Government procurement is highly regulated. State officials may not do business with the state, and Supply Chain Management (SCM) staff and managers are required to complete declarations of interest to minimise the risk of conflicts of interest. Broad-based black economic empowerment (BBBEE) is a high priority in the procurement process. Prospective suppliers must be registered on the National Treasury’s Central Supplier Database and the Western Cape Supplier Evidence Bank, and meet all the application requirements, including being registered with the South African Revenue Service (SARS).
To assist emerging construction contractors to tender for government business in the Western Cape, the Department of Transport and Public Works runs construction information sessions in partnership with
- its SCM component,
- the National Department of Public Works and Infrastructure,
- SARS,
- the Department of Economic Development and Tourism (DEDAT),
- the Construction Industry Development Board,
- the Building Industry Bargaining Council, and
- local municipalities.
These two-day sessions provide participating contractors with the information they need to comply with applicable government regulations and policies.
The SCM component explains its procurement processes and facilitates the registration of suppliers on the Western Cape Supplier Evidence Bank as well as the National Treasury’s Central Supplier Database. Mini workshops are conducted with suppliers where registration documents are scrutinised for completeness and follow-ups are done on the status of submitted registration documents.
In accordance with requirements issued by the Minister for Public Service and Administration, all designated employees must complete a Declaration of Interest form from everyone involved in the consideration, recommendation and/or adjudication of bids. They are also required to comply with ethical standards, including the Code of Conduct for SCM practitioners, and the National Treasury’s Code of Conduct for Bid Adjudication Committees. A process is in place for managing conflicts of interest and the risks that could arise by accepting gratifications, hospitality and gifts. All prospective bidders must submit the Western Cape Bid Document 4 form (WCBD 4) (disclosure of interest/ suppliers’ performance/ declaration of employees and independent bid determination).
The following key information of prospective suppliers is verified on the CSD:
- Business registration, including details of directorship and membership (information supplied is verified with the Companies and Intellectual Property Commission (CIPC)),
- Bank account holder information,
- Whether the prospective supplier is in the service of the state (people working for the state are not allowed to do business with the state),
- Tax compliance status,
- Identity number.
- BBBEE status level (the BBBEE profile is compared with data in the Department of Trade, Industry and Competition (DTIC) database),
- Tender defaulting and restriction status; and Identification and verification of potential conflict of interest of employees through the Provincial Treasury’s Compliance Report.