Procurement is the process where government buys goods and services using public money. Government buys goods and services in order to deliver services according to its mandate.
Find out how to ensure a procurement process was fair and legal, and where to look for more information.
First a government purchase must be planned. Goods or services purchased must be line with Government's policies, and its plans to achieve those policies.
In order to implement Government’s procurement plans, and purchase a good or service, a procurement process of some sort must be undertaken.
Once a procurement process is complete, the winning bidder will receive a tender award.
The organ of state and the service provider/supplier will sign a contract which sets out the supplier’s obligations to perform, and the government's obligations to pay.
The process of delivering on the obligations that were agreed to in the contract signed by the procuring department and the service provider.
Procurement refers to the process where the government buys goods and services using public money. Public money is money the government raises from the general public through taxes. For example, when the government buys textbooks, or pays for the building of a new school, a procurement process must be followed.
Procurement is necessary to deliver goods and service where government does not have the capacity and competencies to deliver. Procurement is essential for ensuring that government officials, who spend public money on behalf of the public, do so in a way that is in our collective best interests.
Every organ of state must follow procurement processes. The PFMA and MFMA outline who these organs of state are. They include national departments, provincial departments, public entities (including state-owned entities), municipalities and municipal entities.
The Constitution sets out five basic principles which MUST be followed where any public money is spent. The underpinning requirements for procurement are set out in section 217 of the Constitution.Every contract for goods or services, by an organ of state, in any sphere of government must be fair, equitable, transparent, competitive and cost-effective.
Before delving into the details around procurement, it is helpful to understand that there are different kinds of procurement processes and transactions. These include:
When the organ of state accesses or procures from the panel, all service providers on the panel will only be asked to provide a quotation for their services, because the bidders have evaluated for functionality for inclusion to the panel.
This occurs when a procuring entity procures a commodity in bulk at discounted rates, on behalf of multiple departments. The Office of the Chief Procurement Officer manages close to 50 Transversal Contracts on behalf of government. These range from surgical gloves, tyres, maintenance of government vehicles, courier services etc.