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Supply Chain Management Policy for Procurement of Goods and

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1.6 "Municipality": means the municipality of Mamusa Local Municipality or any person(s) or committee delegated with the authority to act on its behalf. 1.9 “Competitive tender process”: means a competitive tender process referred to in Supply Chain Management Regulation 12 (1) (d).

GENERAL PROVISIONS AND APPLICATION OF POLICY

All supply chain management representatives will adhere to the Municipal Staff Code of Conduct contained in Schedule 2 of the Systems Act and the Code of Ethical Standards of this Policy. These systems should be considered in all supply chain management activities carried out by the municipality.

Delegations

A report must nevertheless be submitted to the Bid Evaluation Committee seeking authorization to enter into contracts with another government agency.

Competency

Supply Chain Management Unit

Communication with the Municipality

Availability of Supply Chain Management Policy

DEMAND MANAGEMENT SYSTEMS

Introduction

Major Activities

ACQUISITION MANAGEMENT SYSTEM

The requirements in the preferential procurement section of this policy must be clearly stated in the tender documentation. Any meeting of the bid evaluation committee to consider an unsolicited bid is open to the public.

LOGISTICS MANAGEMENT SYSTEM Introduction

Prior to the execution of the contract, a contract manager must be appointed by the senior official responsible for the project. A guideline should be documented describing the roles and responsibilities of a contract manager during the contract management phase.

DISPOSAL MANAGEMENT SYSTEM

346.2.1 sold only at market-related prices, except when the public interest or the plight of the poor requires otherwise;. Exempt capital assets must be transferred strictly in accordance with Chapter 3 of the Municipal Asset Transfer Regulations.

RISK MANAGEMENT SYSTEM

Fixed assets that are not exempt are transferred or permanently disposed of strictly in accordance with Chapter 2 of the municipal regulations on the transfer of assets. The granting of rights (where Articles 14 and 90 ZMFM do not apply) by the municipality is carried out strictly in accordance with Chapter 4 of the municipal regulations on the transfer of funds.

PERFORMANCE MANAGEMENT SYSTEM

CODE OF ETHICAL STANDARDS General

361.4 must regardless of section 361.3 notify the municipal director of information about any reward, gift, favor, hospitality or other. 361.8 shall assist the municipal manager in combating fraud, corruption, favoritism and unfair and irregular practices in the supply chain management system; and. 361.9 must report to the municipal manager any alleged irregular behavior in the supply chain management system that the person concerned may become aware of, including;.

PREFERENTIAL PROCUREMENT

The targeting of other specific objectives in contracts can be achieved by requiring bidders to either offer a contract participation objective from within a specified minimum range and from which preference points can be calculated; or by inviting contractors to claim preference points based on an appropriate pre-determined empowerment indicator; or by simply specifying a minimum contract participation objective in the contract documentation, which the contractor must meet in the execution of the project, but for which no additional preference points will be granted.

Delegation of supply chain management powers and duties

The targeting of other specific objectives in contracts can be achieved by requiring bidders to either offer a contract participation objective from within a specified minimum range and from which preference points can be calculated; or by inviting contractors to claim preference points based on an appropriate pre-determined empowerment indicator; or by simply specifying a minimum contract participation objective in the contract documentation, which the contractor must meet in the execution of the project, but for which no additional preference points will be granted. a) to fulfill the supply chain management responsibilities assigned to accountable officers in terms of. The accounting officer may not subdelegate any supply chain management powers or duties to a person who is not an official of Mamusa Local Municipality or to a committee that is not exclusively composed of officials of the municipality. This paragraph shall not be read as permitting an official to whom the power to make final awards has been delegated to make a final award in a competitive bidding process other than through the committee system provided for in paragraph of this Policy not be made.

Sub delegations

This section shall not be construed as permitting any officer to whom the power of final awards has been delegated to make a final award in a competitive bidding process other than through the commission system provided in paragraph of this Policy. iii) a bid committee of which the chief financial officer or a senior manager is a member; or. c) no more than R2 million (including VAT) may be sub-delegated, but only to –. iii) a manager who reports directly to the chief financial officer or a senior manager; or. This paragraph shall not be construed as authorizing any officer who has been delegated the power to make final awards to make a final award in a competitive bidding process other than through the committee system provided for in Section 26 of the Supply Chain Management Regulations . Supply chain management decision-making powers should not be delegated to any advisor or consultant.

