PROCUREMENT POLICY

1. INTRODUCTION

The GCIS commits itself to the development of a sound procurement/acquisition policy that is
consistent with the principles contained in the Preferential Procurement Policy Framework Act,
2000 (Act 5 of 2000), issued by the Minister of Finance. The principles and practices set out in
this policy apply to all officials tasked with the procurement of goods and services.

The department’s acquisition policy emphasises accountability and is aimed at achieving the
best value for money. This document takes into account the role of Supply Chain Management
(SCM), established to provide a procurement service to users and to streamline acquisition
within the department. In consultation with staff SCM develops acquisition policies that are
aligned to the guidelines as set out by National Treasury, concludes contracts, manages bidding
processes and provides support and advice to line functions.

This policy requires all officials in the GCIS, performing duties in relation to the
acquisition/procurement of goods and services (e.g., sourcing of quotations, compiling bid terms
of reference, etc.), to have regard for these principles and practices, and to keep written records
of any actions that are not consistent with these principles and practices and their reason for
doing so (motivation for deviations).

Acquisition in the GCIS takes place in terms of the Preferential Procurement Policy Framework
Act, 2000, Public Finance Management Act (PFMA), 1999 Treasury Regulations, SCM
guidelines and the Broad-Based Black Economic Empowerment (BBBEE) Act, 2003 (Act 53 of
2003).

All officials are required to acquaint themselves with the prescripts underpinning the
department’s acquisition processes.

2. OBJECTIVES

The objective of this policy is to regulate, the Government Communication and Information
System (GCIS) acquisition/procurement systems and procedures developed in terms of the
Preferential Procurement Policy Framework Act (PPPFA), 2000 as amended; PFMA, 1999;
BBBEE Act, 2003; Framework for Supply Chain Management, December 2003; and Treasury
Regulations 16A.

3. REGULATORY FRAMEWORK

3.1 Section 38 of the PFMA, 1999 sets out the general responsibilities of accounting officers,
one of which is to ensure that the department has and maintains an appropriate supply
 chain management system, which is fair, equitable, transparent, competitive and cost-
effective.

3.2 For the GCIS to meet these requirements it will fully observe Treasury Regulation 16A9
and the five pillars of procurement as set out in the General Procurement Guidelines,
which are incorporated in this document.

3.3 This policy sets out ethical and sound acquisition practices to be followed by all officials
involved in acquiring goods and services within the GCIS. The Accounting Officer is
authorised to amend these procedures should the need arise.

4. CORE PRINCIPLES

4.1 The objective is supported by the following core principles of SCM:

• obtaining value for money

• open and effective competition
• business ethics and integrity
• accountability and reporting
• procurement/acquisition from historically disadvantaged individuals
(HDIs)/BEE/BBBEE compliant suppliers.

4.1.1 Value for money

4.1.1.1 All GCIS officials should at all times strive for good value for money when they procure
goods or services.

4.1.1.2 Value for money involves comparing alternative goods/services available in the specific
market prior to a specific choice being made. This means comparing the costs against
the benefits to be obtained in that specific service. The benefits should compare
favourably with the price the department would be paying for those goods/services.

4.1.1.3 Value for money is an essential test against which the department must justify any
procurement / acquisition outcome. It is, however, not the only factor to be considered
when comparing the alternative solution.

4.1.1.4 Other factors would include the goods or service offered meeting the requirements of the
department; HDI representatives and BEE status of the company bidding; the capacity of
the company to deliver the required product/service within the specified period.

4.1.2 Open and effective competition

 Open and effective competition will be the central operating principle of the entire
department’s acquisition process. Officials are required to ensure that:

• the requirements of Treasury Regulation 16A63, the PPPFA, 2000 are observed and
where industry charters are in existence, their scorecard(s) should be adhered to,
based on guidelines issued by National Treasury and DTI.
• adequate and timely information is provided to all suppliers to enable them to
bid/quote
• content of information on the specifications/task directives should be uniform to all
the potential suppliers
• a fair and open process of evaluating the bids or quotations should be communicated
in the bid specification/task directive or request for quote (RFQ) documents when
they are issued
• officials should seek ways of providing new entrants/suppliers an opportunity to bid,
especially the companies owned by HDIs; small, medium and micro-enterprises
(SMMEs); or companies that are BEE compliant.

4.1.3 Ethics and fair dealing

4.1.3.1 The GCIS is committed to ensuring its officials adhere to the Public Service Code of
Conduct in the execution of acquisition. The Public Service Code of Conduct C5.3, C.5.4
and C.4.6 respectively states that:

• an employee does not use her or his official position to obtain private gifts or benefits
for herself or himself during the performance of her or his official duties nor does she
or he accept any gift or benefits when offered, as these may be construed as bribes
• an employee does not use or disclose any official information for personal gain or the
gain of others
• an employee will recuse herself/himself from any official action or decision-making
process, which may result in improper personal gain and this should be properly
declared by the employee.

