PRESENTATION TITLE Presented by: Name Surname

Transcript:PRESENTATION TITLE Presented by: Name Surname:
PRESENTATION TITLE Presented by: Name Surname Directorate Date PSC Roundtable: Efficient, Economic and Effective use of Resources in the Procurement Environment Panel discussion Experiences in the Public Procurement Environment Trevor Balzer Acting Director-General Department of Water and Sanitation 28 October 2020 Purpose To reflect on the experiences related to Supply Chain Management in the Department of Water and Sanitation to advance the Efficient, Economic and effective use of resources with a focus on the timeous payment of suppliers. 2 Experiences in the SCM environment Section 217(1) of the Constitution provides that “When an organ of state in the national, provincial or local sphere of government, or any other institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective. Complying with the procurement prescripts contributes to efficient processes, possible good quality of service delivery including economic growth. The Department has incurred over the previous financial years irregular expenditure which was in contravention section 217 (1) of the constitution and National Treasury procurement prescripts. These contraventions has in many cases proved costly to the Department due to high litigation costs associated with these contracts also leading to losses, fruitless and wasteful expenditure. 3 Problem statement The Department has two accounts (Main and WTE) with a total budget for 2020/21 of R30.2 billion of which R17.9 billion is appropriated for infrastructure development. The Departmental Performance in delivering capital / infrastructure projects have been in a constant decline since 2015. This led to unacceptable delays in Water Resource Infrastructure and RBIG projects; and was even more prevalent where the Internal Construction Unit is the contractor. Delays also led to an increase in Fruitless and Wasteful expenditure. Inefficiencies which increase project costs. Developed a Culture of Inefficiency In 2017 the Supply Chain Policy centralised all procurement functions to be the responsibility of the Head of Supply Chain for both WTE and Main Account. (Procurement Process Bottleneck) 4 Pre- Framework for Infrastructure Delivery and Procurement Management (FIDPM) Departmental procurement process duration 5 ± 432 working Days Framework for Infrastructure Delivery & Procurement Management 6 78 working Days The FIDPM process intended for procurement of infrastructure beyond R500k; and thus setting the performance target for National Bids. Procurement below R500k will be quotation-based with a performance target of less than 1 calendar month. IPO proposal: objective 7 This in preparation