Kwa ZuluNatal Department of Public Works PROVINCE OF
Kwa. Zulu-Natal Department of Public Works PROVINCE OF KWAZULU-NATAL PRESENTATION: BREAKFAST BRIEFING MEETING WITH BUILT ENVIRONMENT PROFESSIONALS: 2009/07/07 1 Presentation by: NN Vilakazi
BACKGROUND: l l For years DPW was utisiling Roster System, well known as “Roster”, for procurement of Professional service providers i. e. Architects, QS, Engineers etc. The consultants roster had the following shortcomings. – – l 2 Dominated by non targeted groups, Not aligned with Procurement Legislations, BBBEE, CIDB etc. A new system (PSP) for procurement of Professional Service Provider’s services, which is aligned to the Government mandate was therefore developed. Presentation by: NN Vilakazi
PURPOSE: The establishment of a roster system for the procurement of Professional Service Providers for appointments up to R 1, 500, 000. 00 including Value-Added Tax, which will address the Policy Strategies and Reform Processes issued by the National Treasury and adopted by the Kwa. Zulu-Natal Department of Public Works Policy Development and Control Division. 3 Presentation by: NN Vilakazi
POLICY STRATEGY AND REFORM PROCESSES: l l l 4 To adopt a supply chain management function and a systematic competitive procedure for the appointment of Professional Service Providers To adopt Procurement Procedures provided for in the CIDB Standard for Uniformity in Construction Procurement To embrace the Kwa. Zulu-Natal BBBEE strategy in respect of empowerment of target group enterprises through preferential procurement Presentation by: NN Vilakazi
FORMATION: l l 5 The compilation of an up to date database of Professional Service Providers registered within the Service Categories for which they qualify The implementation of the roster system to operate in alignment with the Standard Procurement Policies and Procedures adopted by the Kwa. Zulu-Natal Department of Public Works Presentation by: NN Vilakazi
OBJECTIVES: l l l 6 To ensure the database of qualified Professional Service Providers is up to date To simplify, automate and standardise the procurement procedures To ensure consistent, fair, equitable, transparent and cost effective procurement procedures To align with Kwa. Zulu-Natal BBBEE Strategies To facilitate short time frames in the tendering process To increase the utilisation of targeted groups Presentation by: NN Vilakazi
SCOPE: l l l l 7 Architectural Services Construction Services Dispute Resolution Engineering Services Environmental Impact Studies Landscape Architectural Services Management Services Quantity Surveying Services Surveying Transportation Planning Town Planning Valuations Arbitrations Presentation by: NN Vilakazi
TERMS OF REFERENCE: 8 DPW/ Ron Watermeyer Procedures For The Appointment Of Professional Service Providers 6 August, 2006 (fourth draft) Ron Watermeyer DISCUSSION PAPER: The Proposed CIDB System For The Competitive Selection Of Professional Service Providers (November 2007) Ron Watermeyer Recently Launched National Standards For Construction Procurement South African National Standards Implementing Preferential Construction Procurement Policies Using Targeted Procurement Procedures SANS 10396: 2003 Edition 1 2003 KZN Dept of Works Standardized Construction Procurement Documents For Professional Services (August 2006) KZN Dept of Works KZN BBBEE Strategy KZN Dept of Works Service providers briefing meeting Dept of Trade & Industry Construction Sector Charter On Black Economic Empowerment Notice 111 of 2007 Government Gazette No. 29616 Version 6 (Final) 09 February 2007 Presentation by: NN Vilakazi
