1. S t a t e I n f o r m a t i o n T e c h n o l o g y A g e n c y Procurement Policies and Procedures Presenter: Edwin Mashau Procurement Services SITA Limpopo

2. 2 2 Legal Framework Acquisition methods Business case and user requirements Sourcing proces Contract management Purchasing Deviations Challenges and solutions towards efficient and seamless service delivery Overview

3. 3 3 SITA Procurement is governed by the following legislation: The Constitution of the Republic of South Africa SITA Act and regulations Public Finance Management Act of 1999 Preferential Procurement Policy Framework Act of 2000 Treasury Regulations issued by National Treasury Framework for Supply Chain Management Regulations Supply Chain Management - a guide for AO SITAs Own Procurement Policy Applicable Legislation

4. 4 4 Acquisition methods Acquisition strategyPurpose Request for Quotation (RFQ) Value R500K Registered on supplier database Request for Bid (RFB)Value R500K Competitive bid process Request for Information (RFI)Determine availability of goods, services or sources in the market place Sole SupplierNo competition and only one supplier exists Transversal contractsQuotation basis Emergency and urgent procurement Shortened procurement process for emergencies & unforeseeable circumstances Immediate response to avert an actual or potential life-threatening situation / danger/ threatens security of the country

5. 5 5 Business Case Duly approved by the Accounting Officer/Delegated Official Requirements to be included: Background information & reason for request Estimated cost of goods or services Details of contact person Vendor briefing session, site visit or presentation if necessary Requirements for advertisement of bid i.e. publications other than GTB, to be paid by the client Special conditions of bid Single source, selected or closed bids Bid Evaluation Committee members, Chairperson and roles Technical Specifications Specifications must not be developed around a particular brand or supplier Business case & user requirements

6. 6 6 Sourcing process Business case Value Specification Project plan Bid Spec Bid Advert Briefing Session Bid closing Bid Screening Bid Evaluation Committee Scoring of bid responses Recommendation / Award Award Committees Communicate award Letters of regret Letter of acceptance Contract signing Contract Management

7. 7 7 Distinction between transversal contracts and client specific contracts Contract development and negotiations Contract management – renewals / extensions, termination, supplier performance, price increases, etc.

8. 8 8 Purchasing RFQ s from contracts and from the supplier database Order management Payment requirements Purchase orders Proof of delivery Invoice

9. 9 9 Deviation from Procurement Process SITAzens are encouraged to familarize themselves with the SOPP and the Sourcing Manual to avoid audit queries of non compliance to the Policy. Any contravention of the procurement policy and procedures must be reported to Head: Procurement Services (PS) who in turn will inform the relevant Executive of such transgression so that corrective measure is taken against such individual. PS has compiled a register to record such non adherence to policy so that they can be forwarded to SITA Group Audit

10. 10 Challenges for Procurement Services Non-compliance to procurement policies and procedures results in delays Non- availability of evaluation resources Vague specifications Delays in loading REs Procuring from expired contracts Splitting of requirements to avoid tender process Submission of invoices for payment when the procurement process was not followed; Concluding product/ service delivery conditions and/ or payment terms without involving Procurement Services; Obligation to pay for services where the business case was not approved by the delegated official; Acquisition from a supplier that SITA does not have a valid contract with; Challenges and Solutions towards seamless procurement

11. 11 Solutions towards seamless procurement Solutions Adherence to SOPP and the Sourcing Manual Availability and expertise of BEC Spec to be objectively defined for ease of evaluation

12. 12 Contact Details For all procurement related queries please call Procurement Help Desk on 0800 748 222

13. 13 Ignorance of procurement policies and procedures is no excuse! THANK YOU