PROCUREMENT POLICY
AND PROCEDURES
24 MAY 2013
PROCUREMENT POLICY
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;
PRESENTATION CONTENT (Cont.)
• Closing of Bids;
• Evaluation of Bids and Scoring Process;
• Appointment of Preferred Bidders;
• Conclusion;
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
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
METHODS OF BID SOLICITATION
Procurement Approach
1. Closed Tender process
2. Open Tender Process
3. Expression of Interest
4. Request for Proposal
Type of Assignment
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;
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
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)
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%
OPEN TENDER PROCESS
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;
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
SITE BRIEFING MEETING
• 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.
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
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;
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;
EVALUATION OF BIDS
SCM COMMITTEES
1. Bid Specification Committee
2. Bid Evaluation Committee
3. Bid Adjudication Committee
PROCUREMENT STRUCTURES
CDC
Committees
Function / Responsibilities
Composition
Bid
Specification
Committee
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
Adjudicate bids submitted by bidders
1 Representative from SCM unit
The PM consolidates and submits to the PC a
report and recommendations regarding the
award of the bids
2 Project Managers (either all from the same
BU or one from a different BU)
1 external member / consultants
Approves bids of values between *R200,000 to
*R5m and forward them to EXMA for noting
PC Terms of Reference and with two year
membership appointed by the CEO
(BSC)
Bid Evaluation
Committee
(BEC)
Procurement
Committee
(PC)
EXMA
The BOARD
Recommend bids above *R5m to the EXMA
Approve bids of over *R5m up to *R100m and
notify the Board
As per the EXMA Terms of Reference
Recommend to the Board all bids in excess of
*R100m
Note all bids above *R5m and approve bids
above *R100m
As per the Board Terms of Reference
THREE STAGE EVALUATION APPROACH
Stage 1
Responsiveness Stage
• Mandatory Requirements
Stage 2
Quantitative Stage
• Price - formula
• BBBEE – Certificates (SANAS Accredited)
Stage 3
Qualitative Stage
• Repeat Appointment
• Non Performance
• Spread of work
• Risk Issues
ADJUDICATION OF BID SUBMISSIONS
Element
WEIGHTING / SCORES
Professional Service Providers
Service Providers (including
Building Contractors)
90:10
80:20
90:10
80:20
Price
90
80
90
80
Empowerment
10
20
10
20
Sub-total
100
100
100
100
ADJUDICATION OF BID SUBMISSIONS
CONTRIBUTION LEVEL
BBBEE Empowerment Scoring
»
90:10
80:20
Level One Contributor
10
20
Level Two Contributor
9
18
Level Three Contributor
8
16
Level Four Contributor
5
10
Level Five Contributor
4
8
Level Six Contributor
3
6
Level Seven Contributor
2
4
Level Eight Contributor
1
2
Non Compliant Contributor
0
0
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
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;
Thank You