Finance Deviations from Supply Chain Management Policy: (5/16/1/2) (CFO)
STRICTLY CONFIDENTIAL
Executive Summary
SUBMISSION TO / : / Mayoral Committee & CouncilDIVISION REQUESTING THE SUBMISSION / : / Finance Department(SCM)
TITLE OF THE SUBMISSION
Finance Deviations from Supply Chain Management Policy: (5/16/1/2) (CFO)
1.SOLUTION REQUIRED
Strategy EndorsementCommercial Options
Approval
Information / X
2.PURPOSE
To inform Council of the deviations from 1 January 2017 until 31 March 2017
3.BACKGROUND
In terms of Section 36(1) (a) of the Municipal Supply Chain Management Regulations, the Supply Chain Management Policy may allow the Accounting Officer to dispense the official procurement processes established by the policy, to procure any required goods or services through any convenient process. The Accounting Officer must record the reasons for all deviations in terms of sub regulation (1) (a) and report them to council in terms of Section 36(2) of the Municipal Supply Chain Management Regulations
4.FINANCIAL IMPLICATIONS
The total cost of the deviations for the period 2 January 2017 until 31 March 2017 is R1 891 995.46
5.LEGISLATIVE PROVISION
Section 36(1) (a) of the Municipal Supply Chain Management Regulations
Section 36(2) of the Municipal Supply Chain Management Regulations
7. RECOMMENDATION
That the attached list of deviations be noted
8. ATTACHMENTS
Attached hereto is a list of approved deviations.
COMPANY / DESCRIPTION / CONTRACT VALUE / DATE / REASON / DEPARTMENTGohitile Project Management cc / Supply, deliver, offload and install and commissioning of a 315 Kva 11Kv/400 Minisub / R393 300.00
(91028207) / 22/12/2016 / Due to the storms that hits Lesedi during November 2016, which left some damages and resulted that most of the town was without power, it was impractical to follow the normal procurement process. The Accounting Officer war therefore to deviate from the normal procurement process in terms of Section 36(1)(a)(i)(v) of the Municipal Supply Chain Management Regulations, since this was an emergency and impractical to follow the normal procurement processes. / Electrical Department
Stainless Boys / Strip, quote and repair Landini 7860 registration VCF647GP / R45 024.30 Vat Inclusive
(0001026339) / 16/01/2017 / Strip and quote due to the shortage of emergency vehicles which poses a risk of a life threatening situation, it was not possible to follow the normal procurement process. The Accounting Officer was requested to deviate from the normal procurement process in terms of Section 36(1)(a)(i)(v) of the Municipal Supply Chain Management Regulations / Mechanical Workshop
Weathercat Pty Ltd / Strip, quote and repair Landini 7860 registration WNJ833GP / R38 077.14 Vat Inclusive
(0001026375) / 16/01/2017 / Strip and quote due to the shortage of emergency vehicles which poses a risk of a life threatening situation, it was not possible to follow the normal procurement process. The Accounting Officer was requested to deviate from the normal procurement process in terms of Section 36(1)(a)(v) of the Municipal Supply Chain Management Regulations / Mechanical Workshop
Sakhi Isizwe Transmission / Strip, quote to repair Engine on Freightliner fl70 / R88 267.82 Vat Inclusive
(0001026345) / 16/01/2017 / Strip and quote due to the shortage of emergency vehicles which poses a risk of a life threatening situation, it was not possible to follow the normal procurement process. The Accounting Officer was requested to deviate from the normal procurement process in terms of Section 36(1)(a)(v) of the Municipal Supply Chain Management Regulations / Mechanical Workshop
600SA Holdings Pty Ltd / Repair cherry picker hydraulic Toyota Hino BZ42KKGP / R63 005.81 vat inclusive
(0001026058) / 16/01/2017 / Strip and quote due to the breakdowns of the Electrical Trucks and is unserviceable due to worn hydraulic mechanism, it was impractical to follow the normal procurement process. Base on this, the Accounting Officer was requested to deviate from the normal procurement process in terms of Section 36(1) (a) (v) of the Municipal Supply Chain Management Regulations. / Mechanical Workshop
Batho Bantsho Trading and Projects 12 / Engine overhaul / R183 065.51 Vat inclusive
(0001026398) / 25/01/2017 / Strip and quote due to the unserviceable truck that was supposed to deliver drinking water to the farming community. It was impractical to follow the normal procurement process. Base on this, the Accounting Officer was requested to deviate from the normal procurement process in terms of Section 36(1) (a) (v) of the Municipal Supply Chain Management Regulations / Mechanical workshop
Majahonke hydraulics / Repairs to compactor truck unit / R61 275.00 Vat inclusive
(0001026586) / 07/03/2017 / Strip and quote due to the unserviceable truck that was supposed to collect waste around Lesedi local municipality. It was impractical to follow the normal procurement process. Base on this, the Accounting Officer was requested to deviate from the normal procurement process in terms of Section 36(1) (a) (v) of the Municipal Supply Chain Management Regulations / Mechanical workshop
