Presented by:
Dr. DEEN LETCHMIAH
QUESTIONS
CHALLENGES AND CONSTRAINTS
IMPLEMENTATION METHODOLOGY
SOCIO-ECONOMIC OBJECTIVES
PUBLIC PROCUREMENT REGIME
INFRASTRUCTURE DELIVERY CHALLENGES & OPPORTUNITIES
INTRODUCTION
PRESENTATION FORMAT
INTRODUCTION
Integrating Infrastructure Delivery and Socio-economic goals
Major Challenges of Poverty, Unemployment and Inequality
Construction Industry recognised as one of the more efficient sectors to generate employment and create business opportunities
Appropriate procurement methodology is key to successful socio-economic outcomes
Compliance with existing constitutional and legislated procurement framework
The Gini coefficient is an indexindexindexindex that measures the
degree of inequality in the distribution of family
income in a country
The Gini coefficient is a number between 0 and 1,
where 0 corresponds with perfect equality (where
everyone has the same income) and 1 corresponds
with perfect inequality (where one person has all
the income—and everyone else has zero income).
GINI COEFFICIENT
HIGHEST TEN LOWEST TEN
1 Seychelles 0.658
2 Comores 0.643
3 Namibia 0.639
4 South Africa 0.631
5 Micronesia 0.611
6 Botswana 0.61
7 Haiti 0.592
8 Zambia 0.575
9 Honduras 0.57
10 Central African
Republic
0.563
1 Denmark 0.247
2 Japan 0.249
3 Sweden 0.25
4 Ukraine 0.256
5 Norway 0.258
6 Czech
Republic
0.258
7 Slovakia 0.26
8 Belarus 0.265
9 Finland 0.269
10 Romania 0.274World
Bank
2012
INFRASTRUCTURE INFRASTRUCTURE INFRASTRUCTURE INFRASTRUCTURE
DELIVERY CHALLENGES DELIVERY CHALLENGES DELIVERY CHALLENGES DELIVERY CHALLENGES
AND OPPORTUNITIESAND OPPORTUNITIESAND OPPORTUNITIESAND OPPORTUNITIES
CHALLENGES
• High unemployment levels
• Poverty alleviation
• Rate of Service delivery
• Availability of Skills and competencies
• Barriers to entry
• Capacity limitations
• Collusion
• Slow pace of economic transformation
PUBLIC SECTOR PROCUREMENT IN
SOUTH AFRICA EXPRESSED AS A
PERCENTAGE (24%) OF GDP
National
Provincial
Local authorities
State owned enterprises
11%
2%
6%
5%
National Infrastructure Plan (2012)National Infrastructure Plan (2012)National Infrastructure Plan (2012)National Infrastructure Plan (2012)
Established the Presidential Infrastructure Co-ordinating Commission (PICC) to co-ordinate, integrate and accelerate implementation
Primary objectives:
• Transform the economic landscape
• Create new jobs
• Strengthen the delivery of basic services
• Implement a program of capacity building and skills transfer
Construction Sector through infrastructure delivery identified as a key “Jobs Driver”
National Infrastructure Plan (2012)
• INFRASTRUCTURE DELIVERY IS CRITICAL TO :INFRASTRUCTURE DELIVERY IS CRITICAL TO :INFRASTRUCTURE DELIVERY IS CRITICAL TO :INFRASTRUCTURE DELIVERY IS CRITICAL TO :
• Promote Promote Promote Promote balanced economic developmentbalanced economic developmentbalanced economic developmentbalanced economic development
• Unlock economic opportunitiesUnlock economic opportunitiesUnlock economic opportunitiesUnlock economic opportunities
• Address socioAddress socioAddress socioAddress socio----economic needseconomic needseconomic needseconomic needs
• Promote job creationPromote job creationPromote job creationPromote job creation
• Help integrate human settlements and economic Help integrate human settlements and economic Help integrate human settlements and economic Help integrate human settlements and economic
developmentdevelopmentdevelopmentdevelopment
National Infrastructure Plan (2012)National Infrastructure Plan (2012)National Infrastructure Plan (2012)National Infrastructure Plan (2012)
IMPROVING PERFORMANCE ON INFRASTRUCTURE PROJECTS IMPROVING PERFORMANCE ON INFRASTRUCTURE PROJECTS IMPROVING PERFORMANCE ON INFRASTRUCTURE PROJECTS IMPROVING PERFORMANCE ON INFRASTRUCTURE PROJECTS
ChallengesChallengesChallengesChallenges::::• Poor planning at institutional level
• Slow approval of projects
• Late start to projects
• Poor quality of execution
• High costs and monopoly pricing
• Poor industry reaction time
• Poor project controls (schedule, cost, quality,safety, health and environment)
• Tender abuses and corruption
• Unrealistic acceleration
• Unplanned and costly rework of designs or construction
• No political alignment with no champion
• Lead time delays
• Slow or non-payment of contractors.
