Contract Contract means the agreement that results from the acceptance of a bid by an organ of state. /Font << 1.3.3 Section 27.2.7 (a) of the Treasury Regulations. For assistance or advice on tenders, deviations and procurement law please contact our nearest office on the details provided on our website. 1. Disclaimer:This article is not intended to provide legal advice and does not intend to address any specific or existing circumstances. Regulation 16A.6.4 allows an organ of state to deviate in circumstances when it is impractical to invite competitive bids. stream F: +27 (0)41 364 2066, T: +27 (0)11 234 9519 Determine and assess the existence and cause of any urgency or emergency or other impracticality; Ascertain the full details of the services requested to determine whether they are indeed the same; Obtain confirmation that its current appointment complied with relevant procurement legislation and regulations; Obtain copies of requests and consents exchanged between organs of state; Review contracts to ensure that the material terms are substantially the same across appointments as required; and/or. 1.3 Date of commencement 1.3.1 These Treasury Regulations take effect from 9 April 2001, unless otherwise indicated in Procurement of Reserved Postal Services Circular 1 of 1516. South African Government www.gov.za Let's grow South Africa together Treasury regulation 16A 6.4 also needed to be looked into, to avoid people from abusing deviations, but should also take care of section 79 of the PFMA which granted authority to Treasury to grant approval of deviations. To give further form to substance, the PFMA must be read with the Treasury Regulations made by the National Treasury as per section 76 of the Act. Close Email this article. endstream 1 of 2020/2021: Amended Month-End Closure Dates For 2019/2020 and 2020/2021 (321kb) Unspent conditional grants in respect of the 2019/20 Financial Year Thibault Square Ad hoc contract A contract arranged for only one department for a once-off requirement for immovable property, goods or services, the Page 2 of 18 KwaZuIu-Natat Provincial Treasury 29644 dated 20 February 2007 (This Chapter replaces Chapter 5 of the Treasury Regulations, as published in Government Gazette No. Executive Orders. The Treasury Regulations of 2005 have been repealed and replaced by a more comprehensive set of Treasury Regulations as of 1 April 2013. >> Further it is tool that both an appointed service provider and organ of state can rely upon in the event of a challenge to any appointment. >> /Type /Page 12 Section 16A.5 of the National Treasury regulations provides as follows (Training of supply chain management officials) 2 Please note that the functions outlined in the SCM policy are in line with the PFMA, National Treasury Regulations 16. Regulations Treasury Regulations 16A promulgated in terms of the Public Finance Management Act, 1999. 1.3.2 Section 27.2.6 of the Treasury Regulations. Treasury Regulation 16A6.4 provides as follows: “If in a specific case it is impractical to invite competitive bids, the accounting officer or accounting authority may procure the required goods or services by other means, provided that the reasons for deviating from competitive bids must be recorded and approved by the accounting officer or accounting authority.”. This includes demand management (a needs assessment of the procuring entity), 4 0 obj NATIONAL TREASURY PUBLIC FINANCE MANAGEMENT ACT, 1999: DRAFT TREASURY REGULATIONS The draft Treasury Regulations are set out in the Schedule and are hereby published for public comment ... 16A.2 16A.3 16A.4 16A.5 16A.6 16A.7 16A.8 16A.9 16A.10 16A.11 16A . The existing Treasury Regulation 16 contained in this Schedule, Annexure “A,“ and promulgated in Gazette No. 13 0 obj The relevant treasury may grant such approval only if it is satisfied that the Give approvals as may be necessary from time to time: only In accordance with Treasury Regulations 16A, National Treasury's Code of Conduct for SCM Practitioners must be adhered to by all officials and other role players involved in SCM. 1 of 1999 as amended by Act 29 of 1999) approved /F7 26 0 R This distinction recognizes the peculiar and complex nature of construction procurement. However it must be noted that it is necessary for the goods or services to be same and not merely interrelated. NATIONAL TREASURY 5 December 2003 REGULATIONS IN TERMS OF THE PUBLIC FINANCE MANAGEMENT ACT, 1999: FRAMEWORK FOR SUPPLY CHAIN MANAGEMENT The Minister of Finance has, in terms of Section 76 (4) (c) of the Public Finance Management Act, 1999 (Act No. Guidance as to what can be considered impractical can be found in the National Treasury practice Note No 8 of 2007/2008 which provides that circumstances involving urgent or emergency cases or a sole supplier of particular goods or services, may be impractical and warrant a deviation. However the relevant legislation and regulations provides for circumstances in which a service provider may be appointed by means other than by an open tender public procurement processes. extent as indicated in paragraphs 6.1.2, regulations 16, 16A, 24 to 28 and 30 to 33. 