Officials in SCM functions are seldom adequately trained in asset management and often do not understand the asset lifecycle and why assets are an important contributor to service delivery.
The Preferential Procurement Regulations of 2017 (sub-regulation 9(a)) require that “…if the price offered by a tenderer scoring the highest points, is not market-related, the organ of state may not award the contract….” and then provides a process for negotiating with bidders.
The AG is expected to focus more stringently on the compliance of PFMA and MFMA institutions with regards to the Local Production and Local Content provisions in the Preferential Procurement Regulations 2017.
Preferential Procurement Regulations of 2017 states that “a contract may be awarded to a tenderer that did not score the highest points, only in accordance with section 2(1)(f) of the Act.”
Deviations from open competitive bidding methods are allowed within the PFMA as long as they have been approved.
Implement a fair, equitable, transparent, competitive and cost effective Supply Management Chain function.
The Supply Chain Management system within the PFMA and MFMA was introduced to drastically improve service delivery.
Endorsed by National Treasury
Unpack the key elements for developing effective Bid Invitations as required under legislation.
The practical and legal implications of the new regulations are significant; it is imperative that your organisation implements the regulations correctly.
Tangible (physical) assets are a vital corporate resource and applying the principles of asset management will ensure this resource input is at the lowest overall cost.
