprocess
All enterprises operating within
SA can and should participate
in the process.
BBBEE is part of our
growth strategy
The BBBEE process is associated
with growth.
Accordingly the South African Government defi nes BBBEE as:An integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings about
• signifi cant increases in the number of black people that manage, own and control the country’s economy, as well as
• signifi cant decreases in income inequality.
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
Defi ning Supply Chain ManagementSupply Chain Management can be defi ned as the collaborative strategy that aims to integrate procurement and provisioning processes in order to eliminate non-value added cost, infrastructure, time and activities to competitively serve end customers better.
Supply chain management (SCM) is an integral part of fi nancial management that seeks to introduce internationally accepted best practice principles.
Policy InterventionsSupply Chain Management Model consists of the following processes
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
WORLD CLASSWORLD CLASS PUBLIC PROCUREMENT PUBLIC PROCUREMENT
PROVINCIAL TREASURY
SERVICE PROVIDER WITHIN THE WESTERN CAPE TOWN
HO/DISTRICT OFFICES& FACILITIES
NATIONAL TREASURY’S PUBLIC SECTOR PROCUREMENT REFORMS
OPEN
&
EFFECTIVE
COMPETITION
VALUE
FOR
MONEY
ETHICS
AND
FAIR
DEALING
ACCOUNTABILITY
AND
REPORTING
EQUITY
PROCUREMENT GUIDELINES
General
Proper and successful government procurement rests upon certain core principles of behaviour- the fi ve Pillars of Procurement. They are best described as pillars because if any one of them is broken the procurement system falls down.
THE FIVE PILLARS OF PROCUREMENTValue for Money
Value for money means the best available outcome when all relevant costs and benefi ts over the procurement cycle are considered.
Open and Effective Competition
This requires openness in the procurement process;
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
Ethics and Fair Dealings
• deal with each other on basis of mutual trust and respect; and• to deal with suppliers even-handedly;
Accountability and Reporting
This involves openness and transparency in administration, by external scrutiny through public reporting.
Equity
• Government is committed to economic growth by implementing measures to support industry generally, and especially
• to advance the development of Small, Medium and Micro Enterprises andHistorically Disadvantaged Individuals.
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
TARGETED 10 PRODUCTS• Advertising, Media and Communication
• Cleaning services and cleaning products supplies
• Clothing and textiles
• Computer equipment and consumables supplies
• Purchasing of furniture
• Events co-ordination and management
• Maintenance and repairs; buildings, furniture and computers.
• Travel co-ordination and shuttle services.
• Catering services
• Stationery supplies and printing, Design and layout.
PAYMENTS FOR GOODS & SERVICES RENDERED• The Department’s payment period is 30 days from date of receipt of invoice.
REASONS FOR PAYMENTS BEING DELAYED
• Suppliers rendering goods/services are not registered with theDepartment upon contracting.
• No credit order instruction form was completed by the supplier.
• Suppliers address or bank details changed without informing theDepartment.
• Rendering of goods/services without having an offi cial government order form.
• Late submission of invoices.
• Bank details requested on all invoices but not provided.
• All quotations must include VAT.
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
SIMPLIFIED DEFINITION OF TENDERING / BIDDINGIt is a process through which the procurement of goods and services is effected to the best advantage for the State.
TYPES OF BIDS
• Open / Competitive
• Limited - Multiple source bidding - Single source bidding - Sole source bidding - Urgent bidding - Emergency bidding
• Unsolicited
• Informal (quotes)
BACKGROUND IN RESPECT OF TENDERING PROCESS
- For a long time in the country the tendering process was not open to certain members of our society and was enjoyed exclusively by a part of citizenry.
- With the advent of the new political dispensation in the RSA, and the drastic changes in the country’s laws, all citizens are now eligible to participate in the tendering / bidding process without restrictions.
MAIN OBJECTIVES OF PROCUREMENT BY TENDERING / BIDDING
- The procurement system of an institution or organ of a State be it National, Provincial or Local sphere of Government must be fair, equitable, transparent, competitive and cost-effective.
GOALS
• Making the tendering/bidding process accessible to all without guaranteeing work
• To simplify the tendering process by stating clear expectations for both parties.
