OUTLINEWHY PROCUREMENTIMPROVING ECONOMY THROUGH
PROCUREMENTSUPPLY CHAIN DELIVERABLESRANGE OF OPPORTUNITIESPROCESSES, CONDITIONS AND
GUIDELINESDATABASE REGISTRATION REQUIREMENTSKEY THINGS ABOUT SCMCONTACTS
Why Procurement/ Supply Chain Management Direction? To ensure the provision of a cost effective and
efficient procurement services, and the facilitation of City wide Economic Empowerment to all Clusters and Units, to enable them to effectively deliver to Municipal Customers, resulting in successful Service Delivery and Economic Empowerment.
Improving the economy through ProcurementThe need and requirements of a procurement
strategy.The information and communication requirements
for both internal and external users and all those involved.
The process involved efforts to empower, build capacity and increase number of black owned businesses participating in government tenders is consistent with National Government’s objectives and is embraced.
Engagements with major contractors and development of partnerships to provide broader economic development and deliver better service.
Supply Chain Management/ Procurement Key DeliverablesCo-ordination of Tenders and ContractsEffective facilitation of BEECompliance monitoring and timeous
accreditation.Creation and maintenance of an up to date
Centralized Procurement Supplier DatabaseEnforcing compliance with the council’s SCM
policy, TTP policy and other relevant legislations.Determination of uniform
standards/documentation and procedures for the procurement of all goods, services, engineering and construction works.
Range of procurement ActivitiesGoods: stationery, staff uniforms, medical
supplies, material supplies, etc.Services: insurance, banking, vehicle repairs,
cleaning contracts, software development, etc.Professional services: engineering consultants,
auditors, attorneys, etc.Engineering and construction work: civil,
building, electrical, structural, etcDisposal of movable & immovable assets: office
furniture, computers, vehicles, land, etcHiring and renting of assets: plant hireAcquiring and granting of rights as applicable to
procurement: copy righting, etc
PROCUREMENT THRESHOLDSPROCUREMENT THRESHOLDS
Lower Limit Upper LimitProcurement Method/Quotes
Tender Charge
Sureties (10%)
R0 R500(vat incl) Petty Cash N/AN/A (Note reg. 12)
R0 R5 000.00 One Quote No No
R5 000.01 R30 000.00Formal Written Quote
NoNo
R30 000.01 R200 000Formal Written Quotes
No No
>R200 0000 Public Tender Yes Yes (>R500,000)
Procurement Processes What are the Contract Types/Limits within eThekwini? ¨ A list of centres where these quotations are outlined on the last page. q Contracts/Quotations within these limits are to be to BBE’s, and preferably PBE’s wherever available/possible. v For the sale of movable assets a tender charge of R50 will be levied. These limits/requirements apply to all procurement activities except the Professional Consulting Services that have been catered for in the Siyakhana Consultants Roster. Lower Limit Upper Limit Minimum Procurement Method/Quotes Tender Charge Sureties (10%) · R0 R10 000.00 i 1 Quote · No No R10 000.01 R200 000.00 i Written Quotes · No No R200 000.01 R200 000.00 Public Tender R50 No R200 000.01 R1 million Public Tender R100 >R500 000 >R1 million R5 million Public Tender R250 Yes >R5 million R10 million Public Tender R500 Yes >R10 million Public Tender R1000 Yes
Conditions for consideration of written quotations or bids A written quotation or Public Tender may not be considered unless the
bidder has furnished as follows: Full name Company registration number Tax clearance certificate- clearly stating that the bidder/provider’s tax
affairs are in order. Statement providing that water, electricity, rates are up to date or
formal arrangements Documents filled in as expected and signed properly. Has indicated that: Whether he or she is in the service of the state, or has been in the
service in the previous twelve months. If the provider is not a natural person, whether any of its directors,
managers, principal shareholders or stakeholders is in the service of a state, or has been in the previous twelve months; or
Whether a spouse, child or parent of the provider or of a director, manager, shareholder or stakeholder referred to in subparagraph above is in the service of the state, or has been in the service of the state in the previous twelve months.
Database registration requirements Company is legally registered (CIPC)
Owners/Principal Shareholders not in service of the state
Company not in NT’s database of restricted suppliers
Check Declarations (interest, municipal fees, independent bidder, etc – at tender stage)
Valid Tax Clearance
Valid BEE CertificateNo fee registration
Guideline to an enterprise that is ready to tender.Must be a registered businessMust be able to deliver- on time and according to
specificationsIs up to date with its taxes, rates, electricity and
water accountsIs pro-active, actively looking for business
opportunitiesRegistered with the eThekwini Municipality’s
central Procurement Supplier’s databaseHas registered with relevant professional body,
such as CIDB, NHBRC, SETA, etc.Has registered its employees with the department
of Labour ( UIF, Skills Development Levy, Women's Compensation etc.)
Tendering opportunities and Information Communication
All contracts under R200 000.00 Quotations; Advertised on the SSS(Online Supplier Self Service) for the following departments
1. City Engineers Unit, 166 Old Fort Road2. Water Services, 3 Prior Road3. Corporate Procurement (MMB), 166 Old Fort Place, Ground floor
All contracts under R200 000.00 Quotations; Advertised on the notice boards for the following department
Electricity , 1 Jelf Taylor Crescent, Ground Floor
Housing Unit, 90 Shepstone Road, New Germany
All contracts above R200 000.00, PUBLIC TENDERStenders are advertised in the eThekwini Municipality’s own free newspaper , eThekwini website: www.durban.gov.za, Metro Ezasegagasini, which is issued every 2nd Friday. Copies of these can be obtained at the City Hall basement Churchwalk Entrance, and other Municipal offices.
KEY THINGS ABOUT SCMSCM Ensures goods & services are delivered in the following manner:
Right Place Right Quantity Right Quality Right Cost Right Time
Supply Chain Management ContactsDESIGNATION NAME TELEPHONE
Head Andre’ Petersen 031-311 1705
Deputy Head: Operations Sandile Ngcobo 031-322 7001
Deputy Head: vacant Customer Relations Bongi Blose 031-311 7153Corporate Procurement vacant 031-311 7530Water Procurement Tarryn Bartholomew 031-311 8619Electricity Procurement Tumo Mpetsane
031-311 9420Performance and Risk Mdu Mkhize 031-311 7289Tenders & Contracts Bongiwe Nyandeni 031-322 7015Compliance Monitoring Zandile Sithole 031-322
7007Business & Administration Yacob Khan 031-311 7449
All Supply Chain Related Queries/ Complaints/ Information; Central ContactManager : Bongi Blose
031-3117153-telephone 031-3117330- fax
[email protected] :email contact
Supplier Liaison Administrator: Sandile Biyela :031 3227155
Silindile Ngwenya: 031 311 7082