Procedure on Supply Chain Management 24 _b_ - SCM Procedure approve… · Procedure on Supply Chain...

Procedure on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference:

1

Procedure on Supply Chain Management

Status: Approved Custodian: Director: Finance and Administration Date approved: 2012-06-27 Decision number: SAQA 1896/12 Implementation date: 2012-06-28 Due for review: 2015-06-27 File Number:


2

TABLE OF CONTENTS

1. PREAMBLE

1.1 NOMENCLATURE

2. DEMAND MANAGEMENT

3. ACQUISITION MANAGEMENT

3.1 SERVICE PROVIDER PERFORMANCE

4. PROCUREMENT OF GOODS AND SERVICES NOT INVOLVING BIDS

4.1 REQUIREMENTS UP TO R2,000.00

4.2 REQUIREMENTS BETWEEN R2,001.00 AND R20,000.00



5. PROCUREMENT INVOLVING BIDS

5.1 REQUIREMENTS BETWEEN R500,000.00 AND R1 Million

5.2 REQUIREMENTS EXCEEDING R1 Million

6. LOGISTIC MANAGEMENT

7. DISPOSAL MANAGEMENT

8. RISK MANAGEMENT

9. SUPPLY CHAIN PERFORMANCE

10. CLOSURE


3

1. PREAMBLE

This Supply Chain Management Procedure Manual is intended to give effect to

the South African Qualifications Authority’s Supply Chain Management Policy as

approved on 17 March 2012 (decision SAQA 0795/12 ) and effective from 18

March 2012 This manual is to be used to guide all procurement processes as

identified in SAQA’s Supply Chain Management Policy.

1.1 NOMENCLATURE

Acronyms as per SAQA’s Procurement Policy:

BA Business Administrator

BEE Black Economic Empowerment

CEO Chief Executive Officer of SAQA

Dfin Director: Finance and Administration

Dir Director

PBN Procurement Briefing Note

PPPFA Preferential Procurement Policy Framework Act

RDP Reconstruction and Development Programme

RFI Request for Information

RFP Request for Proposal

SAQA South African Qualifications Authority

SCM Supply Chain Management

SMME Small, Medium and Micro Enterprises

TOR Terms of Reference


4

2. DEMAND MANAGEMENT

2.1 Each Directorate must prepare a Demand Management Plan in order to:

• Determine alignment of its requirements with the strategic plan of

SAQA.

• Verify the funding source for all the indicated methods of

procurement.

• Analyse the B-BBEE and transformation objectives for procurement

• Analyse recommendations received and identify lead and delivery

times

2.2 Forward Demand Management Plan to Deputy Director: Supply Chain

Management.

2.3 The Deputy Director: Supply Chain Management will review all the

Demand Management Plans, analyse the procurement methods identified

by the Directorates, verify the feasibility of the procurement methods and

forward to the Director Finance and Administration to verify the funding

source for the procurement method and ensure that it is in line with the

approved budget.

2.4 If there are any discrepancies in the verification process set out above,

the Deputy Director: Supply Chain Management will communicate

immediately, in writing, with the relevant Directorate, detailing clearly:

• The discrepancies;

• The possible alternative procurement methods; and

• The motivation for the recommended alternative procurement

method.

2.5 On receipt of the communication from the SCM Unit, the Directorate must

analyze the communication, revise the relevant Demand Management

Plan and forward back to SCM Unit.


5

2.6 On receipt of the revised Demand Management Plan from the

Directorate, the SCM Unit must consolidate the various Directorates’

Demand Management Plans to form an Integrated Demand Management

Plan for SAQA.

2.7 The Deputy Director: Supply Chain Management must forward the

Integrated Demand Management Plan to the Director Finance and

Administration for final review.

2.8 If satisfied the Director Finance and Administration will approve the

Integrated Demand Management Plan.

2.9 On receipt of approval the Deputy Director: Supply Chain Management

must forward a copy of the Integrated Demand Management Plan to the

relevant Directorates.

2.10 The Deputy Director: Supply Chain Management must ensure to forward

a Demand Management Plan of planned procurement exceeding

R500,000.00 to the National Treasury at the start of the financial year.

3. ACQUISITION MANAGEMENT

3.1 Service Provider Performance

3.1.1 Update the categories on the Supplier Register ( quarterly).

3.1.2 Prepare an advertisement inviting service providers to apply to be

included on the Supplier Register .

The following documents from the prospective service providers

must be requested:

• Name, address and type of entity (public or private company,

close corporation etc.)


6

• Telephone and facsimile numbers

• Names of shareholders and directors if applying for BEE

status

• Annual turnover

• Alphabetical list of products or services offered i.e. business

activity

• Banking details

• Specific expertise vested in the entity (evaluation criteria)

• Declaration of Interest

• Valid Tax Clearance Certificate

Clearly indicate the address where the documents should be

posted or the website for registration can be accessed

3.1.4 Advertise in Government Tender Bulletin and on SAQA’s website.

3.1.5 SCM Unit will record the receipt of document parcels from the Service

Providers in a register.

3.1.6 SCM Unit will verify if all the requested documentation is attached.

3.1.7 If the requested documentation has not been submitted, SCM Unit will

reject submission and notify service provider accordingly, stipulating

reasons for rejection.

