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PRESENTATION: BREAKFAST BRIEFING MEETING WITH BUILT ENVIRONMENT PROFESSIONALS: 2009/07/07

KwaZulu-Natal Department of Public Works. Department of Public Works. PROVINCE OF KWAZULU-NATAL. PRESENTATION: BREAKFAST BRIEFING MEETING WITH BUILT ENVIRONMENT PROFESSIONALS: 2009/07/07. BACKGROUND:.

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PRESENTATION: BREAKFAST BRIEFING MEETING WITH BUILT ENVIRONMENT PROFESSIONALS: 2009/07/07

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  1. KwaZulu-Natal Department of Public Works Department of Public Works PROVINCE OF KWAZULU-NATAL PRESENTATION: BREAKFAST BRIEFING MEETING WITH BUILT ENVIRONMENT PROFESSIONALS: 2009/07/07 Presentation by: NN Vilakazi

  2. BACKGROUND: • For years DPW was utisiling Roster System, well known as “Roster”, for procurement of Professional service providers i.e. Architects, QS, Engineers etc. • The consultants roster had the following shortcomings. • Dominated by non targeted groups, • Not aligned with Procurement Legislations, BBBEE, CIDB etc. • A new system (PSP) for procurement of Professional Service Provider’s services, which is aligned to the Government mandate was therefore developed. Presentation by: NN Vilakazi

  3. PURPOSE: The establishment of a roster system for the procurement of Professional Service Providers for appointments up to R1,500,000.00 including Value-Added Tax, which will address the Policy Strategies and Reform Processes issued by the National Treasury and adopted by the KwaZulu-Natal Department of Public Works Policy Development and Control Division. Presentation by: NN Vilakazi

  4. POLICY STRATEGY AND REFORM PROCESSES: • To adopt a supply chain management function and a systematic competitive procedure for the appointment of Professional Service Providers • To adopt Procurement Procedures provided for in the CIDB Standard for Uniformity in Construction Procurement • To embrace the KwaZulu-Natal BBBEE strategy in respect of empowerment of target group enterprises through preferential procurement Presentation by: NN Vilakazi

  5. FORMATION: • The compilation of an up to date database of Professional Service Providers registered within the Service Categories for which they qualify • The implementation of the roster system to operate in alignment with the Standard Procurement Policies and Procedures adopted by the KwaZulu-Natal Department of Public Works Presentation by: NN Vilakazi

  6. OBJECTIVES: • To ensure the database of qualified Professional Service Providers is up to date • To simplify, automate and standardise the procurement procedures • To ensure consistent, fair, equitable, transparent and cost effective procurement procedures • To align with KwaZulu-Natal BBBEE Strategies • To facilitate short time frames in the tendering process • To increase the utilisation of targeted groups Presentation by: NN Vilakazi

  7. SCOPE: • Architectural Services • Construction Services • Dispute Resolution • Engineering Services • Environmental Impact Studies • Landscape Architectural Services • Management Services • Quantity Surveying Services • Surveying • Transportation Planning • Town Planning • Valuations • Arbitrations Presentation by: NN Vilakazi

  8. TERMS OF REFERENCE: Presentation by: NN Vilakazi

  9. TERMS OF REFERENCE … (continued) Presentation by: NN Vilakazi

  10. DURATION: • Registration will be valid for a period to be determined by the Department. • Changes of particulars relevant to registration status will be required during the life of programme • Renewal of Registration will be required on expiry of the programme. Presentation by: NN Vilakazi

  11. ELIGIBILITY: • Primary business is to provide independent professional services • 50% of the principals to be registered Professionals • At least one full time professional employee suitably qualified and registered in the required Service area • Have an office in the KwaZulu-Natal Province manned by at least one full time person Presentation by: NN Vilakazi

  12. ELIGIBILITY … (continued) • Original Tax Clearance Certificate • Registered on the KZN Suppliers Database/ ZNT No. • Proof of Professional Indemnity Cover • Demonstrate sustained economic activity • Provide a documented Quality Management System Presentation by: NN Vilakazi

  13. ELIGIBILITY … (continued) • Not be listed on the Register of Tender Defaulters • Not have abused the Supply Chain Management System or failed to perform on any previous contract. • Free of potential conflicts of interest • Submit all relevant supporting documents required. Presentation by: NN Vilakazi

  14. ADMISSION: The initial information submitted in the “Application Form for Registration on the Professional Service Providers Electronic Database” and the supporting documents will be evaluated by the Departmental Evaluation Committee, approved by the Bid Awards Committee and validated by the Accounting Officer. An applicant will only be admitted to the electronic database when all the requirements as stated in the eligibility criteria have been complied with. Going forward: The application will be submitted to the CCM directorate for screen and onward submission to AOCC for approval to be in the database, attached registration formPSPApplicationforRegistrationVers1(2) (2).doc . Presentation by: NN Vilakazi

  15. PROCUREMENT PROCEDURES: • Nominated (Negotiated) Procedure • Nominated (Shortlist) Procedure • Approach the Market Presentation by: NN Vilakazi

