Supply chain management processes
| (3) | The Accounting Officer must procure goods and services in accordance with the following criteria: |
| (a) | petty cash purchases up to the transaction value specified in the Delegation of Authority; |
| (b) | verbal quotations for the procurement of goods and services up to the transaction value specified in the Delegation of Authority; |
| (c) | written quotations for the procurement of goods and services up to the transaction value specified in the Delegation of Authority; |
| (d) | formal written price quotations for the procurement of goods and services up to the transaction value specified in the Delegation of Authority; and |
| (e) | a competitive bidding process for the procurement of goods and services above the transaction value specified in the Delegation of Authority. |
Petty cash purchases
| (a) | Procurement of goods by means of petty cash must meet the following criteria: |
| (i) | It must include conditions limiting the number of petty cash purchases or the maximum amounts per month for delegated officials as outlined in the Delegation of Authority; and |
| (ii) | officials responsible for petty cash purchases must provide detailed monthly reconciliation reports to the Chief Financial Officer, setting out at least: |
| (aa) | the total amount of petty cash purchases for that month where applicable; |
| (bb) | receipts and other appropriate documents for each purchase; and |
| (cc) | opening and dosing balances that are appropriately signed off. |
| (b) | No quotations are required for petty cash transactions. |
Verbal quotation
| (a) | When procuring goods and services by way of verbal quotation, the Accounting Officer must — |
| (i) | obtain three verbal quotations from prospective suppliers; and |
| (ii) | ensure that where verbal quotations are obtained from prospective suppliers an order should be raised against any form of written quotation. |
Written quotation
| (a) | When procuring goods and services by way of written quotation, the Accounting Officer must— |
| (i) | obtain quotations from at least three different prospective suppliers, unless it is not reasonably practical to do so; |
| (ii) | ensure that where quotations are obtained from prospective suppliers who are not listed on the Suppliers' Database, such prospective suppliers must comply with the listing criteria and must request to be listed; |
| (iii) | request prospective suppliers to submit quotations in writing; |
| (iv) | ensure that requests for quotations are in writing; and |
| (v) | ensure that the responsible official reports in writing if it was not reasonably practical to obtain at least three quotations; in those cases the reasons must be furnished for the approval of the Accounting Officer or the delegated official in accordance with the Delegation of Authority. |
| (b) | The procurement of all goods and services falling within a price bracket determined by the Accounting Officer must be approved by an official who is lawfully delegated to do so. |
Formal written price quotation
| (a) | When procuring goods and services through formal written price quotations — |
| (i) | quotations must be obtained from at least three different prospective suppliers, unless it is not reasonably practical to do so; |
| (ii) | if it was not reasonably practical to obtain at least three quotations, the reasons must be recorded in writing by an official who is lawfully delegated to do so; and |
| (iii) | in cases where quotations are obtained from suppliers who are not listed on the Suppliers' Database, such suppliers must comply with the listing criteria and must request to be listed. |
| (b) | Requests for quotations must be in writing and should include: |
| (i) | the closing date for submission of quotations; |
| (ii) | the preference point systems to be utilised; |
| (iii) | the evaluation criteria to be utilised; and |
| (iv) | a clear statement of all specifications for the required goods or services. |
| (c) | Formal written price quotations may not be considered unless the prospective supplier has— |
| (i) | duly completed the Request for Quotation form; |
| (ii) | complied with the specifications or requirements; |
| (iii) | provided the full registered name of the prospective supplier; |
| (iv) | provided a copy of an identity document, or a company or other registration number, as the case may require; |
| (v) | been cleared by the South African Revenue Service in respect of their tax matters; and |
| (vi) | signed a declaration of interest. |
| (d) | The Accounting Officer must ensure that the SCM system allows an appropriate timeframe for suppliers to respond to invitations for formal written quotations. |
| (e) | The allocation of preference points should be in accordance with the Preferential Procurement Policy Framework Act. |
Competitive bidding process
| (a) | When procuring goods and services through a competitive bidding process, the Accounting Officer must— |
| (i) | invite bids from prospective suppliers in an open and transparent manner by using the most appropriate means in order to maximise participation, including but not limited to, advertising on the official website of Parliament; |
