www.westerncape.gov.za Provincial Treasury | Provincial Government Supply Chain Management

Pauline Love-Fortuin Provincial Government Supply Chain Management E-mail: Pauline.Love-Fortuin@westerncape.gov.za

Tel: +27 21 483 8224

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Reference number: RCS/C.6

TREASURY CIRCULAR NO. 31/2018

THE PREMIER THE MINISTER OF ECONOMIC OPPORTUNITIES THE MINISTER OF COMMUNITY SAFETY THE MINISTER OF CULTURAL AFFAIRS AND SPORT THE MINISTER OF EDUCATION THE MINISTER OF FINANCE THE MINISTER OF HEALTH THE MINISTER OF HUMAN SETTLEMENTS THE MINISTER OF LOCAL GOVERNMENT, ENVIRONMENTAL AFFAIRS AND DEVELOPMENT PLANNING THE MINISTER OF SOCIAL DEVELOPMENT THE MINISTER OF TRANSPORT AND PUBLIC WORKS For information THE SPEAKER: PROVINCIAL PARLIAMENT THE DEPUTY SPEAKER: PROVINCIAL PARLIAMENT THE EXECUTIVE AUTHORITY: WESTERN CAPE GAMBLING AND RACING BOARD (MINISTER IH MEYER) THE EXECUTIVE AUTHORITY: WESTERN CAPE NATURE CONSERVATION BOARD (MINISTER A BREDELL) THE EXECUTIVE AUTHORITY: WESTERN CAPE INVESTMENTS AND TRADE PROMOTION AGENCY (MINISTER A WINDE) THE EXECUTIVE AUTHORITY: SALDANHA BAY IDZ LICENCING COMPANY (MINISTER A WINDE) THE EXECUTIVE AUTHORITY: WESTERN CAPE CULTURAL COMMISSION (MINISTER A MARAIS) THE EXECUTIVE AUTHORITY: WESTERN CAPE LANGUAGE COMMITTEE (MINISTER A MARAIS) THE EXECUTIVE AUTHORITY: WESTERN CAPE HERITAGE (MINISTER A MARAIS) THE EXECUTIVE AUTHORITY: CASIDRA (MINISTER A WINDE) THE EXECUTIVE AUTHORITY: WESTERN CAPE LIQUOR AUTHORITY (MINISTER D PLATO) THE ACCOUNTING OFFICER: VOTE 1: PREMIER (ADV. B GERBER) THE ACCOUNTING OFFICER: VOTE 2: PROVINCIAL PARLIAMENT (DR G LAWRENCE) THE ACCOUNTING OFFICER: VOTE 3: PROVINCIAL TREASURY (MR Z HOOSAIN) THE ACCOUNTING OFFICER: VOTE 4: COMMUNITY SAFETY (MR G MORRIS) THE ACCOUNTING OFFICER: VOTE 5: EDUCATION (MR BK SCHREUDER) THE ACCOUNTING OFFICER: VOTE 6: HEALTH (DR B ENGELBRECHT) THE ACCOUNTING OFFICER: VOTE 7: SOCIAL DEVELOPMENT (DR R MACDONALD) THE ACCOUNTING OFFICER: VOTE 8: HUMAN SETTLEMENTS (MR T MGULI) THE ACCOUNTING OFFICER: VOTE 9: ENVIRONMENTAL AFFAIRS AND DEVELOPMENT PLANNING (MR P VAN ZYL) THE ACCOUNTING OFFICER: VOTE 10: TRANSPORT AND PUBLIC WORKS (MS J GOOCH) THE ACCOUNTING OFFICER: VOTE 11: AGRICULTURE (MS J ISAACS) THE ACCOUNTING OFFICER: VOTE 12: ECONOMIC DEVELOPMENT AND TOURISM (MR S FOURIE) THE ACCOUNTING OFFICER: VOTE 13: CULTURAL AFFAIRS AND SPORT (MR B WALTERS) THE ACCOUNTING OFFICER: VOTE 14: LOCAL GOVERNMENT (MR G PAULSE) THE CHIEF FINANCIAL OFFICER: VOTE 1: PREMIER (MR D BASSON) THE CHIEF FINANCIAL OFFICER: VOTE 2: PROVINCIAL PARLIAMENT (MS N PETERSEN) THE CHIEF FINANCIAL OFFICER: VOTE 3: PROVINCIAL TREASURY (MS A SMIT) THE CHIEF FINANCIAL OFFICER: VOTE 4: COMMUNITY SAFETY (MR M FRIZLAR) THE CHIEF FINANCIAL OFFICER: VOTE 5: EDUCATION (MR L ELY) THE CHIEF FINANCIAL OFFICER: VOTE 6: HEALTH (MR A VAN NIEKERK) THE CHIEF FINANCIAL OFFICER: VOTE 7: SOCIAL DEVELOPMENT (MR JO SMITH) THE CHIEF FINANCIAL OFFICER: VOTE 8: HUMAN SETTLEMENTS (MR F DE WET) THE CHIEF FINANCIAL OFFICER: VOTE 9: ENVIRONMENTAL AFFAIRS AND DEVELOPMENT PLANNING (MR T GILDENHUYS) THE CHIEF FINANCIAL OFFICER: VOTE 10: TRANSPORT AND PUBLIC WORKS (ADV. C SMITH) THE CHIEF FINANCIAL OFFICER: VOTE 11: AGRICULTURE (MR F HUYSAMER) THE CHIEF FINANCIAL OFFICER: VOTE 12: ECONOMIC DEVELOPMENT AND TOURISM (MS M ABRAHAMS) THE CHIEF FINANCIAL OFFICER: VOTE 13: CULTURAL AFFAIRS AND SPORT (MS BG RUTGERS) THE CHIEF FINANCIAL OFFICER: VOTE 14: LOCAL GOVERNMENT (MS B SEWLALL-SINGH)