3 0 obj endobj 10th Floor, /F1 6 0 R /MediaBox [0 0 595 842] The Department of the Treasury is providing this information as a public service. Effectively, if a service provider is appointed, the procurement process reviewed and found wanting the contract will be set aside as invalid. Newton Park, T: +27 (0)41 364 2039 << Section 217 of the Constitution defines the manner in which organs of state must secure goods and services and it provides as follows: (1) When an organ of state in the national, provincial or local sphere of government, or any other Institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective.”. x^�U�n�0��,�B9��)�s!�����RƩR��_df�UTd�WX��ȷoޜ|/�� ��Zm�����{�-�.�dǟV&��D�@ďF��r�,n�p� i�6y�Ù�!���~����w���cx��.��ch����Wպ����NA�ݫ��o�+?"�Tkm�^? /Contents 13 0 R If a service provider is approached by an organ of sate or accounting authority to take an appointment in terms of a deviation as provided for in the regulations it may seem to be an opportunity to secure work without the rigmarole of an open tender process and that may be so. �4$C屁t;�� Boqwana House /Contents 4 0 R Why then should service providers be more wary of appointment by deviation than by competitive bidding processes. >> /Resources << Put differently allowing such contracts to stand would be to allow the conduct (patronage, collusion, nepotism etc) which the legislation seeks to prevent. 7. 22549 dated 10 August 2001 (39kb) Supply Chain Management: A guide for Accounting Officers and Accounting Authorities. 1.2.2 These Treasury regulations , read in context, also apply to the South African Revenue Service as a department, but only to the extent that it collects and administers state Definitions 4.1 4.2 Regulations Treasury Regulations 16A promulgated in terms of the Public Finance Management Act, 1999. Treasury Regulation 16A6.6 provides as follows: “The accounting officer or accounting authority may, on behalf of the department, constitutional institution or public entity, participate in any contract arranged by means of a competitive bidding process by any other organ of state, subject to the written approval of such organ of state and the relevant contractors.”. /F2 9 0 R /F1 6 0 R /Parent 2 0 R 84 – 6th Avenue 1.2.4 Treasury Regulations 16A: Supply Chain Management These Regulations serve as a formal requirement to Accounting Officers … F: +27 (0) 43 642 2039, South African COVID-19 Resource Portal 5ΙT����7�o�&)�=��g����.���L��f;�< �n{0��%�>?n �{P��%bϏ��>�H+w�z���g�n�*���j�1j��G���>�P{hJ��m�@��# :\g�J⠜�^U�g� �i��T��D�n:�J�Ä �m�8�(N� ��*"�8�k������/�g/0� V��CW1�ϿC��������{@(�9z��Awe��.ÿ"�np����»�O�788\`���9�&ߐ㺱�"n���Y�څiD*^�'>F_�XVD�u&FM �a��p��>�џ�ܻ4�5������y��/4F�gzx�����. National Treasury introduced Practice Note 6 of 2007/8 to curb abuse by institutions when it noticed that these institutions were deliberately using provision 16A6.4 to avoid the required bidding process at the end of the financial year. Treasury Regulation 16 is complied with when goods or services are procured through public private partnerships or as part of a public private partnership; and instructions issued by the National Treasury in respect of the appointment of consultants are complied with. King Williams Town, T: +27 (0) 43 642 2070 Hospital Hill 23463 dated 25’h May 2002, is to be repealed in its entirety and replaced by Treasury Regulation 16 as set out in this Schedule, Annexure “B,” which is hereby published for public comment in terms of Section 78 of Treasury Instruction No. Close Embed Video. ... regulations, frameworks, standards and guidelines Specific Knowledge Requirements Occupational Role 1 Occupational Role 2 Occupational Role 3 Occupational Role 4 ... TR 16A.8 TR 16A.9 SCM Systems Principles of ethics and code of conduct How Will The Medium Sized Business Survive The Short And Long-Term Effects Of The Lockdown? KwaZulu-Natal Provincial Treasury Page 2 of 20 i Contents ... regulations 16, 16A, 24 to 28 and 30 to 33. /F2 9 0 R https://sacoronavirus.co.za. Term Explanation SCM unit The Department of Environmental Affairs' Supply Chain Management unit that falls under the auspices of the Chief Financial Officer (CFO), as per Treasury Regulation 16A4 Scoring models The models used to evaluate bids. Regulation 16A6.6 provides that an accounting officer may appoint a service provider who has been appointed by an organ state, through a competitive bidding process provided that both the service provider and the organ of state consent. National Treasury: Public Finance Management Act: Treasury Regulation 16 (Regulation 1535 of 2003) SAVE THIS ARTICLE EMAIL THIS ARTICLE. Treasury Regulations related to Strategic Planning as published in Government Gazette No. 2.1 NATIONAL TREASURY NORMS AND STANDARDS 2.1.1 In terms of section 76(4)(b) of the Act the National Treasury may make regulations or issue instructions applicable to all institutions to which the Act applies