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CLEANSING AND SOLID WASTE UNITSIPHIWE R MAKHANYA

MANAGER: STRATEGIC AND NEW DEVELOPMENTMILE MASTER CLASS: MAY 2013

FOCUS OF THIS PRESENTATIONNew Areas Waste Management Operations• Developing/ new areas

-Major Contracts-Community Based Contracts-Cooperatives

Strategies supporting the community based waste management.• Training and development

-Basic business skills-Documentation - wca, labour dept-Waste management skills

Administration:- Procurement Process-Contract management & supervision- Payment Process

THERE ARE FIVE TYPES OFCONTRACTS:

• Major contracts

• Community Based Contracts (CBC)

• Co-operatives

• Skip Clearing Contracts (Inanda & KwaMashu Hostel)

• Street Sweeping Contracts

NEW AREAS WASTE MANAGEMENTPROJECTS

COMMUNITY BASED CONTRACORS (CBCs) AND

CONTRACT MANAGEMENT

PROJECT DETAILS

Site:• Areas where no services were provided previously (Rural Areas and

Informal Areas).• The former townships within the eThekwini Municipality.• Informal areas (where infrastructure such as roads are not well developed

and can pose a hazard to DSW equipment and vehicles).• Areas where there is a need for a special attention such as the CBD and the

Beach front.

What does project addresses?• Primarily

-Street cleaning-Litter picking-Provision of litter bags-Domestic waste collection and transportation-Eradication of illegal dumps

PROCESS APPLIED TO ACQUIRECONTRACTS :

Major/ Skip clearing & Street Sweeping:• Bid spec report (SECT 36 NO LONGER APPLICABLE)• Advertising• Evaluation• Adjudication• Award• Debriefing• Contract commencement.

Co-operatives: (soon to be abolished)• Partnership with CP&AS/ BSU

MAJOR CONTRACTS

• Specification report submitted to BSC for approval.• Once approved, advertise in Metro Ezasegagasini Newspaper,

ensure tender documentation is available at cashiers, site meeting,tender closes.

• Evaluation of tenders as per laid down criteria (90/10 principle),interviews conducted with tenderers within the defined range ofestimated prices to determine functionality. BEC report prepared.Tax Clearances, Declarations in order.

• Ratification by BAC.• Letter informing those unsuccessful• 2 weeks waiting period for objections (14 days appeal’s period).• Letters of award issued by Tenders Section.• Brief successful contractors, check documentation.• Assist on start up.

COMMUNITY BASED CONTRACTS

• Section 36 is no longer applicable therefore a full tender process isapplied.

• After BSC, advertise, ensure availability of tender documentation.• Documents are then evaluated by Procurement Unit using 80/20

principle.• As a prerequisite to qualification, all quotations must have valid tax

clearances and declarations• Any contractor that bid for a tender can be appointed provided they

meet all the requirements but the workforce must reside in the areabeing serviced plus 50% of the workforce must be female.

• Evaluation report is prepared for the BEC for supporting.• Adjudicated and approved by the BAC. Letters of award prepared.

COMMUNITY BASED CONTRACTSCONT.

• Contracts are signed and training provided.• Key elements of the contract

- 36 month duration- Remuneration of contractor – 14 days fromreceipt of invoice.

- Monthly amounts are adjusted annually at the startof financial year to cater for inflationary pressuresprovided budget allows for this.

- Penalties, termination, safety obligations, vehicles,etc.

PAYMENT PROCESS CONT

• Invoices together with payment certificates are submitted monthly to the admin offices.

• Invoices are then attached to orders, verified in terms on contractor details, paymentamounts, etc. and are thereafter receipted on JDE

• These are then checked & signed by the Area Cleansing Officer, Strategic Manager andthe Deputy Head.

• Once receipted then sent to Finance for processing of payments

• Payments are done via EFT.

PAYMENT PROCESSRequisitions are written, checked against contract, authorised and captured on JDE foreach contractor employed.

These requisitions are then converted into official orders.

Contractors must be registered as vendors on our FP Lite system, in order for the reqs tobe captured.

