Procurement Policy

1. PROCUREMENT POLICY

This policy is based on the principles of integrity, honesty and fairness. This is possible through the use of an equitable and transparent procurement system. Global Business Roundtable is committed to the efficient and cost-effective procurement of goods and services which meet the needs and the required standard as set out by the Global Business Roundtable. The heads of departments are accountable for the prudent use of the Global Business Roundtable resources in compliance with policies, procedures and applicable legislative prescripts.

2. PROCUREMENT MISSION AND OBJECTIVES

The procurement mission is to cooperatively develop and execute sourcing strategies within GBR departments for goods and services that meet or exceed GBR requirements, and to perform these services to the highest ethical and professional standards procurement services should:
  • Provide leadership through price and product negotiations, supplier management and application of modern purchasing technologies.
  • Promote small, disadvantages and GBR members owned businesses through small business and Supplier Diversity Program.
  • Support GBR’s commitment to environment.
  • Support GBR’s commitment to outreach to the local business community.
  • Assist GBR departments in maintaining compliance to all policies regarding contracting and purchasing.

The objective of this policy is to ensure that:
  • Global Business Roundtable procurement activities are conducted in a manner that is equitable, fair, transparent, competitive and cost-effective.  It set out the rules and authority levels for the acquisition of goods and services.
  • To promote the proficient supply of good and service through the promotions and application of the best procurement practices.
  • To source goods and services of a required quality at the right price from suitable qualified service providers/suppliers with high business ethics,
  • To abide by GBR Code of Ethics and Conduct and the Policy on prevention of Fraud/Corruptions and other irregularities.
  • To ensure the procurement of goods and services from the socially and environmentally responsible suppliers subscribing to core values in the arrears of human rights, labour standards, the environment, and anti-corruption.

3. PRINCIPLES

3.1 PROCUREMENT SYSTEM

Global Business Roundtable uses a system of centralised procurement. All procurement of goods and services must be channelled through the Procurement Department by means of a duly authorised requisition.
The following must be noted:
  • 3.1.1 All procurement must be from Global Business Roundtable Approved supplier list.
  • 3.1.2 No supplier maybe be instructed to deliver goods or services before an official order has been issued by the Procurement Department or a duly authorised contract has been agreed upon.
  • 3.1.3 Only the Procurement Department or other purchasing units as approved by GBR EXCO in countries other than South Africa may process or place official orders with suppliers.

3.2 PROCUREMENT OF ASSETS

Only assets budgeted for and approved by GBR EXCO may be purchased. 

3.3 ETHICAL STANDARDS AND CONFLICT OF INTEREST.

All procurement transactions and interactions with suppliers, including supplier selection and evaluation, are subject to the provisions of GBR Code of Ethics and Conduct and the Prevention of Fraud/Corruption and other Irregularities.


3.4 DECLARATION OF INTEREST

  • 3.4.1 Any person involved in the purchasing, public or closed tenders, or supplier evaluation process must complete and sign the applicable declaration of interest form.
  • 3.4.2 Any person with interest that may affect or could be seen to affect their impartiality should immediately declare the conflict of interest, in writing , withdraw entirely from the process and relinquish all further related duties to his/her head of department.
  • 3.4.3 Suppliers or their employees may not in any way participate or influence the specifications or standards set for goods and services to be purchased. All suppliers must sign the declaration of form that is attached to the supplier list form.

3.5 CONFIDENTIALITY AND ACCURACY OF INFORMATION

  • 3.5.1 The confidentiality of information received in the procurement process should be respected.
  • 3.5.2 Specific details of suppliers’ bids must not be divulged, unless it is in accordance with rules and regulations of GBR.
  • 3.5.3 All members of the procurement department and all committee members serving on procurement-related committees or attending procurement related meetings must sign the confidentiality form. 

PART 2: PROCUREMENT PROCEDURE

4. GENERAL PRINCIPLES AND CONCEPTS

  • 4.1 No payment without and official order/contract. Global Business Roundtable’s official order or duly authorised contract is an acceptable and binding contract between GBR and its approved suppliers.
  • 4.2 No payment will be made to any supplier for goods or services rendered without and official order or duly authorised contract.
  • 4.3 It is essential that order be generated prior to the purchasing of goods and services. If an member does not adhere to this provision, disciplinary action will be taken with a possibility of sanction of such a member be held personally responsible for these expenses.

5. SUPPLIER SELECTION GUIDELINES

5.1 Approval
  •  All suppliers must be approved by GBR Procurement Department
  •  Approval will be recorded on the supplier application form

6. SOLE SUPPLIER

6.1 Sole suppliers can be broadly defined as direct purchases from
  •  Manufacturers or licence holders
  •  Publishers
  •  Intellectual property owners.
6.2 Registration of all sole suppliers must be referred to the Supplier Evaluation Committee for approval.
6.3 Application to appoint a new sole supplier should be accompanied by supporting proof of completed market research, feasibility study regarding product selection, scope of work and project plan.
6.4 Goods and services must be chosen in terms of acceptable standardisation initiatives to facilitate operational efficiency.

