• Subject Name : Management

Preferential Procurement - Question 1

1.1.

Rand

Empowering supplier

SD Beneficiary

Generic

6000000

20%

0

Yes

no

QSE

2000000

100

2500000

Yes

yes

Generic

380000

30

38000

Yes

no

QSE

1500000

50

900000

no

no

EME

950000

0

950000

no

no

QSE

1700500

51

1700500

no

no

Generic

680000

0

0

no

no

EME

197000

0

197000

yes

no

13407500

1.1

1.274939

(((0+2500000+38000+197000)/13407500)/0.8)*5

1.2

3.729256

((2500000/13407500)/0.15)*3

1.3

2.28131

(((950000+197000)/13407500)/0.15)*4

1.4

6.892486

(((1700500+2500000)/13407500)/0.5)*11

1.5

4.322208

(((1700500+38000)/13407500)/0.12)*4

1.6

23.10846

(2500000+38000+900000+950000+1700500+197000)/(13600000*2%)

1.7

46.21691

(2500000+38000+900000+950000+1700500+197000)/(13600000*1%)

1.8

2

1.9

89.82

1.10

Yes

Preferential Procurement - Question 2

Q2.1. Following are the evidences which are required to be obtained while measuring Enterprise and Supplier Development:

  1. Purchase invoice – we should obtain the evidence regarding the purchase from the companies which are going to be used for the calculation of Enterprise and Supplier Development.
  2. Payroll expense – it is also one of the most important evidence which should be obtained.
  3. Bank Statement – bank statement is also one of the most important evidence that verifies whether the company is complying with the requirements or is engaging in fraud.

Following are the procedures that should be followed:

  1. First Rand spend should be calculated and then TMPS should be calculated.
  2. The second step is to divide the rand spend by TMPS and then again divide it by the compliance target and then multiply it with weighting point.

Q2.2. Following are the priority elements

  1. Management control
  2. Employment equity
  3. Skills development
  4. Preferential procurement
  5. Enterprise development

How they affects?

If the company fails to comply any of the priority element then the company will lose its level. It means that if the company fails to comply then it will result in bad supplier and enterprise development.

2.3. As SD is the annual value of all supplier development contribution and ED is the annual value of enterprise development contribution and sector specific programs which means more contribution results in high level achievement.

Preferential Procurement - Question 3

3.1. e)

3.2. NAPT = 4300000

Contribution = 230000

= (230000/4300000)*100

= 5.35

3.3. Following are the evidences which are required to be obtained while measuring Enterprise and Supplier Development:

  1. Purchase invoice – we should obtain the evidence regarding the purchase from the companies which are going to be used for the calculation of Enterprise and Supplier Development.
  2. Payroll expense – it is also one of the most important evidence which should be obtained.
  3. Bank Statement – bank statement is also one of the most important evidence that verifies whether the company is complying with the requirements or is engaging in fraud.

Following are the procedures that should be followed:

  1. First Rand spend should be calculated and then TMPS should be calculated.
  2. The second step is to divide the rand spend by TMPS and then again divide it by the compliance target and then multiply it with weighting point.

Sources for Enterprise and Supplier Development

Nyeck, S. N. (Ed.). (2016). Public Procurement Reform and Governance in Africa. Palgrave Macmillan US.

HOEKMAN, B. M. (2017). International cooperation on public procurement regulation.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Management Assignment Help

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