S t a t e I n f o r m a t i o n T e c h n o l o g y A g e n c y Procurement Policies and Procedures Presenter: Edwin Mashau Procurement Services SITA Limpopo.

S t a t e I n f o r m a t i o n T e c h n o l o g y A g e n c y

Procurement Policies and Procedures

Presenter: Edwin Mashau

Procurement Services

SITA Limpopo

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Legal Framework

Acquisition methods

Business case and user requirements

Sourcing proces

Contract management

Purchasing

Deviations

Challenges and solutions towards efficient and seamless service delivery

Overview

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SITA Procurement is governed by the following legislation:The Constitution of the Republic of South AfricaSITA Act and regulationsPublic Finance Management Act of 1999Preferential Procurement Policy Framework Act of 2000Treasury Regulations issued by National TreasuryFramework for Supply Chain Management RegulationsSupply Chain Management - a guide for AOSITA’s Own Procurement Policy

Applicable Legislation

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Acquisition methodsAcquisition strategy Purpose

Request for Quotation (RFQ) Value ↓ R500K

Registered on supplier database

Request for Bid (RFB) Value ↑ R500K

Competitive bid process

Request for Information (RFI) Determine availability of goods, services or sources in the market place

Sole Supplier No competition and only one supplier exists

Transversal contracts Quotation basis

Emergency and urgent procurement

Shortened procurement process for emergencies & unforeseeable circumstances

Immediate response to avert an actual or potential life-threatening situation / danger/ threatens security of the country

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Business Case Duly approved by the Accounting Officer/Delegated OfficialRequirements to be included:Background information & reason for requestEstimated cost of goods or servicesDetails of contact personVendor briefing session, site visit or presentation if necessaryRequirements for advertisement of bid i.e. publications other than GTB, to be paid by the clientSpecial conditions of bidSingle source, selected or closed bidsBid Evaluation Committee members, Chairperson and rolesTechnical SpecificationsSpecifications must not be developed around a particular brand or supplier

Business case & user requirements

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Sourcing process

Register and manage client

Sourcing requests

Determine acquisition strategy

for requestBid Invitation

Bid Evaluation

Bid Award

Contracting

Business case

•Value•Specification•Project plan

•Bid Spec•Bid Advert•Briefing Session•Bid closing

•Bid Screening•Bid Evaluation Committee•Scoring of bid responses

Recommendation / Award

•Award Committees•Communicate award•Letters of regret •Letter of acceptance

•Contract signing•Contract Management

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Contract Management

Distinction between transversal contracts and client specific contracts

Contract development and negotiationsContract management – renewals / extensions,

termination, supplier performance, price increases, etc.

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Purchasing

RFQ ‘s from contracts and from the supplier database

Order managementPayment requirements

Purchase ordersProof of deliveryInvoice

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Deviation from Procurement Process

SITAzens are encouraged to familarize themselves with the SOPP and the Sourcing Manual to avoid audit queries of non compliance to the Policy.

Any contravention of the procurement policy and procedures must be reported to Head: Procurement Services (PS) who in turn will inform the relevant Executive of such transgression so that corrective measure is taken against such individual.

PS has compiled a register to record such non adherence to policy so that they can be forwarded to SITA Group Audit

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Challenges for Procurement Services

Non-compliance to procurement policies and procedures results in delaysNon- availability of evaluation resourcesVague specifications Delays in loading REsProcuring from expired contractsSplitting of requirements to avoid tender processSubmission of invoices for payment when the procurement process was not followed; Concluding product/ service delivery conditions and/ or payment terms without involving Procurement Services; Obligation to pay for services where the business case was not approved by the delegated official;Acquisition from a supplier that SITA does not have a valid contract with;

Challenges and Solutions towards seamless procurement

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Solutions towards seamless procurement

Solutions

Adherence to SOPP and the Sourcing Manual

Availability and expertise of BEC

Spec to be objectively defined for ease of evaluation

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Contact Details

For all procurement related queries please call Procurement Help Desk on

0800 748 222

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Ignorance of procurement policies and procedures is no excuse!

THANK YOU