TERMS OF REFERENCE … (continued) 9 CIDB Standard Professional Services Contract (Second Edition of CIDB document 1014) (September 2005) CIDB Standard For Uniformity In Construction Procurement Board Notice 94 of 2006 (Government Gazette No. 29138 of 18 August 2006) 06 August 2008 CIDB Scaling Up Delivery And Accelerating Empowerment Practice Note # 1 (Version 1 - August 2006) 06 August 2008 CIDB Procuring Best Value In Construction Works Practice Note # 4 (Version 1 - May 2007) 07 May 2008 CIDB Evaluating Tender Offers Practice Note # 5 (Version 1 – May 2007) 07 May 2008 CIDB Competitive Selection Of Professional Service Providers Practice Note # 6 (Version 1 - May 2007) 07 May 2008 CIDB Code Of Conduct For All Parties Engaged In Construction Procurement - In Terms Of The Construction Industry Development Board Act (Act no. 38 of 2000) 03 October 2008 CIDB Construction Procurement Best Practice (Act no. 38 of 2000) Government Gazette No. 26427 Notice 63 Of 2004 09 June 2004 Presentation by: NN Vilakazi
DURATION: l l l 10 Registration will be valid for a period to be determined by the Department. Changes of particulars relevant to registration status will be required during the life of programme Renewal of Registration will be required on expiry of the programme. Presentation by: NN Vilakazi
ELIGIBILITY: 1. 2. 3. 4. 11 Primary business is to provide independent professional services 50% of the principals to be registered Professionals At least one full time professional employee suitably qualified and registered in the required Service area Have an office in the Kwa. Zulu-Natal Province manned by at least one full time person Presentation by: NN Vilakazi
ELIGIBILITY … (continued) ELIGIBILITY 5. 6. 7. 8. 9. 12 Original Tax Clearance Certificate Registered on the KZN Suppliers Database/ ZNT No. Proof of Professional Indemnity Cover Demonstrate sustained economic activity Provide a documented Quality Management System Presentation by: NN Vilakazi
ELIGIBILITY … (continued) ELIGIBILITY 10. 11. 12. 13. 13 Not be listed on the Register of Tender Defaulters Not have abused the Supply Chain Management System or failed to perform on any previous contract. Free of potential conflicts of interest Submit all relevant supporting documents required. Presentation by: NN Vilakazi
ADMISSION: The initial information submitted in the “Application Form for Registration on the Professional Service Providers Electronic Database” and the supporting documents will be evaluated by the Departmental Evaluation Committee, approved by the Bid Awards Committee and validated by the Accounting Officer. An applicant will only be admitted to the electronic database when all the requirements as stated in the eligibility criteria have been complied with. Going forward: The application will be submitted to the CCM directorate for screen and onward submission to AOCC for approval to be in the database, attached registration form. PSPApplicationfor. Registration. Vers 1(2) (2). doc. 14 Presentation by: NN Vilakazi
PROCUREMENT PROCEDURES: l Nominated (Negotiated) Procedure l Nominated (Shortlist) Procedure l Approach the Market 15 Presentation by: NN Vilakazi
Nominated (Negotiated) Procedure: Roster 1: The selection process shall identify a single Professional Service Provider to negotiate a contract having an estimated fee per discipline not exceeding R 500 000 including VAT. 16 Presentation by: NN Vilakazi
Nominated (Shortlist) Procedure: Roster 2: The selection process shall identify five Professional Service Providers from which to invite tender offers where the estimated fee per discipline exceeds R 500 000 including VAT but is less than or equal to R 1 500 000 including VAT. 17 Presentation by: NN Vilakazi
Approach the Market: Open Market: Where the value of estimated fees per discipline is over R 1 500 000 including VAT, the selection process shall be outside of the Professional Service Providers Roster. The Open Market Procedure will be stipulated as the procurement procedure. 18 Presentation by: NN Vilakazi
CRITERIA FOR SELECTION: l Service Type l Geographic Location of Offices l Ratio of Appointments to Date (Fee Value) l EPWP Eligibility where required 19 Presentation by: NN Vilakazi
Service Areas: The default Service shall be the Service Type: l Service Area (e. g. ENGINEERING SERVICES) l Service Type (e. g. Civil Engineering Services) l Service Category (e. g. C 01, C 02, C 03, etc. ) 20 Presentation by: NN Vilakazi