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
GOVERNMENT TENDER BULLETIN
• The Government Tender Bulletin will contain information regarding the tender number, closing date and time, short description of the requirement, from where tender documents could be obtained and the address to which completed tender documents must be submitted.
• It is the responsibility of a tenderer / bidder to ensure that a tender is submitted on time to the correct address.
OBJECTIVE IS SMART
• The purpose for the advertising of a tender / bid is fi rstly to created exposure for the requirement, secondly to offer an equal opportunity to as many companies as possible to submit tenders, thereby promoting competition.
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
THE WESTERN CAPE BIDDINGDOCUMENTS:
These bid documents defi ne the rights, risks and obligations of the parties involved in a contract and defi ne the nature, quantity and quality of the goods, services or works to be provided in the performance of a contract.
The documents must be, at all time, be legally and technically correct and must assign risk in an appropriate matter.
• A covering letter, which should at least state the bid number, details ofrequirements, by whom the service / goods is required, the delivery address and the closing date and time.
• A form (important conditions) that stipulates additional requirements that aims to ensure that the bids submitted conform to the prescripts of validity
• Any specifi c conditions applicable to the delivery of the service/goods.
• Bid specifi cations clearly spelling out the details and the requirements of the service/goods to be delivered.
• A form (Bid form WCBD 1), when signed, it is the Bidder’s consent to enter into a contract under the conditions specifi ed in the bidding documentation or any other standing contractual prescripts should the bid be accepted.
• Tax Clearance Certifi cates (WCBD 2)
• Firm pricing: purchases (WCBD 3.1)
• Pricing schedule: Professional services (WCBD 3.3)
• Declaration of interest (WCBD 4)
• Preferential procurement points (WCBD 6.1, WCBD 6.3 to WCBD 6.11)
• Declaration of bidders Past Supply Chain Management Practices (WCBD 8)
• List of Current and Previous Contracts
• List of Management Staff from bidder to be involve in the project
The bid(s) advertised are always subject to the general conditions of contract (GCC) and if applicable, any other special conditions of contract. Should there be inconsistency between the general conditions of contracts and specialconditions, the special conditions will prevail.
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
TIPS FOR BIDDING• Complete all relevant documents
• Complete all sections of the document
• Complete the document in ink, with a black or blue pen, no RED or Green ink.
• Submit documents on original forms or copies.
• Do not re-type.
• No Bids will be received via Telegram, telefax, facsimile.
• Copies can be made from facsimile’s and completed in ink.
• Post or deposit your bid at the correct address or bid box.
• Deposit it on or before the due Date and time (bids close normally 11:00)
• Ensure a few days/ enough time for delivery if submitting by post / courier service.
• Ensure suffi cient time for strike Action, Road closure, Traffi c Accidents.Car Trouble.
• Submit all documents. (all document form part of your bid.)
• List of tenders (if provided) - tick all submitted documents
• Provide Original and valid Tax Clearance Certifi cates
• Provide letter of exemption from SARS, where applicable.
• Provide Shareholders certifi cate
• Provide Financial Statement - for the period requested.
• Collect Bid documents as soon as possible,
• Be on time for the compulsory information meeting, register must becompleted. (Only one meeting)
• Technical specifi cation / requirements will be dealt with at the information session
• A certifi cate will be issued, which must be submitted with your bid.
• Check that all documents are fully completed.
• Provide attachments when supporting your bid / proposal, with clear references.
• Please signed and obtain signatures of witnesses where required.
• When not claiming points please indicate (yes / no) and sign the form(s).
• References are sometime made to certain acts / legislation / websites, please obtain copies or search the relevant websites where indicated before enquiries are made.
• When in doubt, enquiries may be made to the relevant Offi cial(s) indicated in the bid.
Good luck with your proposal
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STAKEHOLDER ENGAGEMENT/SUPPLIER DAY
DISCLAIMER
The English version of the Supply Chain Management Booklet is regarded as the offi cial text. The department cannot be held liable for any misinterpretation that may have occurred during the translation process.
This Supply Chain Management Booklet was compiled by the Directorate Supply Chain Management, Department of Social Development.
To obtain additional copies of this document contact:
The Director (Supply Chain Management)Department of Social Development Private Bag x9112Cape Town 8000South Africa
Tel: +27-21- 483 8582Fax: +27-21-483 3856
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