2. OUTLINE
 WHY PROCUREMENT
 IMPROVING ECONOMY THROUGH
PROCUREMENT
 SUPPLY CHAIN DELIVERABLES
 RANGE OF OPPORTUNITIES
 PROCESSES, CONDITIONS AND GUIDELINES
 DATABASE REGISTRATION REQUIREMENTS
 KEY THINGS ABOUT SCM
 CONTACTS

3. Why Procurement/ Supply Chain
Management Direction?
 To ensure the provision of a cost effective and efficient
procurement services, and the facilitation of City wide
Economic Empowerment to all Clusters and Units, to
enable them to effectively deliver to Municipal Customers,
resulting in successful Service Delivery and Economic
Empowerment.

4. Improving the economy through
Procurement
 The need and requirements of a procurement strategy.
 The information and communication requirements for
both internal and external users and all those involved.
 The process involved efforts to empower, build capacity
and increase number of black owned businesses
participating in government tenders is consistent with
National Government’s objectives and is embraced.
 Engagements with major contractors and development of
partnerships to provide broader economic development
and deliver better service.

5. Supply Chain Management/ Procurement
Key Deliverables
 Co-ordination of Tenders and Contracts
 Effective facilitation of BEE
 Compliance monitoring and timeous accreditation.
 Creation and maintenance of an up to date Centralized
Procurement Supplier Database
 Enforcing compliance with the council’s SCM policy, TTP
policy and other relevant legislations.
 Determination of uniform standards/documentation and
procedures for the procurement of all goods, services,
engineering and construction works.

6. Range of procurement Activities
 Goods: stationery, staff uniforms, medical supplies,
material supplies, etc.
 Services: insurance, banking, vehicle repairs, cleaning
contracts, software development, etc.
 Professional services: engineering consultants, auditors,
attorneys, etc.
 Engineering and construction work: civil, building,
electrical, structural, etc
 Disposal of movable & immovable assets: office furniture,
computers, vehicles, land, etc
 Hiring and renting of assets: plant hire
 Acquiring and granting of rights as applicable to
procurement: copy righting, etc

7. PROCUREMENT THRESHOLDS
Lower Limit Upper Limit
Procurement
Method/Quotes
Tender
Charge
Sureties (10%)
R0 R500(vat incl) Petty Cash N/A
N/A (Note reg.
12)
R0 R5 000.00 One Quote No No
R5 000.01 R30 000.00
Formal Written
Quote
No
No
R30 000.01 R200 000
Formal Written
Quotes
No No
>R200 0000 Public Tender Yes Yes (>R500,000)

8. Procurement Processes
 What are the Contract Types/Limits within eThekwini?
 ¨ A list of centres where these quotations are outlined on the last page.
 q Contracts/Quotations within these limits are to be to BBE’s, and preferably PBE’s
 wherever available/possible.
 v For the sale of movable assets a tender charge of R50 will be levied.
 These limits/requirements apply to all procurement activities except the
 Professional Consulting Services that have been catered for in the Siyakhana
 Consultants Roster.
 Lower Limit Upper Limit
 Minimum
 Procurement
 Method/Quotes
 Tender
 Charge
 Sureties
 (10%)
 · R0 R10 000.00 i 1 Quote · No No
 R10 000.01 R200 000.00 i Written
 Quotes · No No
 R200 000.01 R200 000.00 Public Tender R50 No
 R200 000.01 R1 million Public Tender R100 >R500 000
 >R1 million R5 million Public Tender R250 Yes
 >R5 million R10 million Public Tender R500 Yes
 >R10 million Public Tender R1000 Yes

9. Conditions for consideration of written
quotations or bids
 A written quotation or Public Tender may not be considered unless the bidder
has furnished as follows:
 Full name
 Company registration number
 Tax clearance certificate- clearly stating that the bidder/provider’s tax affairs
are in order.
 Statement providing that water, electricity, rates are up to date or formal
arrangements
 Documents filled in as expected and signed properly.
 Has indicated that:
 Whether he or she is in the service of the state, or has been in the service in the
previous twelve months.
 If the provider is not a natural person, whether any of its directors, managers,
principal shareholders or stakeholders is in the service of a state, or has been in
the previous twelve months; or
 Whether a spouse, child or parent of the provider or of a director, manager,
shareholder or stakeholder referred to in subparagraph above is in the service
of the state, or has been in the service of the state in the previous twelve
months.

10. Database registration
requirements
 Company is legally registered (CIPC)
 Owners/Principal Shareholders not in service of the state
 Company not in NT’s database of restricted suppliers
 Check Declarations (interest, municipal fees, independent bidder, etc –
at tender stage)
 Valid Tax Clearance
 Valid BEE Certificate
 No fee registration

11. Guideline to an enterprise that is ready to
tender.
 Must be a registered business
 Must be able to deliver- on time and according to
specifications
 Is up to date with its taxes, rates, electricity and water
accounts
 Is pro-active, actively looking for business opportunities
 Registered with the eThekwini Municipality’s central
Procurement Supplier’s database
 Has registered with relevant professional body, such as
CIDB, NHBRC, SETA, etc.
 Has registered its employees with the department of
Labour ( UIF, Skills Development Levy, Women's
Compensation etc.)

12. Tendering opportunities and Information
Communication
 All contracts under R200 000.00 Quotations; Advertised on the
SSS(Online Supplier Self Service) for the following departments
1. City Engineers Unit, 166 Old Fort Road
2. Water Services, 3 Prior Road
3. Corporate Procurement (MMB), 166 Old Fort Place, Ground floor
All contracts under R200 000.00 Quotations; Advertised on the
notice boards for the following department
Electricity , 1 Jelf Taylor Crescent, Ground Floor
Housing Unit, 90 Shepstone Road, New Germany
 All contracts above R200 000.00, PUBLIC TENDERS
tenders are advertised in the eThekwini Municipality’s own free
newspaper , eThekwini website: www.durban.gov.za, Metro
Ezasegagasini, which is issued every 2nd Friday. Copies of these can
be obtained at the City Hall basement Churchwalk Entrance, and

13. KEY THINGS ABOUT SCM
SCM Ensures goods & services are delivered in the following manner:
 Right Place
 Right Quantity
 Right Quality
 Right Cost
 Right Time

14. Supply Chain Management Contacts
DESIGNATION NAME TELEPHONE
Head Andre’ Petersen 031-311 1705
Deputy Head: Operations Sandile Ngcobo 031-322 7001
Deputy Head: vacant
Customer Relations Bongi Blose 031-311 7153
Corporate Procurement vacant 031-311 7530
Water Procurement Tarryn Bartholomew 031-311 8619
Electricity Procurement Tumo Mpetsane 031-311 9420
Performance and Risk Mdu Mkhize 031-311 7289
Tenders & Contracts Bongiwe Nyandeni 031-322 7015
Compliance Monitoring Zandile Sithole 031-322 7007
Business & Administration Yacob Khan 031-311 7449

15. All Supply Chain Related Queries/
Complaints/ Information;
Central Contact
 Manager : Bongi Blose
031-3117153-telephone
031-3117330- fax
CharmineBongi.Blose@durban.gov.za
:email contact
 Supplier Liaison Administrator: Sandile Biyela :031
3227155
 Silindile Ngwenya: 031 311 7082