Geographic Location: The default location shall be the municipality where the project is located: l. MUNICIPALITY l. MUNICIPAL DISTRICT l. REGION Note: Start from Municipality instead of Town in-order to increase the base/ accommodate more service providers. 21 Presentation by: NN Vilakazi
Appointments to Date (Fee Value): The Professional Services Providers appointments to date are measured as a ratio of an amount set as the Fees Value Ceiling Per Annum for comparative scoring purposes. 22 Presentation by: NN Vilakazi
EPWP Eligibility where required: NQF level 7 unit standard “Develop and NQF 7 Promote Labour Intensive Construction Strategies NQF level 5 unit standard “Manage NQF 5 labour intensive Construction Projects Note: The EPWP compliance has not been implemented 23 Presentation by: NN Vilakazi
SELECTION SCORING: 24 Maximum Ceiling Value Maximum No of Positions Maximum Proximity Weighting Factor 3, 000. 00 6 3 1 1 1 Position on Roster Proximity to Site Ceiling Value Point Score Position Point Score Proximity Point Score Total Point Score Service Type Consultant Appointment Fees to Date Civil Engineer Consultant F 150, 000. 00 2 3 0. 95 0. 67 1. 00 2. 62 Civil Technologist Consultant C 1, 450, 000. 00 1 2 0. 52 0. 83 0. 67 2. 02 Civil Engineer Consultant E 900, 000. 00 5 3 0. 70 0. 17 1. 00 1. 87 Civil Technologist Consultant A 450, 000. 00 3 1 0. 85 0. 50 0. 33 1. 68 Civil Engineer Consultant B 250, 000. 00 6 2 0. 92 0. 00 0. 67 1. 58 Civil Technologist Consultant D 330, 000. 00 4 1 0. 89 0. 33 1. 56 Presentation by: NN Vilakazi
ACCELERATED ROTATION: ACCELERATED ROTATION The rotation of the Professional Service Providers in the electronic database will be structured so as to accelerate the rotation of the targeted groups and thereby increase the utilisation of targeted groups in the procurement of professional services 25 Presentation by: NN Vilakazi
PROCUREMENT TARGETS: EQUITY OWNERSHIP Points Female = 40 Male = 20 Female = 10 Male = 10 Female = 5 Male = 0 Disabled = 5 Youth = 10 Black Africans Black, Coloured, Asian White 26 100 Presentation by: NN Vilakazi
TARGET GROUPS: The electronic database is programmed to rotate in such a manner that those Professional Service Providers that fall within the target groups (Level 1 to 4) rotate at a faster rate than those that are not (Level 5). The rotation is determined by the roster position which is calculated using the rotation formula 27 Presentation by: NN Vilakazi
PREFERENCE LEVELS Empowerment status applied for: 28 Level 1: Total score of 45 points and above Level 2: Total score of 30 points and above but less than 45 points Level 3: Total score of 15 points and above but less than 30 points Level 4: Total score of 5 points and above but less than 15 points Level 5: Total score of less than 5 points Presentation by: NN Vilakazi
ROSTER POSITIONS: Total Number of PSP's on Roster Number of Preferred PSP's on Roster 29 100 10 20 30 40 50 60 70 80 90 100 Drops to Position on Roster after tender opportunity: Position from the top: Weighting factor Level 1 1. 00 30 40 50 60 72 85 100 100 Weighting factor Level 2 1. 30 39 53 65 78 93 100 100 100 Weighting factor Level 3 1. 60 49 65 80 97 100 100 100 Weighting factor Level 4 1. 90 58 77 95 100 100 Presentation by: NN Vilakazi
ROTATION FORMULA* N = Position on roster from top =T*A/100*W for N = Maximum of T where * 30 NTE = Total number of preferred active PSP's on database T = Total number of active PSP's on database A = =100/(6. 01 -1. 18*LN((NTE*100)/T)) A Min for A = Minimum 20 A Max for A = Maximum 100 W = Weighting factor SANS 10396: 2003 Implementing preferential construction procurement policies using targeted procurement procedures 5. 2. 8 Electronic rotating databases (rosters) Presentation by: NN Vilakazi
WEIGHTING FACTORS: WEIGHTING FACTORS The target groups / levels of Professional Service Providers will be rotated according to the weighting factor applied to that level: Level 1 1. 0 Level 2 1. 3 Level 3 1. 6 Level 4 1. 9 31 Presentation by: NN Vilakazi