Private Bag X9165 CAPE TOWN 8000

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THE ACCOUNTING AUTHORITY: WESTERN CAPE GAMBLING AND RACING BOARD (MR T ARENDSE) THE ACCOUNTING AUTHORITY: WESTERN CAPE NATURE CONSERVATION BOARD (PROF. G MANEVELDT) THE ACCOUNTING AUTHORITY: WESTERN CAPE INVESTMENTS AND TRADE PROMOTION AGENCY (MR B FIGAJI) THE ACCOUNTING AUTHORITY: SALDANHA BAY IDZ LICENCING COMPANY (DR J STEGMANN) THE ACCOUNTING AUTHORITY: WESTERN CAPE CULTURAL COMMISSION (MS J MOLELEKI) THE ACCOUNTING AUTHORITY: WESTERN CAPE LANGUAGE COMMITTEE (MS J MOLELEKI) THE ACCOUNTING AUTHORITY: WESTERN CAPE HERITAGE (MR M DLAMUKA) THE ACCOUNTING AUTHORITY: CASIDRA (DR L COETZEE) THE ACCOUNTING AUTHORITY: WESTERN CAPE LIQUOR AUTHORITY (MR M JONES) THE CHIEF EXECUTIVE OFFICER: WESTERN CAPE GAMBLING AND RACING BOARD (MR P ABRAHAMS) THE CHIEF EXECUTIVE OFFICER: WESTERN CAPE NATURE CONSERVATION BOARD (DR R OMAR) THE CHIEF EXECUTIVE OFFICER: WESTERN CAPE INVESTMENTS AND TRADE PROMOTION AGENCY (MR T HARRIS) THE CHIEF EXECUTIVE OFFICER: SALDANHA BAY IDZ LICENCING COMPANY (MR D SOUTHGATE) (ACTING) THE CHIEF EXECUTIVE OFFICER: CASIDRA (MR M BRINKHUIS) THE CHIEF EXECUTIVE OFFICER: WESTERN CAPE LIQUOR AUTHORITY (DR L MDUNYELWA) THE CHIEF FINANCIAL OFFICER: WESTERN CAPE GAMBLING AND RACING BOARD (MS Z SIWA) THE CHIEF FINANCIAL OFFICER: WESTERN CAPE NATURE CONSERVATION BOARD (MR M BHAYAT) THE CHIEF FINANCIAL OFFICER: WESTERN CAPE INVESTMENTS AND TRADE PROMOTION AGENCY (MS K ZAMA) THE CHIEF FINANCIAL OFFICER: SALDANHA BAY IDZ LICENCING COMPANY (MR H BONESCHANS) THE CHIEF FINANCIAL OFFICER: WESTERN CAPE CULTURAL COMMISSION (MS B RUTGERS) THE CHIEF FINANCIAL OFFICER: WESTERN CAPE LANGUAGE COMMITTEE (MS B RUTGERS) THE CHIEF FINANCIAL OFFICER: WESTERN CAPE HERITAGE (MS B RUTGERS) THE CHIEF FINANCIAL OFFICER: CASIDRA (MR F VAN ZYL) THE CHIEF FINANCIAL OFFICER: WESTERN CAPE LIQUOR AUTHORITY (MS V LETSWALO) THE DIRECTOR: GOVERNMENT MOTOR TRANSPORT (MR R WIGGILL) THE HEAD OFFICIAL: PROVINCIAL TREASURY (MR Z HOOSAIN) THE DEPUTY DIRECTOR-GENERAL: FISCAL AND ECONOMIC SERVICES (MR H MALILA) THE DEPUTY DIRECTOR-GENERAL: GOVERNANCE AND ASSET MANAGEMENT (MR IG SMITH) (ACTING) THE CHIEF DIRECTOR: PUBLIC POLICY SERVICES (MR ML BOOYSEN) (ACTING) THE CHIEF DIRECTOR: PROVINCIAL GOVERNMENT PUBLIC FINANCE (MS JD GANTANA) THE CHIEF DIRECTOR: LOCAL GOVERNMENT PUBLIC FINANCE (VACANT) THE CHIEF DIRECTOR: ASSET MANAGEMENT (MS N EBRAHIM) (ACTING) THE CHIEF DIRECTOR: FINANCIAL GOVERNANCE AND ACCOUNTING (MR A HARDIEN) THE CHIEF FINANCIAL OFFICER (MS A SMIT) THE HEAD: OFFICE OF THE FINANCE MINISTRY (ADV. E PRETORIUS) THE