Procedure on Supply Chain Management

1 Procedure on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: 1 Procedure on Supply Chain Management Status: Approved Custodian: Director: Finance and Administration Date approved: 2012-06-27 Decision number: SAQA 1896/12 Implementation date: 2012-06-28 Due for review: 2015-06-27 File Number: Procedure on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: 2 TABLE OF CONTENTS 1. PREAMBLE NOMENCLATURE 2. DEMAND Management 3. ACQUISITION Management SERVICE PROVIDER PERFORMANCE 4. PROCUREMENT OF GOODS AND SERVICES NOT INVOLVING BIDS REQUIREMENTS UP TO R2, REQUIREMENTS BETWEEN R2, AND R20, REQUIREMENTS BETWEEN R20, AND R30, REQUIREMENTS BETWEEN R30, AND R500, 5. PROCUREMENT INVOLVING BIDS REQUIREMENTS BETWEEN R500, AND R1 Million REQUIREMENTS EXCEEDING R1 Million 6.

2 LOGISTIC Management 7. DISPOSAL Management 8. RISK Management 9. Supply Chain PERFORMANCE 10. CLOSURE Procedure on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: 31. PREAMBLE This Supply Chain Management Procedure Manual is intended to give effect to the South African Qualifications Authority s Supply Chain Management Policy as approved on 17 March 2012 (decision SAQA 0795/12 ) and effective from 18 March 2012 This manual is to be used to guide all procurement processes as identified in SAQA s Supply Chain Management Policy. NOMENCLATURE Acronyms as per SAQA s Procurement Policy: BA Business Administrator BEE Black Economic Empowerment CEO Chief Executive Officer of SAQA Dfin Director: Finance and Administration Dir Director PBN Procurement Briefing Note PPPFA Preferential Procurement Policy Framework Act RDP Reconstruction and Development Programme RFI Request for Information RFP Request for Proposal SAQA South African Qualifications Authority SCM Supply Chain Management SMME Small, Medium and Micro Enterprises TOR Terms of Reference Procedure on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: 42.

3 DEMAND Management Each Directorate must prepare a Demand Management Plan in order to: Determine alignment of its requirements with the strategic plan of SAQA. Verify the funding source for all the indicated methods of procurement. Analyse the B-BBEE and transformation objectives for procurement Analyse recommendations received and identify lead and delivery times Forward Demand Management Plan to Deputy Director: Supply Chain Management . The Deputy Director: Supply Chain Management will review all the Demand Management Plans, analyse the procurement methods identified by the Directorates, verify the feasibility of the procurement methods and forward to the Director Finance and Administration to verify the funding source for the procurement method and ensure that it is in line with the approved budget.

4 If there are any discrepancies in the verification process set out above, the Deputy Director: Supply Chain Management will communicate immediately, in writing, with the relevant Directorate, detailing clearly: The discrepancies; The possible alternative procurement methods; and The motivation for the recommended alternative procurement method. On receipt of the communication from the SCM Unit, the Directorate must analyze the communication, revise the relevant Demand Management Plan and forward back to SCM Unit. Procedure on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: On receipt of the revised Demand Management Plan from the Directorate, the SCM Unit must consolidate the various Directorates Demand Management Plans to form an Integrated Demand Management Plan for SAQA.

5 The Deputy Director: Supply Chain Management must forward the Integrated Demand Management Plan to the Director Finance and Administration for final review. If satisfied the Director Finance and Administration will approve the Integrated Demand Management Plan. On receipt of approval the Deputy Director: Supply Chain Management must forward a copy of the Integrated Demand Management Plan to the relevant Directorates. The Deputy Director: Supply Chain Management must ensure to forward a Demand Management Plan of planned procurement exceeding R500, to the National Treasury at the start of the financial year. 3. ACQUISITION Management Service Provider Performance Update the categories on the Supplier Register ( quarterly).

6 Prepare an advertisement inviting service providers to apply to be included on the Supplier Register . The following documents from the prospective service providers must be requested: Name, address and type of entity (public or private company, close corporation etc.) Procedure on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: 6 Telephone and facsimile numbers Names of shareholders and directors if applying for BEE status Annual turnover Alphabetical list of products or services offered business activity Banking details Specific expertise vested in the entity (evaluation criteria) Declaration of Interest Valid Tax Clearance Certificate Clearly indicate the address where the documents should be posted or the website for registration can be accessed Advertise in Government Tender Bulletin and on SAQA s website.

7 SCM Unit will record the receipt of document parcels from the Service Providers in a register. SCM Unit will verify if all the requested documentation is attached. If the requested documentation has not been submitted, SCM Unit will reject submission and notify service provider accordingly, stipulating reasons for rejection. If requested documentation has been attached, SCM Unit will assess the areas of expertise that service provider has identified. Once all the documentation has been verified, SCM Unit will capture compliant submissions on the Supplier Register and the service providers will be informed accordingly. Procedure on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: When the Procurement Committee indicates that the service provider should be listed as a non-preferred service provider, request SCM Unit to update the supplier register accordingly.

8 The SCM Unit will file the documents with the Procurement Committee s response on the non-preferred service providers file and also inform National Treasury accordingly. 4. PROCUREMENT OF GOODS AND SERVICES NOT INVOLVING BIDS Table 1 Requirements up to R2 Budgeted Monetary Range Including VAT Selection Process from Supplier Register Evaluation Panel Level of Authority to contract Exception administration Up to R2, Utilise petty cash procedures . No quotations are required. Person with requirement or BA Relevant Director None Requirements up to R2, No Procurement Briefing Note (PBN) is required in order to procure goods and services up to R2, The user with the requirement must follow the Procedure outlined below in order to procure the goods and services required: Procedure on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: Determine if an existing valid contract exists The user must first check with Directorate: Finance and Administration whether or not a valid contract is already in place with an approved provider.

9 If a valid contract exists, the petty cash Procedure must not be followed, but a purchase order may be produced as the next step. The purchase order needs to indicate the following: - Price (excluding and including VAT) - Clear description - Quantity - Quality clear indication of terms of reference or specifications - Delivery address - Special arrangements (if applicable) If an existing valid contract does not exist If an existing valid contract does not exist, the petty cash Procedure must be followed. The person with the requirement or BA must follow the procedures pertaining to the use of petty cash For petty cash procedures , please refer to the policy on Petty Cash Procedure on Supply Chain Management Status: Approved Date: 2012-06-27 File Reference: Requirements over R2, up to R20, Table 2.

10 Over R2, and up to R20, Budgeted Monetary Range Including VAT Selection Process from Supplier Register Approval process Level of Authority to contract Exception administration Over R2, and up to R20, Obtain at least three written quotations from Supplier Register Provider to verify quote by fax/e-mail Person with requirement or BA Relevant Director Provide justification for sole sourcing or restricted process and obtain approval from DCEO or his/her designate No procurement-briefing note is required for procurement of goods, services or assets over R2, and up to R20, If the value of the requirement is over R2, and up to R20, the following procurement Procedure needs to be followed: First determine whether the requirement can be satisfied through an existing valid contract.