3.1.8 If requested documentation has been attached, SCM Unit will assess

the areas of expertise that service provider has identified.

3.1.9 Once all the documentation has been verified, SCM Unit will capture

compliant submissions on the Supplier Register and the service

providers will be informed accordingly.


7

3.1.10 When the Procurement Committee indicates that the service provider

should be listed as a “non-preferred” service provider, request SCM

Unit to update the supplier register accordingly.

3.1.11 The SCM Unit will file the documents with the Procurement

Committee’s response on the non-preferred service providers file

and also inform National Treasury accordingly.

4. PROCUREMENT OF GOODS AND SERVICES NOT INVOLVING BIDS Table 1 Requirements up to R2 000.00

Budgeted Monetary Range Including VAT

Selection Process from Supplier Register

Evaluation Panel

Level of Authority to contract

Exception administration

Up to R2,000.00

Utilise petty cash procedures. No quotations are required.

Person with requirement or BA

Relevant Director

None

4.1 Requirements up to R2, 000.00

No Procurement Briefing Note (PBN) is required in order to procure

goods and services up to R2, 000.00. The user with the requirement must

follow the procedure outlined below in order to procure the goods and

services required:


8

4.1.1 Determine if an existing valid contract exists

The user must first check with Directorate: Finance and

Administration whether or not a valid contract is already in place

with an approved provider.

If a valid contract exists, the petty cash procedure must not be

followed, but a purchase order may be produced as the next step.

The purchase order needs to indicate the following:

- Price (excluding and including VAT)

- Clear description

- Quantity

- Quality – clear indication of terms of reference or

specifications

- Delivery address

- Special arrangements (if applicable)

4.1.2 If an existing valid contract does not exist

If an existing valid contract does not exist, the petty cash procedure must

be followed.

The person with the requirement or BA must follow the procedures

pertaining to the use of petty cash For petty cash procedures, please

refer to the policy on Petty Cash


9

4.2 Requirements over R2,000.00 up to R20,000.00 Table 2: Over R2,000.00 and up to R20,000.00



Approval process



Over R2,000.00 and up to R20,000.00

Obtain at least three written quotations from Supplier Register Provider to verify quote by fax/e-mail

Person with requirement or BA

Relevant Director

Provide justification for sole sourcing or restricted process and obtain approval from DCEO or his/her designate

4.2.1 No procurement-briefing note is required for procurement of

goods, services or assets over R2, 0001.00 and up to

R20, 000.00.

If the value of the requirement is over R2, 000.00 and up to

R20, 000.00 the following procurement procedure needs to be

followed:

4.2.1.1 First determine whether the requirement can be satisfied

through an existing valid contract.

4.2.2 If a valid contract exists, no quotations will be invited, but a

purchase order must be produced as the next step. The purchase

order needs to indicate the following:


- Clear description of the goods and services required

- Quantity


specifications


10

- Delivery address


Please refer to paragraph 4.2.3.3 for procedure to follow to

complete the procurement process.

4.2.3 If a valid contract does not exist, the requirement must be

obtained by means of quotations from Supplier Register or other

providers if no providers on the Supplier Register exist. The

quotation procedure to be followed is:

4.2.3.1 The user with the requirement must obtain three written

quotations.

4.2.3.2 The request for quotation must include:



- Quantity


specifications

- Delivery address


4.2.3.3 The provider of the services or goods needs to verify the

quotation in writing. The relevant user or the BA must

evaluate the quotations received, in terms of the stipulated

criteria.

4.2.3.4 The relevant user or the BA needs to draft a

recommendation setting out the reasons for the

recommendation made. The documentation must

demonstrate that sound practices have been adopted and


11

that there is no perceived or actual conflict of interest and

will be available to the Board or other stakeholders at any

time. Ensure to forward a copy of recommendation to

SCM Unit. SCM Unit must report to management on

monthly basis.

4.2.3.5 Complete the purchase order – giving the information as

per 4.2.3.2 above.

4.2.3.6 Attach the purchase order and quotation to the

recommendation and present it to the relevant Director for

authorisation.

4.2.3.7 After authorisation has been obtained, the BA or user is

responsible for placing the order with the preferred

supplier. Ensure to forward copy of approved

recommendation to SCM Unit for reporting purposes.

4.2.3.8 The order can be placed directly with the supplier by way

of fax, and the original may be mailed or handed over

subsequently, if required. A duplicate must be retained for

record purposes.

4.2.3.9 The directorate must follow the prescribed filing process till

payment is made. The directorate must file the duplicate

purchase order, approved quote and delivery notes where

applicable in numerical sequence in a file “Awaiting

Invoices”. The directorate is responsible for maintaining

the document pack until such time as the invoices are

received.

4.2.3.10 All goods must be delivered at one central point, namely

the main reception area of SAQA, except where an


12

alternative location has been pre-authorised by the BA or

relevant Director.

4.2.3.11 The BA is responsible for collecting the goods or meeting

the person who is providing the service, at reception.

4.2.3.12 Service providers may only proceed to the location where

the service is required after being met and accompanied

by the BA to the specific location.

