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PROCUREMENT POLICY AND PROCEDURES 24 MAY 2013. PROCUREMENT POLICY.

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Presentation on theme: "PROCUREMENT POLICY AND PROCEDURES 24 MAY 2013. PROCUREMENT POLICY."— Presentation transcript:

1 PROCUREMENT POLICY AND PROCEDURES 24 MAY 2013

2 PROCUREMENT POLICY

3 PRESENTATION CONTENT Procurement Ethics; Methods of Bids Solicitation; Expression of Interest for Contractors; Request for Proposals - Consultants; OPEN Tender Process; Adverts – newspapers, websites, iTenders, etc; Issue of Tender Documents; Compulsory Site Briefing Meetings; SMME Participation and Involvement; Lodging / Receiving of Tender documents;

4 PRESENTATION CONTENT (Cont.) Closing of Bids; Evaluation of Bids and Scoring Process; Appointment of Preferred Bidders; Conclusion;

5 PROCUREMENT POLICY CDC adheres to five Procurement Pillars:- I.Fairness; II.Equitable; III.Transparency; IV.Competitiveness; and V.Value for Money CDC Policy is aligned with:- I.The Constitution Act No 106; II.PPPFA of 2011 III.BBBEE Act; IV.PFMA Act of 1999; V.CIDB Act 2000; and VI.National Treasury Regulations

6 PROCUREMENT ETHICS Declaration of Interest and Management of Conflict of Interest; Canvassing, Corrupt and Fraudulent Practices; Confidentiality; Staff Code of Conduct; Code of Conduct – SP and Third Parties; Always comply with PFMA, PPPFA, BBBEE, CIDB, National Treasury Regulations and Practice Notes etc; In conducting CDC Procurement Process – Honesty, Integrity, and Openness are integral and utmost important

7 METHODS OF BID SOLICITATION Procurement ApproachType of Assignment 1. Closed Tender process 2. Open Tender Process 3. Expression of Interest 4. Request for Proposal

8 CLOSED TENDER PROCESS Services or Goods from R 500k – R 1m (Incl. VAT) CDC Database must be utilised to source service providers Procurement Plan Submissions must be prepared and approved by the Bid Specification Committee (BSC) Supply Chain representative must always be involved in the process Procurement Submissions must be prepared and the Procurement Committee (PC) shall approve the service provider;

9 OPEN TENDER PROCESS Services or Goods in excess of R 1m (90:10); Bids must be advertised in Public; Full Procurement Process must be followed Supply Chain representative must always be involved in the process Procurement Plan Submissions must be submitted to Bid Specification Committee (BSC) prior advertising Procurement Submissions must be submitted to Procurement Committee (PC) See PROCUREMENT HANDBOOK

10 EXPRESSION OF INTEREST Implemented for sourcing Contractors especially – repetitive projects such as Early Childhood Dev. Centres, ELSEN, etc; The scope is not fully defined; Creation of Pool of Preferred Contractors; Mandatory Requirements are the guiding Principles; Pre Qualified Contractors are given Tender Documents to Price; Duration of a Service Provider in a pool is one to two years with option of one year extension (not more)

11 REQUESTS FOR PROPOSALS Normally Implemented on Professional Consultants e.g Architects, Placement Agents, Auditors, etc; The scope is defined and known; Bidders may submit prices / fee – 90:10; Evaluation of bids is based is based on PRICE and BBBEE; Minimum threshold may be defined on highly specialised contracts < 60%

12 OPEN TENDER PROCESS

13 TENDER OPPORTUNITIES (Adverts) All tender opportunities are advertised – local and / national newspapers; KNZ = ILANGA, ISOLEZWE and The Mercury (on Thursdays) EC = The Herald and Daily Dispatch (on Monday or/and Friday); National – Sunday Times; CDC Website – www.coega.com/tenders; CIDB - iTenders; Government Tender Bulletin;

14 TENDER DOCUMENTS ISSUE Tender documents must be collected BEFORE Briefing Meeting; Ensure complete Document Issue Register; NO CASH is accepted; No documents are issued at Site Briefing Meetings

