1. Provincial SCM Summit 03 February 2011 Bolivia Lodge Consolidated Policy inputs and Recommendations

2. Layout 1.The role of business in the government procurement processes. 2.Curbing the risk of payment of exorbitant prices, bid rigging and corruption in procurement processes. 3.Development and empowerment of sustainable SMMEs through government procurement.

3. 1. The role of business in the government procurement processes No.Focus AreaResolution High cost of tender documents and associated hidden costs Government should upload the bid documents on the website without a charge and charge only input cost on hard copies. Briefing session for all high value contracts Short notice tendersAccessible procurement plans by suppliers Quality service and value of service rendered Constant monitoring, user department should have clear specifications Later delivery of services Constant monitoring

4. Cont… The role of business in the government procurement processes No.Focus AreaResolution Collusion in respect of contractsParticipation and involvement of beneficiaries Departments advertise project, after submitting offers, government decide cancel the bid and implement it internally. LPT to look at the strategy to curb against cancellation of bids and it be included in the SCM policy Mechanism to protect bidder's information from competitors Commitment from the business not to corrupt public officials. Giving a proposal to government without a feedback, later on there is a closed tender for the same proposal. There should be feedback to the author of the proposal

5. Cont…The role of business in the government procurement processes No.Focus AreaResolution Public perception about awarding of tenders There are processes in place for business to access such information, there should be observers in the tender adjudication processes for higher value projects why not all awarded tenders not published in the bid bulletin All awarded tenders must be published in the bulletin Appointing inexperienced PMU by departments Departments should develop internal capacity Cession, sub-contracting and assignments. Contractors want to cede the financial responsibility to the third party. Ceding of contracts should only be limited to payments and not on the obligations. Before payments, it should be verified that the service has been rendered.

6. Cont…The role of business in the government procurement processes No.Focus AreaResolution Cost incurred by suppliers in submitting a bid Have tender boxes at Tender Advice Centres. Future consideration of electronic submission of bids. Big projects not benefiting local businesses Government to develop a mechanism to monitor business/ bids awarded to local business Corporate Social Investment Businesses when submiting bid must indicate their commitment to the social responsibilities aligned with government priorities

7. 2. Curbing the risk of payment of exorbitant prices, bid rigging and corruption in procurement processes No.Resolution 1.Integration of Budget, APP and Procurement Plans 2.Credible centralized provincial supplier database (regular auditing of databases) 3.Rotation of Bid Committee Members and possible centralization of the government procurement system 4.Serving on bid committees to form part of the official’s Performance Contract

8. 3. Development and empowerment of sustainable SMMEs through government procurement. No.Resolution 1.Certificate of Independent bid determination (declaring non collusion) to form part of all bidding documents – making bidders aware of consequences 2.Ensure that there is capacity in SCM units to detect acts of collusion by bidders 3.Vetting of bidders before award (risk management to be involved) 4.Reporting cases for investigations and possible penalties (competition commission) 5.Research on market price analysis – use of external expertise

9. 4. Conclusion.