  16. Nominated (Negotiated) Procedure: Roster 1: The selection process shall identify a single Professional Service Provider to negotiate a contract having an estimated fee per discipline not exceeding R500 000 including VAT. Presentation by: NN Vilakazi

  17. Nominated (Shortlist) Procedure: Roster 2: The selection process shall identify five Professional Service Providers from which to invite tender offers where the estimated fee per discipline exceeds R500 000 including VAT but is less than or equal to R1 500 000 including VAT. Presentation by: NN Vilakazi

  18. Approach the Market: Open Market: Where the value of estimated fees per discipline is over R1 500 000 including VAT, the selection process shall be outside of the Professional Service Providers Roster. The Open Market Procedure will be stipulated as the procurement procedure. Presentation by: NN Vilakazi

  19. CRITERIA FOR SELECTION: • Service Type • Geographic Location of Offices • Ratio of Appointments to Date (Fee Value) • EPWP Eligibility where required Presentation by: NN Vilakazi

  20. Service Areas: The default Service shall be the Service Type: • Service Area (e.g. ENGINEERING SERVICES) • Service Type (e.g. Civil Engineering Services) • Service Category(e.g. C01, C02, C03, etc.) Presentation by: NN Vilakazi

  21. Geographic Location: The default location shall be the municipality where the project is located: • MUNICIPALITY • MUNICIPAL DISTRICT • REGION Note: Start from Municipality instead of Town in-order to increase the base/ accommodate more service providers. Presentation by: NN Vilakazi

  22. Appointmentsto Date (Fee Value): The Professional Services Providers appointments to date are measured as a ratio of an amount set as the Fees Value Ceiling Per Annum for comparative scoring purposes. Presentation by: NN Vilakazi

  23. EPWP Eligibility where required: Presentation by: NN Vilakazi

  24. SELECTION SCORING: Presentation by: NN Vilakazi

  25. ACCELERATED ROTATION: The rotation of the Professional Service Providers in the electronic database will be structured so as to accelerate the rotation of the targeted groups and thereby increase the utilisation of targeted groups in the procurement of professional services Presentation by: NN Vilakazi

  26. PROCUREMENT TARGETS: Presentation by: NN Vilakazi

  27. TARGET GROUPS: The electronic database is programmed to rotate in such a manner that those Professional Service Providers that fall within the target groups (Level 1 to 4) rotate at a faster rate than those that are not (Level 5). The rotation is determined by the roster position which is calculated using the rotation formula Presentation by: NN Vilakazi

  28. PREFERENCE LEVELS Presentation by: NN Vilakazi

  29. ROSTER POSITIONS: Presentation by: NN Vilakazi

  30. ROTATION FORMULA* * SANS 10396:2003Implementing preferential construction procurement policies using targeted procurement procedures 5.2.8 Electronic rotating databases (rosters) Presentation by: NN Vilakazi

  31. WEIGHTING FACTORS: The target groups / levels of Professional Service Providers will be rotated according to the weighting factor applied to that level: Level 1 1.0 Level 2 1.3 Level 3 1.6 Level 4 1.9 Presentation by: NN Vilakazi

  32. RATE OF ROTATION: Presentation by: NN Vilakazi

  33. EVALUATION OF TENDER OFFERS: Nominated (Negotiated) Procedure Guideline tariff of fees published by councils such as ECSA may be used either as a basis to establish the reasonableness of the tender offer or as the basis for tendering, in which case, tenderers will be required to tender a percentage deviation from published guideline tariffs. Presentation by: NN Vilakazi

  34. EVALUATION OF TENDER OFFERS Nominated (Shortlist) Procedure The requirements set out in the Preferential Procurement Policy Framework Act (PPPFA) will apply to the evaluation of tender offers Presentation by: NN Vilakazi

  35. CONDITIONS OF CONTRACT: • The Conditions of Contract and Procedures under which professional Service Providers are commissioned shall be in accordance with the Department of Works Standard Documents. • CIDB Standard Conditions of Contract, • Standard contract proc_doc_cidb_services_edition_2.pdf • Appointment letter with milestones and timelines. • PSP bid document • SPD-professional services-KZN-2009 (2).doc Presentation by: NN Vilakazi

  36. DEFAULT AND PENALTIES: Normal Projects A penalty will be levied for poor performance or failure to meet a submission date as set out in the letter of appointment of 0.1% subject to a maximum amount of the total fees payable per stage. Special High Priority Projects A penalty will be levied for poor performance or failure to meet a submission date as set out in the letter of appointment of 0.25% subject to a maximum amount of 50% of the total fees payable. Presentation by: NN Vilakazi

  37. APPLICATIONS… • 241 Enterprises • 318 Branch Offices • 765 Principals • 1706 Registered Professionals • 8012 Service Categories Presentation by: NN Vilakazi

  38. Continued… Presentation by: NN Vilakazi

  39. SERVICE TYPES: Presentation by: NN Vilakazi

  40. TARGETED PREFERENCE LEVELS: Presentation by: NN Vilakazi

  41. PROGRESS TO-DATE: Presentation by: NN Vilakazi

  42. PENDING ISSUES: Presentation by: NN Vilakazi

  43. NGIYABONGA/ THANK YOU Presentation by: NN Vilakazi

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