Procurement Disclosure Report
The purpose of the Procurement Disclosure Report is to ensure transparency on procurement within the Western Cape Government.
All interested parties and oversight bodies can now access procurement information through this report. It is a valuable source of information that supports the important work done by oversight bodies and will strengthen good governance within the Western Cape.
The Procurement Disclosure Report simplifies reporting by combining procurement data collected from various sources and eliminating duplication and discrepancies that result from lead and lag times of various systems in capturing procurement transactions. This report seeks to provide accurate, relevant, meaningful and credible information, presented in a user-friendly and accessible document.
For more information and to submit feedback or suggestion on improvements to the Public Disclosure Report please email our Supplier Helpdesk.
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Frequently Asked Questions
The Western Cape Government (WCG) uses a strategic sourcing approach to procurement and has, over time, sought to progressively strengthen its supply chain management (SCM) systems and practices in line with the requirements of section 217 of the Constitution and applicable legislation.
The Province further adopts a centre-led and enabled approach that focuses on uniformity and standard governance processes with our accounting officers in the Province managing their Procurement systems and frameworks as well as accountability.
The following mechanism were put in place by the Provincial Treasury (PT):
- a survey to gather information from suppliers registered on the National Treasury’s (NT) Central Supplier Database (CSD) and the Western Cape Supplier Evidence Bank (WCSEB) to request information on the availability of Personal Protective Equipment (PPE) stock levels and delivery lead times. A similar process was also followed for cloth masks.
- cloth mask manufacturers/suppliers on the provincial database were contacted to register with the Department of Small Business Development (DoSBD) as per the NT requirements; and
- issuance of PT Circulars to guide provincial departments and entities in respect of managing their procurement requirements in response to the COVID-19 pandemic.
PT further supports provincial departments and entities in respect of the following:
- SCM via its longstanding helpdesk mechanism to provide procurement support, assistance and guidance. The PT has also established a WhatsApp group of provincial SCM officials to encourage just-in-time advice and support on key COVID-19 related technical issues;
- Ongoing support and assistance to suppliers in respect of registration on the WCSEB, including compliance documentary support and the management of supplier profiles;
- Central Management of the e-Procurement system and Western Cape Supplier Evidence Bank(WCSEB);
- Instructing on and enabling the governance requirements for emergency procurement;
- Regular updating of both the PPE and cloth mask databases of suppliers in terms of new entrants, compliance to NT requirements, pricing and supply and demand volumes;
- Enabling the security framework contract database of suppliers to facilitate meeting COVID-19 requirements of the Department of Health and other Departments; and
- Establishment of a Central Procurement Advisory Committee to provide guidance on emergency procurement.
The Accounting Officers of individual provincial government departments are responsible for their individual procurement decisions for their departments as prescribed by section 38he Public Finance Management Act. The Provincial Treasury plays an oversight and support role to Accounting Officers in this regard.
The first Instruction Note issued by NT Instruction Note 3 of 2020/21 on 15 April 2020 was in respect of a central emergency procurement strategy for PPE; however, this was subsequently retracted and replaced by NT Instruction Note 5 of 2020/21 on 28 April 2020. This was revised further on 20 May 2020 and on 03 July 2020.
In terms of the National Treasury Instructions issued the procuring institutions were advised that they may approach any supplier to obtain quotes provided that:
- the items are to specification;
- the prices are equal to or lower than that issued by the NT. It must be noted that a 10% allowable variance was allowed in terms of the NT Instructions. Variance above the 10% requires the approval of the relevant accounting officer of the procuring entity;
- the supplier is registered on the CSD and, for cloth masks. Additionally, the supplier must also be registered with the Department of Small Business Development;
- RT (National) transversal contracts could be utilised by any procuring institution even if they were not participants to the contract initially;
- The Instruction Note further encouraged procuring institutions to use small enterprises that fall under the designated group in terms of the Preferential Procurement Regulations, 2017;
- an additional criterion to procure from suppliers that meet the stipulated minimum threshold percentage (i.e. 100%) for local content and production for the textiles, clothing, leather and footwear sector;
- a list of suppliers/ manufacturers that may be contracted on condition that they comply with the criteria stipulated; and
- a third iteration of the maximum prices, specifically amending the maximum prices for surgical masks and gloves.