| (ii) | allow at least 21 days from the date of advertisement for bids before closing the invitation for submission of bids, and where no bids were received during the period provided, extend the period in the manner contemplated in item (iii), for a further period of at least 21 days; |
| (iii) | determine the date and time of the briefing sessions (where applicable) in respect of the invitation; |
| (iv) | if there is a change in the scope of the competitive bid, retract the current invitation to bid; re-advertise the amended invitation in terms of items (ii) and (iii) and send the revised bid specification to all bidders who have already submitted bids; |
| (v) | require that all bids include details of the prospective supplier and bid number; |
| (vi) | require that all bids provided in electronic format must be supplemented with hard copies; |
| (vii) | stipulate that suppliers may be vetted before the award; |
| (viii) | invite all bidders to be present at the opening, registering and recording of the bids; |
| (ix) | open the submitted bids immediately after the submission period has expired ,and record in the register, where applicable, in the presence of interested persons all bids received in time; |
| (x) | make the register available for public inspection; and |
| (xi) | give effect to the Act and section 217 of the Constitution of the Republic of South Africa, 1996 and in doing so may, amongst other things, request further information or satisfactory documentary proof on any information provided by the bidder, at any stage of the bid process, but prior to a decision being made, including: |
| (aa) | explanation of an ambiguity in its bid documents; |
| (bb) | correcting an obvious mistake; and |
| (cc) | clarification or better detail required for proper evaluation. |
| (b) | Bid specifications should include: |
| (i) | The closing date for submission of a bid; |
| (ii) | the preference points system to be utilised; |
| (iii) | the evaluation criteria to be utilised; |
| (iv) | clear specifications and additional requirements if any; |
| (v) | that the General Conditions of Contract will apply; and |
| (vi) | whether a contract would be entered into. |
| (c) | Bid specifications should be compiled by the Bid Specification Committee in terms of regulation 7(7). |
| (d) | When procuring goods and services through a competitive bidding process, the Accounting Officer may cancel the bid if— |
| (i) | there is no longer a need for the goods, works or services offered; |
| (ii) | funds are no longer available to cover the total envisaged expenditure; |
| (iii) | there is a material discrepancy in the process; |
| (iv) | no bids were received that represent value for money; |
| (v) | there is change in the scope of goods and services; or |
| (vi) | there are other reasonable reasons to do so. |
| (e) | The reasons for cancellation of a bid must be recorded by the Accounting Officer and published on the official website of Parliament. |
| (f) | A Bid may not be considered unless the prospective supplier has— |
| (i) | duly completed the Bidding Document and complied with the specifications or requirements; |
| (ii) | provided the registered name of the bidder; |
| (iii) | provided a copy of an identity document, or a company or other registration number, as the case may require; |
| (iv) | been cleared by the South African Revenue Service in respect of their tax matters; |
| (v) | provided business registration documents; and |
| (vi) | not been listed in the list of restricted suppliers. |
| (g) | The evaluation of a bid must be in terms of the criteria as published. |
| (h) | A Bid must be evaluated by the Bid Evaluation Committee and adjudicated by the Bid Adjudication Committee in terms of sub-regulations (8) and (9) of regulation 7, respectively. |
| (i) | The allocation of preference points and the award must be in terms of the Preferential Procurement Policy Framework Act. |
| (j) | The Accounting Officer may negotiate the final terms of a contract with a prospective supplier who submitted a bid and who was identified through a competitive bidding process as a preferred supplier: Provided that such negotiation— |
| (i) | does not allow any preferred supplier a second or unfair opportunity; |
| (ii) | is not to the detriment of any other prospective supplier; |
| (iii) | does not alter the competitive position of any bidder; |
| (iv) | is recorded in an appropriate form for reference purposes; |
| (v) | does not alter the scope of the bid; and |
| (vi) | that the contract is signed off in terms of the Delegation of Authority. |
Participation in transversal contracts secured by other organs of state
| (a) | The Accounting Officer may procure goods or services under a contract secured by other organs of state, only if— |
| (i) | the contract has been secured by means of a competitive bidding process applicable to that organ of state; |
| (ii) | there is no reason to believe that such a contract was not validly procured; |
| (iii) | there are demonstrable discounts or benefits to do so; and |
| (iv) | the other organ of state and the supplier have consented to such procurement in writing. |
Unsolicited offers
| (a) | The Accounting Officer may decide to consider an unsolicited offer, only if— |
| (i) | the goods or service offered in terms of the offer is a demonstrably or proven unique innovative concept; |
