Oversee the procurement process, ensuring that all vendors and suppliers are thoroughly vetted and that contracts are in place
1. Procurement Planning and Strategic Alignment
a. Annual and Quarterly Procurement Planning
- Procurement activities are planned at the beginning of each fiscal year and reviewed quarterly in line with SCMR-1 requirements.
- Departments submit procurement needs, which are consolidated into a Quarterly Procurement Plan, reviewed and approved by the SayPro Procurement Oversight Committee.
b. Procurement Category Segmentation
- Goods and services are classified into procurement categories (e.g., professional services, ICT, facilities, training, logistics) for better management and vendor alignment.
- Strategic vs. tactical sourcing is determined based on spend analysis, criticality, and impact.
2. Vendor Identification and Vetting
a. Vendor Prequalification and Registration
- SayPro maintains a Vendor Master List populated through a standardized prequalification process.
- Vendors are screened for:
- Legal registration and compliance status.
- Tax clearance certification.
- BBBEE status and transformation profile (where applicable).
- Financial stability and insurance coverage.
- Technical qualifications and track record.
b. Due Diligence and Risk Assessment
- Prior to awarding any contract, enhanced due diligence is performed, especially for high-risk or high-value contracts.
- Vendor Risk Scorecards are updated quarterly, in line with the SCMR-1 compliance cycle, to assess:
- Past performance on SayPro or third-party contracts.
- Conflict of interest declarations.
- Legal and reputational risks.
3. Competitive Sourcing and Tendering
a. Sourcing Strategy Implementation
- Based on value thresholds, the following sourcing methods are applied:
- Request for Quotation (RFQ): For low-value purchases (standardized goods).
- Request for Proposal (RFP): For complex services or solutions.
- Open/Public Tenders: For high-value or strategic contracts.
- Restricted or Framework Agreements: For trusted, long-term suppliers.
b. Bid Management and Fair Process
- All sourcing is conducted in accordance with the SayPro Tender and Bid Management Policy.
- Evaluation is managed by an independent Bid Evaluation Committee (BEC).
- Documentation and scoring are conducted using standardized evaluation templates and scoring matrices (refer to Bid Evaluation Process under SCMR-1).
4. Contracting and Legal Compliance
a. Contract Drafting and Finalization
- Standardized contract templates are used, reviewed, and customized by SayPro’s Legal Department.
- All contracts include:
- Scope of work and KPIs.
- Payment terms and pricing schedules.
- Performance guarantees or penalties.
- Termination, renewal, and force majeure clauses.
- Confidentiality and IP rights.
b. Contract Sign-Off and Registration
- Contracts are approved through SayPro’s Delegation of Authority (DoA) process before execution.
- Fully signed contracts are registered and stored in the SayPro Contract and Procurement Management System (CPMS).
c. Compliance with SCMR-1
- Each finalized contract is tagged for quarterly review to ensure adherence to the Quarterly Contract Management Cycle under SCMR-1.
- Procurement decisions are logged and made available for internal and external audits.
5. Vendor Onboarding and Relationship Management
a. Onboarding Process
- Once a vendor is contracted, a structured onboarding process is initiated which includes:
- Orientation on SayPro’s ethical standards and operational expectations.
- Communication protocols and reporting templates.
- Assignment of a Vendor Relationship Manager (VRM).
b. Performance Management
- Vendor performance is tracked using:
- Service Level Agreements (SLAs).
- Quarterly performance evaluations tied to contract KPIs.
- Feedback loops from internal stakeholders and beneficiaries.
6. Procurement Oversight and Reporting
a. Quarterly Procurement Review (SCMR-1)
- As part of the SCMR-1 monitoring process:
- All active contracts are reviewed for performance, risk, and renewal needs.
- Spend analysis is conducted to assess value delivered versus cost incurred.
- Procurement irregularities (if any) are flagged and investigated.
b. Audit Readiness and Documentation
- All procurement documents (RFQs, RFPs, bids, evaluations, contracts, performance reports) are archived.
- The CPMS ensures full traceability and provides reports for:
- Quarterly SCMR-1 oversight.
- Auditor-General of South Africa (AGSA) audits.
- Internal compliance checks and continuous improvement efforts.
Conclusion:
SayPro’s procurement process is strategically designed to deliver optimal value, minimize risk, and maintain integrity across all supplier engagements. By adhering to the protocols in the SayPro Monthly January SCMR-1 and integrating procurement with quarterly contract oversight, SayPro ensures that vendor relationships are governed by clear, enforceable contracts and continuous performance management—supporting both service delivery excellence and public accountability.
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