Smart procurement - Digital integration
& accessibility driving change
Jabulile Tlhako, CPO (Acting), SITA
SITA Procurement Mandate
Why Technology to Buy Smart?
Government procurement is highly regulated with fragmented processes and systems
that make SCM Compliance difficult with no room for Smart Buying Principles
More than ever government needs Technology
Manual
Work prone
to human
error.
At times I
wonder if I am
in the right
career.
to:
 Free SCM professionals from mundane
administrative processes and redeploy them
into value adding strategic processes.
 Participate in leading practice initiatives like
green procurement, socio economic
development procurement and others.
SCM Professionals have no
time to be innovative and
strategic in their own
space
 Maximise savings opportunities in
government procurement & relieve the
burden of cost recoveries on tax payers.
There are about 12 common AG findings reported in OCPO Public Sector SCM Review
Leveraging Technology for
Government Procurement
As SITA considers the state of procurement in government today, including how it evolves
and how it looks like tomorrow, it is imperative to consider government’s objectives for
automating processes and investing in a procurement IT solutions.
Improve Compliance
Drive more savings
All stakeholders in
one platform
Reduce risk
Drive operating
efficiencies
I believe I
am in the
right career .
Gain greater visibility into
spend hence influence in
Socio Economic Growth
Impact on Broader Government


Achieving cost savings for the Public Sector through economies of scale by applying:

Better pricing from suppliers;

Standardization of procurement systems; and

Better procurement power.
Resulting in:

Savings to our customers;

Lower cost of ICT infrastructure implies lower tariffs due to lesser asset charge, depreciation
charge, and lower pass-through costs;

Efficient use of tax payer money; and

Possible reduction in tax rates for our citizens.
A similar model could be enacted for the broader government procurement system across other
sectors to achieve greater savings for our great country!!
G-Commerce Plaform
E-Procurement platform will to host three main capabilities
which include

A Buyer Portal that provides an ‘Amazon like’
shopping environment.

An eRFx Portal that allows for seamless sourcing
processes.

A Contract Portal that provides access to all
Transversal and other contracts.
Key activities on three capabilities
 Buyer Portal

Loaded RFB 2004, 2005, 2006 and 2007 (PC’s
and Peripherals)
Go-live Timelines
Buyer Portal
1 November 2016
eRFx and Contract Portals
1 April 2016

National Treasury Transversals

Maintain and Support buyer portal
eRFx and Contract Portals

SITA testing and implementation

Maintain and Support institutions already on
the platform on the platform including
National Treasury
ICT Transversal Contracts Loaded on
Buy-Site
Shift from Manual buying to
automated buying
RFB 2004/15 (OEM-Phase):
Provision Of Personal Computers, Mobile Devices, and
Services
RFB 2005/15 (Reseller Phase)
Provision Of Personal Computers, Mobile Devices, and
Services.
RFB 2006/15: OEM Phase
Provision of peripherals, consumables and services to
government.
RFB 2007/15: Reseller Phase
Provision of Peripherals, consumables and services to
government.
OEMs, Resellers, Buyers, all in
one platform
Computer Transversal Engagement Model
Phase 1
OEM
OEM
OEM
OEM
Certification, Training, Support, Spares,
Financial backing, Empowerment
2) Back-to-back agreement
5) Fulfill: product
4) Order
Supplier
Supplier
Supplier
Supplier
• Relationship
Certified by OEM
• Certified product list
PC1
Model X
PC2
Model Y
PC3
Model Z
…
• Ceiling Prices for
negotiation
• Pricing
% markup on
OEM Ceiling Price
• Gov criteria
Financials, Tax,
BEE, skills,
footprint
• Discount structure
• Product Warranty
• Certified supplier list
Partner 1
Partner 2
Partner 3
…
New partners (startup,
SMME)
OEM to keep up to date
Phase 2
e-Portal
SITA
Government
Client
e-Portal:
• Self-service
• OEM list
• Supplier list
• Product list
• Ceiling prices +
discount
• Order placement
High Level Project Plan for
Execution Partner
February 2017
January 2017
November 2016
Develop SITA
Develop 10 SMME
Identify SMME
beneficiaries and OnBoard
Enterprise Development
Strategy and Initiatives
9
Some Targeted Goods for SMME
1. Switches
2. Routers
3. Network
Equipment
4. Cabling
5. Projectors
6. Recorders
7. IT Consumables
8. Professional
Services
Cable
Switches
Network
Equipment
Lan/Wan
ICT SMMEs and eProcurement
 Reduced time and costs of preparing a bid
 Reduced contracting time - minimising the income / revenue gaps
for SMMEs
 Increased transparency and process fairness
 Increased competitiveness to allow peer competition amongst the
SMMEs
 Ability to consolidate requirements and re-distribute amongst the
SMMEs
Provincial Engagements: These plans are dependent on availability of the
stakeholders as per the schedules.
Provincial Economic
Transformation Visits Key
Agenda:
 Understand the size and types of
SMME in every Province
 Understand the SMME needs in
different Provinces in particular those
that are in the ICT
 Understand the SMME Supply
Market and improving access to
markets.
 And the role that SITA and Provincial
Government can play in assisting
SMMEs in the ICT environment
 Take our SMMEs through the
procurement plans and assist them to
identify opportunities.
THANK YOU
Jabulile Tlhako