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BUFFALO CITY COUNCIL. PROCUREMENT POLICY. PRESENTATION TO THE TENDER COMMITTEE. Presenter Geoff Walton Head: Internal Audit. INTRODUCTION. Legal provisions Policies set by Council Procedures defined by Council Administrative procedures Reports to Tender Committee Documentation required
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PRESENTATION TO THE TENDER COMMITTEE Presenter Geoff Walton Head: Internal Audit

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INTRODUCTION Legal arrangements Policies set by Council Procedures characterized by Council Administrative strategies Reports to Tender Committee Documentation required Local suppliers/producers Specifications/Tender Documents

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LEGAL PROVISIONS Constitution Local Government Transition Act Municipal Structures Act Municipal Systems Act Preferential Procurement Policy Framework Act Municipal Ordinance Administrative Justice Act

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Constitution The Constitution gives that agreements might be granted as per a framework which is reasonable, evenhanded, straightforward and financially savvy and that there might be an arrangement of inclinations according to rules set by National enactment (the Preferential Procurement Policy Framework Act).

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Other Legislation The Local Government Transition Act, Municipal Structures Act, and Municipal Systems Act, all rehash the arrangements of the Constitution. The old Municipal Ordinance sets out different procedural matters, for example, the publicizing and so on. A portion of the arrangements of the Ordinance are superseded by current enactment

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Preferential Procurement Policy Framework Act This Act sets out the Guidelines as required by the Constitution The Act alludes to an inclination focuses framework with either 80 or 90 focuses being granted for cost and the rest of the 20 or 10 focuses being granted for HDI value or the accomplishment of determined objectives

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Cont\'d The Minister of Finance has yet to report the level above which the 90/10 equation will apply The draft see set the cutoff at R2 million however it might be set lower as the expectation is to target and grow little developing HDI temporary workers. The Council has set the cutoff at R1million to restrict any potential extra expenses

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Cont\'d The aim is to make an empowering situation for rising contractual workers The standard is not to ensure work for any gathering, rather to give a system inside which they appreciate an inclination or insurance Awards are accordingly construct not in light of cost but rather on focuses scored

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Cont\'d The Council\'s accentuation ought to thusly be to create HDI temporary workers and not to energize fronting by essentially advancing value in a business The Targeted Procurement reports delivered by the Dept of Public Works could be utilized for this reason

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What is a delicate A delicate is a legitimate and restricting offer Once acknowledged it turns into an agreement An agreement infers proportional rights and commitments The contract based worker must supply or execute as conceived by the agreement The business (Council) must respect its commitments eg pay on time

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How is an offer presented The Council promotes its necessities either in the press if over R120 000 (formal) or on notice loads up (casual) Offers must be put together by the stipulated time and date Offers must be put in the delicate box gave

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The Tender Box This is a bolted box (two keys kept by various authorities) It is opened by two authorities and all archives are evacuated Thereafter, until opened out in the open, they are under steady supervision by the two authorities

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Opening of Tenders are opened in broad daylight at the set time They are date stamped and initialed Important pages are likewise stamped and initialed to forestall extortion If there are imperfections with the offer eg type of acknowledgment not marked then this is recorded on the delicate cover page

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Cont\'d All formal tenders are recorded, and costs are declared if conceivable (per delicate) With casual tenders names are additionally recorded however costs are not read out As casual tenders regularly cover a variety of things they are just stamped, initialed and recorded by supplier just

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Compilation of an offer This is a specialized issue yet in a word involves a giver setting up by count what the estimation of the administration is There might be a Bill or calendar of costs to be filled in Once a delicate is opened in broad daylight the value structure can\'t be revised Addition blunders and so forth can be remedied by the Council

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Price of offer Some offers are settled value tenders ie the esteem can\'t be changed once acknowledged Some offers are liable to heightening in view of a concurred equation eg SEIFSA Other offers depend on a remote coin eg where things are transported in from abroad

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Cont\'d The cost is in this way frequently to be resolved as far as the genuine work to be accomplished For this reason the determination peruses along the lines "Rx, or such other entirety as might be resolved as far as the agreement"