DIRECTOR: BUSINESS INFORMATION AND DATA MANAGEMENT (MR PP PIENAAR) THE DIRECTOR: FINANCIAL GOVERNANCE (MS M VAN NIEKERK) THE DIRECTOR: FISCAL POLICY (DR N NLEYA) THE DIRECTOR: INFRASTRUCTURE (MR K LANGENHOVEN) THE DIRECTOR: LOCAL GOVERNMENT ACCOUNTING (MR L BRINDERS) THE DIRECTOR: LOCAL GOVERNMENT BUDGET OFFICE (MR D CRONJÉ) (ACTING) THE DIRECTOR: LOCAL GOVERNMENT REVENUE AND EXPENDITURE (GROUP ONE) (VACANT) THE DIRECTOR: LOCAL GOVERNMENT REVENUE AND EXPENDITURE (GROUP TWO) (MR M SIGABI) THE DIRECTOR: LOCAL GOVERNMENT SUPPLY CHAIN MANAGEMENT (MR R MOOLMAN) THE DIRECTOR: PROVINCIAL GOVERNMENT ACCOUNTING (MR A REDDY) THE DIRECTOR: PROVINCIAL GOVERNMENT BUDGET OFFICE (MS RH SLINGER) THE DIRECTOR: PROVINCIAL GOVERNMENT FINANCE (EXPENDITURE MANAGEMENT) (MS A PICK) THE DIRECTOR: PROVINCIAL GOVERNMENT SUPPLY CHAIN MANAGEMENT (MS T RAKIEP) (ACTING) THE DIRECTOR: STRATEGIC AND OPERATIONAL MANAGEMENT SUPPORT (MS R JULIE) (ACTING) THE DIRECTOR: SUPPORTING AND INTERLINKED FINANCIAL SYSTEMS (MR A MAZOMBA) THE PROVINCIAL AUDITOR MASTER RECORDS OFFICIAL: BUSINESS INFORMATION AND DATA MANAGEMENT THE DEPUTY DIRECTOR-GENERAL: CORPORATE ASSURANCE, DEPARTMENT OF THE PREMIER (MS H ROBSON)

NATIONAL TREASURY SCM CIRCULAR NO. 2 OF 2017/18

UTILISATION OF GCOMMERCE FOR PROCUREMENT OF COMPUTERS, LAPTOPS, PERIPHERALS AND CONSUMABLES ON SITA TRANSVERSAL CONTRACTS

1. PURPOSE

1.1 The purpose of this communique is to disseminate the Western Cape Provincial Government’s stance on the attached National Treasury (NT) SCM Circular No. 2 of 2017/18 (attached hereto marked Annexure A) which provide guidance to accounting officers and accounting authorities participating in SITA transversal contracts on the availability and utilisation of the gCommerce Transversal Sourcing Panel (TSP).

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1.2 To disseminate a formal letter from SITA dated 21 August 2018 (attached hereto marked Annexure B), received on 24 August 2018, which grants permission to all government departments and organs of state to deviate from utilising the gCommerce procurement portal for the procurement of ICT equipment and peripherals, for a period of seven months, effective from 1 September 2018 until 31 March 2019.

2. BACKGROUND

2.1 On 13 November 2017 the NT issued NT SCM Circular No. 2 of 2017/18, which stated the following under paragraph 6, commencement date: “the gCommerce Transversal Sourcing Panel is currently available and this circular supports the usage thereof”. Training and support was however not provided prior to the issuance of this circular which hampered implementation.

