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Hessequa Municipality. Central Supplier Database and Procurement Management An Overview 05 March 2019. Overview. Central Supplier Database Question and Answer Session Procurement Processes Question and Answer Session. Central Supplier Database (CSD). MSCMR 14
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Hessequa Municipality Central Supplier Database and Procurement Management An Overview 05 March 2019
Overview • Central Supplier Database • Question and Answer Session • Procurement Processes • Question and Answer Session
Central Supplier Database (CSD) • MSCMR 14 • A supply chain management policy must- • Instruct the accounting officer (i) to keep a list of accredited prospective provides of goods and services that must be used for the procurement requirements of the municipality or municipal entity through written or verbal quotations and formal written quotations • During the 2015 budget speech, the Minister of Finance announced the development and future use of the Central Supplier Database (CSD) as a means of simplifying the process of doing business with government. • The objectives of the CSD are to reduce the exchange of compliance documents in paper form, eliminate multiple registrations with different organs of state, and ultimately reduce the cost for both business and government by enabling electronic registration and verification processes.
What are the benefits? • Once off supplier self-registration for whole of government • Single source of supplier information thus no multiple registrations; • Reduce and eliminate duplication of supplier registration effort • Allow for complex supplier structures and cross ownership • Available to National, Provincial and Local government • Automated distribution of supplier information to subscribers based on commodities; • Controlled access to information; • Standardised and automated vetting of supplier: Tax clearance status; Business registration and business ownership; Bank account and bank account holder; Citizen identity number; BBBEE; Government employee verification; and • Register for tender defaulters and database of restricted suppliers.
What is required for suppliers to register? • Completion of supplier registration information (Name, address, contact details etc); • Valid tax clearance reference number; • Valid BEE registration certificate; • Valid CIPC registration; • Identification documents of owners, partners, joint ventures etc; • Bank account details of owners or company • Commodities in which the supplier trade;
What is the impact? • The benefit for private sector • Red tape reduction and administrative effort to do business with government. • Compliance requirements are easy to meet for suppliers that are in good standing on the various compliance requirements. • Systematically verify if information submitted is indeed correct and compliant to regularity requirements of various pieces of legislation. • For government sector • The benefit would be a significant reduction in compliance burden • Eliminate the duplication of effort and cost of receiving, validating and maintaining supplier registration information.
Procurement ProcessesAn overview of legislation • S217 Constitution, 1996 • When an organ of state in the national, provincial or local sphere of government, or any institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost- effective. • MFMA, 56 of 2003 Chapter 11 Goods and Services 111 Each municipality and municipal entity must have and implement a supply chain management policy which give provisions to this Part 112 (1) The supply chain management policy of a municipality or municipal entity must be fair, equitable, transparent, competitive and cost-effective AND comply with the prescribed regulatory framework for municipal supply chain management, which must cover at least the following: (a) The range of supply chain management processes that municipalities and municipal entities may use, including tenders, quotations, auctions and other types of competitive bidding
Procurement ProcessesAn overview of legislation • Municipal Supply Chain Management Regulations, 2005 (MSCMR) Regulation 2 Supply chain Management Policies • Each municipality and each municipal entity must in terms of section 111 of the Act have and implement a supply chain management policy that- • Gives effect to – • Section 217 of the Constitution; and • Part 1 of Chapter 11 and other applicable provisions of the Act; (b) is fair, equitable, transparent, competitive and cost effective;
Range of Procurement ProcessesRegulation 12 MSCMR • (1) A supply chain management policy must, subject to regulation 11(2), provide for the procurement of goods and services by way of – • Petty cash purchases, up to a transaction value of R2 000 (VAT included); • Written or verbal quotations for procurements of transaction value over R2 000 up to R10 000 (VAT included); • Formal written price quotations for procurement of a transaction value over R10 000 up to R200 000 (VAT included); and • A competitive bidding process for – • Procurements above a transaction value of R200 000 (VAT included); and • The procurement of long term contracts. (2) A supply chain management policy may allow the accounting officer- (a) To lower, but not to increase, the different threshold values specified in sub regulation (1);
Publication of Opportunities • Newspapers • Locally: Suid-Kaap Forum • Nationally: Die Burger and Cape Times (Friday) • Municipal Website Link: http://www.hessequa.gov.za/information-center/supply-chain-management/ • Municipal Notice Boards • E-Tender Link: http://www.etenders.gov.za/content/advertised-tenders
Contact Details Supply Chain Management Hessequa municipality Post Office Building 19 Main Road RIVERSDALE 6670
