Deterministic Application of Process-centric Law to the System-centric Requirements of Procurement Procedures

Authors

  • David John Wickens Independent Technology Procurement Consultant South Africa

DOI:

https://doi.org/10.17159/1727-3781/2021/v24i0a4549

Keywords:

Public procurement regulation, disqualification, tenders, auction, procurement system, constitutional procurement, exclusion, decision theory

Abstract

South Africa's public procurement system is accorded constitutional status, establishing fundamental requirements for the operation of the system. The application of these constitutional system requirements and their interpretation in the judicial adjudication of procurement cases have highlighted the tension between the administrative, or process-centric, legal requirements and the system-centric nature of procurement procedures. The importance of a deterministic approach for procurement decision-making can be considered from two angles – the certainty of the procurer in the conformity of its own conduct and external certainty to diminish the risk of unnecessary challenge.

This article revisits the foundational rationale for system-based procurement procedures and associated decision-making for its potential for finding a deterministic approach to balancing the legal requirements, both system- and process-based. These principles are tested against a selection of adjudicated outcomes to formulate practical recommendations for practitioners aimed at deterministic decision-making in the procurement process.

GS95.png

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

References

Bibliography

Literature

Arrowsmith S, Linarelli J and Wallace D Regulating Public Procurement, National and International Perspectives (Kluwer Law International The Hague 2000)

Bolton P Law of Government Procurement in South Africa (LexisNexis Butterworths Durban 2006)

Bolton P The Committee System for Competitive Bids in Local Government PELJ 2009 12(2) 57-96

Carpineti L, Piga G and Zanza M "The variety of procurement practice: evidence from public procurement" in Dimitri N, Piga G and Spagnolo G (eds) Handbook of Procurement (Cambridge University Press New York 2006)

Chen T, An Economic Approach to Public Procurement Journal of Public Procurement 2008 8(3) 407-430

Christie R The Law of Contract in South Africa 5 ed (LexisNexis Butterworths Durban 2006)

Csáki C "Investigating the Decision Making Practice of Public Procurement Procedures" International Public Procurement Conference Proceedings September 2006 869-899

Csáki C and Adam F DSS Requirements to Support the Regulated Decision Making Process of Public Procurement Journal of Decision Systems 2010 19 4 439-464.

De Boer L et al An analysis of some mistakes, miracles and myths in supplier selection 15th IPSERA Annual Conference 6-8 April 2006, San Diego, USA

De Boer L, Labro E and Morlacci P A review of methods supporting supplier selection European Journal of Purchasing and Supply Management 2001 7(2) 75-89

De la Harpe S Public Procurement Law: A Comparative Analysis (LLD-Thesis University of South Africa 2009)

De la Harpe S "Substantive and Objective Criteria in Preferential Public Procurement: The Case of the 2011 Regulations in South Africa" in Nyeck N (ed) Public Procurement Reform and Governance in Africa (Springer Nature New York 2016)

Dekel and Schurr Cognitive Biases in Government Procurement – An experimental Study Review of Law & Economics 2014 169-200

Dekel O The Legal Theory of Competitive Bidding for Government Contracts Public Contract Law Journal 2008 37(2) 237-268

Farina C Administrative law as regulation: The paradox of attempting to control and to inspire the use of public power SA Public Law 2004 19(1) 489-512

Graells A "Exclusion, Qualitative Selection and Short-listing in the New Public Sector Procurement Directive 2014/24" in Lichere F, Caranta R and Treumer S (eds) Modernising Public Procurement: The New Directive (DJØF Publishing Copenhagen 2014)

Gutman J Is there room for discretion? Reforming public procurement in a compliance oriented world Global Economy and Development (Brookings Institution Press 2014)

Hoexter C Administrative Law in South Africa (Juta Claremont 2007)

Kauppi K and Van Raaij E Opportunism and Honest Incompetence - Seeking Explanations for Noncompliance in Public Procurement Journal of Public Administration Research and Theory 2015 25(3) 953-979

Krishna K Auction Theory (Academic Press Burlington 2010)

McAfee R and McMillan J Auctions and Bidding 1987 Journal of Economic Literature XXV June 1987 699-738

Penfold G and Reyburn P "Public Procurement" in Chaskalson M et al (eds) Constitutional Law of South Africa Volume 1 2nd ed (Juta Cape Town 2003) 25-i – 25-36

Prier E and Csáki C "A Decision-making Framework to Analyze the Impact of Public Procurement Regulation" in Thai K (ed) Toward New Horizons in Public Procurement (PrAcademics Press Publications Boca Raton 2010) 412 H-J

Quinot G Administrative Law Annual Survey of South African Law 2010 41-76

Quinot G "Promotion of social policy through public procurement in Africa" in Quinot G and Arrowsmith S (eds) Public Procurement Regulation in Africa Cambridge University Press Cambridge 2013 370-403

Sewpersadh P and Mubangizi J Using the Law to Combat Public Procurement Corruption in South Africa: Lessons from Hong Kong PELJ 2017(20) 1-31

Soman D "Framing, Loss Aversion and Mental Accounting" in Koehler D and Harvey N (eds) Blackwell Handbook of Judgement and Decision Making Blackwell Publishing Malden 2004 377-423

Stilger P Formulas for Choosing the Most Economically Advantageous Tender – a Comparative Study (MSc-Thesis University of Utrecht 2011)

