Common use of Interventions Clause in Contracts

Interventions. Designation of certain locally produced goods for preferential procurement by organs of state is intended to boost local demand. Social partners agreed that current ‘designation’ processes are too slow and cumbersome to be effective. In addition, enforcement of compliance needs to be improved. Social partners agreed to strengthen, expand and fast-track additional local procurement of goods and services by Government through the implementation of the following measures: • Implementation of a set timeframe of 60 days for concluding the designation analysis, • Establishment of a standing list of industry experts to support the designation analysis and to play an advisory role in terms of the percentage local content to be set for designated products, • Implementation of a set timeframe of 30 days for the National Treasury to finalise and issue the circular for designated products; once the final agreed upon circular has been received by NT from the dti. • The dti to improve the capacity of the South African Bureau of Standards (SABS) to certify local content and to consider allowing firms’ external auditors to verify local content, and • Establishment of a hotline to receive and deal with complaints on fraudulent claims of local content, claims that a tender specification is flawed, and claims that designations are being ignored or circumvented. through implementing the following measures: • Organised labour commits to train its affiliates on the successful SACTWU tender monitoring system in partnership with Proudly SA, and to proactively identify opportunities for new designations • Proudly SA working with the dti, National Treasury, provincial Treasuries and SALGA will roll out a nation-wide series of workshops and establish public sector procurement fora to educate procurement officials in the public sector including all municipalities on the localisation regulations. This with the intention of improving compliance by public sector procurement officials. • The Auditor-General of SA will specifically include the auditing of Departments’ procurement practices in its audit scope; this with the intention of enforcing compliance by public sector procurement officials. • Organised labour, Community and Business to support and communicate the details of the hotline to its members and constituency for tenders that seek to bypass local procurement regulations.

Interventions. Designation Social partners noted the complexity of certain locally produced goods company level procurement and that individual firms can have very different needs for preferential products and therefore may require different approaches to local procurement. Nevertheless, social partners agreed that a concerted and more visible public exercise to highlight the importance of local procurement by organs of state is intended to boost local demandimperative. Social partners agreed that current ‘designation’ processes are too slow and cumbersome therefore commit to be effective. In addition, enforcement of compliance needs to be improved. Social partners agreed to strengthen, expand and fast-track additional local procurement of goods and services by Government through the implementation of the following measures: • Implementation The dti will assist Business to – over the next 12-months – secure structured interactions with at least 500 corporates to discuss new opportunities for local procurement. • Business will strengthen its support for inter alia Proudly SA’s Buy Local Campaign. • Business will list locally produced goods on Proudly SA’s on-line purchasing portal where appropriate. • Business supported by Proudly SA will explore the creation of a set timeframe b2b transparent procurement platform where firms can list their tenders and procurement requirements to allow more firms and especially Black firms to compete for their procurement. • Business will encourage SA corporates to procure SA-produced goods into export markets where appropriate. • Business will encourage SA corporates to embark on good corporate citizenship campaigns highlighting support for localisation and compliance with import requirements and payment of 60 days import tariffs. • Government will request its State-owned Companies, such as SAA to provide complimentary advertising space on in-flight entertainment consoles and magazines for concluding Proudly SA’s buy local campaign advertisements. • Business at company and sector level will review the designation analysis, • Establishment of a standing list of industry experts designated products with a view to support using it to inform purchasing decisions relating to the designation analysis same products from local suppliers provided that products are cost competitive for similar quality levels and it makes business sense to play an advisory role in terms of the percentage local content to be set for designated products, • Implementation of a set timeframe of 30 days for the National Treasury to finalise and issue the circular for designated products; once the final agreed upon circular has been received by NT from the dtido so. • The dti Working at a sectoral and company level with Government to improve the capacity efficiency and effectiveness of the South African Bureau of Standards (SABS) to certify local content and to consider allowing firms’ external auditors to verify local content, and • Establishment of a hotline to receive and deal with complaints on fraudulent claims designation of local content, claims products for procurement by all organs of state. This commitment includes working with government to o Ensure that tender specifications for designated products achieve the intended objective; that is to ensure that preference is given to locally produced goods and supporting a tender specification is flawed, mechanism for reporting specifications which will not achieve the intended objective o Identify products that should be designated • Working at sectoral and claims company level with government to identify imported products that designations are being ignored or circumventedpurchased in large enough volumes to warrant exploration of local production. through implementing the following measures: • Organised labour commits Strengthening understanding of value chains with a view to train its affiliates on the successful SACTWU tender monitoring system in partnership with Proudly SA, and to proactively identify increasing opportunities for new designations local producers • Proudly SA working with the dti, National Treasury, provincial Treasuries Strengthen support for supplier development (see agreements under support for SMMEs) and SALGA will roll out a nationinclusion in company supply chains • Convene high-wide series of workshops and establish public sector procurement fora level sectoral engagements to educate procurement officials in the public sector including all municipalities on the localisation regulations. This with the intention of improving compliance by public sector procurement officials. • The Auditor-General of SA will specifically include the auditing of Departments’ procurement practices in its audit scope; this with the intention of enforcing compliance by public sector procurement officials. • Organised labour, Community and Business to support and communicate the details of the hotline to its members and constituency explore additional mechanisms for tenders that seek to bypass stimulating local procurement regulationsdemand.

