Policy on Supply Chain Management

1 Policy on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: 1 Policy on Supply Chain Management Status: Approved Custodian: Director: Finance and Administration Approved by: Board Date approved: 2012-06-27 Decision No: SAQA 1896/12 Implementation date: 2012-06-28 Due for review: 2015-06-27 File Number: Policy on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: 2 TABLE OF CONTENTS 1. Introduction .. 4 2. Objectives .. 5 3. Definitions .. 7 4. Code of Conduct .. 12 5. General procurement principles ..12 6. Ethical principles .. 14 7. Format of Supply Chain Management .

2 15 8. Demand Management the strategic planning process .. 16 9. Acquisition Management .. 17 10. Range of procurement processes .. 17 11. General preconditions for consideration of written quotations or 18 12. List of accredited prospective service 19 13. Petty cash purchases ..21 14. Written quotations .. 21 15. Competitive bidding process ..22 16. Process for competitive bidding ..22 17. Bid documentation for competitive bids ..22 18. Public invitation for competitive bids .. 23 19. Procedure for handling, opening and recording of 24 20.

3 Negotiations with preferred bidders .. 25 21. Two-stage bidding process ..25 22. Committee systems for competitive bids ..26 23. Specification committees ..27 24. Evaluation committees ..28 25. procurement Committee .. 28 26. Appointment of consultants .. 29 27. Deviation from procurement processes .. 29 28. Sole source Selection ..31 29. Unsolicited bids ..34 Policy on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: 330. Combating of abuse of Supply Chain Management 31. Logistics Management ..37 32. Disposal Management ..38 33. Risk Management .

4 39 34. Managing Supply Chain performance ..39 35. Non-compliance with Policy ..40 36. Confidentiality ..40 37. Inducements, rewards, gifts and favours to SAQA officials and other role players .. 40 Policy on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: 41. Introduction The responsibility to implement the Supply Chain Management (SCM) function within the South African Qualifications Authority (SAQA) is rooted in the mandate of National Treasury, by section 217 of the Constitution of the Republic of South Africa Act, 1996 (Act 108 of 1996). In terms of this Treasury mandate, all organs of state, including SAQA therefore have to contract for goods or services in accordance with a system that is fair, equitable, transparent, competitive and cost effective.

5 In order to give effect to the above-mentioned principles, SAQA has developed a Supply Chain Management Policy . In addition, SAQA s Supply Chain Management Policy has been developed and will be implemented in accordance with the following legislation and strategies: a) Public Finance Management Act, 1999 (Act No. 1 of 1999 as amended by Act 29 of 1999). b) Preferential procurement Policy Framework Act, 2000 (Act 5 of 2000). c) Regulations to the Preferential procurement Policy Framework Act 2011 d) Regulations in terms of the Public Finance Management Act, 1999: Framework for Supply Chain Management (Government Gazette Number 25767 dated 5 December 2003) f) Construction Industry Development Board (CIDB) publications.

6 G) Promotion of Access to Information Act, 2000 (Act 2 of 2000). h) Promotion of Administrative Justice Act, 2000 (Act 3 of 2000). In accordance with SAQA s vision and mandate and in compliance with the Supply Chain Management Regulations published by the National Treasury, SAQA is committed to the implementation of an integrated Supply Chain Management Policy and related procedures. The Supply Chain Management Policy will regulate all related aspects of demand, acquisition, logistics, disposal, risk Management and Supply Chain performance Management . The Board is responsible for determining and approving the Supply Chain Management Policy and amendments to the Policy .

7 Policy on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: 5 The Accounting Officer of SAQA will hold all officials responsible for implementing the Supply Chain Management Policy . This Policy will apply to all transactions where money is exchanged for goods, services and assets between SAQA and Service Providers and will be implemented by all SAQA officials and adhered to by SAQA s Service Providers. 2. Objectives 1 The Policy aims to ensure that the manner in which SAQA procures goods, services and assets meets the following key objectives: a) to provide SAQA with the best value for money whilst improving service delivery, thus moving away from the lowest price scenario to a best value for money scenario.

8 B) to pursue specific preference, including socio-economic objectives through a preference system that manages skills and enterprise development in terms of Section 17(3) of the Regulation to the Preferential procurement Policy Framework Act; c) to support Black Economic Empowerment amongst all service providers, professionals and contractors thus enhancing competitiveness; d) to implement efficient and effective procurement practices in an integrated manner across all elements of the Supply Chain and develop appropriate systems that give effect to the principles of fair dealing; e) to eliminate fraud or any other irregularities; and Policy on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: 6 f) to adopt a uniform procurement and information system and provide leadership across SAQA.

9 G) In the case where donor funding is applicable, the donor procurement modalities will be complied with where appropriate. Strategic Goal The goal of this Policy is to provide a mechanism to ensure sound, sustainable and accountable Supply Chain Management within SAQA, whilst promoting black economic empowerment, which includes general principles for achieving the following socio-economic objectives: to stimulate and promote local economic development in a targeted and focused manner; to promote resource efficiency, greening and environmental sustainability practices; to promote the competitiveness of local businesses.

10 To increase the small business sector access, in general, to procurement business opportunities created by SAQA; and to increase participation by small, medium and micro enterprises (SMME s) . The Policy will achieve the above by enabling socio-economic transformation objectives to be linked to fair, transparent, equitable, competitive and cost effective procurement practices. Policy on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: 73. Definitions Accounting Authority means the Board appointed by the Minister of Education.