fbpx
updated 8:54 PM CDT, May 17, 2019
HOT NEWS
National and Regional Economically Active Population - QLFS Q1 2019
National and Regional Economically Active Population - QLFS Q4 2018
A Green Workplace: How HR Must Lead the "Go Green" Initiative
Sustainable development and the workplace
Code of Good Practice: Collective Bargaining, Industrial Action and Picketing
Regulations issued in terms of section 208 of the Labour Relations Act 66 of 1995 - Picketing Regula
Guidelines issued in terms of section 95(8)- Guidelines on registration of trade unions and employer
Guidelines on balloting for strikes or lockouts issued in terms of section 95 (9) of the LRA
Rules for the conduct of proceedings before the CCMA w.e.f. 1 January 2019
Ramaphosa: 'Historic' minimum wage to come into effect on January 1, 2019
A+ A A-

Affirmative / Preferential Procurement Policy

Affirmative Procurement Policy

Introduction

 

An Affirmative Procurement Policy ensures that the Company gives due consideration to issues of EE in any procurement process. The Company will review the employment equity profile of its suppliers and evaluate their compliance with the provisions of the Employment Equity Act. This evaluation will be based both on the internal workforce profile of the supplier as well as their black empowerment.

 

Where two or more suppliers can provide the same or similar service (in terms of quality, value, and efficiency), the supplier which rates higher / is more compliant in terms of employment equity measures will be selected.

 

ABC (Pty) Ltd is establishing a database of Suppliers and Providers indicating their Black Economic Empowerment Status and Employment Equity Compliance. This database will form the basis for the future selection of future services required by ABC (Pty) Ltd .

 

For purposes of this policy, the following terms are used:-

 

A "black enterprise" is one that is 50,1%[i] owned by black persons and where there is substantial management control. Ownership refers to economic interest while management refers to the membership of any board or similar governing body of the enterprise.

 

A "black empowered enterprise" [BEE] is one that is at least 25,1%[ii] owned by black persons and where there is substantial management control. Ownership refers to economic interests. Management refers to executive directors. This is whether the black enterprise has control or not.

 

A "black woman-owned enterprise" is one with at least 25,1% representation of black women within the black equity and management portion.

 

Other terms used in the policy:-

 

EE                               means employment equity as defined in the Employment Equity Act [EE Act]

Disadvantaged       means disadvantaged persons or individuals as defined in the EE Act.

 

The Company wishes to align its current procurement practice in line with its Employment Equity Plan.  To facilitate this process, it is necessary to define and formalise the implementation of an Affirmative Procurement Policy while recognising the need not to compromise the quality and efficiency of goods and services supplied to the Company.

 

Corporate purchasing policies and procurement practices tend to favour the larger and more established business making it difficult for a newcomer to enter into the procurement system. By actively intervening in the procurement of goods and services to ensure equitable representation of previously disadvantaged individuals, the Company can contribute to social equity in economic activity.

 

ABC (Pty) Ltd will encourage the active procurement of goods and services through black empowered enterprises. Recognising that the provision of IT goods and services, especially in secure electronic payment and electronic commerce technology is limited and restricted to a few key providers / suppliers, the Company does not exclude traditional players in the market but instead gives preference to those companies and individuals who have demonstrated a commitment to the development of black empowerment initiatives. For example, where two or more suppliers can provide a similar service or product, having regard to efficiency, the quality of product or service, costs and pricing, preference may be given to the black empowered business.

 

1.      Objectives

1.1. To make it easier for disadvantaged persons and black empowered businesses to do business with the Company by creating an enabling environment for such persons and businesses.

1.2. To ensure that an increasing proportion of contracts, concessions, etc are awarded to BEEs and to businesses with a clear and proven commitment to black economic empowerment. Economic empowerment criteria is taken into account in adjudicating all submissions from consultants, concessionaires, contractors, vendors, etc.