National Infrastructure Plan (2012)National Infrastructure Plan (2012)National Infrastructure Plan (2012)National Infrastructure Plan (2012)
IMPROVING PERFORMANCE ON INFRASTRUCTURE PROJECTS IMPROVING PERFORMANCE ON INFRASTRUCTURE PROJECTS IMPROVING PERFORMANCE ON INFRASTRUCTURE PROJECTS IMPROVING PERFORMANCE ON INFRASTRUCTURE PROJECTS
ActionsActionsActionsActions::::
• Programme to coordinate improvement in project-related skills with emphasis on project management
• Align the national, provincial and local structures
• Align the investment plan with funding allocation
• Predictable process for triggering of national projects, including regulatory approvals
• Strong policy direction for incentivisation of supplier development, localisation and private sector participation
• Plan and build projects that promote low life-cycle costs
• Standardised designs and delivery
• Strengthening project controls and monitoring
• Standardised and simple automated reporting to track project progress and performance
• Early warning to address bottlenecks
• New compact with private sector.
PUBLIC PROCUREMENT PUBLIC PROCUREMENT PUBLIC PROCUREMENT PUBLIC PROCUREMENT
REGIMEREGIMEREGIMEREGIME
THE SOUTH AFRICAN
PROCUREMENT REGIME
SA Constitution
(1996)
Good governance
in procurement
Attaining socio-
economic
objectives through
procurement
Public Finance Management Act (1999)
(for National and Provincial Government)
+ Municipal Finance Management Act (1999)
(for Local Government)
Preferential Procurement Policy Framework
Act (2000)
+ Broad Based Black Economic Empowerment
Act (2003)
CONSTITUTIONAL REQUIREMENTS
Organs of State (national, provincial and local)
or any other institution identified in national
legislation must contract for goods and
services using a system which is :
• fair
• equitable
• transparent
• competitive
• cost effective
CONSTITUTIONAL PROVISIONSCONSTITUTIONAL PROVISIONSCONSTITUTIONAL PROVISIONSCONSTITUTIONAL PROVISIONSFurthermore, organs of state or institutionscan implement a procurement policy whichincorporates :-
(a) categories of preference in the allocationof contracts;
and
(b) the protection or advancement ofpersons, or categories of persons,disadvantaged by unfair discrimination
SA LEGISLATION AND ECONOMIC SA LEGISLATION AND ECONOMIC SA LEGISLATION AND ECONOMIC SA LEGISLATION AND ECONOMIC
TRANSFORMATION OBJECTIVESTRANSFORMATION OBJECTIVESTRANSFORMATION OBJECTIVESTRANSFORMATION OBJECTIVES
Section 217 of Section 217 of Section 217 of Section 217 of the the the the
