A example of a municipal Supply Chain Management (SCM) procurement and adjudication policy defining procurement guidelines that must be followed by South African municipalities and suppliers.
In short, the SCM requires local registration and includes a Black Economic Empowerment point systems. In some cases, procurement is done in a two part process that includes a request/initial screening followed by a proposal/scopes of work.
There is a 90/10 and 80/20 criteria for local empowerment based on the size of the procurement. In addition, most suppliers have to be preregistered on the local municipality databases before procurement can happen. The municipality can deviate from this only if there is a significant and valid benefit to do so.
Once again, significant procurement happens in budget cycles and according to budget planning and Integrated Development Planning (IDP), that is co-financed by the national government in many cases after the submission of the Ministerial fund-specific business plan application.
Source: !Khies Municipality
Publication Date: July 2003