1. DEPARTMENT OF DEFENCE (DOD) PROCUREMENT
Brig Gen T.E Mulaudzi
Director Procurement Management
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2. BACKGROUND 2 RESTRICTED
The introduction of PFMA required all State Departments to conduct procurement in line with National Treasury prescripts
DOD established procurement capability (CPSC and SPSC) at DOD level
The two centers migrated to Log Div (under C Log) in April 2009
The new Procurement Delegations were promulgated in May 2009
C Log established DPM in 2012 to assist him with Procurement Functional Control and Ensure Compliance
The issuing of new procurement delegations intensified in 2014 with the establishment of Services’ Procurement units in line with May 2009 Procurement Delegations
So far, DOD Procurement is decentralized in line with the Defence Review 2015
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3. To present the DoD Procurement operation to the members of parliament
AIM
To present the DoD Procurement operation to the members of parliament
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4. SCOPE RESTRICTED SCM Framework Acquisition vs Procurement
Pillars of Procurement
Procurement Governance
Procurement Delegations
Procurement Processes
1 Military Hospital Project Procurement
Achievements
Challenges
Conclusion
Q & A Session
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5. SCM FRAMEWORK GRC Monitoring Processes GRC Monitoring Processes
Demand Management
Processes
Acquisition /
Procurement
Processes
Logistics
Processes
Disposal
Processes
GRC Monitoring Processes
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6. PROCUREMENT VS ACQUISITION
DOD Procurement
Folio 2 Budget (General Defence Account)
Commercial off the Shelf and Military off the Shelf (COTS and MOTS)
Competitive Procurement Process orientated
DOD Suppliers Day
Acquisition
Folio 1 Budget (Special Account)
Strategic Capability Management Process (SCAMP)
Industry orientated for specific system
ARMSCOR Process
Industry Day
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7. PILLARS OF PROCUREMENT
Value for money,
Open and effective competition,
Ethics and fair dealing,
Accountability and reporting and
Equity.
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8. Procurement Governance
The Constitution of South Africa (Fair, Transparent, Economic and Equitable)
Public Finance Management Act (PFMA) 1 of 1999
Preferential Procurement Policy Framework Act (PPPFA) 5 of 2000
Broad Based Black Economic Empowerment Act (BBBEE) 53 of 2003 (NT Instruction dated Nov 2011)
National Treasury Regulations 16A
National Treasury Practice Notes
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9. Procurement Governance
National Treasury Practice Notes
Procurement Guide for Accounting Officers
Joint Defence Publication (JDP) 0003/2004 (under review)
Department of Defence Logistics Instructions
Delegations of powers to procurement authorities (Edition 4) dated May 2009
Procurement Guidelines issued by C Log (DPM)
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10. PROCUREMENT DELEGATIONS
SecDef: Umlimited
CSANDF: Unlimited
Departmental Commercial Procurement Board (DCPB): >RM10
Corporate Commercial Procurement Committee (CCPC) >RM5 but <RM10
Central Procurement Service Centre (CPSC): RM5
Simons Town Procurement Service centre (SPSC): RM5
South African Military health Unit: RM5
SA Army Procurement Unit: RM1
SA Air Force Procurement Unit: RM1

11. PROCUREMENT DELEGATIONS
SA Navy Procurement Unit: RM1
DHQ Unit Procurement Unit: RM1
Log Div Procurement Unit: RM1
Level 4 FSE’s Procurement Sections (60 Entities):
R to R
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12. PROCUREMENT PROCESS RESTRICTED Requirement Adm Requirement Adm
GRC
Order Adm
& Payments
GRC
GRC
Invitations
Invitations
Invitations
Invitations
Invitations
Invitations
Invitations
Invitations
Invitations
Invitations
Suppliers Database
Management (CSD)
Contract
Management
GRC
GRC
GRC
Recommendations
Data Capturing
& Evaluation
Data Capturing
& Evaluation
Data Capturing
& Evaluation
Data Capturing
& Evaluation
GRC
GRC
GRC
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13. Capturing & Evaluation
Procurement Process
Req Adm
(2 Days)
Invitation PQ
( Days)
Bid
(21 – 28 Days)
New Contract
(56 Days)
Existing Contract
(7 – 14 Days)
Capturing & Evaluation
14 – 28 Days
Order Admin
7 – 14 Days
Recommendations
14 – 21 Days
Adjudication
CCPSC – 7 Days
CCPC – 14 Days
DCPB – 14 Days
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14. Procurement Process 14 RESTRICTED PQ: 79 Days Max. Bid: 93 Days Max.
New Contract: 121 Days Max.
Existing Contract: 21 Days Max.
NB: Planning in procurement is very important .
Contract system for repetitive requirements is the most convenient process.
C Log’s Performance Indicator requires the entire process to be completed within 90 days
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15. 1 Mil Hosp Project procurement
DOD and NDPW made decision to devolve some of facilities maintenance functions to the DOD
1 Mil Hospital 1st Floor was identified as a Pilot Project
DCPB approved submission from Log Div to take over the consultants (Tectura Architects) that were already on site
GTAC advised that Hospital cannot be renovated without inputs from Medical Health Technologist (MHT)
Procurement process has already commenced to acquire MHT
Envisaged to appoint MHT by end November 2016
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16. Achievements
Streamlining of DOD Procurement function from SecDef, through C Log (DPM) to the Lowest level
Issuing of Procurement Delegations
Establishment of Procurement Capabilities in line with Procurement Delegations Edition 4 dated May 2009 and Def Rev 2015
Suppliers’ Day, Seminars and Forums
Implementation of E-Procure System and CSD
Awareness to the Suppliers iro Fraudulent GO’s
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17. DOD Procurement Challenges
Challenge 1. Appointment of Medical Health Technician (MHT)
Mitigation 1. TOR have been submitted to the DCPB for approval, then competitive procurement process
Challenges 2. Retention of Procurement Skills
Mitigation 2. Establishment of Procurement Mastering
Challenge 3. Payment of suppliers within 30 days
Mitigation 3. Establishment of Payment Forum at CFO’s office
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18. DOD Procurement Challenges
Challenge 4. Procurement “Scam” whereby suppliers are issued with fraudulent/Bogus Government Orders
Mitigation 4. Establishment of Call Centre at Log Div which work in conjunction with the Military Police and SAPS
Challenge 5. Corrupting and Corruption within procurement
Mitigation 5. Vetting of all DOD procurement personnel and Bid Adjudication Committee members
Challenge 6. The impact of National Treasury prescripts to the fighting force which results on many deviations
Mitigation 6. The DOD still busy brainstorming the possible solution
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19. CONCLUSION
Procurement is a system, guided/governed by the Acts, Regulations, policies and processes therefore if one process collapse, the entire system collapse
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20. Q & A SESSION
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