The revised framework now introduces stage zero (0) within the opportunity assessment phase which is designed to link the procurement plans with the strategic sourcing process.
Stage zero (0) also seeks to integrate social values in achieving the value for money (VFM) aspects.
The Sourcing Business Model Mapping (SBMM), a tool designed to find an optimum balance in a sourcing strategy between the economic aspects and the desired supplier relationship.
The different procurement methods provide the procuring institution with an opportunity to assess and explore a differentiated approach to the procurement of goods and services.
The South African Planning Commission’s National Development Plan (NDP) 2030: Our Future – Make It Work, proposes that the following five areas be focused on in designing a procurement system that is better able to deliver value for money while minimising the scope for corruption:
- Differentiate between the different types of procurement that pose different challenges and require different skill sets.
- Adopt a strategic approach to procurement above the project level to balance competing objectives and priorities rather than viewing each project in isolation.
- Build relationships of trust and understanding with the private sector.
- Develop professional supply chain management capacity through training and accreditation; and
- Incorporate oversight functions to assess value for money.
A good sourcing strategy achieves a balance between performance, compliance, and value for money.
Performance-based procurement will allow a better alignment of incentives between the public procurers and the suppliers because the suppliers are made responsible for the performance of a product or service. Allocating the risks properly will ensure that the best-performing product, service, or integrated solution available is being provided.
Strategic Procurement is a robust and sustainable solution for use by the Government to exert much more control over procurement spend. The framework that follows is a tried and tested solution globally, including private and public sector organisations.
The basic premise to be considered is that the nature and business of Government organisations in South Africa do not change significantly over time. The service provision remains the same. The items procured and buying patterns of public sector organisations are stable and predictable. And so there is a need to position the government for long-term stability within procurement.
The Strategic Procurement Framework (SPF) is a guided process with methods and tools to focus the procurement efforts on projects that would meet the procuring institution’s top strategic priorities for service delivery.
