Environmental Engineering Reference
In-Depth Information
Box 6.1 Tri-partite win-win-win from alien vegetation-
clearing procurement approach
South Africa has a number of tree species declared as Alien Vegetation and landowners
are required by law to remove these trees. Spier budgeted for the removal programme
and called for tenders for the work but with a specific enterprise development clause
inserted in the tender. A small black owned business comprising retrenched forestry
workers submitted a tender.Their quote was ZAR200,000 (US$26,650) less than the
next best bid.This tender was scrutinized and found to be reasonable.What was evident,
however, was that there were certain skill and legal shortfalls within the small business
that could have disqualified it from winning the tender.The second tender organization, a
white owned business (at the time, one that is now BEE), was approached and asked if
they would play a mentor role, for a fee, to support this business in the contract.This
they agreed and the resultant 'tri party' approach meant that Spier could reduce the
potential risks involved in this particular enterprise development project, the mentor
organization could themselves play a role in enterprise development (and get paid to do
so) and the emerging business got the best possible advice and mentorship from one of
the best businesses in that specific field.This was a win-win-win situation.
The alien clearing contractor completed the contract on time and by the end of the
contract was suitably skilled and legally compliant to take on the second Spier contract
without mentorship.
Lessons learned at Spier
Spier chose to take a strategic, in-depth approach to procurement reform, and
invested considerable management effort into it. The supplier assessment became
a large and prolonged piece of work, taking longer than was anticipated, but also
delivering more results. Looking back, it is clear that the supplier assessment
served multiple functions, by:
•
creating an overall picture of Spier's supply chain, and areas of good and weak
performance;
•
providing information against which specific suppliers could be assessed and,
where necessary, informed of the need to improve in order to keep Spier
contracts;
•
focusing attention inside Spier on the supply chain and its potential pro-poor
impact;
•
focusing attention of suppliers on sustainability, BEE and other issues, and in
some cases leading to action simply by asking questions;
•
providing a baseline on the SD performance of the overall supply chain, and
specific suppliers, against which improved performance can be assessed and
for which managers are accountable; and
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