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Preferential Procurement Green Procurement, Minortity Procurement, Black Economic Empowerment, Socially Responsible Procurement

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Old 01-13-2011, 10:55 AM
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Default 5 Pillars of Public Sector Procurement!

Dear Guys:

Sec 217 of the RSA Constitution states that, when an organ of state of state procures goods and services, must do that within a system which is fair, equitable, which provides value for money, cost-effective and competitive!

Is it possible that every time we procure goods/service, that we can comply with all the 5 pillars? How do we comply with "equitable"?

For an example: We have 10 different tenders for pavement of sidewalks of 10 different streets, will it be legal for us to award tenders to 10 different contractors and argue that we are "sharing the cake" will there be any legal basis for this? And we do this within the allowed premium of 11.11% in the case of 90/10 preferential procurement system?

Please advice. Thanks.
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Old 01-16-2011, 01:45 PM
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Default Re: 5 Pillars of Public Sector Procurement!

Yes, it is possible to apply all the 5 pillars. Especially working for a public entity. Your question with reference to pillar no.5. Equity, is addressed from the drafting of Terms of Reference for tender. In the application of PPPFA and PPR, you must ensure that 10% or 20% is clearly outlined. Also on your functionality, the points to be considered for evaluation may include the promotion of emerging suppliers and disadvantaged suppliers. Another option could be promotion of business by "Locality", whereby you ensure that locally based suppliers benefit from the tender.

With regard to split of the cake amongst several suppliers, you can prepare the implementation plan of your project in phases on your procurement plan. Thereby you appoint several suppliers for achieving the objective.
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