4.2.3.13 All goods and or services must be matched with an official

purchase order.

4.2.3.14 Goods and services received and if acceptable, must be

matched to the purchase order and the supplier’s delivery

note,

4.2.3.15 In the case of goods ordered the BA must sign the

purchase order and supplier’s delivery note and stamp

SAQA’s copies of the purchase order and delivery note as

evidence of the receipt of the goods once satisfied that the

quality, quantity and price match what was ordered. The

person receiving the goods must stamp the documentation

with the goods received stamp and must clearly indicate

where a part delivery is being made with the remainder of

the quantity ordered to be delivered at a later date, or if the

quality exceeds that specified but at the same price, or

where the quality meets the requirements but the price is

less than that specified on the order. In all other cases

where the goods do not match what was specified, the

goods must be rejected and returned to the supplier.


13

4.2.3.16 In the case of services, the provider must advise the BA

after completion of the service before leaving the premises

of SAQA if carried out at those premises. The BA needs to

be satisfied that the required services were delivered

before signing the service report as acceptance thereof.

4.2.3.17 The BA must arrange for goods to be taken to their

planned destination.

4.2.3.18 On the receipt of the invoice, it must be compared with the

delivery note and purchase order. The Director must

approve the invoice for payment by signing the invoice.

4.2.3.19 The BA is responsible for handing over the signed invoice,

delivery note, purchase order and if applicable the briefing

note and other relevant documents to the Directorate

Finance and Administration.

4.2.3.20 The Directorate: Finance and Administration will process

the documentation, according to their specifications and

issue a cheque to the supplier/transfer the money

electronically.


14

4.3 Requirements over R20,000.00 and R30,000.00 Table 2: Over R20,000.00 and up to R30,000.00



Approval Process



Over R20,000.00 and up to R30,000.00

Obtain at least three written quotation from Supplier Register

User with requirement or BA; Director; Dfin; SCM Unit - (notification)

Deputy Chief Executive Officer

Provide justification for sole sourcing or restricted process and obtain approval from or his/her designate

4.3.1 Procurement briefing note is required for procurement over

R20,000.00 and up to R30,000.00.

4.3.1.1 In order to procure goods and services over R20,000.00

and up to R30,000.00 a procurement briefing note must be

prepared making use of the electronic briefing note system

by the BA or Director of the directorate requesting the

expense and authorised by the relevant director, Deputy

Director: SCM, Director: Finance and Administration and

Deputy Chief Executive Officer.

4.3.1.2 Once approved, a copy of the briefing note must remain in

the order file.

4.3.1.3 The approval of the procurement briefing note is subject to

obtaining a minimum of three quotes from providers on the

Supplier Register Supplier Register, or other providers if no

provider exists on Supplier Register .


15

4.3.1.4 Upon receipt of instructions from the relevant director in

terms of the procurement of a requirement, first determine

whether the requirement can be satisfied through an

existing valid contract.




- Price ( including VAT)


- Quantity


specifications

- Delivery address


- Quotation must be attached

Please refer to paragraph 4.2.3.3 for procedure to follow to

complete the procurement process.


obtained by means of quotations from Supplier Register or other

providers if no providers on the Supplier Register exist. The

quotation procedure to be followed is:

4.3.3.1 The user with the requirement must obtain at least three

written quotations.

4.3.3.2 The request for quotation must include:


- Evaluation Criteria


16


- Quantity


specifications

- Delivery address


4.3.3.3 The provider of the services or goods needs to verify the

quotation in writing. The relevant user or the BA must

evaluate the quotations received, in terms of the stipulated

criteria.

4.3.3.4 The relevant user or the BA needs to draft a briefing note

setting out the evaluation of the quotation and the reasons

for the recommendation made. The documentation must


that there is no perceived or actual conflict of interest.

4.3.3.5 Complete the purchase order – giving the information as

per 4.2.3.2 above.

4.3.3.6 Attach all the quotations to the briefing note and submit it

making use of the electronic briefing note system to the

relevant Director for authorisation. Once submitted the

electronic briefing note system will forward the briefing

note automatically to the next approval required until final

approval. Once approved by the Deputy Chief Executive

Officer, the creator of the briefing note will be alerted to this

effect by means of an email.



supplier.


17




filing purposes.


payment is made. The directorate must file the duplicate

purchase order, approved quote and delivery notes where

applicable in numerical sequence in a file “Awaiting



received.



alternative location has been pre-authorised by the BA or

relevant Director.







purchase order.

4.3.3.14 Goods and services received must, if acceptable, be


note,


18

4.3.3.15 The person receiving the goods must stamp the

documentation with the goods received stamp and must

clearly indicate where a part delivery is being made with

the remainder of the quantity ordered to be delivered at a

later date, or if the quality exceeds that specified but at the

same price, or where the quality meets the requirements

but the price is less than that specified on the order. In all

other cases where the goods do not match what was

specified, the goods must be rejected and returned to the

supplier.











4.3.3.19 The BA is responsible for receiving the invoice on the

Accpacc system and handing over the signed receiving

slip, invoice, delivery note, purchase order, briefing note

and other relevant documents to the Directorate Finance

and Administration.

4.3.3.20 The Directorate: Finance and Administration will process the

documentation, according to their specifications transfer the money electronically.


