OUTLINEWHY PROCUREMENTIMPROVING ECONOMY THROUGH

PROCUREMENTSUPPLY CHAIN DELIVERABLESRANGE OF OPPORTUNITIESPROCESSES, CONDITIONS AND

GUIDELINESDATABASE REGISTRATION REQUIREMENTSKEY THINGS ABOUT SCMCONTACTS

Why Procurement/ Supply Chain Management Direction? To ensure the provision of a cost effective and

efficient procurement services, and the facilitation of City wide Economic Empowerment to all Clusters and Units, to enable them to effectively deliver to Municipal Customers, resulting in successful Service Delivery and Economic Empowerment.

Improving the economy through ProcurementThe need and requirements of a procurement

strategy.The information and communication requirements

for both internal and external users and all those involved.

The process involved efforts to empower, build capacity and increase number of black owned businesses participating in government tenders is consistent with National Government’s objectives and is embraced.

Engagements with major contractors and development of partnerships to provide broader economic development and deliver better service.

Supply Chain Management/ Procurement Key DeliverablesCo-ordination of Tenders and ContractsEffective facilitation of BEECompliance monitoring and timeous

accreditation.Creation and maintenance of an up to date

Centralized Procurement Supplier DatabaseEnforcing compliance with the council’s SCM

policy, TTP policy and other relevant legislations.Determination of uniform

standards/documentation and procedures for the procurement of all goods, services, engineering and construction works.

Range of procurement ActivitiesGoods: stationery, staff uniforms, medical

supplies, material supplies, etc.Services: insurance, banking, vehicle repairs,

cleaning contracts, software development, etc.Professional services: engineering consultants,

auditors, attorneys, etc.Engineering and construction work: civil,

building, electrical, structural, etcDisposal of movable & immovable assets: office

furniture, computers, vehicles, land, etcHiring and renting of assets: plant hireAcquiring and granting of rights as applicable to

procurement: copy righting, etc

PROCUREMENT THRESHOLDSPROCUREMENT THRESHOLDS

Lower Limit Upper LimitProcurement Method/Quotes

Tender Charge

Sureties (10%)

R0 R500(vat incl) Petty Cash N/AN/A (Note reg. 12)

R0 R5 000.00 One Quote No No

R5 000.01 R30 000.00Formal Written Quote

NoNo

R30 000.01 R200 000Formal Written Quotes

No No

>R200 0000 Public Tender Yes Yes (>R500,000)

Procurement Processes What are the Contract Types/Limits within eThekwini? ¨ A list of centres where these quotations are outlined on the last page. q Contracts/Quotations within these limits are to be to BBE’s, and preferably PBE’s wherever available/possible. v For the sale of movable assets a tender charge of R50 will be levied. These limits/requirements apply to all procurement activities except the Professional Consulting Services that have been catered for in the Siyakhana Consultants Roster. Lower Limit Upper Limit Minimum Procurement Method/Quotes Tender Charge Sureties (10%) · R0 R10 000.00 i 1 Quote · No No R10 000.01 R200 000.00 i Written Quotes · No No R200 000.01 R200 000.00 Public Tender R50 No R200 000.01 R1 million Public Tender R100 >R500 000 >R1 million R5 million Public Tender R250 Yes >R5 million R10 million Public Tender R500 Yes >R10 million Public Tender R1000 Yes

Conditions for consideration of written quotations or bids A written quotation or Public Tender may not be considered unless the

bidder has furnished as follows: Full name Company registration number Tax clearance certificate- clearly stating that the bidder/provider’s tax

affairs are in order. Statement providing that water, electricity, rates are up to date or

formal arrangements Documents filled in as expected and signed properly. Has indicated that: Whether he or she is in the service of the state, or has been in the

service in the previous twelve months. If the provider is not a natural person, whether any of its directors,

managers, principal shareholders or stakeholders is in the service of a state, or has been in the previous twelve months; or

Whether a spouse, child or parent of the provider or of a director, manager, shareholder or stakeholder referred to in subparagraph above is in the service of the state, or has been in the service of the state in the previous twelve months.

Database registration requirements Company is legally registered (CIPC)

Owners/Principal Shareholders not in service of the state

Company not in NT’s database of restricted suppliers

Check Declarations (interest, municipal fees, independent bidder, etc – at tender stage)

Valid Tax Clearance

Valid BEE CertificateNo fee registration

Guideline to an enterprise that is ready to tender.Must be a registered businessMust be able to deliver- on time and according to

specificationsIs up to date with its taxes, rates, electricity and

water accountsIs pro-active, actively looking for business

opportunitiesRegistered with the eThekwini Municipality’s

central Procurement Supplier’s databaseHas registered with relevant professional body,

such as CIDB, NHBRC, SETA, etc.Has registered its employees with the department

of Labour ( UIF, Skills Development Levy, Women's Compensation etc.)

Tendering opportunities and Information Communication

All contracts under R200 000.00 Quotations; Advertised on the SSS(Online Supplier Self Service) for the following departments

1. City Engineers Unit, 166 Old Fort Road2. Water Services, 3 Prior Road3. Corporate Procurement (MMB), 166 Old Fort Place, Ground floor

All contracts under R200 000.00 Quotations; Advertised on the notice boards for the following department

Electricity , 1 Jelf Taylor Crescent, Ground Floor

Housing Unit, 90 Shepstone Road, New Germany

All contracts above R200 000.00, PUBLIC TENDERStenders are advertised in the eThekwini Municipality’s own free newspaper , eThekwini website: www.durban.gov.za, Metro Ezasegagasini, which is issued every 2nd Friday. Copies of these can be obtained at the City Hall basement Churchwalk Entrance, and other Municipal offices.

KEY THINGS ABOUT SCMSCM Ensures goods & services are delivered in the following manner:

Right Place Right Quantity Right Quality Right Cost Right Time

Supply Chain Management ContactsDESIGNATION NAME TELEPHONE

Head Andre’ Petersen 031-311 1705

Deputy Head: Operations Sandile Ngcobo 031-322 7001

Deputy Head: vacant Customer Relations Bongi Blose 031-311 7153Corporate Procurement vacant 031-311 7530Water Procurement Tarryn Bartholomew 031-311 8619Electricity Procurement Tumo Mpetsane

031-311 9420Performance and Risk Mdu Mkhize 031-311 7289Tenders & Contracts Bongiwe Nyandeni 031-322 7015Compliance Monitoring Zandile Sithole 031-322

7007Business & Administration Yacob Khan 031-311 7449

All Supply Chain Related Queries/ Complaints/ Information; Central ContactManager : Bongi Blose

031-3117153-telephone 031-3117330- fax

CharmineBongi.Blose@durban.gov.za :email contact

Supplier Liaison Administrator: Sandile Biyela :031 3227155

Silindile Ngwenya: 031 311 7082