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Learning Unit 3 Theme 2

This document outlines the acquisition management in the government/public sector, focusing on the roles of various players in the procurement process, including National and Provincial Treasuries, Accounting Officers, and Bid Committees. It details the types of committees involved in competitive bidding, such as Bid Specification, Evaluation, and Adjudication Committees, and explains the concept of Public-Private Partnerships (PPP) along with a five-phase approach for their implementation. The phases include inception, feasibility study, procurement, contracting, and management of PPP agreements.

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20 views8 pages

Learning Unit 3 Theme 2

This document outlines the acquisition management in the government/public sector, focusing on the roles of various players in the procurement process, including National and Provincial Treasuries, Accounting Officers, and Bid Committees. It details the types of committees involved in competitive bidding, such as Bid Specification, Evaluation, and Adjudication Committees, and explains the concept of Public-Private Partnerships (PPP) along with a five-phase approach for their implementation. The phases include inception, feasibility study, procurement, contracting, and management of PPP agreements.

Uploaded by

bonganimdunge02
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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THEME 2: ACQUISITION

MANAGEMENT IN THE
GOVERNMENT/PUBLIC SECTOR
CHAPTER 5 (FIVE)
BY THE END OF THIS THEME YOU
SHOULD BE ABLE TO:
 IDENTIFY THE VARIOUS ROLE PLAYERS IN THE PUBLIC/GOVERNMENT
PROCUREMENT PROCESS.
 DIFFERENTIATE BETWEEN THE TYPES OF COMMITTEES INVOLVED IN
COMPETITIVE BIDDING PROCESS
 EXPLAIN PRIVATE-PUBLIC PARTNERSHIPS: EXPLAIN THE FIVE-PHASE
APPROACH
VARIOUS ROLE PLAYERS IN THE
PUPLIC/GOVERNMENT PROCUREMENT
PROCESS
 National Treasury – is the body established by government to regulate the
uniform procurement of goods and services with government
departments.
 Provincial Treasury – Provincial treasuries, which are responsible for
preparing and managing provincial budgets, and enforcing uniform
treasury norms and standards as prescribed by the National Treasury and this
Act.
 Accounting Officer – Is the person regarded as either the director general
(DG) of a department or a Chief Executive Officer (CEO) of a public
entity.
 Is accountable to the minister of a department and is delegated to establish
effective supply chain management systems.
 Bid Committees – Committees established to ensure transparency of the
procurement processes and to give effect to section 217 of the Constitution.
TYPES OF COMMITTEES INVOLVED IN
COMPETITIVE BIDDING PROCESS
1. BID SPECIFICATION COMMITTEE
 BSC is a subcommittee or an ad hoc committee of the Bid Adjudication Committee (BAC),
and is established mainly to consider the needs of the organisation and make sure
that the needs will address the challenge at hand and ensure that the objectives
of an organisation are achieved in the most cost-effective manner.
 Specifications, evaluation criteria, conditions of contract, goals, market research
2. BID EVALUATION COMMITTEE
 BEC is an ad hoc committee constituted to evaluate bids received for specific required
services and /or goods.
 BEC may involve an external specialist outside the department either as an advisor or
member of the committee.
 Terms of reference (evaluate and score proposals), evaluation process, presentation by each
shortlisted service provider, detailed recommendation
3. BID ADJUDICATION COMMITTEE
 BAC is a standing committee appointed by the accounting officer or his/her
delegate.
 To Ensure transparency, fairness and impartiality when adjudicating bids (code of
conduct).
 Deals with the adjudication of bids and procurement matters as per the procurement
thresholds determined by the National Treasury or relevant internal departmental
procurement thresholds.
PRIVATE-PUBLIC PARTNERSHIP (PPP)
 PPP is a contract between a public sector institution and a private
sector (party), in which the private party assumes substantial financial,
technical and operational risk in the design, financing, building and
operation of a project.
 Such contracts are popular in IT-related projects or major building
contracts.
THE WAY THAT A PPP IS DEFINED IN THE REGULATIONS MAKES IT
CLEAR THAT A PPP:
 Is not a donation by a private party for a public good.
 Is not the privatisation or divesture of state assets and/or liabilities.
 Is not the “commercialisation” of a public function by the creation of a
state owned enterprise.
 Does not constitute borrowing by the state.
FIVE-PHASE APPROACH
PHASE 1: INCEPTION
 Identification of a project that will be conducted by the PPP.
 Register the PPP with the relevant treasury, appoint project officer and
transaction advisor.
PHASE 2: FEASIBILITY STUDY
 To determine (through research and investigations) whether the proposed
PPP is in the best interest of an institution.
 Evaluate Strategic Objectives and government policy to ensure that it is
not compromised during PPP.
PHASE 3: PROCUREMENT
 Prior to the issuing of any procurement documentation for a PPP to any
prospective bidders, the institution must obtain approval from the relevant
treasury, referred to as Treasury Approval IIA, for the procurement
documentation, including the draft PPP agreement.
 Procurement procedure must be fair, equitable, transparent, competitive
and cost-effective.
FIVE-PHASE APPROACH:
CONTINUES…
PHASE 4: CONTRACTING PPP AGREEMENTS – TREASURY APPROVAL III
 After the procurement procedure has been concluded but before the
accounting officer or accounting authority of an institution concludes a PPP
agreement, that accounting officer or accounting authority must obtain
approval from the relevant treasury National Treasury PPP Practice Note
Number 6 of 2004.
 Presentation of the PPP agreement to the relevant treasury for
approval before it is implemented.
PHASE 5: MANAGEMENT OF PPP AGREEMENTS
 The accounting officer or accounting authority of the institution that is
party to a PPP agreement is responsible for ensuring that the PPP
agreement is properly implemented, managed, enforced,
monitored and reported on.
REMEMBER: A DOOR SHALL BE
OPEN FOR THOSE WHO KNOCK…
THANK YOU

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