MMN Engineering and projects / Engine overhaul / R65 664.00 Vat inclusive
(0001026557) / 10/03/2017 / Strip and quote due to the breakdown of the TLB used by the Parks Section for the digging of graves resulted in that the department cannot execute their duties effectively. Due to this it was impractical to follow the normal procurement process. For this reason Accounting Officer was requested to deviate from the normal procurement process in terms of Section 36(1)(a)(v) of the Municipal Supply Chain Management Regulations / Mechanical Workshop
Twin A Wholesalers / Supply, deliver and offloading of two(2) 11Kv/400 V 200 KVA Transformers / R178 387.07
Vat Inclusive
(91028549) / 29/03/2017 / Due to the storms that hits Lesedi during November 2016, which left some damages and resulted that most of the town was without power, it was impractical to follow the normal procurement process. The Accounting Officer war therefore to deviate from the normal procurement process in terms of Section 36(1)(a)(i)(v) of the Municipal Supply Chain Management Regulations, since this was an emergency and impractical to follow the normal procurement processes. / Electrical Department
Sbutja Construction (Pty)Ltd / Provision of Cherry Picker, Crane Truck and Fault Finding, repairs of overhead lines and installation of the transformer / R 93 480.00
Vat Inclusive / 29/03/2017 / Due to the storms that hits Lesedi during November 2016, which left some damages and resulted that most of the town was without power, it was impractical to follow the normal procurement process. The Accounting Officer war therefore to deviate from the normal procurement process in terms of Section 36(1)(a)(i)(v) of the Municipal Supply Chain Management Regulations, since this was an emergency and impractical to follow the normal procurement processes. / Electrical Department
Zest Weg Electrical(Pty)Ltd / Repair of a T3 Tiger Switch / R88 977.00
(0001026679) / 29/03/2017 / A fault occurred on 28 February at Ratanda Extension 3 which left some parts of the area without electricity. Since this was an emergency and it involves fault finding, it was impossible to follow the normal procurement process and the Accounting Officer was requested to deviate in terms of Section 36(1)(a)(i)(v) of the Municipal Supply Chain Management Regulations. / Electrical Department
Demco Cleaning and Projects cc / Repair of Cable Faults in various areas. / R329 977.00
(0001026679) / 29/03/2017 / The storm on 03 January 2017 in the Lesedi area which left some damages and various areas without electricity. Despite the assistance of the standby team and other electrical who were called in for assistance, the workload was too much for the team alone to cope. Since this was an emergency and it was impractical to follow the normal procurement processes, the Accounting Officer was requested to dispense the normal procurement process in terms of Section 36(1)(a)(i)(v) of the Municipal Supply Chain Management Regulations. / Electrical Department
Nerm Applications and Testing (Pty)Ltd / Testing of panel at Heidelberg Substation, cleaning of panel VLF and pressure test / R66 120.00
(0001026699) / 30/03/2017 / The storm on 03 January 2017 in the Lesedi area which left some damages and various areas without electricity. Despite the assistance of the standby team and other electrical who were called in for assistance, the workload was too much for the team alone to cope. Since this was an emergency and it was impractical to follow the normal procurement processes, the Accounting Officer was requested to dispense the normal procurement process in terms of Section 36(1)(a)(i)(v) of the Municipal Supply Chain Management Regulations. / Electrical Department
Twin A Wholesalers / Repairs to Cable Faults in various areas / R103 324.81
(0001026700) / 30/03/2017 / The storm on 03 January 2017 in the Lesedi area which left some damages and various areas without electricity. Despite the assistance of the standby team and other electrical who were called in for assistance, the workload was too much for the team alone to cope. Since this was an emergency and it was impractical to follow the normal procurement processes, the Accounting Officer was requested to dispense the normal procurement process in terms of Section 36(1)(a)(i)(v) of the Municipal Supply Chain Management Regulations. / Electrical Department
Nolewu Construction / Supply and Delivery of a Transformer / R94 050.00
(0001026698) / 30/03/2017 / Due to theft of a 200 KVA 11Kv/11V, which resulted in seven farms left without power. Since this was an emergency, the Accounting Officer was requested to suspense the normal procurement process in terms of Section 36(1)(a)(i) of the Municipal Supply Chain Management Regulations