SOUTH AFRICAN POLICE SERVICE

SUPPLY CHAIN MANAGEMENT

PROCUREMENT AND CONTRACT

MANAGEMENT

1 Introduction

2 Organogram

3 Procurement and Contract Management consists of:

4 Procurement Legislation and Prescript

5 Procurement Delegations

6 Procurement transparency in the SAPS

7 Establishment of Contracts

8 Managing of Contracts

9 ICT procurement

10 Building Projects

11 Risk and Risk Mitigation

12 Communication with Provincial and Divisional Procurement

Practitioners

13 Irregular Expenditure and PPGM Office

14 Achievements 2016/2017 financial year

Contents

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Generally the procurement of goods, works and

services is done through quotations or a bidding

process within the threshold values as determined

by the National Treasury.

1. Introduction

3

2. Organogram of Procurement and Contract Management

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DIVISIONAL COMMISSIONER:

SUPPLY CHAIN MANAGEMENT

COMPONENT HEAD:

PROCUREMENT AND CONTRACT MANAGEMENT

(NUMBER OF PERSONNEL 3)

PROCUREMENT MANAGEMENT: MGP AND SERVICES

(NUMBER OF PERSONNEL 25)

PROCUREMENT MANAGEMENT: FACILITY MANAGEMENT

(NUMBER OF PERSONNEL 44)

PROCUREMENT MANAGEMENT: CONTRACTS

(NUMBER OF PERSONNEL 30)

GRAND TOTAL: 102

Namely:-

• Procurement Management: Facility Management

Procurement of buildings, related commodities and related services for the SAPS.

• Procurement Management: Movable Government Property and

Services

Procurement of all movable items and services such as :

ICT, Vehicles, Diverse items, Professional services, diverse & FSL procurement, clothing, radio,

stationery, vehicles, furniture, general procurement & tactical procurement.

• Procurement Management: Contracts

Administer and manage contracts after Tender awards, amongst others – to be shown on

slide 11.

3. Procurement and Contract Management consists of:

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All Procurement actions in SAPS are governed by Legislation and

Prescripts which include, amongst others the following:

• Section 217 of the Constitution of the Republic of South Africa, 1996;

• Preferential Procurement Policy Framework Act, 2000 (Act No 5 of 2000)

and Regulations of 2017/04/01;

• Broad Based Black Economic Empowerment Act, 2003 (Act No 53 of

2003).

• Public Finance Management Act, 1999 (Act 1 of 1999);

• State Information Technology Agency (SITA) Act, 1998 (Act No 88 of

1998);

• National Treasury Instruction Notes and Circulars;

• SAPS – User Manual: Directives in respect of Acquisition.

4. Procurement Legislation and Prescripts

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• CIDB – Construction Industry Development Board;

• JBCC – Joint Building Contracts Committee;

• PRECCA – Prevention and Combating of Corrupt Activities Act of 2004;

• PAMA – Public Administration Management Act of 2014;

• POCA – Prevention of Organised Crime Act of 1999;

• Companies Act and amendments;

• SHEQ – Safety, Health, Environment and Quality.

4. Procurement Legislation and Prescripts (cont…)

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• National Procurement:

– All procurement approvals for quotations between R300 000-00 and

R500 000-00 are finalized at National Supply Chain Management

level.

– All requirements for Bids above R500 000-00 are finalized and

approved at National level by the Bid Adjudication Committee.

• Provincial/Divisional Procurement:

– Provincial and Divisional Procurement officers have been delegated

to finalize all procurement actions up to the threshold value of R300

000-00.

– Quotations in excess of this threshold must be forwarded to National

Supply Chain Management office for approval.

5. Procurement Delegations

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• Compliance to National Treasury prescripts

The SAPS submits a Procurement Plan for publication, thereafter

deviations, expansions and other reports are submitted quarterly, which

is also measured through the MPAT by DPME.

Deviations for quotations above R1m are reported to both National

Treasury and AGSA. (T.R16A6.4).

Technological reforms i.e. e-Tender Portal and Central Supplier

Database.

The SAPS also complies with the legal reforms such as Public

Procurement, PPPFA, SCM Commercial Contract (Transversal

Contracting) as prescribed.

6. Procurement transparency in the SAPS

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• In respect of requirements received above the threshold value of R500

000-00 an open and competitive bidding process must be followed on

condition that a proper demand in terms of the prescripts is received.