19

4.4 Requirements over R30,000.00 and up to R500,000.00 Table 3: Over R30,000.00 and up to R500,000.00



Approval process



Over R30,000.00 and up to R350,000.00

Obtain at least 3 written quotations from Supplier Register Apply 80/20 evaluation principle

User with requirement or BA

Director; Dfin; SCM Unit – (notification)

Deputy Chief Executive Officer

Provide justification for sole sourcing or restricted process and obtain approval from CEO

Over R350,000.00 and up to R500,000.00

Obtain at least 3 written quotations from Supplier Register Apply 80/20 evaluation principle

User with requirement or BA

Director; Dfin; SCM Unit – (notification) Refer to Procurement Committee

Deputy Chief Executive Officer +Procurement Committee

Provide justification for sole sourcing or restricted process and obtain approval from CEO

4.4.1 Procurement briefing note is required for procurement over

R30,000.00 and up to R500,000.00.


20

4.4.1.1 Upon receipt of instructions from the relevant director in

terms of the procurement of a requirement, first determine

whether the requirement can be satisfied through an






- Clear description

- Quantity


specifications

- Delivery address


- Quotation must be attached

4.4.2.1 Complete the purchase order; attach the briefing note and

quotation and present to the Deputy Chief Executive Officer

for authorisation.

4.4.2.2 After authorisation has been obtained, supply the provider of

the service or goods with the purchase order.

4.4.2.3 Please refer to paragraph 4.3.3.1 with regard to the delivery

of goods and services.


obtained by means of at least three quotations from providers on the

Supplier Register or other providers if no provider on the Supplier

Register exists.


21

4.4.3.1 Upon receipt of instructions from the relevant director and

after having established that no valid contract exists, the

BA, in line with the prescribed supply chain management

policy, must invite at least three quotations.

4.4.3.2 The directorate must design appropriate terms of reference

or specifications stipulating clearly the scope and

deliverables of the required service or the specification for

the goods required. The evaluation criteria, Tax Clearance

Certificate and B-BBBEE requirements for the quotations

must also form part of the terms of reference or

specifications that entail compliance, price, and B-BBEE.

4.4.3.3 The appropriate B-BBEE system must also be determined

and stipulated in the quotation document and a scorecard

needs to be prepared. This will be applied in the evaluation

of quotations. In terms of quotations between R30 000

and R500 000, the 80/20 system must be applied as

described in the PPPFA, Preferential Procurement

Regulations, 2011.

4.4.3.4 Quotations must be evaluated in terms of the stipulated

criteria by a panel consisting of the relevant users with the

requirement or the BA, the Director of the directorate, other

experience personnel or specialists as and when required.

SCM to supply secretariat services when required.

4.4.3.5 The BA will ensure to prepare the electronic briefing note

setting out the evaluation of the quotations and the

reasons for the recommendation. Attached to the briefing

note must be the relevant documentation, the scorecard.

The documentation will demonstrate that sound practices

have been adopted and that there is no perceived or actual


22

conflict of interest and will be available to the Board or

other stakeholders in accordance with the Promotion of

Access to Information Act.



supplier.




filing purposes.


payment is made. The directorate must file the approved

briefing note, duplicate purchase order, quotation and

delivery notes where applicable in numerical sequence in a

file “Awaiting Invoices”. The directorate is responsible for

maintaining the document pack until such time as the

invoices are received.



alternative location has been pre-authorised by the

Facilities Manager.







23


purchase order.

4.4.3.13 Goods and services received must, if acceptable, be


note.

4.4.3.14 The person receiving the goods must stamp the









supplier.











4.4.3.18 The BA is responsible for receiving the invoice on the

Accpacc system and handing over the signed receiving


24

slip, invoice, delivery note, purchase order, briefing note

and other relevant documents to the Directorate Finance

and Administration.

4.4.3.19 The Directorate: Finance and Administration will process

the documentation, according to their specifications

transfer the money electronically.


25

5. PROCUREMENT INVOLVING BIDS

5.1 Requirements over R500, 000.00 and up to R1 Million Table 4: Over R500,000.00 and up to R1 Million


Selection Process

Evaluation panel



Over R500,000.00 and up to R1 Million

Competitive bids must be invited, unless written approval to do otherwise is obtained as per delegated powers. Advertised in at least Government Tender Bulletin. Apply PPPFA 80/20 principle

Evaluation Committee appointed

Procurement Committee

Provide justification for sole sourcing or restricted process and obtain approval from Procurement Committee and CEO

5.1.1 Procurement briefing note is required to procure over

R500,000.00 and up to R1 million .

5.1.2 If the value of the requirement is over R500,000.00 and up to R1

million , the following bid procedure needs to be followed:

5.1.3 Upon receipt of instructions from the relevant director, first

determine whether the requirement can be satisfied through an



26

5.1.8 If a valid contract exists, no bids will be invited, but a purchase

order may be produced as the next step. The purchase order

needs to address the following:

Price (excluding and including VAT)

Clear description

Quantity

Quality – clear indication of terms of reference or specifications

Delivery address

Special arrangements (if applicable)

Quotation must be attached

5.1.9 Complete the purchase order; attach the quotation with the

briefing note and present to the Deputy Chief Executive Officer for

authorisation.