| (ii) | the goods or service will be exceptionally beneficial, or have exceptional cost advantages; |
| (iii) | the person who made the offer is the sole provider of the goods or service; and |
| (iv) | regulations 8 and 9 have been complied with. |
| (b) | If the Accounting Officer decides to consider an unsolicited offer, the decision must be published on the official website of Parliament and must— |
| (i) | provide reasons as to why the offer should not be open to other competitors; |
| (ii) | provide an explanation of the potential benefits if the unsolicited offer were accepted; and |
| (iii) | extend an invitation to the public or other potential suppliers to submit their comments within 30 days of the notice. |
| (c) | The Bid Adjudication Committee must consider the unsolicited offer and make a recommendation to accept or reject the offer to the Accounting Officer. |
Procurement processes relating to emergencies and exceptional circumstances
| (a) | The Accounting Officer may procure any required goods or services through any other means, which may include direct negotiations, but only— |
| (i) | in an emergency as defined in paragraph (d); |
| (ii) | if such goods or services are produced or available from a limited supplier or sole provider only, as is defined in paragraph (e); |
| (iii) | for the acquisition of special works of art or historical objects where specifications are more complex in nature; |
| (iv) | in any other exceptional case as defined in paragraph(f), where it is impractical or impossible to follow the official procurement processes; or |
| (v) | in terms of default contracts under licence where no other supplier can repair the goods of another. |
| (b) | The Accounting Officer must record the reasons for a decision to procure goods or services in terms of paragraph (a) and must ensure compliance with regulations 8 and 9. |
| (c) | Where reasonably possible, in an emergency situation, three quotes should be obtained and a report submitted to the Accounting Officer for approval. |
| (d) | The conditions warranting an emergency situation must include the existence of one or more of the following: |
| (i) | The possibility of human injury or death; |
| (ii) | the prevalence of human suffering or deprivation of rights; |
| (iii) | the possibility of damage to property; |
| (iv) | the possibility of serious damage occurring to the natural environment; |
| (v) | the interruption of essential services critical to the effective functioning of Parliament as a whole; |
| (vi) | the possibility of reputational damage to Parliament; or |
| (vii) | a prevailing situation or imminent danger of such a scale and nature that it could not readily be alleviated by interim measures in order to allow time for the formal procurement process. |
| (e) | The following circumstances will serve as a guideline to assist in determining whether a supplier is a limited supplier or sole provider: |
| (i) | The supplier is a manufacturer of the goods and has not given any distribution rights to anyone, and further to that, no other supplier provides the same or similar goods; |
| (ii) | the supplier has exclusive distribution rights of the goods in the Republic of South Africa; or |
| (iii) | the supplier is a preferred supplier due to the nature of the goods and services they provide and has met the criteria for exceptional circumstances as stated in paragraph (f). |
| (f) | The following circumstances will serve as a guideline to assist in determining whether exceptional circumstances exist and the Accounting Officer must determine whether any of the following circumstances are present and exceptional in that specific instance and if so, approve the procurement in terms of paragraph (a): |
| (i) | Any purchase on behalf of Parliament at a public auction sale; or |
| (ii) | procurement of the following services: |
| (aa) | non routine legal services; |
| (bb) | masters of ceremonies and motivational speakers; |
| (cc) | gifts for foreign dignitaries, guests of Presiding Officers at official Parliamentary events, and matters relating to State protocol; or |
| (dd) | where there are limited suppliers for goods and services within a specific location, and where the intention is to invest in that local community in addition to the allocation of points for locality in terms of the Preferential Procurement Policy Framework Act; |
| (ff) | venues for official events hosted by Parliament which are— |
| (A) | international and reflect on the reputation of Parliament within the international community, or |
| (B) | institutional public participation Parliamentary events, limited to— |
| (iv) | State of the Nation Address; |
| (v) | Taking Parliament to the People; or |
| (vi) | The establishment of a new Parliament; |
| (gg) | conferences and specialised training; |
| (ii) | subscriptions for the following: |
| (A) | Where Parliament is a member of associations relating to the business of Parliament; or |
| (B) | Professional bodies where staff are required to maintain their professional qualifications; or |
| (jj) | Specialist medical practitioners for the purposes of boarding staff. |
| (g) | A written quotation must be obtained for services listed in sub-regulation (f)(ii). |