Vendor forms to be completed – tax clearances, vat registration, banking details, proof ofregistration if CC or Pty (Ltd), ID copy to supplied.

The contractors submit a signed invoice.

CBC’s & CONTRACT MANAGEMENTROLE OF PROJECT/ WHAT DIFFERANTIATES THISPROGRAMME

The key aims are –•Poverty alleviation - creates employment opportunity for local labour.

•Empowerment to small entrepreneurs - Contractors are given a stepping

stone towards a commercially viable business

•Improving the quality of life of our citizens

•Skills development

•Training & development – waste management

CBC’s & CONTRACT MANAGEMENTSUCCESS:

• Employment Creation opportunities for approximately 1800 people giventhat each contractor employees approx. 4 general workers per contract and450 contractors or entrepreneurs.

• Poverty Alleviation - annually total expenditure on CBC’equals toapproximately R131 million.

• Fairness & Equality - CBC’s contractor workforce is made up of 50%female and the employees are selected from the area of operations.

• Contractor earns approximately R21 000.00 per month. After paying staff andoverheads takes home approximately R15 000.00

• Community Upliftment - Community are responsible for the upkeep of theirenvironment

• Training & Skills Development - Workshops are held for developingentrepreneurs in conjunction with business support.

SOME IMPORTANT ASPECT OF THECONTRACT

• Contractor to be properly managed by a competent manager on site.

• The contractor’s manager shall take instructions on behalf of the contractor.

• The contractor’s manager – responsible for management & supervision. Shall be mobileand contactable at all times.

• Maintain continuous communication with DSW inspectors.

• Contractors to adhere to DSW’s basic (minimum) service standards.

• Documentation (returns) to be correctly filled so as to effect payment at the end of themonth.

Other important aspects of the contract.

• These are laid down in the contract document specifications, they includehealth and safety specification, scope of work to be done, wages to thecontractor’s staff, penalties, workman compensation etc.

• General and special conditions of the contract.

• General and special conditions of tender.

• All of the above is applicable to all the major contracts, the community basedcontracts., street sweeping contracts and skip clearing contracts

CBCs & CONTRACT MANAGEMENT

CHALLENGES

• Unavailability of contract owner to make decisions imediately

• Human Resources - Shortage of Inspectors

• Political Interference

• Provision of waste management services is a moving target - continuousgrowth in the number of households

• Lack of community participation – resulting in illegal Dumping

• Road Infrastructure - Terrains are in poor condition

• Resources – Vehicles utilised are not within the required specifications.

CHALLENGES cont.

• Township businesses• Builders rubble• Community Based areas: Contract does not covers.

– Removal of animal carcasses– Removal of illegal dumping– Removal of waste from institutions– Cleaning of non-built up areas– Cleaning and emptying of bins– Transit camps.HostelNumber of refuse bags given to households is one (1) instead of two (2) per

weekCleaning of streams (no ownership amongst the departments)

PLANS FOR THE FUTURE

• Conversion of cooperatives into cbc’s in progress – process about to becompleted.

• Process of appointing replacement contracts in progress

• Take over of waste management from Housing Hostels section- process aboutto completed.

• Removing of waste collected from streams by INK ABM (continuous basis)

• Assist Roads Dept on Zibambele Project – supply of refuse bags & collection ofrefuse.

• Assist Parks Dept on Grass cutting cooperatives – supply of refuse bags andcollection of the same.

CONTRACT MANAGEMENT &COMMUNITY BASED CONTRACTS

LESSONS LEARNT:

• Establishment of relationships with communities

• Behavioural patterns of different communities

• Education and awareness is needed for sustainability

• Communities taking pride in maintaining their own environment.

ETHEKWINI CLEANSING AND SOLID WASTE 12 March 2012REPORT TO BID SPECIFICATION COMMITTEEREPLACEMENT COMMUNITY BASED CONTRACTS FOR REFUSE COLLECTION AND STREET CLEANING:BackgroundThe cleansing and solid waste unit is expected to go on a full public tender process in appointing the 206 replacement

and new community based contracts.The bid adjudication committee approved an extension of the existingcontracts up to June 2012, after which the Unit is expected to have completed the advertising, evaluating andawarding of these contracts.