4.1.3.2 It is therefore the requirement of every employee of the GCIS to ensure that:

• acquisition is conducted in accordance with high ethical and moral standards

• employees must observe recognised standards of fair dealing and personal integrity
• employees should neither condone nor approve any known illegal or unethical act for
any reason willfully
• confidentiality of information must be adhered to at all times
• officials involved in the acquisition process should at all times disclose any possible
conflict of interest and/or fraud to the CFO or Head of SCM, i.e. with regard to
acquisitions relating to bids or quotations
 • impartiality in the conduct of bid evaluations.

4.1.4 Acquisition from HDI/BEE suppliers

To fulfil the Government’s objectives in acquisition, the following will be considered when
procuring goods/services for the GCIS:

• Purchasing will strive to promote the usage of SMMEs.

• The GCIS’ employees should strive to source quotations from the service-providers
on the database. Where service-providers on the database are not able to provide
the required service or item, the person requiring the service must ensure that the
service-providers being approached complete the necessary database registration
forms.
• The service-provider database is available on the intranet for obtaining quotations.
The database is maintained by the SCM Unit.
• Service-providers on the database should be used on a rotational basis.

SCM Management will monitor the constant use of the same service-provider.

5. ACQUISITION AUTHORISING STRUCTURES

5.1 Accounting officers are expected to ensure that their departments apply the principles of
sound acquisition prescribed in the PFMA, 1999; PPPFA, 2000; Treasury Regulations;
and the Constitution of the Republic of South Africa, 1996.

5.2 Section 38 (iii) of the PFMA, 1999 stipulates that the “Accounting Officer must ensure
that the department, trading entity or constitutional institution has and maintains: an
appropriate procurement and provisioning system which is fair, equitable, transparent,
competitive and cost effective”.

6. ROLE OF SCM

6.1 SCM is responsible for the development, coordination, efficient operation and
maintenance of the acquisition chain policy and procedures.

6.2 To ensure that all acquisition matters are dealt with in accordance with the set out
prescripts.

6.3. To maintain and update the prospective list of suppliers (database).

6.4 To manage and administer transversal contracts issued by National Treasury.

6.5 To ensure that bid procedures are adhered to at all times.

6.6 In consultation with the DCEO: CS facilitate the appointment of members of the Bid
Adjudication Committee by the Accounting Officer (CEO).

6.7 To facilitate the convening of the Bid Adjudication Committee meetings and serve as its
Secretariat.

6.8 To serve as an observer for all bid evaluation meetings.

6.9 Ensure all the GCIS creditors are paid timeously once advised by the relevant
Responsibility Manager that the services have been rendered and after receipt of a
certified invoice by the relevant Responsibility Manager.

6.10 Together with line functions, monitor the service rendered to the GCIS by the suppliers
and reconsider their usage in the event they cease to provide expected benefits.

7. ROLE OF CHIEF DIRECTORATES AND DIRECTORATES

7.1 Asset management, goods and services decisions regarding acquisition within GCIS will
be driven by a needs analysis. With respect to assets, evaluation of existing assets,
taking into consideration the assets’ physical condition, functionality (is the asset suitable
for the activities it supports?), utilisation (is the asset used effectively?) and operating
costs/financial performance should be taken into consideration.

The department will consider alternatives to asset ownership on some assets taking into
account life cycle cost (all costs associated with acquiring, controlling, operating and
disposing of the asset), risk and benefits.

The business plans approved by the Budget Lekgotla will inform the asset-acquisition
plan of the department.

7.2. Ensuring that quotations have delivery dates and are valid before submitting to SCM.

7.3 Ensuring that correct allocation attachments are submitted with all requests for orders.

7.4 Ensuring that requisitions are signed by the Responsibility Manager or delegated person.
In cases where documents are signed by a delegated person, the letter of appointment
should be forwarded to SCM for record-keeping. A specimen signature of the delegated
person must appear on the appointment letter.

7.5 Ensuring that requests/quotes/bids for requirements are submitted timeously to facilitate
 adherence to the core principles of SCM, including the rotation of suppliers.

7.6 Ensuring that funds are available before quotations are sourced or bids advertised.

7.7 Monitoring supplier performance by following up with service-providers when delivery

dates are exceeded or invoices are outstanding.

7.8 Ensuring that agreement on the extension of delivery dates is communicated in writing to
the supplier and SCM. The impact of this extension on other timelines, for example,
projections, etc. should be analysed carefully.

