1. Paragraph 2 (a) of Logistical Services Minute 0001/2007 of 19 January 2007, stipulates that requisitions leading to the procurement of goods or services via the formal tender process, must be submitted at least three months prior to the date on which the goods and/or services are required. During the 2006/07 financial year, some responsibility managers did not adhere to this guideline. The Auditor-General has noted these instances and commented that these instances are indicative of bad planning by the responsibility managers. It has, therefore, become necessary for the Directorate: Procurement Management to revisit its procedure and schedules.
2. As from the date of this minute, responsibility managers will be required to justify in writing, the urgency of requisitions leading to tenders (goods and services estimated to cost more than R100 000) that are not submitted to the Directorate: Procurement Management, at least three months prior to the date on which the goods and/or services are required. In future, no late requisition will be accepted without such written justification.
3. You are also reminded that no procurement may generally take place between 15 December and 15 January of any year. As prescribed by Treasury, all tenders must normally be advertised over a period of 28 days and certain prescribed processes must be undertaken before a contract can be concluded. There is, therefore, not much time left before the end of the year to advertise for tenders, conclude contracts and allow service providers sufficient time to deliver the goods/services, before payment has to be effected by the end of March 2008. Therefore, if your applications for tenders are not received by 15 November 2007, they will not be accepted for processing unless the goods/services are intended for the 2008/09 financial year.
4. Furthermore, all requisitions for goods/services which must be procured via advertisements on the Electronic Procurement System (Sourcelink), and which are required for the current financial year, must also be submitted by 15 November 2007. As a norm, these requisitions must be submitted at least 30 days before the goods/services are required, as there are many procedures that must be followed linked to the service delivery standards contained in the Service Delivery Improvement Plan. If any requisition is submitted outside the 30-day period and the goods/services are urgently required, the relevant Director must motivate the urgency and, amongst others, indicate the following:
  • Why the goods/services were not included on the component’s 3-year procurement plan
  • When it was first realised that the goods/services would be required and when the acquisition was approved
  • What the implications and negative effects will be if the goods/services are not procured
  • What alternative steps were taken to alleviate the need or want for the goods/services
  • An indemnification of the Supply Chain should the goods/services not be procured in time or if payment cannot be effected before the end of the financial year.
5. Kindly bring the contents of this minute to the attention of all concerned.
6. Your co-operation in this regard will be appreciated.


SIGNED: WL CARELSE
HEAD: EDUCATION
DATE: 2007:10:30