Constitution Constitution Constitution Constitution (Act 108 of (Act 108 of (Act 108 of (Act 108 of
1996)1996)1996)1996)
Public Public Public Public Finance Finance Finance Finance
Management Management Management Management Act (Act 1 of Act (Act 1 of Act (Act 1 of Act (Act 1 of
1999)1999)1999)1999)
Preferential Preferential Preferential Preferential Procurement Procurement Procurement Procurement
Policy Policy Policy Policy Framework Framework Framework Framework Act (Act 5 of Act (Act 5 of Act (Act 5 of Act (Act 5 of
2000)2000)2000)2000)
BroadBroadBroadBroad----Based Based Based Based Black Black Black Black
Economic Economic Economic Economic EmpowermenEmpowermenEmpowermenEmpowerment Act (Act 53 t Act (Act 53 t Act (Act 53 t Act (Act 53
of 2003)of 2003)of 2003)of 2003)
BEE Codes of BEE Codes of BEE Codes of BEE Codes of Good Good Good Good
Practice Practice Practice Practice
BBBEE BBBEE BBBEE BBBEE Transformation Transformation Transformation Transformation
ChartersChartersChartersCharters
&&&&
BBBEE BBBEE BBBEE BBBEE ScorecardsScorecardsScorecardsScorecards
The framework states that specific goals may
include:
i) contracting with persons, or categories ofpersons, historically disadvantaged by unfairdiscrimination on the basis of race, gender ordisability.
ii) implementing the programme of theReconstruction and Development Programme aspublished in Government Gazette no. 16085dated 23 November 1994.
GOALS PROVIDED FOR IN THE PPPFAGOALS PROVIDED FOR IN THE PPPFAGOALS PROVIDED FOR IN THE PPPFAGOALS PROVIDED FOR IN THE PPPFA
PREFERENTIAL PROCUREMENT POLICY PREFERENTIAL PROCUREMENT POLICY PREFERENTIAL PROCUREMENT POLICY PREFERENTIAL PROCUREMENT POLICY
FRAMEWORK FRAMEWORK FRAMEWORK FRAMEWORK ACT ACT ACT ACT (Act 5 of 2000)(Act 5 of 2000)(Act 5 of 2000)(Act 5 of 2000)
1(e) any specific goal for which a point may
be awarded, must be clearly specified in the
invitation to submit a tender;
(2) Any goals contemplated in subsection 1(e)
must be measurable, quantifiable and
monitored for compliance.
PREFERENTIAL PROCUREMENT
DEFINITIONDEFINITIONDEFINITIONDEFINITION :
Preferential procurement policy is
defined as a “procurement policy that provides objectives additional to those associated with the immediate objective of procurement itself.”
Provides employmentemploymentemploymentemployment and businessbusinessbusinessbusiness
opportunities to targeted groups
NOTENOTENOTENOTE:::: Preferential Procurement does
notnotnotnot guaranteeguaranteeguaranteeguarantee work to the
targeted group.