Trepte P Procurement Regulation (Oxford University Press Oxford 2006)

Volmink P Legal consequences of non-compliance with bid requirements African Public Procurement Law Journal 2014 1 41-59

Legislation and Government Notices

Broad-based Black Economic Empowerment Act 53 of 2003

Constitution of the Republic of South Africa, 1996

GN R225 in GG 27388 of 15 March 2005

GN R502 in GG 34350 of 8 June 2011

GN R725 in GG 22549 of 10 October 2001

GN R32 in GG 40553 of 20 January 2017

Local Government: Municipal Finance Management Act 56 of 2003

National Energy Act 34 of 2008

Preferential Procurement Policy Framework Act 5 of 2000

Promotion of Administrative Justice Act 3 of 2000

Public Finance Management Act 1 of 1999

International Instruments

The Public Contracts Regulations 2015, SI 2015/102

Case law

Allpay Consolidated Investment Holdings (Pty) Ltd v Chief Executive Officer of the South African Social Security Agency 2014 1 SA 604 (CC)

Chief Executive Officer, SA Social Security Agency v Cash Paymaster Services (Pty) Ltd 2013 2 All SA 501 (SCA)

City of Cape Town v Aurecon South Africa (Pty) Ltd (5663/13) 2014 ZAWCHC 51

Envitech Solutions (Pty) Limited v Saldanha Bay Municipality (111275/2014) 2015 ZAWCHC 108 (13 August 2015)

Grinaker LTA Ltd v The Tender Board (Mpumalanga) 2002 3 All SA 336 (T)

IMVUSA Trading 134CC v Dr. Ruth Mompati District Municipality (2628/08) 2008 ZANWHC 46 (20 November 2008)

Logbro Properties CC v Bedderson 2003 (2) SA 460 (SCA)

Loliwe CC t/a Vusumzi Environmental Services v City of Cape Town 2012 (3791/2012) ZAWCHC 162 (C)

Menzies Aviation South Africa (Pty) Ltd v SAA (Pty) Ltd 2010 JOL 24726 (GSJ)

Metro Projects CC v Klerksdorp Local Municipality 2004 (1) SA 16 (SCA)

Millennium Waste Management v Chairperson Tender Board 2008 2 SA 481 (SCA)

Minister of Social Development v Phoenix Cash & Carry – Pmb CC 2007 (9) BCLR 982 (SCA)

Premier of the Free State Provincial Government v Firechem Free State (Pty) Ltd 2000 3 All SA 247 (A)

Rainbow Civils CC v Minister of Transport and Public Works, Western Cape 2013 (21158/2012) ZAWCHC 3 (WCC)

Sanyathi Civil Engineering & Construction (Pty) Ltd v eThekwini Municipality, Group Five Construction (Pty) Ltd v eThekwini Municipality 2012 1 All SA 200 (KZP)

Simunye Developers CC v Lovedale Public FET College 2010 (3059/2010) ZAECGHC 121 (ECG)

Sizabonke Civils CC t/a Pilcon Projects v Zululand District Municipality 2010 JOL 25535 (KZP)

South African National Roads Agency Limited v Toll Collect Consortium 2013 4 All SA 393 (SCA)

South African Post Office Ltd v Chairperson of Western Cape Provincial Tender Board 2001 5 BCLR 500 (C)

Steenkamp v Provincial Tender Board of the Eastern Cape 2007 3 SA 121 (CC)

Transnet Limited v Goodman Brothers (Pty) Ltd 2001 2 BCLR 176 (SCA)

Umfolozi Transport (Edms) Bpk v Minister van Vervoer 1997 2 All SA 548 (A)

Viking Pony Africa Pumps t/a Tricom Africa v Hidro-Tech Systems and the City of Cape Town 2011 2 BCLR 207 (CC)

Westinghouse Electric Belgium Societe Anonyme v Eskom Holdings (Soc) Ltd 2016 1 All SA (SCA)

Internet sources

Oxford Dictionaries https://en.oxforddictionaries.com/definition/system [date of use 8 February 2017]

Oxford Dictionaries https://en.oxforddictionaries.com/definition/process [date of use 8 February 2017]

CUTS International http://www.cuts-international.org/pdf/Executive 20Summary.pdf [Date of use 8 February 2018]

National Treasury 2016 http://bit.ly/2FAaUGe [Date of use 8 February 2018]

List of Abbreviations

All SA All South Africa Law Reports

BCLR Butterworths Constitutional Law Reports

GG Government Gazette

GN Government Notice

JOL Judgements Online

PAJA Promotion of Administrative Justice Act 3 of 2000

PELJ Potchefstroom Electronic Law Journal

PFMA Public Finance Management Act 1 of 1999

PFMAR GN R225 in GG 27388 of 15 March 2005

PPPFA Preferential Procurement Policy Framework Act 5 of 2000

PPPFAR 2011 GN R502 in GG 34350 of 8 July 2011

PPPFAR 2001 GN R725 in GG 22549 of 10 August 2001

PPPFAR 2017 GN R32 in GG 40553 of 20 January 2017

SA South African Law Reports

Published

2021-05-28

How to Cite

Wickens, D. J. (2021). Deterministic Application of Process-centric Law to the System-centric Requirements of Procurement Procedures. Potchefstroom Electronic Law Journal, 24, 1–33. https://doi.org/10.17159/1727-3781/2021/v24i0a4549

Issue

Section

Articles