Eskom Procurement Book 2015

THE PLANNING, ORGANISING, LEADING AND CONTROL OF PROCUREMENT

Control makes it possible to regulate organisational activities to make them consistent with the expectations established in plans, targets, and standards of performance [7]. This is basically the process of monitoring and evaluating all the functions of procurement – procedures, policies and control measures. The person in control ensures that all procurement functions run smoothly. Controlling the procurement function involves a variety of tasks and these are discussed in the next eight sections [20]. Uniformity in bidding procedures and control measures should be enhanced to ensure effectiveness and efficiency in supply chain management. The process can be accomplished by implementing a uniformed procurement policy; ensuring the bidding procedures are easy to interpret, cost-effective, quick, and transparent and free of corruption; and implementing a supply chain management system that is suitable for private and public institutions [21]. Bid documents define the rights, risks and obligations of the parties involved in a contract and define the nature, quantity and quality of the goods, services or works to be provided in the performance of the contract. The core documents in the bids include the bid conditions of contract; specifications, data sheets, and drawings; the bid itself; and a specific contract agreement stipulating delivery standards and requirements. The uniformity of the bid and contract documentation would promote ease of entry for new entrants or emerging enterprises; cost-effectiveness; easier interpretation by new entrants and emerging contractors; and a simplification of the documentation process [21]. Subcontracting and outsourcing are allowed in normal procurement procedures. In the public sector, they are encouraged in supply chain management because they promote certain procurement policy objectives. There are two types of outsourcing, namely, turnkey and partial outsourcing. In turnkey outsourcing, the buyer minimises responsibility for the outsourcing process; doesn’t need to have experience in similar projects; and expects the project to run smoothly. In partial outsourcing, the buyer has more influence in price, rates, costs, staff, technology, materials used and their quality [21].

3.6.1 BID PROCEDURES, POLICIES AND CONTROL MEASURES

3.6.2 BID OR CONTRACT DOCUMENTATION

3.6.3 SUBCONTRACTING AND OUTSOURCING

3.6.4 APPOINTMENT OF CONSULTANTS

Consultants provide expert advice professionally and are engaged for a variety of reasons. They may, for example, provide specialised services for a limited period; impart superior knowledge; transfer skills and upgrade a knowledge base while executing an assignment; or provide independent advice on the most suitable approaches, methodologies and solutions for projects.

56 CHAPTER 3