PREFERENTIAL PROCUREMENT
PPPFA ALIGNED TO BBBEE
New Preferential Procurement Regulations gazetted on 08 June 2011 - aligned with the prescripts of the Broad-Based Black Economic Empowerment Act No. 53 of 2003
Effective from 07 December 2011
The 20 or 10 points is now awarded to a tenderer based on its BBBEE status level only and not HDI ownership
BBBB----BBEEBBEEBBEEBBEE Status Level of ContributorStatus Level of ContributorStatus Level of ContributorStatus Level of Contributor Number of PointsNumber of PointsNumber of PointsNumber of Points
1 20
2 18
3 16
4 12
5 8
6 6
7 4
8 2
Non-compliant contributor 0
ALLOCATION OF 80/20 POINTS
BBBB----BBEEBBEEBBEEBBEE Status Level of Status Level of Status Level of Status Level of
ContributorContributorContributorContributor
Number ofNumber ofNumber ofNumber of PointsPointsPointsPoints
1 10
2 9
3 8
4 5
5 4
6 3
7 2
8 1
Non-compliant contributor 0
ALLOCATION OF 90/10 POINTS
Pre 2011 PPPFA Regulations contributed to increased participation of those enterprises with HDI shareholding
However, high number but low monetary value of contracts <= R 500 000 – therefore limited success
Financial premium from 2006 to 2010 (5 year period) was 1.4% of cumulative value – lower than assumed
New PPPFA Regulations (2011) make no provision for implementing RDP goals as contemplated in the PPPFA
RELEVANT FINDINGS OF RECENT
RESEARCH
SOCIO-ECONOMIC
OBJECTIVES
PROCUREMENT AS AN PROCUREMENT AS AN PROCUREMENT AS AN PROCUREMENT AS AN
INSTRUMENT OF POLICY INSTRUMENT OF POLICY INSTRUMENT OF POLICY INSTRUMENT OF POLICY
Internationally procurement has been used to:
• stimulate economic activity;
• protect national industry against foreign competition;
• improve the competitiveness of certain industrial sectors;
• remedy regional disparities;
• achieve certain more directly social policy achieve certain more directly social policy achieve certain more directly social policy achieve certain more directly social policy functionsfunctionsfunctionsfunctions
TYPICAL DEVELOPMENT TYPICAL DEVELOPMENT TYPICAL DEVELOPMENT TYPICAL DEVELOPMENT
OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES
Development of sectors of an industry, e.g. Small business, women owned business and local industry development.
Development of sub-contractors to Prime Contractors.
Development of management capacity of small businesses
Local Economic Development
Job Creation
Poverty Alleviation
Community-based developments
Policy objectives - business empowermentbusiness empowermentbusiness empowermentbusiness empowerment
- employee empowerment
- job creationjob creationjob creationjob creation
---- development of SMEsdevelopment of SMEsdevelopment of SMEsdevelopment of SMEs
- poverty alleviation
- community based developments
- local economic development
Target group - Targeted Enterprises
race / ethnicity / gender / size /
locality / community parameters
- Targeted Labour
disability / age / residency / race
ethnicity / gender / wage levels /
period of unemployment
FACTORS TO CONSIDER
TARGET GROUP DEFINITION
• locality
• gender, race, ethnicity,citizenship
• age
• wage levels
• disability
• period of unemployment
LabourLabourLabourLabour
TARGETS
• definable
• measurable
• quantifiable
• verifiable
• auditable
Must be :
PPPFA PPPFA PPPFA PPPFA –––– SPECIFIC GOALS SPECIFIC GOALS SPECIFIC GOALS SPECIFIC GOALS
RELATING TO RDPRELATING TO RDPRELATING TO RDPRELATING TO RDP
• the use of local resources
• the use of labour intensive methods
• the use of small, medium and micro enterprises
• job creation
• equity shareholders
• affirmative action principles
• promotion of local enterprises
• skills training and development; and
• community and social investment
CORE COMPONENTS OF BROADCORE COMPONENTS OF BROADCORE COMPONENTS OF BROADCORE COMPONENTS OF BROAD----BASED BASED BASED BASED
BLACK ECONOMIC EMPOWERMENT BLACK ECONOMIC EMPOWERMENT BLACK ECONOMIC EMPOWERMENT BLACK ECONOMIC EMPOWERMENT
CHARTERSCHARTERSCHARTERSCHARTERS
Ownership
Strategic Representation
Employment Equity
Skills Development
Preferential Procurement
Enterprise Development
Corporate Social Investment
IMPLEMENTATION
METHODS
PROCUREMENTPROCUREMENTPROCUREMENTPROCUREMENT
Is the processprocessprocessprocess which creates, creates, creates, creates, managesmanagesmanagesmanages and terminatesterminatesterminatesterminates Contracts.