Supply Chain Management Policy

PREFERENTIAL PROCUREMENT SYSTEM

BROAD-BASED BLACK ECONOMIC EMPOWERMENT (B- BBEE) STATUS LEVEL CERTIFICATES

Based on the findings, an appropriate system of priority points (80/20 or 90/10) must be specified in the tender documentation, which will be used to evaluate the offer; and. Tenders must be evaluated according to the evaluation criteria specified in the tender documentation. When using the 80/20 priority points system, if all bids received exceed R, the bid must be cancelled.

PART B

SUPPLY CHAIN MANAGEMENT POLICY FOR INFRASTRUCTURE PROCUREMENT AND

DELIVERY MANAGEMENT

Terms, definitions and

  • Delegations
    • The municipal manager shall for oversight purposes
  • Implementation of the Standard for Infrastructure Procurement and Delivery Management
  • Supervision of the infrastructure delivery management unit
  • Objections and complaints
  • Resolution of disputes, objections, complaints and queries
    • The person appointed in terms of 3.5.1 shall
    • A dispute, objection, complaint or query may be referred to the Provincial Treasury if

Gateway review: An independent review of the available information at the gateway, based on which we decide whether or not to proceed with the next process. Standard: The latest edition of the Infrastructure Procurement and Delivery Management Standard as published by the Treasury. Persons who are harmed by decisions or actions taken in the implementation of this policy may file a written objection or appeal against the decision or action within 14 days of the decision or action.

Control framework for infrastructure delivery management

  • Assignment of responsibilities for approving or accepting end of stage deliverables
  • Gateway reviews
    • Gateway reviews for major capital projects above a threshold
    • Elective gateway reviews

6 Design 6A Production The municipal manager accepts those parts of the production information documentation that are identified. The contractor of the contract confirms the completion of the works or 7 Works delivery of goods and associated services. 9 Package Completion The Contract Manager or Control Agent approves the defect certificate in accordance with the terms of the contract The Contract Manager confirms the final completion in accordance with the terms of the contract The Director of Technical Services and the Municipal Manager accept the Completion Report.

Control framework for infrastructure procurement

  • Committee system for procurement .1 General
    • Bid adjudication committee
  • Actions of an authorised person relating to the award of a contract or an order
    • Award of a contract
  • Conduct of those engaged in infrastructure delivery .1 General requirements
    • Conflicts of interest
    • Evaluation of submissions received from respondents and tenderers .1 The confidentiality of the outcome of the processes associated with the
    • Non-disclosure agreements
    • Gratifications, hospitality and gifts
    • Reporting of breaches
  • Measures to prevent abuse of the infrastructure delivery system
  • Awards to persons in the service of the state
  • Placing of contractors under restrictions
    • The Budget and Treasury Office shall
  • Complaints
  • Acquisition management .1 Unsolicited proposal
    • Tax and rates compliance .1 SARS tax clearance
    • Declarations of interest
    • Invitations to submit expressions of interest or tender offers
    • Disposal committee
  • Reporting of infrastructure delivery management information The Chief Financial Officer shall submit any reports required in terms of
  • Developmental procurement policy
  • Payment of contractors
  • Approval to utilise specific procurement procedures
  • Opening of submissions
  • Use of another organ of state’s framework agreement

3 FG2 Obtain approval for purchases. Authorization to issue CFO. documents purchase documents. 6.1.3.1.1 All personnel and agents of Mamusa Local Municipality must comply with the requirements of the CIDB Code of Conduct for all Parties involved in Construction procurement. a) behave fairly, honestly and transparently;. Access to a list of quantities and rates should be granted in accordance with the law.

Table 2: Procurement activities and gates associated with the formation and conclusion of contracts above the  quotation threshold
Table 2: Procurement activities and gates associated with the formation and conclusion of contracts above the quotation threshold

PART C

STANDARD FOR INFRASTRUCTURE

PROCUREMENT AND DELIVERY MANAGEMENT

Acts of Parliament

Standards

Control framework for infrastructure delivery management .1 General

  • Stage 0: Project initiation
  • Stage 2: Strategic resourcing
  • Stage 4: Concept and viability or feasibility .1 The concept report shall as necessary
  • Stage 5: Design development
  • Stage 6: Design documentation
  • Stage 7: Works
  • Stage 9:Close out
  • Gateway reviews
    • Gateway reviews for major capital projects above a threshold
    • Gateway reviews initiated by the relevant treasury

Decisions to proceed to the next phase will be based at each gate, in accordance with the provisions of 4.1.1.2, on the acceptability or approval of the submission at the end of the phase. 4.1.13.1.7 The content of the gate review report will be taken into account when accepting the submission of stage 4. The implementer of a project must be notified of the review and its focus at least three weeks before the review is conducted.