2.2 The Provincial Treasury therefore did not issue the circular to departments as the implementation approach was unclear, the necessary training was not provided upfront and the system was not fully functional.

2.3 A decision was taken to request training from SITA and test the system before implementing the requirements of the circular.

2.4 Various challenges were identified and further details are provided in paragraph 3 below.

2.5 SITA however issued the formal letter referenced in 1.2 above granting all government departments and organs of state permission to deviate from utilising gCommerce for procurement of computers, laptops, peripherals and consumables on SITA transversal contracts up to 31 March 2019.

2.6 A revised implementation approach is communicated in paragraph 4 of this letter.

3. TO NOTE

3.1 The following transpired since the issuance of the circular:

(a) Training was scheduled for 12 - 13 March 2018 at Nooiensfontein. SITA only arrived and trained officials on13 March 2018. The training did not have the desired impact and did not meet the intended outcomes as there were network glitches. Hence this necessitated another training session as articulated hereunder.

(b) Training was scheduled from 12 - 15 June 2018 and it was held at the following venues:

gCommerce Training Schedule

Date Venue Capacity

12 -13 June 2018 12th Floor, Golden Acre Mall, Cape Town CBD 10

12 -13 June 2018 13th Floor, Golden Acre Mall, Cape Town CBD 10

14 - 15 June 2018 12th Floor, Golden Acre Mall, Cape Town CBD 10

14 - 15 June 2018 13th Floor, Golden Acre Mall, Cape Town CBD 10

14 - 15 June 2018 CeI Lab, Cnr Belhar Road & Nooinsfontein Road, Kuilsriver 15

15 June 2018 CeI Lab, Cnr Belhar Road & Nooiensfontein Road, Kuilsriver 15

TOTAL NUMBER OF OFFICIALS 70

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(c) The training mentioned above in (b) was a success as there were fewer attendees and the facilitator provided individual attention.

(d) Subsequent to the training, the Provincial Treasury (PT) would issue a circular instructing departments to use the gCommerce system. However, the PT at first advised departments to work on the system for testing purposes and to forward their challenges to PT in order to determine whether the system is usable.

(e) The circular was not issued as there were various challenges experienced with the utilisation of the gCommerce live system that we needed to address with SITA.

(f) The range of the challenges reported by departments were as follows:

The contract number does not correspond with the contract numbers on the system;

The controls on the system are lacking (officials can see and edit transactions from other departments);

SITA updates the items (computers, laptops, peripherals and consumables) on the transversal contracts to the most recent version available;

When there is an upgrade, departments can only purchase the latest version of an item;

Any infrastructure hardware and software or new versions and models must meet certain standards set by Ce-I and must be approved by Ce-I review boards;

The system selects service providers not situated in the Western Cape even though there are service providers in the Western Cape who could provide the service; and

Communication with SITA proved to be challenging as enquiries remain unresolved or delayed responses were provided.

3.2 It is noted that the time between issuance and the effective date was not sufficient for the Western Cape Government (WCG) to conclude training and assess whether the system is working as intended and subsequently determine the way forward for implementation.

3.3 There was further no consultation process embarked upon by the National Treasury prior to the issuance of the circular.

3.4 Given the abovementioned context, should institutions receive any audit related queries in respect of the implementation of the circular, such queries must be responded to in consultation with the Provincial Treasury.

4. WAY FORWARD

4.1 The revised implementation approach has necessitated that SITA recall the current gCommerce Transversal Sourcing Panel system from the market and grant permission to all organs of state to utilise their own internal manual procurement processes to procure from the accredited panel of resellers under contract RFB: 2004, 2005 and 2006 and 2007 - 2015 up to 31 March 2019. This supports our impact assessment and reasons why PT has not issued the Circular.

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4.2 This arrangement shall remain effective until such time that SITA issues a new circular. However, it should be noted that SITA will continue to support clients accordingly. The gCommerce centralised support team will continue to provide necessary support as and when required by rendering the following services:

i. On-site end user training;

ii. On-site user hand holding; and

iii. End user system access.