Departmental purchasing is done in terms of demand forecasting models for departmental procurement requirements in response to COVID-19. These are linked to predictive epidemiological models used in the Health sector for the course of the pandemic in the Province as well as patterns of PPE consumption rates that reduces inventory. Demand is thus dynamic and actively managed in process.
The procurement of Proudly South African products is not a prescribed requirement by the National Treasury.
Prior to the lock down, the Provincial Treasury anticipated the need for PPE items and the potential for the hiking of prices due to scarcity in respect of supply and demand in the market for these essential items. Whilst the PT cannot control how suppliers hike their prices, the PT guides departments on how to have a mechanism in place to focus on value for money and / economically viable purchasing.
The prices are influenced by timing and when the procurement process happens as well as the number of suppliers who can respond in the market based on supply and demand needs. Suppliers are also aligning their prices to the NT benchmark prices, however NT’s benchmark prices have been changed four times to which the market has not re-adjusted its prices. Departments find themselves having to approach the market many times to secure the requisite stock of PPE items needed which also results in varied pricing.
In some cases, departments utilised its current contracts and hence they are paying the prices in respect of their existing contracts whilst other departments are subject to the current fluctuation in market prices.
Whilst departments try in process to negotiate prices down, this does not always result in price reduction given that the need for the product and the need to suppress the spread of the product remains a paramount consideration.
The Provincial Treasury is currently monitoring the procurement of PPE items by departments and have also provided a mechanism for departments to ensure that they manage pricing at an appropriate level by including the following in the provincial database:
- standardised, uniform specifications approved by the Department of Health and NDOH;
- pricing for each item, lead times for delivery and quantities that suppliers could deliver; and
- comparative pricing that was issued by the National Treasury as benchmark prices for medical PPE items.
The Provincial Treasury has further issued Treasury Circular 23 of 2020, issuing the Regulations on Competition Tribunal Rules for COVID-19 excessive pricing compliant referrals, to which the Department of Health specifically as advised are referring cases of excessive pricing to the Competition Commission in terms of the Competition Commission regulations issued during lockdown.
The Provincial Treasury has in response to COVID-19 implemented the following precautionary measures to ensure compliance to the Public Finance Management Act from a procurement and financial management perspective:
- A COVID -19 coordination function within the Provincial Treasury for the Finance and SCM Cluster to ensure financial governance, procurement and financial management requirements are met in terms of the Disaster Management Act and its regulations. Provincial Treasury has also drawn on its current resource capacity to provide advisory support to departmental procurement of PPE.
- A Central Procurement Advisory Committee (CPAC) to guide emergency and lockdown procurement and financial requirements of essential products and/or services that are referred to it by provincial institutions for disaster relief needs of the Province. This team is constituted of critical procurement and financial specialists from within the Provincial Treasury and internal audit within the Department of the Premier to advise the CPAC deliberations in order to provide proactive recommendations in respect of any significant risk exposures stemming from the proposed approach / transaction, based on consideration of the relevant prescripts, governance requirements, risk management and internal control framework and considering the need for adequate control versus efficiency.
- The PT is publishing all PPE purchasing on the PT Website and in social media for transparency and accountability. It is important that the Systems being used to manage procurement information and governance are appropriately managed through putting in place the necessary controls as mentioned above to ensure credibility in the information as well as in our decision-making as it relates to procurement in the Province.
The disclosure report will speak to the procurement processes and requirements that departments were obliged to comply with when procuring PPE items related to COVID-19. In addition, all COVID-19 related commitments and expenditure will be published in the report with detailed information on PPEs in respect of average unit price; applicable benchmark prices date; unit of measure; quantity purchased and total amount.