7.9 Poor performance by service-providers should be well documented and brought to their
attention. Copies of the letters sent to service-providers as well as their response should
at all times be submitted to SCM.

7.10 Ensuring that service level agreements are signed by delegated officials as per the
departmental acquisition delegations. Monitor the service level agreements entered into
with service-providers strictly according to the original terms and conditions. Any
deviation must be taken up in writing with the service-provider and a copy sent to SCM.

7.11 Ensuring that service level agreements are concluded preferably within a month from the
date of the award. This should also be guided by the type of services, e.g. once-off, etc.

7.12 The cancellation of orders for goods or services with service-providers should at all times
be in writing. Copies of the letter should be sent to SCM to remove the said order(s) from
the commitment file or attach to the relevant order.

7.13 Ensuring that they adhere to the bid schedule issued by SCM to ensure that bids are
finalised timeously

7.14 In case of flights, ensure that unused tickets are submitted for refund before their expiry
dates and also inform SCM of any tickets submitted for refund to ensure the funds are
recovered from the travel agent.

8. COMPOSITION OF THE DEPARTMENTAL BID ADJUDICATION COMMITTEE

8.1 The Departmental Bid Adjudication Committee will comprise of members appointed by
the Accounting Officer or his/her delegate through the acquisition policy and delegations.
The composition of the committee will be as follows:

Chairperson – DCEO: Corporate Services

Members – DCEO: Government and Stakeholder Engagement, CFO; the chief
 directors of Media Engagement, Communication Service Agency, Policy and Research
and CD: Corporate Services; the Director: SCM (technical adviser) and the Deputy
Director: SCM (scribe).

8.2 Other officials may be co-opted onto the Bid Adjudication Committee on account of their
specialised knowledge. If the committee is divided in the awarding of a bid, the members
will vote. In the event of an equal vote, the chairperson’s decision will be final.

8.3 The DCEO: Communication & Content Management, will serve on the Bid Adjudication
Committee as ad hoc members. At least two DCEOs will be required to attend
adjudication meetings where transversal campaigns and bids above R3 million are to be
adjudicated.

8.4 Committee members who are not available for the meeting must send representatives.
These delegations can not be delegated lower than the level of director. The person who
is being delegated should be given the documents timeously. Should the chairperson not
be available, the person acting in his/her capacity will serve as chairperson.

8.5 Should a member of the Bid Adjudication Committee participate in the evaluation of a bid
in the evaluation committee, he/she will be exempted from participating in the
adjudication of that specific bid. He/she may send a representative.

8.6 For transparency and fairness, in instances where deviations to be approved by the Bid
Adjudication Committee are from a particular branch, the DCEO and the CD of the
relevant branch will be recused from the decision making of the particular request.

9. FUNCTIONS OF THE DEPARTMENTAL BID ADJUDICATION COMMITTEE

9.1 The Bid Adjudication Committee adjudicates the recommendations of the Evaluation
Committee on all acquisitions done through the bid process.

9.2 It approves regular processes on acquisition and recommends requests for ex-post facto
approval before submitting to National Treasury.

9.3 It ensures that supply chain prescripts and procedures are adhered to and that bidding
submissions comply with agreements and conditions specified in bid documents.

9.4 It ensures that minutes are taken of all the decisions of the committee. The signatures of
the chairperson and secretary must confirm the minutes. The minutes must be filed in
the relevant bid files that are held at SCM.

9.5 The Bid Adjudication Committee must record their decisions and the reasons for any
 deviations from the General Procurement Guidelines as issued by National Treasury.

9.6 In the event that the committee does not agree on appointment, the CEO will serve as
arbitrator.

9.7 The chairperson of the Bid Adjudication Committee will approve all submissions for
media buying, which are above the threshold delegated to the CFO and relevant Chief
Director. The submissions approved by the Chairperson of the Bid Adjudication
Committee must be table at the following meeting of the Bid Committee.

9.8 At the end of every quarter, a memo will be submitted to MANCO on all bids awarded
and submission approved by the Bid Adjudication Committee.

10. MEETINGS OF THE DEPARTMENTAL BID ADJUDICATION COMMITTEE

10.1 The meetings of the Bid Adjudication Committee will take place as per schedule issued
by SCM.

10.2 SCM must ensure that the schedule for the adjudication of bids is compiled for the entire
year. The schedule must be e-mailed to all committee members and their personal
assistants.

10.3 A schedule for the evaluation of bids must be compiled and e-mailed to the person who
commissioned the advertising of the bid.

11. SUBMISSION OF THE MINUTES OF THE EVALUATION COMMITTEE TO THE

BID ADJUDICATION COMMITTEE

11.1 A submission capturing the recommendations of the Evaluation Committee to the

Departmental Bid Adjudication Committee should contain the following information:
• list of panel members
• declaration of interest
• introduction (reason for requesting the bid)
• background relating to the bid
• the strengths and weaknesses of each bidder that was evaluated
• the points scored by each bidder
• recommendation.