Previously the unit followed a section 36 of the MFMA where it prepared a report to BAC requesting for permission to askfor quotations and this made it possible to achieve:

• Identification of local based contractors• Addressing of the local economic development in that jobs were created for the local people• Contribution to poverty alleviation programme as the unit reports monthly on EPWP statistics.

The Bid Specification Committee’s (BSC) attention is drawn to the original objective of the programme highlighted in 1, 2,3 above and also to the ernomousdifficulties that would be experienced should the unit follow a full publictender process, it must also be noted that the 206 CBCs to be advertised are only a part of a full programmewhich incorporates 450 community based contracts. It must be stated that it would be impractical to follow theprocess given the time constrains and seeing that these are only a 4 man operations and evaluations wouldtake time to be completed.

Recommendations:• For the reason stated above the unit seeks the permission of the BSC to use the expression of interest route in

order to possible achieve the original intended results of appointing the local based community contractorswithout going on a full public tender.

• Attached is an expression of interest report and advert which outlines the procedure to be followed and shallbe published on the Ezasegagasini newspaper on a specified date and a compulsory public hearing shall beconducted by the unit. (Please refer to the attachment).

_____________________ ______________________R A ABBU R I RAMPERSADDEPUTY HEAD: STRATEGIC & NEW DEVELOPMENT HEAD: C& SW

ONTRACT ADVERTISEMENT FORM DATE : 23rd April 2012PLEASE INSERT UNDER BLOCK HEADING OF DSW- CLEANSING AND SOLID WASTE UNITPlease arrange to advertise the under-mentioned Contract on 11th May 2012.CONTRACT NO. WS.6209REFUSE COLLECTION AND STREET CLEANING SERVICES FOR THE NORTH, NORTH CENTRAL, SOUTH, SOUTH CENTRAL, INNER WEST AND OUTER WEST

REGIONS• COMPULSORY TENDER MEETING DATE : 23rd May 2012• CLOSE OF SALE OF TENDER DOCUMENTS : 22nd May 2012 at 15h30• CLOSING DATE FOR TENDER : : 08th June 2012 at 11h00• NON-REFUNDABLE TENDER CHARGE: : R50.00Tender Documents are obtainable from CASHIERS 03 AND 04 ONLY, GROUND FLOOR, FLORENCE MKHIZE BUILDING, 251 ANTON LEMBEDE STREET, DURBAN

BETWEEN 07H30 AND 15H30ENQUIRIES TO: Name: Siphiwe Makhanya

Telephone: 031 – 311 8343Fax No.: 031 – 263 1119

VENUE FOR COMPULSORY TENDER MEETING:(To be attended by company directors/owners only): Amanzimtoti Civic Centre, Main Auditorium, Cnr Hutchison Road and Riverside Road.TIME FOR COMPULSORY SITE MEETING: 10H00 (doors open at 08h00)

NB:• The tender meeting is only valid for entities who have purchased the tender documents.• Tender documents must be produced upon entry.• Doors open at 08h00 for registration and closes at 10h00 for the meeting to resume.• Once meeting is in progress, entrance and exit shall not be allowed.• Only limited number of tender documents will be printed and made available. Tenderers are advised that the availability of tender documents will be on

first come first serve basis.• Only one (1) document will be issued per tenderer.• Tenderer’s original SA ID or passport to be produced when purchasing the tender document.• Only official tender documents shall be accepted on return. Photocopied tender documents shall invalidate the tender.• No tender documents will be sold from the 23rd May 2012.• A copy of proof of purchase (receipt) must be attached on the front page on return of the tender document on the closing date.• This is a Poverty Alleviation Programme which encourages the involvement of community based contractors.VOTE FOR :ADVERTISING : 79630.04883CONTRACT PAYMENT : 79630.04883

signed for : HEAD : CLEANSING AND SOLID WASTE

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NGIYABONGA/ THANK YOU