15 Procurement Manager will chair / lead the meeting; Ensure Briefing Meetings are INFORMATIVE; CDC will ensure there is Agenda, Attendance Register, Site Plans/ Presentations; Consultants will present Scope of work / Technical requirement in detail Contractors must send Technical Personnel; Contractors must try locate the Site beforehand; Once the meeting is closed – no signing of attendance registers. SITE BRIEFING MEETING

16 SMME TARGET CDC has set a Corporate Target of 35%SMME involvement on all Projects, Communication to all bidders at Briefing Meetings, SMME Target must be documented on Tender Documents Consultants will identify SMME Packages in each Project; Project Managers will assist in monitoring achieved thereof; Monthly SMME achievements must be reported; Breaking down BIG/MEGA Projects into smaller Projects

17 LODGING OF BID DOCUMENTS Receiving bids –Bids must be submitted in sealed envelopes, –Complete Lodging Register (audit requirement); –To be deposited into CDC Tender Box, –Bids received by Telegram, fax or email will not be considered (unless stipulated in quotes), –Late bid submissions will not be accepted; –Bids are open in public and prices posted in the CDC Website;

18 CLOSING OF TENDERS CDC Tenders CLOSE at our offices – Tender Box; Closing Date, Venue and Time – confirm with Advert and Tender Document; LATE Bids will not be accepted;

19 EVALUATION OF BIDS

20 1.Bid Specification Committee 2.Bid Evaluation Committee 3.Bid Adjudication Committee SCM COMMITTEES

21 CDC Committees Function / ResponsibilitiesComposition Bid Specification Committee (BSC) Review and approve Procurement Plans Append Bid doc/RFP/EoI, TGP specification, Advert, Declaration of Interest, etc SCM or Procurement Manager Legal Manager and one PC Members Project Manager (invitee) Must report to PC Chair Bid Evaluation Committee (BEC) Adjudicate bids submitted by bidders The PM consolidates and submits to the PC a report and recommendations regarding the award of the bids 1 Representative from SCM unit 2 Project Managers (either all from the same BU or one from a different BU) 1 external member / consultants Procurement Committee (PC) Approves bids of values between *R200,000 to *R5m and forward them to EXMA for noting Recommend bids above *R5m to the EXMA PC Terms of Reference and with two year membership appointed by the CEO EXMA Approve bids of over *R5m up to *R100m and notify the Board Recommend to the Board all bids in excess of *R100m As per the EXMA Terms of Reference The BOARD Note all bids above *R5m and approve bids above *R100m As per the Board Terms of Reference PROCUREMENT STRUCTURES

22 THREE STAGE EVALUATION APPROACH Stage 1Responsiveness Stage Mandatory Requirements Stage 2Quantitative Stage Price - formula BBBEE – Certificates (SANAS Accredited) Stage 3Qualitative Stage Repeat Appointment Non Performance Spread of work Risk Issues

23 ADJUDICATION OF BID SUBMISSIONS ElementWEIGHTING / SCORES Professional Service ProvidersService Providers (including Building Contractors) 90:1080:2090:1080:20 Price90809080 Empowerment10201020 Sub-total 100

24 ADJUDICATION OF BID SUBMISSIONS CONTRIBUTION LEVEL 80:20 Level One Contributor 1020 Level Two Contributor918 Level Three Contributor816 Level Four Contributor510 Level Five Contributor48 Level Six Contributor36 Level Seven Contributor24 Level Eight Contributor12 Non Compliant Contributor0 0 BBBEE Empowerment Scoring » 90:10

25 APPOINTMENT OF PREFERRED SP Letters of Regrets will be sent out to unsuccessful SP; Letter of appointment will be sent to successful Bidder; Form of Offer and Acceptance is signed off; Maximum of two active projects per contractor Tender Queries = KZNTenders@coega.co.za

26 CONCLUSION Supply Chain Unit will ensure at all times that Procurement Process and Procedures are in FULL compliance with Legislations; Procurement Manager will endeavour to maintain high integrity, procurement ethics and fairness when awarding bids; CDC is fully committed in ensuring that Socio Economic Imperatives, such as Job Creation, SMME involvement, Health and Safety, are achieved; Any queries relating to the Bids must be addressed with the Procurement Manager or Supply Chain Manager;

27 Thank You


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