12. QUORUM OF THE BID ADJUDICATION COMMITTEE

12.1 Half (50%) plus one member of the Bid Adjudication Committee must always be present.
If member(s) are not available, the relevant committee member(s) must send a
 representative(s).

12.2 Representatives will not be accepted for adjudication of bids exceeding R3 000 000.
Exceptions will be made where the Chief Director was sitting in the Evaluation
Committee of that specific bid.

12.3 As far as possible, delegation should be limited up to director level. Other cases, in
instances where officials lower than director is delegated to the Adjudication Committee,
will be treated on their merit.

13. RISK MANAGEMENT

13.1 It is incumbent on all officials of the GCIS to address the issue of procurement risks at all
times. This should be read in conjunction with GCIS’ departmental Risk Management
Policy Document.

13.2 Advance payments will only be made under certain conditions to service-providers.
Should a need arise for such advances, payment will be processed as per pro forma
invoice received. Advance payments will be considered for the following services:
research, training, conference facilities, video production.

13.3 It is however, the responsibility of the relevant Responsibility Manager to assess the risk
and ensure that proper systems are in place to monitor the execution of services or
delivery of goods after advance payments are made. Importantly, ensure that the original
invoice is received by SCM.

13.4 For amounts exceeding R500 000 per case, the Chief Directorate or Directorate should
preferably enter into a service level agreement with the service-provider (refer to par.
7.10 & 11).

13.5 Where advance payments were made, it remains the sole responsibility of the relevant
Responsibility Manager to ensure that the service is fully rendered as the documents
would have been removed from the commitment file (0-9) kept at SCM.

13.6 Where pro forma invoices were submitted, it is the responsibility of the relevant
Responsibility Manager to ensure that the original invoices are submitted to SCM.

13.7 In cases of bulk buying, the Chief Directorate, Directorate or Subdirectorate should
consider splitting the requirements among different service-providers. However, this
must not be applied to circumvent bidding procedures but to manage risk. For instance,
a section cannot split the order for the same goods/services so as to circumvent the
bidding process.
13.8 On completion of the service or delivery of the goods, the section that made the request
must ensure an invoice is forwarded to the Head of SCM.

13.9 Payments must not be effected on photocopied or fax copies. Should a copy be used, it
should be certified by the company as a true copy (not certified by the section itself).

13.10 However, should a double payment for the same goods or service occur as a result of
the copied invoice, the Chief Directorate, Directorate or Sub-directorate will be held
accountable.

13.11 Electronic invoices will be accepted provided they are on PDF format.

13.12 VAT registration numbers should be reflected on all invoices and quotations where
suppliers are claiming VAT.

13.13 Orders must not be made prior to a written quotation being obtained from the service-
provider. Where telephonic quotations were obtained, the signed quotation form should
be attached.

13.14 Bulk purchasing in the last three months of the financial year should be avoided. This
may result in roll-overs, which are subject to National Treasury approval.

13.15 All payments over the value of R500 000 should be captured on the clearing centre. All
new suppliers should also be captured on the clearing centre.

13.16 No finance documents should be shredded unless they are duplicate copies.

13.17 All bid evaluation meetings must be chaired by officials at Director level and above.
Should the relevant director not be available, a director from another directorate or chief
directorate must be requested to chair the evaluation

13.18 In managing the procurement risks, all officials within GCIS must ensure that they
observe all legislation governing procurement, including Treasury Regulation 16A9.

14. ACCOUNTABILITY AND REPORTING

To ensure that officials are answerable to their plans, actions and outcomes, the following
aspects of reporting within the procurement framework should be observed:

14.1 Accountability
14.1.1 The Accounting Officer is accountable to the minister for the overall management of
procurement activities.

14.1.2 The Bid Adjudication Committee is accountable to the Accounting Officer for the
adjudication of acquisition done through the bidding process.

14.1.3 SCM, the Bid Adjudication Committee, directorates and subdirectorates are accountable
to the Accounting Officer and to their clients, both internally and externally for the
services they provide.

14.1.4 All officials’ exercising supply chain functions must adhere to these guidelines.

14.2. Reporting – database

14.2.1 SCM will generate a quarterly report through the database system to determine the
extent of the use of BEE suppliers in line with the BEE Act, 2003. This will be reviewed
once the new guidelines on empowerment of service-providers have been issued by
National Treasury.

14.2.2 The GCIS will keep one service-provider database.

14.2.3 It is the responsibility of all responsibility managers to spread expenses among different
suppliers to avoid the use of only one supplier.