7. SUPPLIER SELECTION

  • 7.1 All suppliers must bid in open competition according to the purchasing processes and procedure of GBR.
  • 7.2 Suppliers will be evaluated and scrutinised on an equal basis in respect of price, quality, expected service levels and any other commercial of or technical requirements.
  • 7.3 The use of companies owned by GBR members and SMMEs’ is to be encouraged.
  • 7.4 The list of approved suppliers will continuously be revised in order to ensure that all members get the opportunity to register and be approved.

8. PROFESSIONAL OR SPECIALISED SERVICES AND SUPPLIER SELECTION

8.1 The identification of suitable suppliers of professionals and specialised services registered with professional bodies in the relevant industry will be recognised, provided that proof of membership is supplied by the requester of procurement department.
8.2 Profession or specialised suppliers will be evaluated and scrutinised on an equal basis to suit the needs of GBR.


9. QUOTATIONS

9.1 It is the policy of GBR to obtain competitive quotations or proposals where possible on all goods and services.
9.2 All proposals or quotations received will be evaluated on basis of quality, services, compliance and prices.
9.3 All awards will be made in the best interest of GBR. Any or all proposals maybe rejected at the discretion of GBR.
9.4 The competitive sourcing process is required where the value and/or nature of goods or service warrants it and goods or services can be obtained from more than one service provider.
9.5 While GBR procurement department encourages participation in the competitive sourcing process by as many qualified suppliers as possible, at least three proposals/quotations are desired given the following limitations: time constraints, availability of qualified suppliers able to meet the specifications and the opportunity for significant cost savings.
9.6 Unless approved for sole provider procurement or otherwise covered under existing contracts, all requisitioned goods and services totalling R10 000 or more individually, or as a system including multiple components, will be competitively procured.
9.7 It is the policy of GBR to use whenever possible and practical, members owned companies, woman-owned, and SMMEs’ which are able provide
goods and services of required quality on a timely basis at competitive prices. 

10. ERROR IN QUOTATION

10.1 If an error is made in the quotation or an apparent error is detected, the process of obtaining revised quotations will be overseen by the procurement department.
10.2 Revised quotations will only be allowed under exceptional circumstances as evaluated by the procurement department and on the understanding that all bidders will be given this opportunity.

11. COMPETITIVE SOURCING METHODS

Competitive sourcing may be conducted using the following methods; the choice of which is primarily determined by the estimated Rand/Dollar value of the project: 11.1 Informal Bids – informal bids may be solicited verbally, by email or by letter. This process may be used at the discretion of the departments or procurement departments for goods and services estimated to cost more than R500 but less than R10 000. Departments must request written confirmation of verbal bids from suppliers.

11.2 Formal Request for Proposal (RFP) / Request for Quotation (RFQ) should be issued for all goods and services estimated to cost R10 000 or more where clear specifications are available for comparative goods and services. RFPs may be issued for projects of any Rand/Dollar amount where subjective services and/or supplier skill levels are an important component to a timely and successful completion of the project or for any sourcing project at the discretion of GBR.
11.3 Each RFP should contain a clearly defined set of criteria to be used to evaluate the proposals. The standard procurement RFP template contains supplier selection criteria that are appropriate for most projects. Departments are encouraged to modify or augment the standard criteria to meet their specific requirements.
11.4 RFP Formats – RFPs are generally issued electronically as MS Word and Excel files via email to the approved bidder’s list of suppliers. Proposal may be accepted electronically, in hard copy form or a combination of both. The standard RFP template contains instruction to the supplier regarding proper proposal formatting and submit requirements.
11.5 After the proposals are received and evaluated, the contract(s) should be awarded to the supplier(s) presenting the best combination of price, delivery, compliance to specification, capacity to perform, and quality of service. The procurement department will use a standardised RFP proposal evaluation matrix that assigns weighted values for each criteria identified for a particular RFP. All departments are encouraged to use this proposal evaluation matrix and customise it to match the criteria contained in their specific RFP.
11.6 On the basis of historical supplier costing, performance history and market surveys, the procurement department may deem it more cost effective and efficient to confirm and award some low rand/dollar purchases without the competitive bid process. Documentation of such action will be retained with the purchase records.

12. EMERGENCY AND EXCEPTIONS

12.1 An emergency is a sudden, urgent usually unexpected occurrence or occasion that requires immediate action where damage will occur if not attended to immediately.
12.2 In the following highly exceptional cases, quotation or RFP requirements will not apply:
Emergency repairs and services eg broken gas pipes, network breakdowns etc.
Verified sole suppliers of goods/services or where and agreement and dully signed contract is in place.
12.3 The nature of the emergency or exception must be indicated in writing on the requisition.

13. SUPPLIER OBJECTION

If a supplier believes that the procurement process has been compromised, they may, with proper motivation and evidence, request the HOD for Procurement to investigate the matter


14. GBR CHAPTERS OUTSIDE OF SOUTH AFRICA

All procurement of goods and services should abide by the best purchasing practises entrenched in the policy. However, consideration should be given to the following:
14.1 All purchasing must be done in accordance with local legislation and requirements of the country in which the GBR chapter is situated.
14.2 Purchasing should be aimed at supporting members of that chapter and local suppliers that trade in that country.
14.3 Prevailing market conditions must influence trade.

15. CHANGE TO THE POLICY

Any change to this policy must be effected in accordance with GBR acceptable procedure. 

POLICY VIOLATION

Members who do not adhere to this policy will be subject to disciplinary action.
Procurement Policy | GBR Procurement