Figure 1: Stages and gates associated with the control framework for  infrastructure delivery management
Figure 1: Stages and gates associated with the control framework for infrastructure delivery management

Control framework for infrastructure procurement .1 General

  • Specific requirements relating to the review of procurement documents
  • Specific requirements relating to the evaluation of submissions
  • Authorisation to proceed with the next phase of the procurement process The person authorized to enable a procurement process to progress to the next
  • Authorisation for issuing of an order

Recommended outcomes of the process 2 An overview of - - Gives an overview of the procurement process,. Record, where necessary, and preferably in tabular form, the score for each of the assessment criteria and the total score (excluding those who failed to score above a threshold, if any). 5 Confirmation of - - It is foreseen that the recommendations .. the recommendations for awarding the tender will be confirmed.

Figure 2: Control framework for procurement (acquisition and contact management) processes
Figure 2: Control framework for procurement (acquisition and contact management) processes

Procurement other than new infrastructure or the rehabilitation, refurbishment or alteration of existing infrastructure

Use of an organ of state’s framework agreement by another organ of state .1 An organ of state may request in writing to make use of one or more framework

No contract may be entered into under such procedures until Stage 4 is completed and budgets are prepared for continuation. Table 7: Thresholds, including VAT, for reporting the award of a public contract or order to the relevant treasury. An annual performance report shall be prepared for each portfolio of projects involving the delivery of infrastructure within two months of the end of the financial year reflecting performance in relation to at least the following: .. a) expenditure incurred on the delivery of infrastructure for the financial year against the budget , which is available to cover such expenditure at the beginning of the year;.

Internal control measures

In the case of framework agreement tenders, an assumption will be made that the 90:10 preference points system applies.

Usage of standard procedures

Nominated tender Any purchase whose estimated value does not exceed a threshold specified in Table 9. Open tender Any purchase, except where the cost of advertising or the evaluation of a large number of tender submissions is disproportionate to the value of the work. Any procurement where the estimated value does not exceed a threshold Tendering procedure set out in Table 9.

Table 8: Conditions under which procedures provided for in SANS 10845-1 may be utilized  Procedure    Conditions which need to be satisfied in order to utilise the procedure  Competitive selection procedure
Table 8: Conditions under which procedures provided for in SANS 10845-1 may be utilized Procedure Conditions which need to be satisfied in order to utilise the procedure Competitive selection procedure

Framework agreements

The procedural conditions that must be the threshold (Rand including VAT) (see Table 8) met in order to be used. The employer may turn to the market for goods or services, or a combination thereof, whenever the considers that best value in terms of time, cost and quality that can be achieved.. a) will cover only goods or services, or any combination thereof, belonging to the scope of work related to the agreement which does not can be changed for the duration of the contract; Where competition between subcontractors is required, it must be conducted in a non-discriminatory manner so that competition is not distorted.

Design competitions

  • Tender assessment schedules
  • Guarantees
  • Retention monies
  • Communications
  • Intellectual property rights
  • Budgetary items
  • Professional indemnity insurance

Tender evaluation plans will be used to take into account all tendered financial parameters that have an impact on the final value of the contract. Assumptions should rather be stated in the pricing data so that they can be evaluated and adjusted under the contract if these assumptions are incorrect. Where unavoidable, estimates of potential costs may be included in the contract to cover identified work or services to be performed by a designated subcontractor under the contract.

Developmental procurement policy .1 General

  • Permitted targeted procurement procedures

State agencies, as a general rule, own the rights to the materials specifically prepared by a contractor with respect to a contract. Professional service arrangements are generally subject to the presentation of valid proof of current professional indemnity insurance by the contractor in an amount not less than R3 million in respect of each claim, without limitation on the number of claims.

Figure

Table 1: Responsibilities for approving or accepting end of stage deliverables in the control framework   for the management of infrastructure delivery
Table 2: Procurement activities and gates associated with the formation and conclusion of contracts above the  quotation threshold
Table 3: Procurement activities and gates associated with the issuing of an order above the quotation threshold  in terms of a framework agreement
Table 4: Minimum insurance cover
+7

References

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