14.3 Sole suppliers

14.3.1 In instances where a service-provider is the sole supplier of a recurring service within the
organisation, the department will test the market by calling for bids. If twice in a row (year
one and two), only one compliant proposal was received from the same service-provider,
the bid may be renewed for the third time (year three) for a period not exceeding two
years. If the bid was renewed for a period of two years, the bid will be advertised in the
middle of the second year to test the market once more.

14.3.2 The proposal for the renewal or extension of the contract/bid will be presented to the Bid
Adjudication Committee before any communication is sent to the service-provider.

14.3.3 The recommendation of the Bid Adjudication Committee will, however, be adhered to at
all times.

14.3.4 All other requests relating to the use of sole suppliers, will be dealt with in line with
National Treasury Regulation 16A.
15. AUDIT QUERIES/RECOMMENDATIONS

15.1 Responsibility managers will be responsible to answer all relevant audit queries where
there were deviations from the departmental guidelines and delegations as well as in the
event where the resolution(s) of the Bid Adjudication Committee are not being adhered
to.

15.2 Irregular expenditure/transactions

15.2.1 Irregular transactions/expenditure are incurred as a result of non-compliance to Treasury

Regulations; PFMA, 1999; as well as departmental policies and delegations when
transactions are concluded.

The following serves as examples:

 acquisitions of goods or services before an official order is generated
 goods or services are procured by means of price quotations where the value
of the purchase exceeds the threshold values determined by National Treasury
 goods or services are procured without following the competitive route, and
reasons for deviation are not recorded and approved by the delegated
officials/authority
 procurement of goods and services is authorised by an official who is not
delegated to approve the expense (all acting officials should be appointed in
writing).

15.2.2 Deviations resulting in irregular expenditure are to be submitted and fully motivated to
SCM. The motivation must be signed by the relevant Director and recommended by the
Chief Director. The submission will then be tabled at the Departmental Bid Adjudication
Committee for approval and/or recommendation to National Treasury.

15.2.3 SCM will keep a register of all irregular expenditure per financial year.

16. DELEGATIONS

The thresholds will be amended on receipt of an update circular from National Treasury. The
core principles of procurement should be observed at all times.

16.1 R0,01 – R2 000 (VAT included)

16.1.1 An official can use petty cash to purchase goods/services to the value of R2 000. It
should, however, be noted that petty cash is not meant to be used to procure
assets/equipment.
16.2 R 2000,01 – R10 000 (VAT included)

16.2.1 Officials should obtain at least three verbal or written quotations prior to making an
official order for the service.

16.3 R10 000, 01 – R30 000 (VAT included)

16.3.1 Officials must strive to ensure that acquisition of goods and services up to R200 000 are
sourced from the list of suppliers on the database. Where there are no suitable suppliers
available from the database, quotations may be obtained from other possible suppliers.
Application forms (to be added to the database) need to be completed by the service-
provider and forwarded to SCM to add the service-provider to the database.

16.3.2 At least three written quotations must be obtained prior to the choice being made on the
service-provider to supply the services. If it is not possible to obtain at least three written
price quotations, the reasons should be recorded and approved by the Responsibility
Manager.

16. 4 R30 000,01 – R500 000 (VAT included)

16.4.1 At least three written quotations should be obtained for services/goods exceeding
R30 000,01. The principles of preferential procurement regulations/BBBEE will apply for
all procurement in this category.

16.4.2 Quotes must be sourced from suppliers in writing (Terms of Rerefence / specification).
Quotation numbers must be acquired from SCM. The request for quotations must
indicate how the quotations will be evaluated. Weight/scores must be put on the
requirements.

16.4.3 The preferential procurement goals that will be considered during the evaluation of the
quotes are to be indicated on the request for quotes.

16.4.4 The relevant Request for Quotation documents should be sent to service-providers for
completion with the request for quotations. These are to be obtained from SCM together
with a quotation number.

16.4.5 The written request for quotes should indicate the closing date of submitting quotations.

16.4.6 The quotations will be evaluated by the relevant section/cross-functional evaluation

teams where possible, with SCM as observers.

16.4.7 The relevant section must draw a submission for the appointment of the successful
 bidder/service-provider.

16.4.8 Awarding of the quote/selection of bidder is to be approved by the relevant Chief Director
and the CFO, after ensuring that the correct processes were followed.

16.4.9 An original copy of the approval of the selection of the bidder will be kept in the file of the
relevant bid in SCM.

16.5 R500 000,01 and above – bid process (this must be read in conjunction with the
departmental acquisition delegation document).

16.5.1 The requests within these limits are subject to bidding procedures. The specification/
task directive / terms of reference, approved by the Chief Director or delegated official,
must be submitted to the Deputy Director: SCM for input and advertising through the
Tender Bulletin, the GCIS website and/or other relevant media.