4.3 Further communication regarding the gCommerce will be issued once received.

5. REQUEST

5.1 Accounting officers/accounting authorities are requested to:

a) Ensure that the content of the circular is brought to the attention of all relevant officials within their institution and public entities reporting to their executive authorities;

b) Any enquiries relating to this circular may be directed to:

SCM Helpdesk: SupplyChainManagement.HDPFMA@westerncape.gov.za

 

MS TASNEEM RAKIEP ACTING DIRECTOR: PROVINCIAL GOVERNMENT SUPPLY CHAIN MANAGEMENT DATE: 17 September 2018

national treasury Department:

National Treasury REPUBLIC OF SOUTH AFRICA

TO: ACCOUNTING OFFICERS OF DEPARTMENTS

HEAD OFFICIALS OF PROVINCIAL TREASURIES

NATIONAL TREASURY SCM CIRCULAR NO 2 OF 2017/18

UTILISATION OF GCOMMERCE FOR PROCUREMENT OF COMPUTERS, LAPTOPS,

PERIPHERALS AND CONSUMABLES ON SITA TRANSVERSAL CONTRACTS

1. PURPOSE

1.1 . The purpose of this SCM circular is to provide guidance to Accounting Officers

and Accounting Authorities participating in SITA Transversal Contracts on the

availability and utilisation of the gCommerce Transversal Sourcing Panel (TSP).

2. BACKGROUND

2.1. The Office of the Chief Procurement Officer (OCPO) at National Treasury, in

partnership with the State Information Technology Agency (SITA), has embarked

on an initiative of introducing modernisation measures to the procurement

landscape within Government through the use of technology.

2.2. The development of the gCommerce Transversal Sourcing Panel (TSP) platform

has been completed and the solution is being piloted at SIT A.

2.3. SITA, being the technology implementation partner of government, has been

tasked with the rollout of the gCommerce platform in support of modernisation

and automation of the SCM reforms programme.

2.4. National Treasury and SITA have launched the gCommerce Transversal

Sourcing Panel (TSP), a web based platform that will provide organs of state

with an automated process of procuring computers, laptops, peripherals

consumables and related services on SITA Transversal Contracts.

Annexure A

TRANSVERSAL SOURCING PANEL RFQ PROCESS

Role: Description:

Requestor:

Refers to a user that will be responsible for creating / generating a pro-

forma requisition for ICT related commodities or services.

System automatically sends the requisition to the authorised approver.

Request approver:

Once a pro-forma purchase requisition has been created by a Requestor, it

gets routed to a request approver who then has an option to either

approve or reject the said requisition.

The Pro-forma RFQ will then be generated and issued subject to approval.

Evaluation approver: The system runs an auto evaluation once the RFQ is closed. Then the

results of such would then be made available for the evaluation approver

for recommendation.

User functions

Create Requisition

STEP.2

Evaluation STEP.4

Recommend STEP.5

Purchase Requisition

STEP.7

Award STEP.6

Approve Requisition

STEP.3

Login STEP.1

Departmental Process

Evaluation

Approver

Evaluation

Approver

gCommerce ICT procurement process Step 1

– The Requestor must login to gCommerce and create the pro-forma requisition.

– Once captured it is queued in the pool of requisitions that must be approved by the Requisition Approver

Step 2

– Requisition Approver must login to gCommerce.

– Upon logging in, the Requisition Approver will find the queue all requisitions to be approved.

– review and approve the pro-forma requisition/s in the queue. Once the pro-forma requisition is approved, it is immediately published to the approved Resellers.

– Resellers have 24 hours within which to submit responses to the published pro-forma requisition.

– At the end of 24 hours, the will close and Resellers will no longer be able to submit responses.

– gCommerce will automatically rank responses received in terms of price and B-BBEE points and price.

gCommerce ICT procurement process

Step 3

– Evaluation Approver must logon to gCommerce to see the responses submitted by theResellers

– Where applicable the responses must be downloaded and presented to a bid evaluationcommittee for further evaluation

– In the case of procurement of ICT related services where the pro-forma requisition waspublished with Functionality evaluation criterion, the functionality evaluation must beperformed first before the system generated ranking is confirmed and an award is madeevaluate the responses.

– The recommendation of the Bid Evaluation Committee must be presented to theadjudication committee where applicable and the approval of the award be endorsed bythe delegated official.

– The award as approved by the delegated official must be captured by the Evaluationapprover on gCommerce.

gCommerce ICT procurement process

Step 4

– Requestor must log onto the gCommerce system and generate a requisition.

– After the requisition is generated then an order can be raised to the highest rankedsupplier.

– A purchase order will be raise on a Logis/BAS/Walker or any other reputable ERP usedby the institution.

