REVIEW OF SUPPLY CHAIN MANAGEMENT POLICY (PREFERENTIAL PROCUREMENT)

PURPOSE

Capricorn District Municipality calls upon all stakeholders to comment on the draft amendment Supply Chain Management (SCM) Policy to put it in line with the new Preferential Procurement Regulations as published on 04 November 2022 by Minister of Finance.

BACKGROUND

In terms of Government Gazette no 47452 dated 4 November 2022, The Minister of Finance has in terms of section 5, read with section 2 (1) (b) (i) and (ii) and 2 (1) (c), of the Preferential Policy Framework Act, 2000 (Act No. 5 of 2000) and with effect from 16 January 2023, made the regulations set out in the schedule.

Capricorn District Municipality is in a process of reviewing the SCM Policy to comply with the Government Gazette no 47452, dated 4 November 2022 and to align it with the new regulation.

Provisions of the Amended Regulation

1.1.1. The following are the key aspects that scrapped in the new regulation on the preferential procurement 2022:

1.1.1.1. Scrapping of Black Economic Empowerment and

1.1.1.2. Local content production.

1.1.1.3. Subcontracting of 30% of contracts above R30 Million

1.1.1.4. Definitions, etc

 

1.1.2. The following are the new aspects that are included in the SCM Policy:

1.1.2.1. The Municipality, in the tender documents must, stipulate—

a. the applicable preference point system as envisaged in regulations 4, 5, 6 or 7;

b. the specific goal in the invitation to submit the tender for which a point may be awarded, and the number of points that will be awarded to each goal, and proof of the claim for such goal.

 

1.1.2.2. If it is unclear whether the 80/20 or 90/10 preference point system applies, the Municipality must, in the tender documents, stipulate in the case of—

a. an invitation for tender for income-generating contracts, that either the 80/20 or 90/10 preference point system will apply and that the highest acceptable tender will be used to determine the applicable preference point system: or

b. any other invitation for tender, that either the 80/20 or 90/10 preference point system will apply and that the lowest acceptable tender will be used to determine the applicable preference point system.

Specific Goal:

The Municipality in terms of preference point system is required to use the specific goal in terms of allocating the point which was not applicable in the previous policy. Specific goals refers to specific goals as contemplated in section 2(1)(d) of the Act which may include contracting with persons, or categories of persons, historically disadvantaged by unfair discrimination on the basis of race, gender and disability including the implementation of programmes of the Reconstruction and Development Programme as published in Government Gazette No. 16085 dated 23 November 1994;

 

The 80/20 preference point system for acquisition/ income-generating contracts of goods or services with Rand value equal to or below R50 million will be applied and a formula must be used to calculate the points out of 80 for price in respect of an invitation for a tender with a Rand value equal to or below R50 million, inclusive of all applicable taxes.

  • A maximum of 20 points may be awarded to a tenderer for the specific goal specified for the tender as outlined in the table.

 

Preference Points for Specific Goal: Means of Verification: Number of points:
Owned by black people. Identity Document 4
Owned by black people who are women. Identity Document 4
Owned by black people who are youth. Identity Document 4
Owned by black people with disabilities. Medical Report Indicating Disability 4
Owned by black people living in rural areas Letter from Traditional Authority 4

The 90/10 preference point system for acquisition/ income-generating contracts of goods or services with Rand value above R50 million and the following formula must be used to calculate the points out of 90 for price in respect of an invitation for tender with a Rand value above R50 million, inclusive of all applicable taxes.

  • A maximum of 10 points may be awarded to a tenderer for the specific goal specified for the tender as outlined in the table.
Preference Points for Specific Goal: Means of Verification: Number of points:
Owned by black people Identity Document 2
Owned by black people who are women Identity Document 2
Owned by black people who are youth Identity Document 2
Owned by black people with disabilities Medical Report Indicating Disability 2
Owned by black people living in rural or areas Letter from Traditional Authority 2

The comments must be lodged with 14 days from the date of advertisement and comments should be forwarded to Acting Chief Financial Officer via email address: pilusat@cdm.org.za.

Click on the SCM document below.

 

_____________________________

Ramakuntwane Selepe

Municipal Manager

Attachments

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