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BEE procurement process
| RBCT reserves the right to do its own assessments and accreditation if the scope of supply is defined critical for its application. RBCT might supply technical expertise to assist and develop Black suppliers to achieve the desired standard at its sole discretion. |
The primary objectives of RBCT's BEE procurement policy are to:
- facilitate access by Black suppliers to RBCT procurement activities
- ensure that an increasing proportion of contracts are awarded to BEE companies
- support the local economy, SMME'™s and Black suppliers and
- create an awareness and support for Black Economic Empowerment amongst all stakeholders
To achieve these objectives, RBCT:
- will actively support the Business Development Centre, an initiative run by the Zululand Chamber of Commerce to support business development in the area, by using the centre's infrastructure and facilities to benefit Economic Empowerment to the maximum
- may in appropriate circumstances, settle accounts early, after receipt of duly completed invoices, authorised by the 'RBCT responsible person', indicating complete delivery or performance
- will split contracts, where appropriate, into small components in order to spread opportunities to Black suppliers who wish to do business with RBCT
- will, when appropriate, set aside tenders, in part or as a whole, to enable Black suppliers to compete among themselves
- will give preference to traditional suppliers who implement BEE programmes that seek to encourage broader participation of Black business
Supplier evaluation
RBCT reserves the right to do its own assessments and accreditation if the scope of supply is defined 'critical' for its application. RBCT might supply technical expertise to assist and develop Black suppliers to achieve its desired standard at its sole discretion.
How to become a vendor with RBCT
Treatment of suppliers
Procurement requirements
RBCT will not apply differing standards with regard to quality, price, expected service level or delivery, or any other commercial or technical requirements. RBCT may, however, assist aspiring suppliers or contractors in meeting those standards, usually through the Business Development Centre and monitoring provided by RBCT subject matter experts.
Registration
All BEE/SMME suppliers, accredited by the Business Development Centre are entered on the central database. This information is updated and maintained by Business Development Centre staff on an ongoing basis. As a founder member company, RBCT will have online access to this database for sourcing purposes. Sourcing will be possible by:
- Product or service and
- BEE or SMME status
Reporting
The Materials Manager reports on the status of BEE expenditure to the Exco Committee on a monthly basis.
Second tier procurement
Prime contractors/suppliers (whether Black Suppliers or not) will be required to declare their SMME/BEE status at RBCT's discretion.
RBCT will support those suppliers/contractors with comprehensive and detailed second tier purchasing procedures in place.
Penalties for abuse of RBCT's black supplier procurement program
Any supplier or potential supplier that misrepresents the facts in order to gain some advantage using RBCT's black supplier procurement program, will be penalized by deregistration as a supplier to RBCT. Directors or owners of businesses who have been so deregistered, will be listed and RBCT may refuse to register any new companies formed by them as suppliers.
Definitions and explanatory notes
- 'SMME' (Small Medium and Micro Enterprises) - any Business Development Centre accredited supplier with:
- less than 200 employees;
- less than R50 million turnover per annum;
- any gender or race
- 'Affirmative contractors' - these are suppliers drawn from the category set out in the definition of SMME but must consist of:
- Blacks as defined in the Employment Equity Act;
- Females of any race group;
- People with disabilities as defined in the Employment Equity Act.
- 'Black' as defined in the Employment Equity Act signifies persons who are South African Blacks, Indians or Coloureds.
- 'BEE' definition:
- A 'Black Company' is one that is 50% + 1 share owned and managed by Black people.
- A 'Black Empowered Company' is 25% + 1 share owned and managed by Black people. In this case, the company may or may not be under Black control.
- A 'Black-influenced Company' is between 5% and 25% Black-owned and managed.
- 'Enterprise' means any business entity organised for profit (even if its ownership is in the hands of a non-profit entity) with a place of business located in South Africa and which makes a contribution to the South African economy through payment of taxes and/or use of South African products, material and/or labour, etc. 'Enterprise' includes but is not limited to:
- an individual;
- close corporation;
- partnership;
- limited company;
- joint venture;
- association or
- co-operative.
- 'First tier supplier' is a supplier who provides goods, services or works directly to RBCT.
- 'Second tier supplier' is a supplier who provides goods, services or works as a subcontractor to RBCT, via a first tier supplier.
- 'Joint venture' is a business arrangement, between one or more Black companies and one or more established suppliers, whereby the same business objectives are pursued without any loss of identity by either of the parties.
- 'Front Organisation' is an organisation that presents itself as a Black supplier but does not in fact qualify according to the parameters set out in this document.
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