16.5.2 The weight for price and the functional requirements will differ per bid depending on what
aspect is critical for the Chief Directorate, Directorate or Sub-directorate at that particular
time. The practice note issued by National Treasury on the appointment of consultants
can be used as a guideline.

16.5.3 A task directive/ terms of reference / specification must be compiled by an ad hoc

committee for that particular requirement. The committee can comprise the relevant
Directorate or Sub-directorate, SCM and, where possible, people from other sections
who are knowledgeable of the requirement/services required.

16.5.4 A week from the date of submission of the task directive / terms of reference /
specification to SCM must be allowed for finalisation of the document.

16.5.5 At least 21 days must be allowed for the bid to be advertised. Deviations in terms of the
advertising period are to be approved by the Bid Adjudication Committee.

16.5.6 The Departmental Bid Adjudication Committee will, through its adjudication process,
conclude the bids within the stipulated time frame.

16.5.7 The section requesting the advertising of the bid is to confirm in writing that funds are
available. The confirmation must be submitted together with the task directive / terms of
reference / specification.

16.5.8 Accommodation and/or conference facilities for conferences, workshops and seminars
must be obtained by means of price quotations.
17. URGENT CASES – UP TO AN ESTIMATED VALUE OF R 600 000 (VAT
INCLUDED)

17.1 This delegation will be applicable to services/goods that are urgently required, and
where going through the bidding process may result in critical services/goods being
compromised.

17.2 The request must be thoroughly motivated at director’s level and the recommendation
approved by the relevant Programme Manager before being submitted to the Head of
SCM. Goods/services are to be procured by making use of the list of suppliers on GCIS’
database, unless the service is not available on the database.

17.3 This delegation should only be used in exceptional circumstances, and not as a matter of
course. The chairperson of the Bid Adjudication Committee will approve the motivation
for the urgent cases.

18. EMERGENCY CASES – UP TO THE VALUE OF R900 000.00 (VAT INCLUDED)

18.1 This delegation will be applicable where immediate action is necessary to avoid a
dangerous or risky situation.

The same conditions are applicable as with urgent cases.

18.2 The chairperson of the Bid Adjudication Committee will approve the motivation.

18.3 The motivation will be reported in the subsequent Bid Adjudication Committee meeting
for endorsement and recording.

18.4 The Accounting Officer will approve any emergency acquisitions above R650 000, after
the submission has been recommended by the Bid Adjudication Committee.

19. ACQUISTION OF TRAVEL AND CONFERENCE FACILITIES

19.1 Government Communications will utilise the services of multiple travel agents for the
procurement of flight and accommodation services. GCIS will compile a letter of
engagement outlining how the relationship between GCIS and the relevant travel
agent will be managed. The letter must be given to the travel agent.

When submitting quotations, travel agents must indicate the cost of the service (cost
for accommodation / flight) and service fee separately.

Travel Agents must submit an original valid tax clearance certificate before they can be
 ustilised by GCIS.

19.2 Government Communication will utilise the services of multiple venue finders for the
procurement of conference facilities to the value of R500 000.00. GCIS will compile a
letter of engagement outlining how the relationship between GCIS and the relevant
venue finder will be managed. The letter must be given to the venue finder.

For transparency, when submitting quotations, venue finders must indicate the cost of
the service (conference facilities) and service fee / commission separately.

Venue finders must submit an original valid tax clearance certificate before they can be
ustilised by GCIS.

19.3 Conference facilities exceeding the value of R500,000.00 must be handled through the
bidding process. The Departmental Bid Adjudication Committee must be approached
for approval of a closed and shortened bid process to ensure a quicker turnaround
time,

20. ACQUISITION OF MEDIA SPACE (SPECIFIC DELEGATIONS)

20.1 Engagement of media owners

The following processes and delegations must be observed when procuring advertorial space
with media owners.

• There must be a letter of engagement or agreement indicating how the relationship

between the media owner and GCIS will be managed. The letter or agreement must
clearly indicate how the process of acquiring advertorial space will be handled, how
late bookings will be addressed as well as the invoicing and payment terms.
• The letter of engagement should also indicate the details of officials who are
responsible for payments and booking of media space on the side of the media
owner and GCIS.
• The process of escalation of issues on the side of the media owner and GCIS should
be clearly outlined.
• The details with respect to the ownership or HDI / BBBEE status of the media owner
should be provided on the GCIS database form, to enable the department to capture
the information on relevant systems.