Process Step 1 - Login

Process Step 1 – Requestor start to create a requisition

Process Step 2 – Approve Requisition Requisition Approver checks on workflow approval to retrieve the requisition

Process Step 3 – Evaluation

After requisition approved the requestor will activate the evaluation

Process Step 3 -Recommend The evaluation approver will retrieve the requisition and approve

h

Process Step 3 - Award

The system bundle the main offer with its selected option and the Requestor award to 1 supplier

Process Step 4 – Purchase Requisition Requestor can draw the requisition

RESTRICTED

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SITA SOC Ltd, 459 Tsitsa Street, Erasmuskloof, Pretoria, South Africa • PO Box 26100, Monument Park, 0105, South Africa Tel: +27 12 482 3000 • Fax +27 12 367 5151 • Reg. No 1999/001899/30 • www.sita.co.za

Our Ref: gCommerce Enquiries: CRM

Tel: +27 12 482 2549

Date: 2018-08-21

To: Accounting Officers

Chief Information Officers

Dear Accounting Officers

DEVIATION FROM UTILISATION OF gCOMMERCE FOR PROCUREMENT OF COMPUTERS, LAPTOPS, PERIPHERALS AND CONSUMABLES ON SITA TRANSVERSAL CONTRACTS

1. PURPOSE

The purpose of this circular is to grant permission to all government departments and organs of state

to deviate from utilising the gCommerce procurement portal for the procurement of ICT equipment

and peripherals, for a period of seven months, effective from 01 September 2018 until 31 March

2019.

2. BACKGROUND

At the beginning of 2016, SITA committed to delivering an e-commerce solution for government

aiming to support the National Treasury’s SCM reforms agenda of standardising, automating and

modernising the procurement functions of government. This was as a result of massive challenges

faced by many government departments and entities which largely led to a high level of non-

compliance to supply chain management legislation and policies. This manifestation of non-

compliance often results in disparate expenditure trends, lack in cost effectiveness and value for

money and collusive uncompetitive and non-transparent tender processes.

3. IMPLEMENTATION APPROACH

This implementation was a huge undertaking for SITA and it was never without challenges; however, it

has been a remarkable experience. SITA took appreciation of the current e-procurement tools that

exist and are used by the industry at large, which are under the management of NT OCPO. The focus

for SITA was to continue to avail and support these e-procurement platforms to government in order

to minimise disruption, thereby ensuring there is business continuity whilst working towards bringing

in a comprehensive and consolidated government e-procurement platform. However, this approach

proved to be marred with a lot of operational challenges as customer disappointments and complaints

came pouring in. Therefore, in our quest to ensure effective and efficient service delivery and high

levels of customer satisfaction, this necessitated a change in the implementation approach.

Directors: Mr ZD Nomvete (Chairman), Dr SJ Mohapi (Managing), Ms SH Chaba, Ms NN Ehrens, Ms NVB Magubane, Adv N Mahlangu, Ms MP Matlala, Mr JS Mngomezulu, Mr WN Mudau, Ms RC Rasikhinya, Mr MT Sadik, Mr GA Victor. Company Secretary: Mr TP Mongwe

Annexure B

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4. REVISED IMPLEMENTATION APPROACH

A revised approach on the implementation of this automated tool had to be looked at in order to

meet customer expectations. The approach was revised as follows:

i. Phase 1: The implementation of the eTender Portal and Buysite at National

Treasury, where Microsoft license contracts and SITA ICT Equipment and

Peripherals Transversal Contracts have been catalogued and loaded, will

continue to be availed via the portal but centralised to SITA for processing.

ii. Phase 2: Fine tune the implementation of the “vanilla” gCommerce

procurement portal platform at SITA, which comprises of all 15 modules that

SITA has since implemented on the SITA cloud infrastructure. In addition,

ensure that all SCM transactions are undertaken through this new platform

with the assistance of a centralised gCommerce team within SITA.

iii. Phase 3: Offer a fully tested gCommerce service offering to the Public Service

(National and Provincial), Local Government and State Owned Companies in

the new financial year 2019/2020, whereby customers will be able to transact

through the gCommerce procurement platform independently.

5. WAYFORWARD

This new approach has necessitated that SITA recall the current gCommerce Transversal Sourcing

Panel system from the market and grant permission to all organs of state to utilise their own internal

manual procurement processes to procure from the accredited panel of resellers under contract RFB:

2004, 2005, and 2006 AND 2007/2015. This arrangement shall remain effective until such time that

SITA issues a new circular.

However, it should be noted that SITA will continue to support clients accordingly. The gCommerce centralised support team will continue to provide necessary support as and when required by rendering the following services:

i. On-site End user Training; ii. On-site User hand holding; and iii. End User System Access

6. APPLICABILITY

This circular is issued to provide guidance to all government departments and organs of state

participating on SITA transversal contracts i.e. RFB 2004, 2005, 2006/2015 and RFB 2007/2015.

Yours sincerely

…………………………………………..