5.1.10 After authorisation has been obtained, supply the provider of the

service or goods with the purchase order.

5.1.11 Please refer to paragraph 5.1.22 with regard to the delivery of

goods and services.


obtained by means of a competitive bidding procedure.

5.1.13 Upon receipt of instructions from the relevant director and after

having established that no valid contract exists, the BA, in line with

the prescribed procurement policy, must invite bids.

5.1.14 The bid specification committee must design appropriate terms of

reference or specifications stipulating clearly the scope and

deliverables of the required service or the specification for the


27

goods required. The evaluation criteria for the bid must also form

part of the terms of reference or specification that must entail

price, functionality and B-BBEE. The following process is

applicable:

Invitation of Bids

- Bid documents must be compiled by making use of standard

bid documents, which consist of the procurement procedure

documents, general conditions, special conditions and the

terms of reference or specifications.

- The Procurement Committee may authorize the levying of a

non-refundable deposit for bid documents as and when

required.

- All calls for expressions of interest and invitations for bid offers

using the bidding process must be advertised in the

Government Tender Bulletin at least 21 days before the

closing date.

- The Procurement Committee may approve an extension of the

closing period to more than 30 days.

- The Procurement Committee may approve a shortening of the

closing period to a minimum of 14 days.

- Bids or quotations received after the closing period shall not

be considered.

5.1.15 In terms of bids over R500,000.00 and up to R1 million , the 80/20

evaluation principle must be applied as described in the PPPFA:

Preferential Procurement Regulations, 2011. .

Evaluation of Bids

- Evaluation criteria must be determined for every contract

and approved prior to the invitation of bids by the Bid


28

Specification Committee. The evaluation criteria must

clearly be indicated in the Bid document.

- The Evaluation Committee will be approved by the

Procurement Committee.

- The Evaluation Committee may include independent experts

to participate in the evaluation process.

- The Evaluation Committee must at least comprise of a

chairperson, and three other members. SCM Unit to supply

secretariat functions.

- The chairperson of an Evaluation Committee must be a

SAQA official with rank of Deputy Director or above.

- The Evaluation Committee will evaluate the functional

compliance of the bid submissions and make

recommendations to the Procurement Committee.

- Members of the Evaluation Committee assessing the bid

must have relevant skills and knowledge and must be free of

any conflict of interest.

Adjudication of Bids

- The Deputy Chief Executive Officer must appoint the

members of the Procurement Committee.

- The Procurement Committee must comprise:

a) The Deputy Chief Executive Officer as Chairperson; and

b) At least three other Directors;

The SCM Unit will supply secretariat functions.

- The Procurement Committee may not evaluate a bid. The

Procurement Committee is restricted to adjudicating whether

the process of procurement was fair, equitable, transparent,

competitive and cost effective. If not, the Procurement


29

Committee must refer back to the Bid Evaluation Committee

with comments.

- The successful bidder must be advised of a successful bid

by the SCM Unit.

Contract Administration

- SCM Unit must maintain a complete register of procurement

contracts.

- The Project Manager appointed by the Directorate for each

project must manage the particular contract to which he or

she is allocated and must inform the SCM Unit of any non-

performance or breach of contract by the service providers.

- Any contract variation must be approved in line with the

delegations.

5.1.16 The SCM Unit will ensure that adequate documentation is

maintained setting out the evaluation of the bids and the

reasons for the decision made. The documentation will


that there is no perceived or actual conflict of interest and

will be available to the Board or other stakeholders in

accordance with the Promotion of Access to Information

Act.

5.1.18 Upon receipt of a duly authorised procurement briefing

note as well as an approval by the Procurement

Committee, the SCM Unit must prepare a contract for

signature by the CEO and preferred service provider. Upon

signature by both parties, the BA will prepare a purchase

order. The purchase order must inter alia include the

price, description, quantity, quality, delivery address and


30

other special arrangement. The purchase order must be

authorised in accordance with the delegated level of

authority.

5.1.19 After authorisation has been obtained, the BA or user is


supplier.

5.1.20 The order can be placed directly with the supplier by way



filing purposes.

5.1.21 The directorate must follow the prescribed filing process till

payment is made. The directorate must file the approved

briefing note, duplicate purchase order, and delivery notes

where applicable in numerical sequence in a file “Awaiting



received.

5.1.22 All goods must be delivered at one central point, namely


alternative location has been pre-authorised by the

Facilities Manager.

5.1.23 The BA is responsible for collecting the goods or meeting


5.1.24 Service providers may only proceed to the location where




31

5.1.25 All goods and or services must be matched with an official

purchase order.

5.1.26 Goods and services received must be matched to the

purchase order and the supplier’s delivery note, if

acceptable.

5.1.27 The person receiving the goods must stamp the









supplier.

5.1.28 In the case of services, the provider must advise the BA





5.1.29 The BA must arrange for goods to be taken to their


5.1.30 On the receipt of the invoice, it must be compared with the



5.1.31 The BA is responsible for handing over the signed invoice,

delivery note, purchase order and if applicable the briefing


32

note and other relevant documents to the Directorate

Finance and Administration.

