South African Municipality Supply Chain Management System

1. Business Requirement Gathering

The system must facilitate structured requirement gathering from various municipal departments to identify procurement needs. This includes:

• Departmental requisition submission with budget validation.
• Categorization of requirements based on project type (goods, services, infrastructure, etc.).
• Automated alignment with municipal procurement policies and National Treasury guidelines.
• Review and approval workflow ensuring oversight at managerial levels before tender generation.

2. Tender Generation with Authorisation Levels

• Automated generation of tender documents based on approved requirements.
• Multi-level authorisation with predefined access rights:
  • Initiator: Department raising the tender.
  • Reviewer: Supply chain officer ensuring compliance.
  • Approver: Senior management and finance for budget validation.
  • Final Authorisation: Municipal Manager or delegated official.
• Digital signing and publishing of tenders on the municipality’s website and relevant procurement portals.

3. Tender Management

• Centralized dashboard for tracking all active, pending, and closed tenders.
• Secure document upload for bidders with encryption to prevent tampering.
• Tender notification system for registered suppliers.
• Automated deadline management with alerts for submission cut-offs.

4. Tender Process

• Bid Submission: Secure online portal for suppliers to submit proposals.
• Bid Opening & Evaluation:
  • Automatic logging of submission time.
  • Digital decryption for bid documents at closing.
  • Tender evaluation committee access with predefined roles.
• Compliance Checks:
  • CSD (Central Supplier Database) verification for supplier registration.
  • Mandatory document validation (tax clearance, BBBEE, CIDB grading, etc.).
  • Automated red flagging of discrepancies.
• Scoring Mechanism:
  • Weighted scoring model for price, functionality, BBBEE, and experience.
  • Integration of Professional Skills Matrix for evaluating technical compliance.

5. CSD Suppliers Only

• Restriction of tender participation to only CSD-registered suppliers.
• Direct API integration with National Treasury’s CSD database for real-time validation.
• Automatic exclusion of non-compliant suppliers.

6. Supplier Management

• Supplier onboarding with automated CSD and CIPC (Companies and Intellectual Property Commission) validation.
• Performance tracking of awarded suppliers based on project delivery.
• Contract management module with milestone-based performance evaluations.
• Supplier rating and feedback system for continuous assessment.

7. Tender Awarding

• Automated award recommendation based on evaluation scoring.
• Multi-stage approval workflow for transparency in awarding decisions.
• Public notification of awarded tenders on the municipal website.
• Real-time integration with Treasury for financial oversight.

8. Website Integration

• Public-facing portal for tenders with search and filter capabilities.
• Supplier registration and tender submission interface.
• Automated publication of awarded tenders for transparency.
• Compliance tracking and reporting dashboards.

9. Tender Supplier Governance & Review

• Periodic supplier audits to ensure compliance with contract terms.
• Automated governance framework to track project progress and SLA adherence.
• Supplier blacklisting mechanism based on consistent non-performance.

10. Fraud Compliance

• Known Fraudster Database Checking:
  • Real-time cross-checking against databases of blacklisted individuals and companies.
  • Integration with forensic audit systems for proactive fraud detection.
• Fronting Companies Identification:
  • AI-based analysis of supplier ownership structures.
  • Cross-referencing of directors and company affiliations.
  • Detection of shell companies or businesses used as fronting entities.
• Conflict of Interest Monitoring:
  • Automated identification of municipal employees linked to bidding companies.
  • Declaration of interest module with approval workflows.

11. CSD and CIPRO Integration

• API-driven validation of supplier registration and tax compliance.
• Direct retrieval of company registration details and ownership structures.
• Automated updates on supplier status changes (e.g., deregistration, non-compliance alerts).

This system will ensure an efficient, transparent, and fraud-resistant municipal supply chain management process, aligning with South African procurement regulations and governance frameworks.

Clientèle