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(Section 111 and 112 of the Municipal Finance Management
Act, Nr 56 of 2003)

This policy was adopted by the Moses Kotane Local Municipality on 14 December 2005 in terms of section 111 of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003).

TABLE OF CONTENTS

1.Definitions

CHAPTER 1

ESTABLISHMENT AND IMPLEMENTATION OF SUPPLY CHAIN MANAGEMENT
POLICY

2. Supply chain management policy

3. Adoption and amendment of supply chain management policy

4. Delegation of supply chain management powers and duties

5. Sub delegations

6. Oversight role of council

7. Supply chain management units

8. Training of supply chain management officials

CHAPTER 2

FRAMEWORK FOR SUPPLY CHAIN MANAGEMENT

9. Format of supply chain management

Part 1: Demand management

10. System of demand management

Part 2: Acquisition management

11. System of acquisition management

12. Range of procurement processes
13. General preconditions for consideration of written quotations or bids

14. Lists of accredited prospective providers

15. Petty cash purchases

16. Written or verbal quotations

17. Formal written price quotations

18. Procedures for procuring goods or services through written or verbal quotations and formal written price quotations

19. Competitive bidding process

20. Process for competitive bidding

21. Bid documentation for competitive bids

22. Public invitation for competitive bids

23. Procedure for handling, opening and recording of bids

24. Negotiations with preferred bidders

25. Two-stage bidding process

26. Committee system for competitive bids

27. Bid specification committees

28. Bid evaluation committees

29. Bid adjudication committees

30. Procurement of banking services

31. Procurement of IT related goods or services

32. Procurement of goods and services under contracts secured by other organs of state

33. Procurement of goods necessitating special safety arrangements

34. Proudly SA Campaign

35. Appointment of consultants

36. Deviation from, and ratification of minor breaches of procurement processes

37. Unsolicited bids

38. Combating of abuse of supply chain management system

Part 3: Logistics, Disposal, Risk and Performance Management

39. Logistics management

40. Disposal management

41. Risk management

42. Performance management

Part 4: Other matters

43. Prohibition on awards to persons whose tax matters are not in order

44. Prohibition on awards to persons in the service of the state

45. Awards to close family members of persons in the service of the state

46. Ethical standards

47. Inducements, rewards, gifts and favours

48. Sponsorships

49. Objections and complaints

50. Resolution of disputes, objections, complaints and queries

51. Contracts providing for compensation based on turnover

Organogram