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In terms of this policy the Municipality will only invite bids or quotations from businesses and/or individuals on the database. Therefore, any business or individual wishing to do business with the Mossel Bay Municipality in future must register with the municipality as soon as possible for inclusion in the supplier database.
The purpose of the supply chain management systems for Government and Provincial Departments, as well as municipal entities, is to to give effect to the provisions of the Constitution and also the Municipal and Public Finance Management Acts.
It is also to create an understanding for the Government's preferential procurement policy objectives, to make significant improvements to financial management and to promote consistency in respect of supply chain policy and other related policy initiatives.
The Municipality's policy inter alia gives effect, as is required by law, to the Preferential Procurement Policy Framework Act, No. 5 of 2000 and its Regulations. In terms of this Act, a points evaluation system must be applied to all bids or quotations above R30 000, including VAT.
If the transaction amount is between R30 000 to R500 000, including VAT, 80% of points is awarded for price and 20% is divided between historically disadvantaged individuals, women, disabled persons and businesses supporting small, micro and medium enterprises (SMME's). The latter percentage also includes a location factor in favour of local suppliers. The points awarded to each element within the 20% range are not fixed and can be varied to benefit a specific category, such as disabled persons.
For transaction values above R500 000, 90% of the points are allocated for price and 10% for the rest.
The Accounting Officer (or the Municipal Manager) can also make the abovementioned 80:20 preferential points system applicable to transactions below the value of R30 000.
In terms of the policy, a competitive bidding process has to be used for all transactions above R200 000, although the Accounting Officer can lower this threshold if it is deemed necessary.
The competitive bidding process requires that a bid specification committee, consisting of municipal officials, as well as external advisors if necessary, prepare the specifications for the commodity or service required.
A bid evaluation committee, with a composition more or less similar to the specification committee, evaluates the bids and tenders before they are referred to the bid adjudication committee. The latter in turn considers the bids or tenders and either approve a bid or make a recommendation to the Accounting Officer for a final decision.
People who serve on either or both the bid specification committee or the bid evaluation committee are not allowed to serve on the bid adjudication committee. In terms of the MFMA, Town Councillors are not allowed to serve on nor attend any of the meetings of the aforementioned committees.