1.3. To provide opportunities to businesses which implement their own proven economic empowerment programmes.

1.4. To encourage the development of entrepreneurship and business skills within the previously disadvantaged communities.

1.5. To create awareness, understanding and support of economic empowerment objectives among key stakeholders.

1.6. To encourage employment creation by providing business opportunities to BEEs and disadvantaged groups.

2.      Achievement of Objectives

These objectives will be achieved by:

2.1. Encouraging the establishment of joint ventures between BEEs and approved established businesses which have clearly shown proven commitment to black economic empowerment. This should facilitate transfer of skills and access to technology for BEEs.

2.2. Ensuring that there are no unnecessarily restrictive quality standards which would exclude potential BEE's or disadvantaged persons.

2.3. Where appropriate dividing contracts or projects into smaller components to enable emerging BEE's to qualify.

2.4. Setting targets to measure progress in implementing black economic empowerment, with the key measures being:

§  the percentage of the value of work, projects, purchases, etc, to BEEs

§  the number of contracts awarded to BEEs

2.5. Ensuring and encouraging the co-operation of line management in implementation and measurement of black empowerment within the Company.

2.6. Assisting BEEs to overcome obstacles they might face in attempting to do business with the Company.  The objective is not to waive requirements, but to explore innovative ways of increasing participation to the mutual benefit of both parties. To achieve this the Company will appoint a qualified person to interface with BEEs.

3.      The scope of the Policy

This Affirmative Procurement Policy focuses on all providers of goods and services to ABC (Pty) Ltd.

4.      Implementation

Implementation is envisaged at a number of levels.

4.1. All categories of goods and services will have preferred vendors who will be selected subject to the criteria specified within this policy.  This will be managed centrally by the procurement department.

4.2. Quotes obtained for lower value contracts must include at least one from a pre-qualified list of BEEs.

5.      Criteria for selection as an BEE or a preferred vendor

 

In selecting a provider as a preferred vendor the following criteria will be considered:-

 

  • Type of goods/service supplied
  • General / specialist services or goods
  • Contract - whether a contract exists with
  • If Yes - terms and conditions eg term, cancellation clause
  • Average Monthly Spend
  • % of total Monthly Controllable Expenditure
  • Estimated procurement value: 2003/4
  • Assessment of 'risk' to ABC (Pty) Ltd business. High, Moderate, Low
  • EE profile of supplier (data supplied to ABC (Pty) Ltd).
  • EE plans of supplier
  • BEE ownership profile
  • Social responsibility programmes
  • Existence of BEE joint ventures

  

Annexure

 

ABC (PTY) LTD : BEE

 

 

 

 

 

 

Supplier data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name

Type of goods/service supplied

General / Specialist

Contract Yes/No

If Yes - terms and conditions eg term, cancellation clause

Average Monthly Spend

% of total Monthly Controllable Expenditure

Estimated procurement value: 2003/4

Assessment of 'risk' to ABC (PTY) LTD 's business. High, Moderate, Low

EE profile of supplier (data supplied to ABC (PTY) LTD ).

EE plans of supplier

BEE ownership profile

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ABC (PTY) LTD

(PURCHASES ______________ TO __________________)

 

 

 

 

 

 

 

 

 

 

 

 

 

Name

Purchases

Overhead

Bee

Non-bee

Percentage

Contract

Documents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BEE PURCHASES

 

 

 

 

 

 

 

BEE OVERHEAD

 

 

 

 

 

 

 

BEE CAPITAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



[i] Please check the latest B-BBEE scorecards for any changes to the percentages

[ii] Please check the latest B-BBEE scorecards for any changes to the percentages

Last modified onFriday, 29 July 2016 23:10
Gary Watkins

Gary Watkins

Managing Director

BA LLB

C: +27 82 416 7712

T: +27 12 669 3289

F: +27 86 689 7862

Website: www.workinfo.com
Login to post comments

HR Associations