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SUPPLY CHAIN MANAGEMENT MONETARY LIMITATIONS

5. (1) The accounting officer may in terms of section 79 or 106 of the Act subdelegate any supply chain management po ers and duties! including those delegated to the accounting officer in terms of this "olicy! but any such subdelegation must be consistent ith subparagraph (#) of this paragraph and paragraph $ of this "olicy. The po er to ma%e a final a ard & (a) above R100 000 (VAT incl !e!" may not be sub delegated by the accounting officer' (b) not e(ceeding R100 000 (VAT incl !e!"# may be sub delegated but only to & (i) the chief financial officer' )* +othma! (ii) the community ser,ices manager! -) *eptember or (iii) a bid ad.udication committee of hich the chief financial officer or senior manager is a member' )oods and ser,ices may only be procured by ay of & (a) petty cash purchases! up to a transaction ,alue of R 1 000 (VAT incl !e!"$ (b) ritten or ,erbal /uotations for procurements of a transaction ,alue o,er R 1 000 % &o R10 000 (VAT incl !e!"$ (c) formal ritten price /uotations for procurements of a transaction ,alue o,er R10 000 % &o R'00 000 VAT incl !e!"$ and (d) a competiti,e bidding process for& (i) procurements abo,e a transaction ,alue of R'00 000 (VAT incl !e!"$ and (ii) the procurement of long term contracts. The accounting officer may! in riting0 (a) lo er! but not increase! the different threshold ,alues specified in subparagraph (1)' or (b) direct that & (i) ritten or ,erbal /uotations be obtained for any specific procurement of a transaction ,alue lo er than R1 000$ (ii) formal ritten price /uotations be obtained for any specific procurement of a transaction ,alue lo er than R10 000' or (iii) a competiti,e bidding process be follo ed for any specific procurement of a transaction ,alue lo er than R'00 000(

(#)

1#.

(1)

(#)

P)oce! )e* +o) %)oc )in, ,oo!* o) *e)vice* &-)o ,- .)i&&en o) ve)bal / o&a&ion* an! +o)0al .)i&&en %)ice / o&a&ion*

11(

The procedure for the procurement of goods or ser,ices through ritten or ,erbal /uotations or formal ritten price /uotations! is as follo s1 (a) hen using the list of accredited prospecti,e pro,iders the accounting officer must promote ongoing competition amongst pro,iders by in,iting pro,iders to submit /uotations on a rotation basis' (b) all re/uirements in e(cess of R20 000 (VAT incl !e!" that are to be procured by means of formal ritten price /uotations must! in addition to the re/uirements of paragraph 17! be ad,ertised for at least se,en days on the ebsite and an official notice board of the 2unicipality of "3456A7+-3T' (c) offers recei,ed must be e,aluated on a comparati,e basis ta%ing into account unconditional discounts' (d) the accounting officer or chief financial officer must on a monthly basis be notified in riting of all ritten or ,erbal /uotations and formal ritten price /uotations accepted by an official acting in terms of a subdelegation' (e" offers belo R10 000 (VAT incl !e!" must be a arded based on compliance to specifications and conditions of contract! ability and capability to deli,er the goods and ser,ices and lo est price' (b) acceptable offers! hich are sub.ect to the preference points system ("""8A and associated regulations)! must be a arded to the bidder ho scored the highest points' (c) council to insert re/uirements for proper record %eeping.

Co0%e&i&ive bi!* 19. (1) )oods or ser,ices abo,e a transaction ,alue of R'00 000 (VAT incl !e!" and long term contracts may only be procured through a competiti,e bidding process! sub.ect to paragraph 11(#) of this "olicy. 5o re/uirement for goods or ser,ices abo,e an estimated transaction ,alue of R'00 000 (VAT incl !e!"# may deliberately be split into parts or items of lesser ,alue merely for the sa%e of procuring the goods or ser,ices other ise than through a competiti,e bidding process.

(#)

3i! !oc 0en&a&ion +o) co0%e&i&ive bi!* #1. The criteria to hich bid documentation for a competiti,e bidding process must comply! must & (a) ta%e into account & (i) the general conditions of contract and any special conditions of contract! if specified' (ii) any Treasury guidelines on bid documentation' and

(iii) (b)

(c) (d)

(e) (f)

the re/uirements of the 6onstruction 4ndustry 9e,elopment +oard! in the case of a bid relating to construction! upgrading or refurbishment of buildings or infrastructure' include the preference points system to be used ! goals as contemplated in the "referential "rocurement 3egulations and e,aluation and ad.udication criteria! including any criteria re/uired by other applicable legislation' compel bidders to declare any conflict of interest they may ha,e in the transaction for hich the bid is submitted' if the ,alue of the transaction is e(pected to e(ceed R1 0illion (VAT incl !e!"# re/uire bidders to furnish& (i) if the bidder is re/uired by la to prepare annual financial statements for auditing! their audited annual financial statements & (aa) for the past three years' or (bb) since their establishment if established during the last three years' (ii) a certificate signed by the bidder certifying that the bidder has no undisputed commitments for municipal ser,ices to ards a municipality or other ser,ice pro,ider in respect of hich payment is o,erdue for more than :0 days' (iii) particulars of any contracts a arded to the bidder by an organ of state during the past fi,e years! including particulars of any material non0compliance or dispute concerning the e(ecution of such contract' (i,) a statement indicating hether any portion of the goods or ser,ices are e(pected to be sourced from outside the 3epublic! and! if so! hat portion and hether any portion of payment from the municipality or municipal entity is e(pected to be transferred out of the 3epublic' and stipulate that disputes must be settled by means of mutual consultation! mediation ( ith or ithout legal representation)! or! hen unsuccessful! in a *outh African court of la . insert any other criteria determined by the council.

A%%oin&0en& o+ con* l&an&* :5. (1) The accounting officer may procure consulting ser,ices pro,ided that any Treasury guidelines in respect of consulting ser,ices are ta%en into account hen such procurements are made. 6onsultancy ser,ices must be procured through competiti,e bids if (a) the ,alue of the contract e(ceeds R'00 000 (VAT incl !e!"$ or (b) the duration period of the contract e(ceeds one year.

(#)

(:)

4n addition to any re/uirements prescribed by this policy for competiti,e bids! bidders must furnish particulars of & (a) all consultancy ser,ices pro,ided to an organ of state in the last fi,e years' and (b) any similar consultancy ser,ices pro,ided to an organ of state in the last fi,e years. The accounting officer must ensure that copyright in any document produced! and the patent rights or o nership in any plant! machinery! thing! system or process designed or de,ised! by a consultant in the course of the consultancy ser,ice is ,ested in the 2unicipality of "3456A7+-3T.

($)

P)o-ibi&ion on a.a)!* &o %e)*on* .-o*e &a4 0a&&e)* a)e no& in o)!e) $:. (1) 5o a ard abo,e R15 000 may be made in terms of this "olicy to a person hose ta( matters ha,e not been declared by the *outh African 3e,enue *er,ice to be in order. +efore ma%ing an a ard to a person the accounting officer must first chec% ith *A3* hether that person;s ta( matters are in order. 4f *A3* does not respond ithin 7 days such person;s ta( matters may for purposes of subparagraph (1) be presumed to be in order.

(#) (:)

The accounting officer must ensure that the notes to the annual financial statements disclose particulars of any a ard of more than R'000 to a person ho is a spouse! child or parent of a person in the ser,ice of the state! or has been in the ser,ice of the state in the pre,ious t el,e months! including & (a) the name of that person' (b) the capacity in hich that person is in the ser,ice of the state' and (c) the amount of the a ard.