5.1.32 The Directorate: Finance and Administration will process

the documentation, according to their specifications and

issue a cheque to the supplier/transfer the money

electronically.

5. Requirements over R1 million

Table 5: Requirements exceeding R500,000.00


Selection Process

Evaluation Panel



Over R1 million


Evaluation Committee appointed

Finance Committee

Provide justification for sole sourcing or restricted process and obtain approval from CEO and EXCO

5.2.1 Procurement briefing note is required to procure for more

than R1 Million .

5.2.3 The procurement-briefing note must be completed in duplicate;

one copy remains in the order file or the directorate and original is

forwarded for approval.


33

5.2.6 If the value of the requirement over R1 million , the following

bid procedure needs to be followed:

5.2.7 Upon receipt of instructions from the relevant director, first

determine whether the requirement can be either satisfied through

an existing valid contract.

5.2.8 If a valid contract exists, no bids will be invited, but a purchase

order may be produced as the next step. The purchase order

needs to indicate the following:

Price (excluding and including VAT)

Clear description

Quantity

Quality – clear indication of terms of reference or specifications

Delivery address

Special arrangements (if applicable)

Quotation must be attached

5.2.9 Complete the purchase order; attach the quotation with the

briefing note and present to the Chief Executive Officer for

authorisation.

5.2.10 After authorisation has been obtained, supply the provider of the

service or goods with the purchase order.


obtained by means of a competitive bidding procedure.


34

5.2.12 Upon receipt of instructions from the relevant director and after

having established that no valid contract exists, the BA, in line with

the prescribed procurement policy, must invite bids.

5.2.13 The Bid Specification Committee must design appropriate terms

of reference or specifications stipulating clearly the scope and

deliverables of the required service or the specification for the

goods required. The evaluation criteria for the bid must also form

part of the terms of reference or specification that must entail

price, functionality and B-BBEE. The following process is

applicable:

Invitation of Bids

- Bid documents must be compiled by making use of standard

bid documents, which consist of the procurement procedure

document, general conditions, special conditions and the

terms of reference or specifications.

- The Procurement Committee may authorize the levying of a

non-refundable deposit for bid documents as and when

required.

- All calls for expressions of interest and invitations for bid

offers using the bidding process must be advertised in the

Government Tender Bulletin at least 21 days before the

closing date.

- The Procurement Committee may approve an extension of

the closing period to more than 30 days.

- The Procurement Committee may approve a shortening of

the closing period to a minimum of 14 days.

- Bids or quotations received after the closing period shall not

be considered.


35

5.2.14 In terms of bids that are over R1 million, the 90/10 evaluation

principle must be applied as described in the PPPFA: Preferential

Procurement Regulation, 2011.

Evaluation of Bids

- Evaluation criteria must be determined for every contract

and approved prior to the invitation of bids by the Bid

Specification Committee. The evaluation criteria must

clearly be indicated in the Bid document.

- The Evaluation Committee will be approved by the

Procurement Committee.

- The Evaluation Committee may include independent experts

to participate in the evaluation process.

- The Evaluation Committee must at least comprise of a

chairperson, and three other members. SCM Unit to supply

secretariat functions.

- The chairperson of an Evaluation Committee must be a

SAQA official with rank of Deputy Director or above.

- The Evaluation Committee will evaluate the functional

compliance of the bid submissions and make

recommendations to the Procurement Committee.

- Members of the Evaluation Committee assessing the bid

must have relevant skills and knowledge and must be free of

any conflict of interest.


36

Adjudication of Bids

- The Deputy Chief Executive Officer must appoint the

members of the Procurement Committee.

- The Procurement Committee must comprise:

c) The Deputy Chief Executive Officer as

Chairperson; and

d) At least three other Directors;

The SCM Unit will supply secretariat functions.

- The Procurement Committee may not evaluate a bid. The

Procurement Committee is restricted to adjudicating

whether the process of procurement was fair, equitable,

transparent, competitive and cost effective. If not, the

Procurement Committee must refer back to the Bid

Evaluation Committee with comments.

- The successful bidder must be advised of a successful bid

by the SCM Unit.

Contract Administration

- SCM Unit must maintain a complete register of

procurement contracts.

- The Project Manager appointed by the Directorate for each

project must manage the particular contract to which he or

she is allocated and must inform the SCM Unit of any non-

performance or breach of contract by the service providers.

- Any contract variation must be approved in line with the

delegations.

5.2.15 The SCM Unit will ensure that adequate documentation is

maintained setting out the evaluation of the bids and the reasons

for the decision made. The documentation will demonstrate that

sound practices have been adopted and that there is no perceived

or actual conflict of interest and will be available to the Board or


37

other stakeholders in accordance with the Promotion of Access to

Information Act.

5.2.17 Upon receipt of a duly authorised procurement briefing note as

well as an approval by the Finance Committee, the SCM Unit

must prepare a contract for signature by the CEO and preferred

service provider. Upon signature by both parties, the BA will

prepare a purchase order. The purchase order must inter alia

include the price, description, quantity, quality, delivery address

and other special arrangement. The purchase order must be

authorised in accordance with the delegated level of authority.