concerning the determination of a framework for an appropriate The National Treasury has issued Treasury Regulation 16A, which regulates supply chain management and applies to national and provincial departments, constitutional institutions and public entities to the extent that they are listed in Schedules 3A and 3C of the PFMA. NATIONAL TREASURY PUBLIC FINANCE MANAGEMENT ACT, 1999: TREASURY REGULATION 16 The existing Treasury Regulation 16 contained in this Schedule, and promulgated in Gazette No. 23463 dated 25* May 2002, is to be repealed in its entirety and replaced by Treasury Regulation 16 as set out in … National Treasury Supply Chain Management Technical Competency Dictionary. National Treasury Circular no. The condition being that the accounting authority cannot call for bids for the same or similar goods or services for the tenure of the transversal contract. /Length 532 In order to give effect to section 217, legislation such as the Public Finance Management Act (PFMA), the Municipal Finance Management Act (MFMA) and Preferential Procurement Policy Framework Act (PPPFA) as well as various regulations and Supply Chain Management Guidelines were enacted. National Treasury Regulation 16A binds all public sector clients to apply the cidb regulations and prescripts when procuring for infrastructure. stream indicated in paragraph 6.1.2 and regulations 24, 25, 27 to 29 and 31 to 33; (e) to the South African Revenue Service, but only to the extent as indicated in paragraphs 6.1.2 and 15.4 and regulations 24 to 28 and 30 to 33. Effectively the situation would be as follows: If the needs of an organ of state (X) are similar to the needs of another organ of state (Y), and Y has already arranged to meet its needs by means of tender procedures, X can simply arrange with Y to make use of the same contractor that Y selected to satisfy its needs subject to the requisite consent. >> Preferential Procurement Regulations published in Government Gazette No. << /MediaBox [0 0 595 842] /ProcSet [/PDF /Text ] Section 27.2.7. ��+�$�(3���! Whatever the reason for impracticality the accounting officer or accounting authority must report to the relevant treasury and the Auditor-General all cases where goods and services above the value or R1 million (VAT inclusive) were procured in terms of Treasury Regulation 16A6.4 within ten (10) working days. >> Every business attempting to secure work in the public sector from organs of state or parastatals is on the lookout for Request for Proposals (RFPs) and devoting time to attending tender briefings, preparing bids and securing resources in the hope of submitting a successful bid. Furthermore impracticality may be result of a best value, national security, unknown specifications and/or circumstances requiring timeous delivery, amongst other things. /Type /Page 1 of 2015/2016. The report must include the description of the goods or services, the name/s of the supplier/s, (sic) the amount/s involved and the reasons for dispensing with the prescribed competitive bidding process. Regulation 16A of the National Treasury regulations deals with 'Supply Chain Management'. /Filter /FlateDecode Therefore before accepting an appointment contemplated in terms of Regulation 16A6 a service provider must to take steps, depending on the applicable regulation, to: If an appointment by deviation is reviewed, a service provider could potentially rely on the information and documents acquired through the steps referred to above to challenge any such review and/or to support any contractual or unjustified enrichment claims it may have against an organ of state. /Font << endobj This process and any protection it affords is absent from an appointment by deviation in terms of Regulation 16A6. That is the nature of engaging in what has become known as an open competitive bidding process. 16A.11.3 Information referred to in paragraphs 16A11.1 and 16A11.2 must be submitted to the relevant treasury in such format and at such intervals as that treasury … Section 27.2.6 of the Treasury Regulations states: "Internal Audit must be conducted in accordance with the standards set by the Institute of Internal Auditors." /Length 4403 Regulation 16A6.5 provides for transversal appointments or transversal contracting where by an accounting officer or authority can appoint a service provider already appointed in terms of a contract facilitated by relevant treasury (National or Provincial). National Treasury 26 TR 16A 3.2 (a) [fairness] Institutions must maintain proper records in relation to the receipt of bids and should not consider bids that have been submitted after the closing date. /F5 20 0 R These laws, regulations and executive orders are maintained on this web site to enhance public access to information on Department of the Treasury programs. In accordance with Treasury Regulations 16A, National Treasury’s Code of Conduct for Supply Chain Management Practitioners must be adhered to by all officials and other role players involved in supply chain management. National