About
Subscribe

Procurement for Government

Johannesburg, 05 May 2000

SITA Chairperson in his Foreword to the Draft "whole-of-government" IT Procurement explains the situation with regard to Governments' procurement of IT resources in short. He wrote that the South African Government is one of the largest single purchasers of information technology products and services in South Africa, spending in excess of R 2 billion every year. The South African Government is keenly that its procurement policies and practices have the potential to influence the economy.

The "Whole-of-government" IT procurement statement is a framework to use the Government's influential position in the market place to promote its economic and social goals, and obtain best value for the taxpayers' money.

The initiatives mean a total overhaul of the way government does its procurement to achieve best practice by government departments and lift the productivity of local business enterprises. It is a key goal to improve opportunities for local industry to compete for government business.

The policy statement for IT procurement was developed after consulting widely on the issues and initiatives canvassed in the draft Policy Statement for SITA Procurement, draft Code of Practice for Government IT Procurement and Green Paper on Public Sector Procurement Reform in South Africa released in April 1997.

It is now up to SITA and industry participants to work together to put these policy objectives into effect, strengthening industry development for the long term in South Africa.

SITA is proposing that all IT procurement for the entire government be done by SITA to achieve the objectives of:

  • cost effective service delivery to the community;

  • reduced cost of doing business;

  • better industry performance with emphasis on regional development;

  • socially responsible business practices ; and

  • improved business relationships through a procurement process that is consistent and transparent.

The SITA Tender Board (STB) will be critical to the success of IT procurement for government. It will monitor adherence to the Code of Practice and associated codes, provide advice to Government and support to departments in their initiatives, and bring consistency into the procurement process. As consulted with government departments, local suppliers, manufacturers, industry organisations, trade unions and other stakeholders.

The Procurement policy will apply on a whole-of-government basis and it involves all government departments, organs of state and commercial entities who wish to do business with the SITA and the South African Government. The policy is an overarching framework for all government IT procurement.

The philosophy behind SITA's procurement policy rests on four key principles. They are:

  • Value for money, including:

  • cost of the goods and service and/or infrastructure (including whole of life costing such as quality, performance, maintenance and disposal);

  • enhancement of local business and industry and regional development, and;

  • social and environmental responsibilities including environmental protection, Black Economic Empowerment, and equal employment opportunity;

  • Efficiency and effectiveness;

  • Probity and equity; and

  • Effective competition.

The policy have been submitted to Cabinet for further consultation an final approval on 16 May 2000. It is not known when the policy will be approved and when SITA will become the soul IT procurer for the whole of government.

Share