5.2.18 After authorisation has been obtained, the BA or user is

responsible for placing the order with the preferred supplier.

5.2.19 The order can be placed directly with the supplier by way of fax,

and the original may be mailed or handed over subsequently, if

required. A duplicate must be retained for filing purposes.

5.2.20 The directorate must follow the prescribed filing process till

payment is made. The directorate must file the approved briefing

note, duplicate purchase order, and delivery notes where

applicable in numerical sequence in a file “Awaiting Invoices”.

The directorate is responsible for maintaining the document pack

until such time as the invoices are received.

5.2.21 All goods must be delivered at one central point, namely the main

reception area of SAQA, except where an alternative location has

been pre-authorised by the Facilities Manager.

5.2.22 The BA is responsible for collecting the goods or meeting the

person who is providing the service, at reception.


38

5.2.23 Service providers may only proceed to the location where the

service is required after being met and accompanied by the BA to

the specific location.

5.2.24 All goods and or services must be matched with an official

purchase order.

5.2.25 Goods and services received must be matched to the purchase

order and the supplier’s delivery note, if acceptable.

5.2.26 The person receiving the goods must stamp the documentation

with the goods received stamp and must clearly indicate where a

part delivery is being made with the remainder of the quantity

ordered to be delivered at a later date, or if the quality exceeds

that specified but at the same price, or where the quality meets

the requirements but the price is less than that specified on the

order. In all other cases where the goods do not match what was

specified, the goods must be rejected and returned to the supplier.

5.2.27 In the case of services, the provider must advise the BA after

completion of the service before leaving the premises of SAQA if

carried out at those premises. The BA needs to be satisfied that

the required services were delivered before signing the service

report as acceptance thereof.

5.2.28 The BA must arrange for goods to be taken to their planned

destination.

5.2.29 On the receipt of the invoice, it must be compared with the

delivery note and purchase order. The Director must approve the

invoice for payment by signing the invoice.


39

5.2.30 The BA is responsible for handing over the signed invoice,

delivery note, purchase order and if applicable the briefing note

and other relevant documents to the Directorate Finance and

Administration.

5.2.31 The Directorate: Finance and Administration will process the

documentation, according to their specifications and issue a

cheque to the supplier/transfer the money electronically.


40

6. Procedure for appointment of Internal Auditors

Table 6: Requirements for the appointment of Internal Auditors


Selection Process from Preferred Supplier List

Evaluation Panel



Over R1 million


Evaluation Committee appointed including of recommended members of the Audit Committee

Finance Committee

Provide justification for sole sourcing or restricted process and obtain approval from CEO and EXCO

6.1 Upon the end of the contract period of the incumbent internal audit services

provider, bids must be invited according to SAQA’s Supply Chain

Management Policy.

6.2 The Audit Committee must prepare appropriate terms of reference stipulating

clearly the scope and deliverables of the required internal audit services. The

evaluation criteria for the bid must also form part of the terms of reference that

must entail compliance, price and B-BBEE certification. The following process

for the appointment of an internal audit service provider is applicable:

6.2.1 Invitation of Bids

- Bid documents must be compiled by including the specific terms of

reference, evaluation criteria, the standard bid documentation, general

conditions of contract and special conditions if required.


41

- In terms of bids that are over R the 90/10 evaluation principle must be

applied as prescribed by SAQA’s Supply Chain Management Policy.

- The bid requirement must be advertised in the Government Tender

Bulletin at least 21 days prior to the closing date.

6.2.2 Evaluation of Bids

- Evaluation criteria must be determined and approved prior to the

invitation of bids by the Audit Committee, which acts as the Specification

Committee in this instance. The approved evaluation criteria must be

clearly stipulated in the Bid document.

- The Evaluation Committee must be approved by the Procurement

Committee.

- The Evaluation Committee must include recommended members of the

Audit Committee as well as identified members of SAQA Management to

participate in the evaluation process.

- The Evaluation Committee must at least comprise of a chairperson, and

four other members. SCM Unit to supply secretariat functions.

- The chairperson of the Evaluation Committee must be a SAQA official

with rank of Director or above.

- Members of the Evaluation Committee assessing the bid must have

relevant skills and knowledge and must be free of any conflict of interest.

- The Evaluation Committee will evaluate the functional compliance of

the bid submissions and recommend a short list of prospective service

providers to the Audit Committee. Reasons should be provided for the

unsuccessful service providers.

- Upon approval of the short list of prospective services providers, the

short listed service providers may be invited to present their services to

the Evaluation Committee complemented by the other members of the

Audit Committees where they will be scored on their ability to render the


42

required services to SAQA. All the service providers who scored above a

specific percentage will then be scored by the Evaluation Committee

according to the 90/10 principle, taking into account price and B-BBEE

certification.

6.2.3 Adjudication of Bids

- The Evaluation Committee must prepare an Evaluation Report and a

Briefing Note must be prepared together with the Evaluation Report

recommending the preferred service provider. The recommendation

must be forwarded to the Procurement Committee. The contract must be

awarded to the tenderer who scores the highest total number of points.

- The Procurement Committee may not evaluate a bid. The Procurement

Committee is restricted to adjudicating whether the process of

procurement was fair, equitable, transparent, competitive and cost

effective. If not, the Procurement Committee must refer back to the

Evaluation Committee with comments.