20.2 Acquisition of print media - R30 000.00 – R2 million per case

This specific delegation applies when booking print media space directly with media owners. A
motivation indicating the following should be approved by the relevant chief director and CFO
after input from SCM practitioners:

• Purpose
o What needs to be approved – quote the relevant delegation

• Background
o What resulted in the need?
o When was the department approached?
o What media will be utilized for the campaign and why?
o Does this process reflect fairness, competitiveness, cost effectiveness and
transparency?
o How is the department benefiting from this process (e.g.) proposed discounts
(Refer to Annexure II of the best practice guidelines for procurement of media
and advertising)

• Financial implications
o What is the cost of the campaign?
o Are funds available to finance the campaign and where?

• Recommendation
o Indicate proposed recommendation

20.2.1 The process post signing of the submission / motivation

Supply Chain Management (SCM) will keep a register and a file of all motivations that are
approved using the specific delegation. A reference number will be allocated to each campaign
by SCM after receipt of an approved motivation. A motivation with the original signatures will be
filed at SCM bid administration unit. The reference number allocated to the campaign must be
indicated on all the VAS 2 (requisitions) related to the campaign and media owners identified in
the submission.

Should an additional media owner be identified after approval was granted, a separate
motivation and approval stating all aspects indicated under 19.2 must be submitted.

Only D:SCM, DD:SCM & Security or delegated official will be responsible for allocating
reference numbers.

SCM will develop a register for allocating numbers. The register must contain the following:
• Date (entry to the register)
• Campaign name
• SCM delegation number (from the policy and SCM delegation number)
• Reference number (allocated by SCM)
 • Approval date (by delegated officials)

20.2.2 Acquisition of print media - above R2 million – R5 million per case

The approval within this category must be submitted to the Bid Adjudication Committee through
SCM.

This specific delegation applies when booking print media space directly with media owners. A
motivation indicating the following must be recommended by the relevant director after input
from SCM practitioners and approved by the BAC:

• Purpose
o What needs to be approved – quote the relevant delegation

• Background
o What resulted in the need?
o When was the department approached?
o What media will be utilized for the campaign and why?
o Does this process reflect fairness, competitiveness, cost effectiveness and
transparency?
o How is the department benefiting from this process (e.g.) proposed discounts
(Refer to Annexure II of the best practice guidelines for procurement of media
and advertising)

• Financial implications
o What is the cost of the campaign?
o Are funds available to finance the campaign and where?

• Recommendation
o Indicate proposed recommendation

20.3 Acquisition of radio space - R30 000.00 – R3 million per case

This specific delegation applies when booking radio space directly with media owners. A
motivation indicating the following should be approved by the relevant chief director and CFO
after input from SCM practitioners:

• Purpose
o What needs to be approved – quote the relevant delegation

• Background
o What resulted in the need?
 o When was the department approached?
o What media will be utilized for the campaign and why?
o Does this process reflect fairness, competitiveness, cost effectiveness and
transparency?
o How is the department benefiting from this process (e.g) proposed discounts
(Refer to Annexure II of the best practice guidelines for procurement of media
and advertising)

• Financial implications
o What is the cost of the campaign?
o Are funds available to finance the campaign and where?

• Recommendation
o Indicate proposed recommendation

20.3.1 The process post signing of the submission / motivation

Supply Chain Management (SCM) will keep a register and a file of all motivations that are
approved. A reference number will be allocated to each campaign by SCM after receipt of an
approved motivation. A motivation with the original signatures will be filed at SCM bid
administration unit. The reference number allocated to the campaign must be indicated on all
the VAS 2 (requisitions) related to the campaign and media owners identified in the submission.

Should an additional media owner be identified after approval was granted, a separate
motivation and approval stating all aspects indicated under 19.2 must be submitted.

Only D:SCM, DD:SCM & Security or delegated official will be responsible for allocating
reference numbers.

SCM will develop a register for allocating numbers. The register must contain the following:
• Date (entry to the register)
• Campaign name
• SCM delegation number (from the policy and scm delegation number)
• Reference number (allocated by SCM)
• Approval date (by delegated officials)

20.3.2 Acquisition of radio space - above R3 million – R5 million per case

The approval within this category must be submitted to the Bid Adjudication Committee through
SCM.

This specific delegation applies when radio space directly with media owners. A motivation
indicating the following must be recommended by the relevant chief director after input from
SCM practitioners and approved by the BAC;

• Purpose
o What needs to be approved – quote the relevant delegation

• Background
o What resulted in the need?
o When was the department approached?
o What media will be utilized for the campaign and why?
o Does this process reflect fairness, competitiveness, cost effectiveness and
transparency?
o How is the department benefiting from this process (e.g) proposed discounts
(Refer to Annexure II of the best practice guidelines for procurement of media
and advertising)

• Financial implications
o What is the cost of the campaign?
o Are funds available to finance the campaign and where?

