Issue Date: 
Monday, February 9, 2015

Changes to Supply Chain Management in South Africa

By W van Rooyen

www.how2tender.com

9 February 2015

The Public Sector tender landscape in South Africa is going to change dramatically in the coming months. This is, if the Department of Treasury`s findings and recommendations are adhered to. If you have read the 2015 Public Sector Supply Chain Management Review that was published recently you will see that Government is trying very hard to change the tender process.

According to the report there is too much corruption going on in the tender process, especially when it comes to tenders that are less than R500 000-00 in value. The aim of the Department of Treasury is the establishment of the Office of the Chief Procurement Officer: “The Office of the Chief Procurement Officer (OCPO) will modernise and oversee the South African public sector SCM system to ensure that the procurement of goods, services and construction works is fair, equitable, transparent, competitive and cost effective in line with the Constitution and all relevant legislation.”

The aim is to establish an internet data base into which Government Departments can delve to secure suppliers that have been pre-approved. A further idea is to do away with Tax Clearance certificates due to too many fraudulent certificates doing the rounds. As soon as the systems are in place, government officials will be able to check a bidder`s tax status live in the Supply Chain Management System.

This is all good and well. I foresee that there will be initial problems seeing that the average SMME owner struggles with internet access in South Africa.

Fortunately the Private Sector tender processes will not be affected by any Office of the Chief Procurement Officer.

The date of implementation of this proposed new way of Public Sector tendering is 1 April 2015 - we will have to watch and see.

In the meantime, please visit our website to invest in our newly revised Tender Manual 2015 that gives insight into this and all other tender matters. The Tender Manual will teach you all you need to know to respond to tenders correctly and hopefully successfully. Our web address is www.how2tender.com.

Until next time - happy tendering.

Brand new Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, has been finalized and was gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. This is the official media release from National Treasury:

The regulations were initially promulgated in 2001 and revised in 2011 thus making this the second revision since the initial promulgation.

The revision of the Preferential Procurement Regulations of 2011 was largely influenced by the need... Read More

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