Treasury Republic of South Africa [May 2002] March 2005 . Treasury Regulation 16A6.5 provides as follows: “The accounting officer or accounting authority may opt to participate in transversal term contracts facilitated by the relevant treasury. Regulation 16A6.5 provides for transversal appointments or transversal contracting where by an accounting officer or authority can appoint a service provider already appointed in terms of a contract facilitated by relevant treasury (National or Provincial). >> /F3 14 0 R Employee’s duty to obey Employers Reasonable Instructions. The competitive bidding process, with its call for proposals, evaluation committees, scoring procedures and adjudication processes, is a key tool in achieving the openness and competitiveness required by section 217, the PFMA and the MFMA. The PPPFA and its Regulations provide for a preferential procurement system which incorporates the 80/20 and 90/10 preference point systems. separate emails by commas, maximum limit of 4 addresses. /Parent 2 0 R %PDF-1.4 This is a service that is continually under development. [TREASURY REGULATION 16A.6.3 (a) AND (b)] 4.6.1 In order to give effect to the requirements of Treasury Regulation 16A.6.3(a) and (b), the Provincial Treasury has consolidated certain information as included in National Treasury’s Standard Bidding Documents (SBD). (a) of the Treasury regulations states: please note that this bid is subject to national treasury regulations 16a issued in terms of the public finance management act, 1999, the commission scm policy, the preferential procurement regulations 2017 and the general conditions of contract. Long Street, T: +27 (0)21 418 2315 Service providers, however, should note that our courts have stated that contracts concluded contrary to procurement legislation and regulations are wholly invalid and cannot be allowed to stand [see TEB Properties CC v MEC, Department of Health and Social Development, North West[2012] 1 All SA 479 (SCA), Eastern Cape Provincial Government v Contractprops 25 (Pty) Ltd 2001 (4) SA 142 (SCA) and In Premier, Free State and Others v Firechem Free State (Pty) Ltd 2000 (4) SA 413 (SCA)]. 3 Ibid. << A provincial treasury must submit to the National Treasury such supply chain management information as the National Treasury may require. Obtain a copy of any submissions to the relevant treasury and Auditor General as may have been required. Institutions incurred expenditure at the end of the financial year to avoid surrendering unspent funds. 12 0 obj Further, the courts have stated that holding an organ of state to a contract concluded contrary to procurement legislation and regulations would be to place a too harsh burden on the tax payer and would be against the spirit and purpose of the legislation. /F4 17 0 R !�',�t__�0�#oY)b[d�;��x���ڂFF�����U�Y���� ��(�\����P),�U�7e2��):�U�9 �SD���Ca����0����A��k��vħ��ѵ>w9S3,-^�ލ��y�>�ǥ�/I��I�(��&9Ǫ�.�|p{=���/Y� �K��{}��J��w;�z�C���R�٫�5:3G�8�X�ݼ\S�x�T�C̔�%�_�09���J�s� K�Ô�i�N��r���rǚ��*Ϲ���z~�6�����'cy/ ]t����u(ڟ�# Treasury Regulations: PFMA 4 1.2.2 These Treasury regulations, read in context, also apply to the South African Revenue Treasury Regulations ..) (a) : Sponsored by. /Filter /FlateDecode >> A service provider appointed by deviation is reliant on the facts presented to it by the entity approaching it. (a) the National Treasury; or (b) the relevant provincial treasury, if it is a provincial institution and the National Treasury has, in terms of section 10(l)(b) of the Act, delegated the appropriate powers to the provincial treasury. Further the courts have stated that the contract price must be same and that the relationship will be governed by material terms of the first appointment. x^�\Y�� ~�_1��)Ϥ�&�H�Y�Rʖ�xW*�î��u���ή��8�� @���{\*I}�A�E�|��t�ˋ�٬���nuysQo�5�]�[۷����6���6���oVu�cV�]uC� M/�_�}���������ˋo��m�g��W�ƭ�Wƭ��6�����.\��r���ڸ��ʶ����+h� ��+j�~�������o��W�f�N0�#��2���� �`CA���� ����fg�Rӛ�� �����6��o�]�fkWo/�����q���͍[c�Э���k �u-���:$ܤ�k��T���}��e���j�F������y�������j�o��]� ��_�TmL����_|�P���j��;x���������[R_x��Mծ����ux��pU��_�M�*�$L@�c���+��/�\}]���k��C�Iwڐ�4hzDmw�hTc#�˞��M�f�=�r5 ?�u��/A1��3 &|�n�J�����C� ]������u]�W��A�Q� [�_�v �����*��~�E UH��jD�vD��Az�\����mmX}5�3IU`go��=+��m���_��_݂݉k��- Should the accounting officer or accounting authority opt to participate in a transversal contract facilitated by the relevant treasury, the accounting officer or accounting authority may not solicit bids for the same or similar product or service during the tenure of the transversal term contract.”. endobj F: +27 (0)86 770 8460, Office 1003, %���� >> F: +27 (0) 86 770 5873, 43 Beaumont Road Supply chain management can be defined as an integrated management system used to manage all steps of the supply chain. /Resources << 27388 dated 15 March 2005) (237kb) Treasury Regulations related to Strategic Planning - showing amendments (32kb) These were published for public comment on 30 November 2012. /F6 23 0 R Regulations. 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