Progress on procurement reforms

R190bn spent of goods and services this year.

With R190 billion to be spent on goods and services this year and a further R162 billion on infrastructure, government wants value for taxpayers’ money.

Progress has been made through initiatives of the Chief Procurement Officer to deliver goods and services at a lower cost, more efficiently and transparently through streamlined processes, strategic sourcing, transversal tenders and improved use of technology.

According to the Medium Term Budget Policay Statement (MTBPS) “The goal is to reduce bureaucratic inertia and red tape, and stamp out corrupt procurement practices.”

Some of the milestones include:

  • More than 20 000 suppliers have been registered on the central supplier database that came into operation on September 1 2015; 9 500 of these have been verified. From April 1 next year all State departments will be compelled to use this database and municipalities will follow suit on July 1.
  • Between April 1 and October 15 this year more than 2 000 tenders worth R28 billion were posted on government’s eTender portal, providing a single point of entry to identify business opportunities. Launched on October 1 2015, www.gCommerce.gov.za gives government departments an opportunity to purchase routine supplies through transversal contracts.
  • A single procurement bill is being developed to replace the more than 80 different legal instruments, guidelines and instruction notes that govern public procurement. The Office of the Chief Procurement Officer will present a draft bill for comment in January 2016.
  • Tender documents will be made more user-friendly. The number of documents needed for a tender will be reduced, and the language used will be clear and unambiguous.
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