• Recommendation
o Indicate proposed recommendation

20.4 Acquisition of TV space - R30 000.00 – R5 million per case

This specific delegation applies when booking TV space directly with media owners. A
motivation indicating the following should be approved by the relevant chief director and CFO
after input from SCM practitioners;

• Purpose
o What needs to be approved – quote the relevant delegation

• Background
o What resulted in the need?
o When was the department approached?
o What media will be utilized for the campaign and why?
o Does this process reflect fairness, competitiveness, cost effectiveness and
transparency?
o How is the department benefiting from this process (e.g.) proposed discounts
(Refer to Annexure II of the best practice guidelines for procurement of media
and advertising)
 • Financial implications
o What is the cost of the campaign?
o Are funds available to finance the campaign and where?

• Recommendation
o Indicate proposed recommendation

20.4.1 The process post signing of the submission / motivation

Supply Chain Management (SCM) will keep a register and a file of all motivations that are
approved. A reference number will be allocated to each campaign by SCM after receipt of an
approved motivation. A motivation with the original signatures will be filed at SCM bid
administration unit. The reference number allocated to the campaign must be indicated on all
the VAS 2 (requisitions) related to the campaign and media owners identified in the submission.

Should an additional media owner be identified after approval was granted, a separate
motivation and approval stating all aspects indicated under 19.2 must be submitted.

Only D:SCM, DD:SCM & Security or delegated official will be responsible for allocating
reference numbers.

SCM will develop a register for allocating numbers. The register must contain the following;
• Date (entry to the register)
• Campaign name
• SCM delegation number (from the policy and scm delegation number)
• Reference number (allocated by SCM)
• Approval date (by delegated officials)

20.4.2 Acquisition of TV space - Above R5 million to R10 million per case

This special delegation applies when booking TV space directly with media owners. A
motivation indicating the following should be approved by the relevant chief director after input
from SCM practitioners and submitted to the BAC.

• Purpose
o What needs to be approved – quote the relevant delegation

• Background
o What resulted in the need?
o When was the department approached?
o What media will be utilized for the campaign and why?
o Does this process reflect fairness, competitiveness, cost effectiveness and
 transparency?
o How is the department benefiting from this process (e.g) proposed discounts
(Refer to Annexure II of the best practice guidelines for procurement of media
and advertising)

• Financial implications
o What is the cost of the campaign?
o Are funds available to finance the campaign and where?

• Recommendation
o Indicate proposed recommendation

20.4.3 The process post signing of the submission / motivation

Supply Chain Management (SCM) will keep a register and a file of all motivations that are
approved. A reference number will be allocated to each campaign by SCM after receipt of an
approved motivation. A motivation with the original signatures will be filed at SCM bid
administration unit. The reference number allocated to the campaign must be indicated on all
the VAS 2 (requisitions) related to the campaign and media owners identified in the submission.

Should an additional media owner be identified after approval was granted, a separate
motivation and approval stating all aspects indicated under 19.2 must be submitted.

Only D:SCM, DD: SCM & Security or delegated official will be responsible for allocating
reference numbers.

SCM will develop a register for allocating numbers. The register must contain the following:
• Date (entry to the register)
• Campaign name
• SCM delegation number (from the policy and scm delegation number)
• Reference number (allocated by SCM)
• Approval date (by delegated officials)

20.5 Outdoor bookings with other service providers - R1 million per case

When booking outdoor advertising space, a database of approved service providers will be
utilized. Officials must ensure that the principles of PFMA, section 38, PPPFA and Treasury
regulations 16A98.4, 16A9.85 and 16A9.1(a) (d) are adhered to.

All acquisition of media space above the delegated amounts, will be recommended by the GCIS
departmental Bid Adjudication Committee and ratified by the CEO.
Officials must ensure that the principles of PFMA, section 38, PPPFA and Treasury regulations
16A98.4, 16A9.85 and 16A9.1(a) (d) are adhered to when booking all media space.

21. FINANCIAL MISCONDUCT

21.1 The GCIS subscribes to the approved list of acts of misconduct as approved in the
Public Service Act, 1994, Resolution No. 2 of 1999, as amended. The following
specific acts of misconduct relating to SCM within the GCIS are emphasised:

21.2 an employee cannot use her or his official position to obtain private gifts or benefits for
herself/himself during the performance of her/his official duties

20.3 an employee cannot use or disclose any official information for personal gain or the
gain of others

21.4 an employee will recuse herself/himself from any official action or decision-making
process, which may result in improper personal gain and this should be properly
declared by the employee

21.5 an employee should declare any business, commercial and financial interest or
activities for financial gain that may raise a possible conflict of interest

21.6 failure to comply with Treasury Regulations.

22. CONCLUSION

This policy will be subject to reviewing every two years.