SECTOR SALUD

Although the MFMA Municipal Supply Chain Regulations provide for unsolicited bids to be received outside a competitive bidding process, for very unique or exceptionally beneficial products or services, and prescribes what processes to follow, should such a bid be considered, such procurement is exceptional, and competitive bidding is the norm. Non- compliance to the prescribed bidding process, except under exceptional circumstances, must be considered and treated as misconduct.

11.10.1. Evaluation of competitive bids

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Act (PPPFA) No. 5 of 2000, competitive bids must be evaluated in accordance with a

preference points system. The bid documentation (containing the conditions set for the bid) should clearly specify:

 whether the bid will be evaluated in terms of functionality;  the evaluation criteria for measuring the functionality concerned;  the weight of each criterion; and

 the applicable values, as well as the minimum threshold for functionality. If unsolicited bids are to be considered by a municipality, a prescribed framework must be followed.

11.10.2. Acceptable bids A bid is regarded as acceptable if:

 it complies in all respects with the specification and conditions of the bid;  the bidder has completed and signed all the prescribed bid forms to enable the

principal to evaluate the submitted bid;

 the bidder has submitted the required tax clearance certificate, and other forms, as prescribed by the various Acts, and in the bid documentation; and

 the bidder has the necessary capacity and ability to execute the contract. 11.10.3. Assessment of bids

The Preferential Procurement Regulations, 2011 pertaining to the PPPFA require that the evaluation of the competitive bids must be conducted in the two stages described below. During the first stage, functionality must be assessed in terms of the evaluation criteria, and in terms of the minimum threshold referred to above. A bid must be disqualified if it fails to meet the minimum threshold for functionality, as per the bid invitation. During the second stage, only the qualifying bids are evaluated in terms of the 80/20 or 90/10 preference points systems, with the 80/90 points being used for pricing only, and the 20/10 points being used for broad-based black economic empowerment (B-BBEE) status level of contribution.

The

80/20 preference point system must be used for the acquisition of goods, works

and/or services up to a Rand value of R1 million; whereas the 90/10 preference point

system must be used for the acquisition of goods, works and/or services up to a Rand

value above R1 million.

11.10.4. Prescripts of the Construction Industry Development Board (CIDB)

In the case of bids relating to the construction industry, institutions are required to adhere to the prescripts of the CIDB, as prescribed in the Municipal Supply Chain Management

Regulations, 2005, section 21 (a) (iii). 11.10.5. Cancellation of tenders A tender can be cancelled if:

 due to changed circumstances, the need for the services, works or goods requested no longer exists; or

121  no acceptable tenders are received.

The cancellation of the tender must be published in the Government Tender Bulletin, or in the medium in which the original tender invitation was advertised.

11.10.6. Deviation from procurement processes

The SCM policy of the municipality may allow for the accounting officer to procure goods or services outside the official procurement processes, but only in an emergency, or when there is only one provider, or for special kind of goods or services. These are, however, exceptional cases, and the accounting officer concerned must record the reasons for the deviation from the standard procurement processes. Said officer must report the deviation to the council, and include a note to such effect in the AFS.

11.10.7. Specialised SCM sourcing

The specific SCM requirements for certain specialised services are briefly summarised in Table 11 below.

Table 12: SCM requirements for specialised services Area of specialisation Related Regulation

Procurement of banking services

Regulation 30 states that: the contract must not be for longer than 5 years; it must be procured through competitive bids; and it must commence at least 9 months before the end of an existing contract, with a minimum of 60 days between it being advertised and the closing of the bid/tender submissions.

Procurement of IT- related goods and services

Regulation 31 requires that the SCM policy may allow the

accounting officer to request the SITA to assist the municipality, or the municipal entity, with the acquisition of IT-related goods or services through a competitive bidding process.

Procurement of goods and services under contracts secured by other organs of state

Regulation 32 stipulates that the SCM policy may allow the

accounting officer to procure goods or services for the municipality, or municipal entity, under a contract that is secured by another organ of state, in certain circumstances.

Procurement of goods necessitating special safety arrangements

In accordance with Regulation 33, an SCM policy must restrict the acquisition and storage of goods in bulk (other than water) that necessitate the making of special safety arrangements, including those that are made in relation to gases and fuel.