• TRADITIONAL:• Time
• Quality
• Cost
PROJECT PROJECT PROJECT PROJECT IMPERATIVESIMPERATIVESIMPERATIVESIMPERATIVES
• Socio-economic objectives
• Project Deliverable Project Deliverable Project Deliverable Project Deliverable ––––product and processproduct and processproduct and processproduct and process
ADDITIONAL IMPERATIVE:
PROJECT IMPERATIVESPROJECT IMPERATIVESPROJECT IMPERATIVESPROJECT IMPERATIVES
The Client
The Contracting Entity(Prime Contractor)
The Sub-Contractor
PRIME CONTRACTSPRIME CONTRACTSPRIME CONTRACTSPRIME CONTRACTS
The Contracting Entity
Contractor A Contractor B
The Client
The Sub-Contractor
STRUCTURED JOINT VENTURESSTRUCTURED JOINT VENTURESSTRUCTURED JOINT VENTURESSTRUCTURED JOINT VENTURES
THIRD PARTY
MANAGEMENT
SUPPORT
Performs those
functional activities,
which the Contractor
is unable to perform.
The Contracting
Entity
Performs some
functional activities
The Client
DEVELOPMENT CONTRACTSDEVELOPMENT CONTRACTSDEVELOPMENT CONTRACTSDEVELOPMENT CONTRACTS
• Simplification in bid submission requirements
• Broadening of participation base of small
suppliers
• Waiving of bid requirements
• Contractor registration / prequalification
systems
• Procurement documentation
• Dispute mechanisms
FACTORS TO CONSIDERFACTORS TO CONSIDERFACTORS TO CONSIDERFACTORS TO CONSIDER
DEFINING AND QUANTIFYING
SOCIO-ECONOMIC DELIVERABLES
• Requires a measurable component to enable the amount of
participation by the target group to be quantified
• To provide a level playing field for all tenderers, socio-economic
deliverables and related specifications must be clearly and precisely
defined.
• The key elements associated with socio-economic objects must
accordingly:– Define what constitutes each target group;
– Set goals (targets), measurable in monetary terms, which can be met by engaging the
target groups in the pursuit of predetermined socio-economic / development
objectives;
– Provide for the measurement of key indicators to ensure that goals may be quantified
and audited during the performance of the contract; and
– Set out of the manner in which goals can be achieved, as well as what and how
penalties will be applied in the event that a contractor fails to meet his contractual
obligations.
UNBUNDLING STRATEGIES
Either contract directly with a public body as the prime contractor, or participate as a subcontractor
Unbundling involves breaking down the tender into work components that are small enough for targeted enterprises to compete as a main contractor, or which are suitable for subcontracting as part of the main contract.
Unbundling strategies afford participation opportunities to the full spectrum of targeted enterprises, from those operating as labour only contractors to those operating as prime contractors.
TARGETED PROCUREMENT
SYSTEM
Targeted Procurement provides employment and business opportunities for historically disadvantaged businesses, marginalized individuals and poor communities.
The use of Targeted Procurement enables contracts to be unbundled in a number of ways, viz.:
• by procuring works in the smallest practicable quantities
• by obligating prime contractors to engage targeted enterprises in the performance of their contracts in terms of resource specifications
• by requiring joint venture formation between large businesses and targeted enterprises (known as Structured Joint Venture); and
• by providing third party management support to enterprises which are not capable of operating as prime contractors (known as Development Contracts).