Dr Setumo Mohapi

Chief Executive Officer

pp

national treasury Department:

National Treasury REPUBLIC OF SOUTH AFRICA

TO: ACCOUNTING OFFICERS OF DEPARTMENTS

HEAD OFFICIALS OF PROVINCIAL TREASURIES

NATIONAL TREASURY SCM CIRCULAR NO 2 OF 2017/18

UTILISATION OF GCOMMERCE FOR PROCUREMENT OF COMPUTERS, LAPTOPS,

PERIPHERALS AND CONSUMABLES ON SITA TRANSVERSAL CONTRACTS

1. PURPOSE

1.1 . The purpose of this SCM circular is to provide guidance to Accounting Officers

and Accounting Authorities participating in SITA Transversal Contracts on the

availability and utilisation of the gCommerce Transversal Sourcing Panel (TSP).

2. BACKGROUND

2.1. The Office of the Chief Procurement Officer (OCPO) at National Treasury, in

partnership with the State Information Technology Agency (SITA), has embarked

on an initiative of introducing modernisation measures to the procurement

landscape within Government through the use of technology.

2.2. The development of the gCommerce Transversal Sourcing Panel (TSP) platform

has been completed and the solution is being piloted at SIT A.

2.3. SITA, being the technology implementation partner of government, has been

tasked with the rollout of the gCommerce platform in support of modernisation

and automation of the SCM reforms programme.

2.4. National Treasury and SITA have launched the gCommerce Transversal

Sourcing Panel (TSP), a web based platform that will provide organs of state

with an automated process of procuring computers, laptops, peripherals

consumables and related services on SITA Transversal Contracts.

Annexure A

TRANSVERSAL SOURCING PANEL RFQ PROCESS

Role: Description:

Requestor:

Refers to a user that will be responsible for creating / generating a pro-

forma requisition for ICT related commodities or services.

System automatically sends the requisition to the authorised approver.

Request approver:

Once a pro-forma purchase requisition has been created by a Requestor, it

gets routed to a request approver who then has an option to either

approve or reject the said requisition.

The Pro-forma RFQ will then be generated and issued subject to approval.

Evaluation approver: The system runs an auto evaluation once the RFQ is closed. Then the

results of such would then be made available for the evaluation approver

for recommendation.

User functions

Create Requisition

STEP.2

Evaluation STEP.4

Recommend STEP.5

Purchase Requisition

STEP.7

Award STEP.6

Approve Requisition

STEP.3

Login STEP.1

Departmental Process

Evaluation

Approver

Evaluation

Approver

gCommerce ICT procurement process Step 1

– The Requestor must login to gCommerce and create the pro-forma requisition.

– Once captured it is queued in the pool of requisitions that must be approved by the Requisition Approver

Step 2

– Requisition Approver must login to gCommerce.

– Upon logging in, the Requisition Approver will find the queue all requisitions to be approved.

– review and approve the pro-forma requisition/s in the queue. Once the pro-forma requisition is approved, it is immediately published to the approved Resellers.

– Resellers have 24 hours within which to submit responses to the published pro-forma requisition.

– At the end of 24 hours, the will close and Resellers will no longer be able to submit responses.

– gCommerce will automatically rank responses received in terms of price and B-BBEE points and price.

gCommerce ICT procurement process

Step 3

– Evaluation Approver must logon to gCommerce to see the responses submitted by theResellers

– Where applicable the responses must be downloaded and presented to a bid evaluationcommittee for further evaluation

– In the case of procurement of ICT related services where the pro-forma requisition waspublished with Functionality evaluation criterion, the functionality evaluation must beperformed first before the system generated ranking is confirmed and an award is madeevaluate the responses.

– The recommendation of the Bid Evaluation Committee must be presented to theadjudication committee where applicable and the approval of the award be endorsed bythe delegated official.

– The award as approved by the delegated official must be captured by the Evaluationapprover on gCommerce.

gCommerce ICT procurement process

Step 4

– Requestor must log onto the gCommerce system and generate a requisition.

– After the requisition is generated then an order can be raised to the highest rankedsupplier.

– A purchase order will be raise on a Logis/BAS/Walker or any other reputable ERP usedby the institution.

