SCM BID COMMITTEE PROCESSES AND CONTRACTS MANAGEMENT FRAMEWORK 21 February 2020

Step Responsibility Output SCM Element Proposed SCM Areas of Strength Areas of Weakness Improvement Actions
Timeframes Monitoring &
Reporting
1) Initiation by User Department UD Initiation Report Demand Management TBA Procurement  Procurement plan built into budget  Poor submissions/ responses from  Demand Management in SCM structure (including
2) Investigation by User Department Investigation Report TBA Plans submission templates. UD. interim arrangements).
3) Budget Approval by User Feasibility Study  Needs assessment TBA (SCM to Start)  Regular reporting on status of  Poor project packaging/ feasibility  Enhance usage and reporting from Eprocurement
Department undertaken procurement plans (albeit manual). studies. system on Demand Management and
4) Final Design and Tender Preparation Design; Draft Tender  Appropriate specs TBA  Demand Management module of  No Demand Management function Procurement Planning.
by User Department Documents; BSC determined Eprocurement currently being rolled-out in current SCM  Enhance scrutiny on budget submissions by multi-
Template  Industry analysed to improve management, monitoring organogram/structure. disciplinary team – including Finance, SCM, Line
 Requirements linked to and reporting.  Insufficient accommodation for and Strategy Office.
budget enhanced SCM structure.  New SCM Building.
 RET Steering Committee meetings by  RET planning reports by ECOD.
ECOD.  Resistance to change – across the  SCM to provide regular reports on Procurement
board. Planning across the Municipality – Capital
Projects primarily and major Operating projects,
 Project Quality Assurance Certificates
where possible.
(QAC’s) by Strategy Office.
 Project readiness reports by Strategy
 SCM to provide a process for contract numbers,
 No SLA timeframes for UD’s.
register and reports therefrom.
Office.

5) Approval of Tender Documents and SCM/BSC BSC Decisions & Minutes 1 week Items in Bid  Regular dashboard reporting on critical  Poor submissions/ responses from  Enhance usage and reporting from Eprocurement
Advert by Bid Specification Committee items, ie. LOA’s, etc. UD. system for tracking Bid Committee items from BSC
Committee (BSC) Process  Reports on monthly awards to MPAC,  Poor turnaround times for tenders to LOA.
6) Tender Period (including UD Notice to Tenderers Acquisitions Management 2 weeks (SCM in EXCO and Council. closed to BEC (see Internal Audit  Exception report on items outside of SLA’s.
Site/Clarification meetings) by User 4 weeks Progress)  Internal tracking reports on items in the Report on SCM Acquisitions above  Enhance usage of SharePoint.
Department  Decide on manner in bid committee processes (albeit R200 000).  Enforce usage of most current document
7) Tender Closing by SCM Tenders SCM Schedule of Tenderers which market will be Wednesday after manual).  Poor turnaround times for issuing templates, versions, references, etc.
Section approached tender closing  Tenders Management module of unsuccessful tenders and letters of  Improve report/document templates.
8) Tender assessment and draft BEC UD Draft Evaluation Report  Establish total cost of 3 weeks Eprocurement currently being rolled-out award.  SCM to provide regular reports on items
(Bid Evaluation Committee) report ownership of particular to improve management, monitoring  Differences of opinion with Bid outstanding at the various stages of the Bid
by User Department type of asset and reporting. Committee structures and SCM Committee process – currently using manual
9) Draft BEC report scrutiny by SCM SCM Compliance checklist and  Ensure bid 1 week  SCM Circular issued to clarify Policy. dashboard with PME Unit.
Compliance sign-off documentation is requirements & interpretation on  Poor document management and  SCM Unit also provides regular Back to Basics
10) Tender Evaluation by Bid Evaluation BEC BEC Decisions & Minutes complete – including 1 week commencement, completion, extension, version control. Reports that analyze the full SCM/Bid Committee
Committee (BEC) evaluation criteria in etc. for infrastructure projects. cycle on tenders awarded.
11) Tender Adjudication by Bid BAC BAC Decisions & Minutes keeping with S217 of 1 week
Adjudication Committee (BAC) Constitution  Internal Audit reports on contract award
12) Tender Adjudication by Executive SCM/EAC/AO EAC Decisions & Minutes  Evaluate bids in 1 week >R50 million (was a request for this
Acquisitions Committee (EAC) and accordance with from Audit Committee, but has IA
sign-off by Accounting Officer (AO) published criteria cannot implement, as will be conflictual.
for items in excess of R10 million and  Ensure proper contract
Section 36. documents are signed
13) Unsuccessful letters by SCM Tenders SCM Unsuccessful Letters 4 working days
Section from date of
circulation of
decision
14) Appeals period LEGAL/SCM Appeals Decision 2 weeks
15) Letters of Award by SCM Tenders SCM/AO LOA/s 10 working days
Section (and AO for items in excess from finalization
of R10 million and Section 36) of appeal period
16) Contract Formalities and Site UD Contract Documentation, Contracts Management TBA (±28 days) Contracts  Central contracts register in place.  Poor monitoring of monthly  Enhance reporting on contract status, progress
Handover by User Department Start & End Dates Register,  Reports on completeness of information performance, progress and and expenditure – with multi-stakeholder input
17) Contract Supervision by User UD Minutes, Measurements,  Hand-over, manage Per contract PMSP Reports and sign-off by respective Line Unit expenditure and timeframes and through appropriate IT systems (JDE,
Department including SCM and Payments, Performance, and monitor contract (SCM Heads. resulting in irregular expenditure. Eprocurement, etc.).
Compliance Monitoring CPG, Monitoring  Review supplier Complete)  Regular reports collated on Service  No reporting by Line on contracts  Design and develop detailed Contracts
18) Post Implementation (Close-out UD Close-out Report performance in TBA Provider Performance Monitoring. and project management. Management Framework and SOP’s for various
Report) by User Department keeping within contract  SCM Circular issued to clarify  No approved project management contract categories.
terms and conditions requirements & interpretation on framework/policy.  Enhance contract close out report to reflect
 Manage defects and commencement, completion, extension,  Differences of opinion with Bid learning lessons/ continuous improvement in
liabilities etc. for infrastructure projects. Committee structures and SCM keeping with S42 of the SCM Policy.
 Close out contract  Regular reports on project expenditure Policy.  SCM to urgently review reporting from JDE
by Finance (albeit manual). (Contracts and Agreements Modules).

SCM Bid Committee Process and Contracts Management Framework V4 ADM Petersen 2020-02-21 Page 1 of 1