INPUT
PROCESS
OUTPUT
CONVENTIONAL PROCUREMENT CONVENTIONAL PROCUREMENT CONVENTIONAL PROCUREMENT CONVENTIONAL PROCUREMENT SYSTEMSYSTEMSYSTEMSYSTEM
Economic benefits
Technical specifications
Technical design
Contracting strategies
Technical quality assurance
Materials
Plant/equipment
Labour
Management skills
Goods
Services
Products
Assets
INPUT PROCESS
OUTPUT
TARGETED PROCUREMENT SYSTEMTARGETED PROCUREMENT SYSTEMTARGETED PROCUREMENT SYSTEMTARGETED PROCUREMENT SYSTEM
Economic and social benefits
Technical specifications
Technical design
Contracting strategies
Technical quality assurance
Resource specifications
Targeting strategy
Technology choice
Compliance monitoring
Materials
Plant/equipment
Labour
Management skills
Goods - Focussed business
Services participation
Products - Focussed employment
Assets opportunities
THE TARGETED PROCUREMENT THE TARGETED PROCUREMENT THE TARGETED PROCUREMENT THE TARGETED PROCUREMENT
SYSTEMSYSTEMSYSTEMSYSTEM
This system permits socio-economic deliverables
(goals and targets) to be :
•Clearly defined so that they are legally
enforceable.
•Measurable and quantifiable for the purpose of
monitoring and evaluation.
•Verifiable and auditable to satisfy public sector
accountability.
MONITORING REQUIREMENTS AS MONITORING REQUIREMENTS AS MONITORING REQUIREMENTS AS MONITORING REQUIREMENTS AS
SPECIFIED IN SPECIFIED IN SPECIFIED IN SPECIFIED IN PPPFAPPPFAPPPFAPPPFA
1(e) any specific goal for which a point may
be awarded, must be clearly specified in the
invitation to submit a tender;
(2) Any goals contemplated in subsection 1(e)
must be measurable, quantifiable and
monitored for compliance.
TARGETED PROCUREMENT
SPECIFICATIONS
Types Types Types Types of Resource Specificationsof Resource Specificationsof Resource Specificationsof Resource Specifications
Resource SpecificationsResource SpecificationsResource SpecificationsResource Specifications Document Reference Socio-Economic Objectives
Targeting of Affirmable Targeting of Affirmable Targeting of Affirmable Targeting of Affirmable
Business Enterprises Business Enterprises Business Enterprises Business Enterprises
(ABE’s)(ABE’s)(ABE’s)(ABE’s)
TP1
(APP1)Development of sectors of an industry, e.g. SMME’s, HDI owned business,
women owned business and local industry development. The specification
provides for affirmative participation targets to be set by the Client which a
contractor is required to meet in order for the tender to be responsive.
Structured Joint Ventures Structured Joint Ventures Structured Joint Ventures Structured Joint Ventures
(Affirmable Partners)(Affirmable Partners)(Affirmable Partners)(Affirmable Partners)
TP2
(APP2)Development of sub-contractors to prime (main) contractors and development of
management capacity of emerging contractors.
Structured Joint Ventures Structured Joint Ventures Structured Joint Ventures Structured Joint Ventures
(Targeted Partners)(Targeted Partners)(Targeted Partners)(Targeted Partners)
TP3
(APP3)
The specifications provide for the setting of joint venture participation targets by
the Client which promotes participation of target enterprises in a structured
manner.
Targeting of Local Targeting of Local Targeting of Local Targeting of Local
ResourcesResourcesResourcesResources
TP4
(APP4)Local economic development; job creation; poverty alleviation; and community
based developments. The specification provides for the setting of participation
targets for the procurement of local resources in contracts.
Engagement of Targeted Engagement of Targeted Engagement of Targeted Engagement of Targeted
LabourLabourLabourLabour
TP5
(APP5)
Job creation for targeted sectors of the population (based on race, gender,
disability, age, period of unemployment, etc.) and poverty alleviation. The
specification provides for the setting of targeted labour participation and
requires contractors to engage labour in accordance with the specified
conditions.
Targeting of Affirmable Targeting of Affirmable Targeting of Affirmable Targeting of Affirmable
Professional Service Professional Service Professional Service Professional Service
ProvidersProvidersProvidersProviders
TP6
(APP6)Development of sectors of the built environment professions to facilitate skills
development and capacity building. The specification is used for the
appointment of Affirmable Professional Service Providers.