• Specification and Pre-advertisement meetings are conducted and all

members involved signs the confidentiality certificate as well as the Code

of Conduct and declare their interest, if any.

• These Tenders are advertised in the e-Tender portal of National Treasury,

the Government Tender bulletin and the SAPS website.

7. Establishment of Contracts

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• After the closing date and time of the tender, the tenders will be

distributed to an appointed Bid Evaluation Committee for evaluation

purposes.

• The Bid Evaluation Committee will make a recommendation for award to

the Bid Adjudication Committee whereafter a contract is signed with the

successful bidder.

• In certain cases of urgency, emergency and impracticality applications

are considered by the SAPS BAC i.t.o. Treasury Regulation 16.4.6.4 to

deviate from the process as indicated above.

7. Establishment of Contracts (cont…)

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• Contract Management:

– Manage the distribution of Bid documents

– Receiving and opening of Bids

– Liaising with National Treasury i.r.t Transversal Contracts

– Manages existing contracts in consultation with SAPS: Legal Support Services (where necessary):-

• Price increases;

• Ceding of contracts and payments;

• Intervention on poor contract performance;

• Dispute resolutions or imposing penalties;

• Restrictions by National Treasury.

8. Managing of Contracts

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• Requirements in the ICT environment is forwarded to SITA for

finalization.

• SITA, in some cases refer requirements to SAPS to finalize whereby

the normal procurement procedures are followed.

• The Component: Procurement and Contract Management participates

in the monthly monitoring meetings held between SITA, and SAPS:

Technology Management Services to monitor progress and unblock

challenges amongst the stakeholders.

9. ICT Procurement

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• The SAPS relies on the Department of Public Works to satisfy

requirements on all facilities/accommodation needs,

• The Department of Public Works has however granted approval to the

departments to satisfy certain requirements themselves,

• A new turn around strategy has been adopted in Supply Chain

Management i.r.t. future procurement actions in the build environment

whereby a roster of reputable and capable companies will be implemented

and utilized to assist with future requirements,

• The evaluation criteria of functionality will be utilized in the appointment of

future service providers,

• Due diligence will also be conducted prior to an award to ascertain the

capability of service providers

10. Building Projects

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11. Risk and risk mitigation

RISKS RISK MITIGATING

1. Corruption

2. Fraud

3. Collusion

4. Fronting

5. Organised crime

• A process was implemented whereby a Major General at Supply Chain Management oversees the opening and registration of bids received

• Procurement is in the process to finalise Bid Evaluation Committee locations (rooms) to be monitored by CCTV cameras with recording capabilities where all Bid evaluations will be conducted

• Currently all BEC and BAC meetings are recorded for good governance

• Procurement and Contract Management has a Risk register in place with mitigation actions against all identified risks

• Due diligence are constantly conducted prior to award to ascertain the capability of suppliers.

• Directors of companies are verified prior to any award against the National Treasury Central Supplier Database as well as the Department of Public Service Administration website to determine whether they are State employed. Should it be found that a director is an employee from the State such a bidder is disqualified from the bid process.

• Implementation of a paperless tender/RFQ system will be ideal

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• Supply Chain Management conducts annual Forums whereby DPCs and

Provincial Heads attend

• Annual Procurement Forums whereby Procurement Officers attend.

• Circulars concerning Procurement policies, amendments, etc, are

forwarded to all personnel through the SAPS Communication nodal point.

12. Communication with Provincial and Divisional

Procurement Practitioners

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• Dedicated Irregular Expenditure offices have been designated in the provinces and divisions to streamline and reduce the irregular expenditure,

• Manage and conduct regular inspections and sessions with the provincial and divisional offices,

• Pocket guides were circulated indicating the procurement process to be followed to minimize irregular expenditure

• Procurement Process Governance Management (PPGM) Office:

– The PPGM office was established to administer all quotations received to ensure that suppliers and SCM practitioners adhere to legislation and prescripts and to eliminate the possibility of collusion between employee and supplier. This office ensures the independent handling of quotations above the R300 000,00 threshold.

13. Irregular expenditure and PPGM Office

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14. Achievements 2016/2017 financial year

FINANCIAL YEARS 2015/2016 2016/2017

BIDS

BIDS AWARDED 195 128

BIDS AWARDED TO BBBEE 193 126

QUOTATIONS

QUOTATIONS PROCESSED 2 814 2 101

QUOTATIONS AWARDED TO BBBEE 1 814 1 048

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Thank you