RATE OF ROTATION: Total Number of PSP's on Roster 100 Number of Preferred PSP's on Roster 32 10 20 30 40 50 60 70 80 90 100 Weighting factor Level 1 1. 00 3. 3 2. 5 2. 0 1. 7 1. 4 1. 2 1. 0 Weighting factor Level 2 1. 30 2. 5 1. 9 1. 5 1. 3 1. 1 1. 0 1. 0 Weighting factor Level 3 1. 60 2. 1 1. 5 1. 2 1. 0 1. 0 Weighting factor Level 4 1. 90 1. 7 1. 3 1. 1 1. 0 1. 0 Presentation by: NN Vilakazi
EVALUATION OF TENDER OFFERS: Nominated (Negotiated) Procedure Guideline tariff of fees published by councils such as ECSA may be used either as a basis to establish the reasonableness of the tender offer or as the basis for tendering, in which case, tenderers will be required to tender a percentage deviation from published guideline tariffs. 33 Presentation by: NN Vilakazi
EVALUATION OF TENDER OFFERS Nominated (Shortlist) Procedure The requirements set out in the Preferential Procurement Policy Framework Act (PPPFA) will apply to the evaluation of tender offers 34 Presentation by: NN Vilakazi
CONDITIONS OF CONTRACT: CONDITIONS OF CONTRACT l. The Conditions of Contract and Procedures under which professional Service Providers are commissioned shall be in accordance with the Department of Works Standard Documents. – CIDB Standard Conditions of Contract, l – – Appointment letter with milestones and timelines. PSP bid document l 35 Standard contract proc_doc_cidb_services_edition_2. pdf SPD-professional services-KZN-2009 (2). doc Presentation by: NN Vilakazi
DEFAULT AND PENALTIES: Normal Projects A penalty will be levied for poor performance or failure to meet a submission date as set out in the letter of appointment of 0. 1% subject to a maximum amount of the total fees payable per stage. Special High Priority Projects A penalty will be levied for poor performance or failure to meet a submission date as set out in the letter of appointment of 0. 25% subject to a maximum amount of 50% of the total fees payable. 36 Presentation by: NN Vilakazi
APPLICATIONS… l l l 37 241 Enterprises 318 Branch Offices 765 Principals 1706 Registered Professionals 8012 Service Categories Presentation by: NN Vilakazi
Continued… Equity Ownership Percentage 38 HDI Black (Coloured / Indian / Asian) 54. 33% HDI (Women) 14. 67% HDI (Disabled) 1. 58% Youth 13. 19% (PPG) 43. 30% Presentation by: NN Vilakazi
SERVICE TYPES: Service Type Architectural Services 79 Construction Services 55 Dispute Resolution 76 Engineering Services: - Civil Engineering Services 99 - Electrical Engineering 36 - Geotechnical Engineering 35 - Mechanical Engineering 32 - Miscellaneous Engineering Services 47 - Structural Engineering 83 Environmental Impact Studies Landscape Architectural Services Management Services Quantity Surveying Services Surveying 39 No. 29 8 199 89 9 Town Planning 17 Transportation Planning 15 Presentation by: NN Vilakazi
TARGETED PREFERENCE LEVELS: Level 40 Score No. % 1 Total score of 45 points and above 14 5. 81% 2 Total score of 30 points and above but less than 45 points 68 28. 22% 3 Total score of 15 points and above but less than 30 points 32 13. 28% 4 Total score of 5 points and above but less than 15 points 29 12. 03% 5 Total score of less than 5 points 98 40. 66% Presentation by: NN Vilakazi
PROGRESS TO-DATE: 41 Milestone Progress Development of PSP Policy & Application form Done in 2008/09 Closing date for registration May 2008 Advertisement, Briefing Workshops Done, March - August 2008 Screening, Evaluation & Adjudication by Departmental committees August –December 2008 Development of IT software Done, March 2009 Development and adoption of Procedure document, standard contract documents Done, April 2009 Programme testing Done Programme presentation Done, AOCC meetings Presentation by: NN Vilakazi
PENDING ISSUES: Milestone Progress Registration of late applications l ± 100 Received to-date. l Submission to next AOCC by end July 2009. Use of Professional Technologist l Pending l Engage CBE & ESCA in July 2009 Breakfast briefing meeting/ Launch 42 Scheduled for the 07 th July 2009. Presentation by: NN Vilakazi
NGIYABONGA/ THANK YOU 43 Presentation by: NN Vilakazi
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