Transversal Contracting in Government Procurement: Enhancing Efficiency and Cost Savings
The Office of the Chief Procurement Officer in South Africa oversees transversal contracting to streamline government procurement processes, promote cost savings, and achieve socio-economic objectives. By facilitating strategic procurement practices and ensuring compliance with regulatory frameworks, transversal contracts benefit various sectors while fostering transparency and accountability.
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PRESENTED BY: JOHNNY RAMOROKA & PEACE GUMEDE TRANSVERSAL CONTRACTS INFORMATION TRANSVERSAL CONTRACTING Office of the Chief Procurement Officer 12 JUNE 2024 TRANSVERSAL CONTRACTING
2 Table of Content Background OCPO Structure Mandate of the Transversal Contracting List of Transversal Contracts Benefits of Transversal Contracts Transversal Contracts Information on NT Website
3 OFFICE OF THE CHIEF PROCUREMENT OFFICER STRUCTURE Background Annually, the South African government is the largest buyer in the country as it spends over R500 billion on goods, services, and construction works through over 1000 procuring state entities. This is an enormous amount of money. Wisely and efficiently spent, it can be a great force for good. It can ensure that those in need receive services, that health facilities are capacitated, that infrastructure like roads and ports are built and maintained, that schools are well-equipped, and that health services are widely available.
4 OCPO STRUCTURE Transversal Contracting- Facilitate and manage government transversal contracts so that cost savings and socio-economic objectives are achieved. Governance, Monitoring, and Compliance - Oversee and monitor government sector procurement practices to ensure compliance within the regulatory framework. Strategic Procurement - Conduct research, develop, and implement strategic procurement practices so that cost savings and socio-economic objectives are achieved. Information and Communication Technology - Developing and enhancing state procurement ICT systems, solutions, and tools (including the IFMS procurement module) Policy & Norms and Standards - Manage and maintain the relevant regulatory environment for government procurement practices. Stakeholders & Clients Management - Provides engagement platforms and environment for SCM developments for internal and external stakeholders/ clients.
5 TRANSVERSAL CONTRACTING Legislative Mandate Treasury Regulations 16A6.5 provides that: The accounting officer or accounting authority may opt to participate in transversal term contracts facilitated by the relevant treasury. 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. This section is only applicable to National and Provincial departments, constitutional institutions, schedule 3A and 3C public entities The Public entities listed in schedules 2, 3B, and 3D to the PFMA, may participate through approval from their accounting authorities. Municipalities may participate in terms of Regulation 32 of the Municipal SCM regulations.
6 TRANSVERSAL CONTRACTS Category Estimated Contract Values # TC Contracts Vehicle and Fleet Services R32 836 040 172,35 15 Health R15 688 107 639,63 30 Agriculture R4 516 077 998,00 4 ICT R3 430 695 423,80 2 Textile and Footware R451 276 963,00 4 Education R427 600 000,00 3 Professional Services R311 020 000,00 2 Total R57 660 818 196,78 60
7 TRANSVERSAL CONTRACTS Estimated Contract Values Vehicle and Fleet Services ICT 6% Agriculture 8% Health Agriculture ICT Vehicle and Fleet Services 57% Health 27% Textile and Footware Education Professional Services
8 Transversal Contracts: Vehicle & Fleet Services TC Contracts # Items 1532394 Vehicle 221 Vehicles 18 Fleet vehicle maintenance (Pool) 1451913 Automotive Parts 920 Vehicle Branding 1 Insurance for subsidized vehicles 5 Subsidized vehicle flee 31 Financing of subsidized vehicles 76272 200 2813 1030 1010 Tyres and tubes Petrol and diesel Lubricating oil Transportation Courier services Transportation of cargo 20
9 Transversal Contracts: Health Contracts TC Contracts # Items Assistive Devices Hearing aids Wheelchairs Speech Therapy Assistive Devices Crutches and walking aids Equipments Therapeutic Rehabilitation Equipment Medical equipment 2744 912 1028 771 33 1010 217 132 Hospital furniture and ward requirements 141 Emergency and Rescue Equipment Mental Health Equipment Dental equipment Instruments Surgical instruments Dental Instruments Services Medical male circumcision (MMC) Medical oxygen: Home patients 251 248 21 647 287 360 26 23 3
10 Transversal Contracts: Health Contracts TC Contracts # Items Consumables Medical and Industrial Gases Bandages and dressings Surgical sundries Condoms and lubrication Surgical catheters Infant and Enteral feed Sterilization related items Rapid HIV test kits Surgical sutures and ligatures Surgical and exam gloves Dental consumables Administration Accessories Pharmaceutical Packaging Material Respiratory aids Radiographic material Hypodermic syringes 3217 36 405 174 12 179 91 78 4 296 53 1277 56 28 320 115 93
11 Transversal Contracts: Agriculture and Textile TC Contracts # Items Agriculture 705 221 Veterinary remedies 219 Animal feed 249 Agricultural remedies 16 Toilet paper and paper towels Textile 420 25 Blankets and household textiles 49 Fabric Footwear 106 240 Clothing
12 BENEFITS OF TRANSVERSAL CONTRACTS To bargain in terms of economies of scale. To procure cost effective products that do not compromise functionality. To procure quality products of the latest technology.
13 GENERAL TRANSVERSAL CONTRACTS INFORMATION End-users and Suppliers may obtain more information about transversal contract on the National Treasury (NT) Website: https://www.treasury.gov.za/divisions/ocpo/ostb/contracts/default.aspx The contact information for each contract a manager is available on the NT website End-users are advised to include the transversal contract number e.g RT57- 2022 when sending the enquiry to NT. Chief Directorate consist of two teams: Demand and Acquisition and Contract Management Organs of State who wish to request to participate on the transversal need to send the email to the relevant contract manager, the process to be approved after sending the fully completed the participation takes 3 to 7 working days depending on the contract. Organs of State who are participants or wish to participate on the transversal contract needs to read the special conditions of contract to understand the engagement model of each contract as the engagement models for each contract differs.