Process Step 1 - Login

Process Step 1 – Requestor start to create a requisition

Process Step 2 – Approve Requisition Requisition Approver checks on workflow approval to retrieve the requisition

Process Step 3 – Evaluation

After requisition approved the requestor will activate the evaluation

Process Step 3 -Recommend The evaluation approver will retrieve the requisition and approve

h

Process Step 3 - Award

The system bundle the main offer with its selected option and the Requestor award to 1 supplier

Process Step 4 – Purchase Requisition Requestor can draw the requisition

RESTRICTED

RESTRICTED 1

SITA SOC Ltd, 459 Tsitsa Street, Erasmuskloof, Pretoria, South Africa • PO Box 26100, Monument Park, 0105, South Africa Tel: +27 12 482 3000 • Fax +27 12 367 5151 • Reg. No 1999/001899/30 • www.sita.co.za

Our Ref: gCommerce Enquiries: CRM

Tel: +27 12 482 2549

Date: 2018-08-21

To: Accounting Officers

Chief Information Officers

Dear Accounting Officers

DEVIATION FROM UTILISATION OF gCOMMERCE FOR PROCUREMENT OF COMPUTERS, LAPTOPS, PERIPHERALS AND CONSUMABLES ON SITA TRANSVERSAL CONTRACTS

1. PURPOSE

The purpose of this circular is to grant permission to all government departments and organs of state

to deviate from utilising the gCommerce procurement portal for the procurement of ICT equipment

and peripherals, for a period of seven months, effective from 01 September 2018 until 31 March

2019.

2. BACKGROUND

At the beginning of 2016, SITA committed to delivering an e-commerce solution for government

aiming to support the National Treasury’s SCM reforms agenda of standardising, automating and

modernising the procurement functions of government. This was as a result of massive challenges

faced by many government departments and entities which largely led to a high level of non-

compliance to supply chain management legislation and policies. This manifestation of non-

compliance often results in disparate expenditure trends, lack in cost effectiveness and value for

money and collusive uncompetitive and non-transparent tender processes.

3. IMPLEMENTATION APPROACH

This implementation was a huge undertaking for SITA and it was never without challenges; however, it

has been a remarkable experience. SITA took appreciation of the current e-procurement tools that

exist and are used by the industry at large, which are under the management of NT OCPO. The focus

for SITA was to continue to avail and support these e-procurement platforms to government in order

to minimise disruption, thereby ensuring there is business continuity whilst working towards bringing

in a comprehensive and consolidated government e-procurement platform. However, this approach

proved to be marred with a lot of operational challenges as customer disappointments and complaints

came pouring in. Therefore, in our quest to ensure effective and efficient service delivery and high

levels of customer satisfaction, this necessitated a change in the implementation approach.

Directors: Mr ZD Nomvete (Chairman), Dr SJ Mohapi (Managing), Ms SH Chaba, Ms NN Ehrens, Ms NVB Magubane, Adv N Mahlangu, Ms MP Matlala, Mr JS Mngomezulu, Mr WN Mudau, Ms RC Rasikhinya, Mr MT Sadik, Mr GA Victor. Company Secretary: Mr TP Mongwe

Annexure B

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4. REVISED IMPLEMENTATION APPROACH

A revised approach on the implementation of this automated tool had to be looked at in order to

meet customer expectations. The approach was revised as follows:

i. Phase 1: The implementation of the eTender Portal and Buysite at National

Treasury, where Microsoft license contracts and SITA ICT Equipment and

Peripherals Transversal Contracts have been catalogued and loaded, will

continue to be availed via the portal but centralised to SITA for processing.

ii. Phase 2: Fine tune the implementation of the “vanilla” gCommerce

procurement portal platform at SITA, which comprises of all 15 modules that

SITA has since implemented on the SITA cloud infrastructure. In addition,

ensure that all SCM transactions are undertaken through this new platform

with the assistance of a centralised gCommerce team within SITA.

iii. Phase 3: Offer a fully tested gCommerce service offering to the Public Service

(National and Provincial), Local Government and State Owned Companies in

the new financial year 2019/2020, whereby customers will be able to transact

through the gCommerce procurement platform independently.

5. WAYFORWARD

This new approach has necessitated that SITA recall the current gCommerce Transversal Sourcing

Panel system from the market and grant permission to all organs of state to utilise their own internal

manual procurement processes to procure from the accredited panel of resellers under contract RFB:

2004, 2005, and 2006 AND 2007/2015. This arrangement shall remain effective until such time that

SITA issues a new circular.

However, it should be noted that SITA will continue to support clients accordingly. The gCommerce centralised support team will continue to provide necessary support as and when required by rendering the following services:

i. On-site End user Training; ii. On-site User hand holding; and iii. End User System Access

6. APPLICABILITY

This circular is issued to provide guidance to all government departments and organs of state

participating on SITA transversal contracts i.e. RFB 2004, 2005, 2006/2015 and RFB 2007/2015.

Yours sincerely

…………………………………………..

Dr Setumo Mohapi

Chief Executive Officer

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