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Tender/Contract Once granted the delicate turns into an agreement with all the lawful consequences thereof Acceptance can be verbal All of the Council\'s agreements must be in composing (either a request, letter, or contract archive)

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Cont\'d Once the agreement is finished up the temporary worker must execute as visualized by the agreement Variations requests might be issued on building/development contracts and these must be recorded as they will influence the last installment esteem The Engineer may issue such varieties as the agreement conditions allow

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Cont\'d Major varieties or adjustments to the way of the work would require both the Contractor and the Council\'s assention This ought to be finished with awesome care

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Policies and techniques set by Council Definitions CONTROL The ownership and practice of lawful power and energy to deal with the advantages, goodwill and every day operations of a business and the dynamic and consistent practice of suitable administrative power and power in deciding the strategies of the business and coordinating the operations of the business.

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Cont\'d COMMERCIALLY USEFUL FUNCTION The execution of genuine and real work, or the arrangement of real administrations, in the release of any authoritative commitment which might incorporate however not be restricted to the execution of a particular component of work which the business has the aptitude and mastery to embrace and the duty regarding administration and supervision .

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Cont\'d EQUITY OWNERSHIP Equity possession might be compared to the rate of a venture which is claimed by people, or on account of an organization, the rate shares that are possessed by people who are effectively required in the administration and every day business operations of the endeavor and practice control over the undertaking, proportionate with their level of proprietorship

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Cont\'d OWNED Having all the standard occurrences of possession, including the privilege of manner and the sharing of the considerable number of dangers and benefits similar with the level of proprietorship interests as showed by an examination of the substance instead of the type of proprietorship game plans.

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Cont\'d LOCAL SUPPLIER : A Local Enterprise that:  a. owns, works or keeps up a store, distribution center or other foundation inside the limits of Buffalo City, in which materials or supplies required for the execution of the agreement are brought, kept in stock and frequently sold to general society in the standard course of business; and

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Cont\'d b. engages as its rule business, and in its own particular name, in the buy and offer of the items being referred to, or the arrangement of an expert administration.

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Cont\'d AGENTS Agent implies a free organization or person which has the intermediary from another foundation or individual from the business to autonomously work together in the interest of or speak to such an establishment or person.

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Cont\'d AWARD TO AN AGENT An specialist will, if granted a delicate, be viewed as a contractual worker and will be at risk for all advantages/misfortunes. H.D.I value focuses as characterized may be granted to an operator if archives substantiating such an arrangement go with the delicate accommodation

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Cont\'d Access to Tendering data publicize broadly promote in Xhosa and English (Think about the cost and the advantage) records in English just offer input to unsuccessful givers consider promoting on radio

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Cont\'d Tender Advice Centers workshops and so forth take mind not to support one over another not help with genuine planning of offer not see offer before accommodation

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Cont\'d Value levels to R5000 by phone (least 2 cites) on a program premise from information base to be kept up by Finance Directorate R5000 – R120 000 promote on a "casual delicate Board" twice per week more noteworthy than R120 000 publicize in the press

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Cont\'d The Regulations in regards to the calling of tenders as far as the Local Government Transition Act permit the Municipality to not ring for tenders to R120 000. NOTE Council defers the welcome of tenders and authorities ought not utilize this reason for not laying a report before the Committee before promoting

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Cont\'d Note that the conditions when a Council may postpone the welcome of tenders are set out in controls as far as the Local Government Transition Act These include: Consultants, however just to the degree that the expenses accused are in understanding of a calendar of charges set by the important Institute

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Cont\'d Repairs or extra parts for which there is one and only approved supplier accessible in the Municipal territory or in the Republic Where the execution of the work is urgent to the point that it would not be in light of a legitimate concern for the Municipality to welcome tenders

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Cont\'d Waiver of Securities to ensure Council in case of default by the contractual worker up to R100 000 little hazard and along these lines requirement for surety security might be deferred don\'t grant more than two contracts to a giver if sureties postponed

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Cont\'d Packaging all agreements to be separated into the littlest practica

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