- Upon approval by the Procurement Committee, the recommendation

must be forwarded to the Finance Committee and the Audit Committee

as per delegation from the SAQA Board for final approval. The

successful bidder must be advised of a successful bid by the SCM Unit

by means of a letter of acceptance.


43

6.2.4 Contract Administration

- SCM Unit must maintain a complete register of procurement contracts.

- The Director: Finance and Administration must manage the contract and

must inform the SCM Unit of any non-performance or breach of contract

by the service provider.

- Any contract variation must be approved in line with the delegations.

6.3 The SCM Unit will ensure that adequate documentation is maintained setting

out the evaluation of the bids and the reasons for the decisions made. The

documentation will demonstrate that sound practices have been adopted and

that there is no perceived or actual conflict of interest and will be available to

the SAQA Board or other stakeholders in accordance with the Promotion of

Access to Information Act.

6.4 Upon receipt of a duly authorised procurement briefing note as well as an

approval by the Finance Committee, the SCM Unit must prepare a contract for

signature by CEO and preferred service provider.


44

6. LOGISTIC MANAGEMENT

Logistics Management refers, amongst others, to coding of items, setting of

inventory levels, placing of orders, receiving and distributing goods and

generation of payments. In this regard refer to paragraphs 4 and 5 of this

document.

7. DISPOSAL MANAGEMENT

7.1 The Disposal Committee will approve the disposal of assets.

7.2 If the decision is made that the assets can be used elsewhere, the Deputy

Director: Supply Chain Management will follow the procedure for the

transfer and movement of assets.

7.3 If the asset is to be disposed of, it must be transferred to the control of

Facilities Manager.

7.4 Assets to be disposed of must be safeguarded in designated stores

7.5 The Facilities Manager must determine if an appropriate and correct

procedure to compare proposed selling price of the asset with the cost of

the asset has been conducted and whether this justified the disposal of

the asset.

7.6 The Facilities Manager must prepare a report and recommendation to the

Disposal Committee.

7.7 The Disposal Committee will review and determine whether the

calculations were done to determine whether the value maximisation

equals the financial advantages and the appropriate disposal mechanism

is recommended.


45

7.8 The Disposal Committee must approve the disposal of assets and the

price to be realised.

8. RISK MANAGEMENT

8.1 SAQA employees should take cognisance of all other policies that

manage risk within SAQA.

8.2 The Director Finance and Administration together with the Deputy

Director: Supply Chain Management will identify areas within the risk

management and fraud prevention plan that are relevant to Supply Chain

Management.

8.3 The Director Finance and Administration will define the controls

necessary to prevent, detect and correct any risk that will have an impact

on Supply Chain Management.

8.4 The Director Finance and Administration will make recommendations to

the Executive Officer on how to prevent, detect and correct the current

and potential risks.

8.5 The Director Finance and Administration will agree the independent

verification control points with the internal auditors.

8.6 The Director Finance and Administration in conjunction with the Deputy

Director: Supply Chain Management will set key performance areas and

the key performance indicators for the Supply Chain Management control

points.

8.7 The Director Finance and Administration in conjunction with the Deputy

Director: Supply Chain Management will implement risk management for

all goods or assets of SAQA.


46

8.8 All employees of SAQA must report all known risks, breaches of policies,

or any other breaches of the procedures to the Director: Finance and

Administration.

8.9 Disciplinary measures must be taken by the Director Finance and

Administration in conjunction with Director Human Resources against

officials responsible for any fraudulent or non-compliance activity.

9. SUPPLY CHAIN PERFORMANCE

9.1 The Director: Finance and Administration in conjunction with the Deputy

Director: Supply Chain Management will identify drivers for change such

as legislation and other prescripts, eg (Treasury Procurement Policy,

PPPFA, PFMA, etc).

9.2 The Director: Finance and Administration will allocate accountability for

performance to be managed, measured and improved.

9.3 The Director: Finance and Administration in conjunction with the Deputy

Director: Supply Chain Management will develop performance measures

that identify:

• The quantity or volume of outputs to be delivered.

• The quality or standard of outputs expected.

• The time-frame for delivery of outputs.

• The cost to SAQA of output delivery.

• The sustainability of the output.

• The percentage variation from the Demand Management Plan


47

9.4 The following criteria will be utilised to measure effectiveness and

efficiency:

a) Achievement of goals;

b) Compliance to norms and standards;

c) Contract breach;

d) Cost efficiency of the procurement processes;

e) Whether supply chain objectives are consistent with Government’s

broader policy practice (socio-economic objectives).

9.5 The Director: Finance and Administration will report on a monthly basis to

the Procurement Committee.

10. CLOSURE

The Procedure on Supply Chain Management Manual is based on SAQA’s

Supply Chain Management Policy. The Supply Chain Management Policy and

Procedure on Supply Chain Management Manual must be read in conjunction

with each other.

Procedure on Supply Chain Management 24 _b_ - SCM Procedure approve… · Procedure on Supply Chain...

Documents

Transcript of Procedure on Supply Chain Management 24 _b_ - SCM Procedure approve… · Procedure on Supply Chain...