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.

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References

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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

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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)

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

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Internet sources

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

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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

28-05-2021

Issue

Section

Articles

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

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