RU procurementpolicy FINAL May2015 · Prevention of Fraud/Corruption and other Irregularities. ......
Transcript of RU procurementpolicy FINAL May2015 · Prevention of Fraud/Corruption and other Irregularities. ......
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
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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
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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.
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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
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decision-making responsibilities. Any such attempted inducements mustimmediately be reported to the relevant Director/Dean who shall notify theDeputyDirector:OperationsAdministration,Finance&Procurement.
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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.
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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
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• 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.
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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
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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.
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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.
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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).
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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
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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.
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• 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
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• 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.
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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
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• 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.
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• 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.
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• 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.
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• 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:
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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.
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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;
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• TheTenderCommitteemustmakearecommendationordoanapprovalbasedonthevalueandnatureofthetender,inaccordancewiththePolicyofAuthorityandScheduleofAuthorisationLevels.
• Arecommendationmustbemadewhentenderswithareputationalrisk,institutionalorstrategicareinvolved.
• Toensurecompliancewiththespirit,intentionandspecificrequirementsofthe
University’sProcurementPolicyinalltenderprocesses;
• ToensurethatrelationshipswithsuppliersaredeclaredandmanagedappropriatelyinaccordancewiththisPolicyandtheprinciplesofgoodgovernance;.
• ToensurethatSMME’s,B-BBEEsuppliersaresupportedtoparticipatefullyinthe
tenderingprocess;
• Toensurethataformal,objectivescoringsystemisusedintheevaluationprocesswhichcomplieswithpreferentialprocurementlegislation;
• Toensurethatalldeliberationsandoutcomesareconfidentialandthatall
communicationisviatheProcurementSectionorotherperson/divisiondelegatedbyCouncilashavingtheauthoritytodoso.
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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.
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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.
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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.