Presently available as South African National Standards (SANS) documents (www.sans.org.za)
EXAMPLE: PARTICIPATION OF
TARGETED LABOUR• These Special Conditions of Bid refer to and are read together with the procedures for
Targeted Construction Procurement - Part 5: Participation of Targeted Labour (SANS 1914-5: 2002)
• Targeted Labour refers to South African citizens classified as Youth who permanently reside, where practical, within a 50km radius of each applicable school. It is incumbent on individuals to demonstrate their claims to such residency on the basis of identification and association with and recognition by members of the school and extended community residing within the target area.
• Youth refers inclusively to young people within the age group of 14 to 35 years as defined in the National Youth Policy 2009-2014.
• The Employer has determined the minimum Contact Participation Goal (CPG) for this contract to be 10 % (ten per cent).
• The minimum CPG is a functionality criteria and any bidder not meeting this requirement will be considered non-responsive and accordingly the bid will be disqualified.
• Penalty for Non-compliance - The Contractor shall pay penalties in accordance with the following formula:
Rand Value of Penalty = 0.05 x (D – Do) x Net Amount
(D)
• Where D = the bid Contract Participation Goal percentage
• Do = Contract Participation Goal achieved in the contract
EXAMPLE: PARTICIPATION OF
TARGETED ENTERPRISES• These Special Conditions of Bid refer to and are read together with the procedures for
Targeted Construction Procurement - Part 1: Participation of Targeted Enterprises (SANS 1914-1: 2002)
• Targeted Enterprises refer to Youth Owned Contractors as registered with CIDB in the GB Category.
• The Employer has determined the minimum Contact Participation Goal (CPG) for this contract to be 50 % (fifty percent).
• The minimum CPG is a functionality criteria and any bidder not meeting this requirement will be considered non-responsive and accordingly the bid will be disqualified.
• Penalty for Non-compliance - The Contractor shall pay penalties in accordance with the following formula:
Rand Value of Penalty = 0.10 x (D – Do) x Net Amount
(100 – Ds)
Where D = the Bid Contract Participation Goal percentage
Do = Contract Participation Goal achieved in the contract
Ds = the specified minimum Contract Participation Goal percentage
100 = the maximum possible Contract Participation Goal percentage that can be
achieved
EVALUATION OF TENDERS ON
FUNCTIONALITY
Must indicate in the invitation to tender if to be evaluated on functionality
If evaluating on functionality, the criteria must be clearly specified in the tender invitation
Will not be an acceptable tender if it fails to achieve the minimum score for functionality
Only tenders achieving the minimum qualifying score will be evaluated further using the points system
EMPOWERMENT REQUIREMENTS IN
CONCESSION CONTRACTS
Equity by Disadvantaged Persons in the Bidding Entity
Business Participation by Target Groups
Employee Empowerment
Accounting officers are required to have:
•an appropriate procurement and provisioning
system which is fair, equitable, transparent,
competitive and cost effective;
•effective, efficient and transparent systems of
financial and risk management and internal control;
and
•a system for properly evaluating all major capital
projects prior to a final decision on the project.
PUBLIC FINANCE MANAGEMENT ACT (PFMA)
REQUIREMENTS FOR PROCUREMENT AND
DELIVERY MANAGEMENT
CHALLENGES &
CONSTRAINTS
•access to markets
•skills
•finance
•supportive institutional
arrangements.
CONSTRAINTS TO BUSINESS CONSTRAINTS TO BUSINESS CONSTRAINTS TO BUSINESS CONSTRAINTS TO BUSINESS
DEVELOPMENTDEVELOPMENTDEVELOPMENTDEVELOPMENT
CHALLENGES AND BARRIERS
• Resistance to Change
• Prejudice / Attitudes
• Fronting and Abuse
• Lack of Monitoring and Reporting
• Effective Supply Side Measures
• Quality Management and Assurance
THANK YOU
QUESTIONS?
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