Interventions. Designation of certain locally produced goods for preferential procurement by organs of state is intended to boost local demand. Social partners agreed that current ‘designation’ processes are too slow and cumbersome to be effective. In addition, enforcement of compliance needs to be improved. Social partners agreed to strengthen, expand and fast-track fast‐track additional local procurement of goods and services by Government through the implementation of the following measures: •  Implementation of a set timeframe of 60 days for concluding the designation analysis, • ;  Establishment of a standing list of industry experts to support the designation analysis and to play an advisory role in terms of the percentage of local content to be set for designated products, • ;  Implementation of a set timeframe of 30 days for the National Treasury to finalise and issue the circular for designated products; once the final circular that has been agreed upon circular has been is received by NT from the dti. • ;  The dti to improve the capacity of the South African Bureau of Standards (SABS) to certify local content and to consider allowing firms’ external auditors to verify local content, ; and •  Establishment of a hotline to receive and deal with complaints on fraudulent claims of local content, claims that a tender specification is flawed, and claims that designations are being ignored or circumvented. through implementing the following measures: •  Organised labour commits to train its affiliates on the successful SACTWU tender monitoring system in partnership with Proudly SA, and to proactively identify opportunities for new designations • designations.  Proudly SA working with the dti, National Treasury, provincial Treasuries and SALGA will roll out a nation-wide series of workshops and establish public sector procurement fora to educate procurement officials in the public sector including all municipalities on the localisation regulations. This with the intention of improving compliance by public sector procurement officials. •  The Auditor-General of SA will specifically include the auditing of Departments’ procurement practices in its audit scope; this with the intention of enforcing compliance by public sector procurement officials. •  Organised labour, Community and Business to support and communicate the details of the hotline to its members and constituency for tenders that seek to bypass local procurement regulations. Social partners recognised the complexity of company level procurement and that individual firms can have very different needs for products and therefore may require different approaches to local procurement. Nevertheless, social partners agreed that a concerted and more visible public exercise to highlight the importance of local procurement is imperative. Social partners therefore commit to the following measures:  The dti will, over the next 12-months, assist Business to secure structured interactions with at least 500 corporates to discuss new opportunities for local procurement.  Business will strengthen its support for inter alia Proudly SA’s Buy Local Campaign.  Business will list locally produced goods on Proudly SA’s on-line purchasing portal where appropriate.  Business supported by Proudly SA will explore the creation of a B2B transparent procurement platform where firms can list their tenders and procurement requirements to allow more firms and especially Black firms to compete for their procurement.  Business will encourage SA corporates to procure SA-produced goods into export markets where appropriate.  Business will encourage SA corporates to embark on good corporate citizenship campaigns highlighting support for localisation and compliance with import requirements and payment of import tariffs.  Government will request its State-owned Companies, such as South African Airways (SAA), to provide complimentary advertising space on in-flight entertainment consoles and magazines for Proudly SA’s buy local campaign advertisements.  Business at company and sector level will review the list of designated products with a view to using it to inform purchasing decisions relating to the same products from local suppliers provided that products are cost- competitive for similar quality levels and it makes business sense to do so.  Working at a sectoral and company level with Government to improve the efficiency and effectiveness of designation of local products for procurement by all organs of state. This commitment includes working with government to: o Ensure that tender specifications for designated products achieve the intended objective; that is to ensure that preference is given to locally produced goods and supporting a mechanism for reporting specifications which will not achieve the intended objective, and o Identify products that should be designated.  Working at sectoral and company level with government to identify imported products that are purchased in large enough volumes to warrant exploration of local production.  Strengthening understanding of value chains with a view to increasing opportunities for local producers.  Strengthen support for supplier development (see agreements under support for SMMEs) and inclusion in company supply chains.  Convene high-level sectoral engagements to explore additional mechanisms for stimulating local demand.

Interventions. Designation of certain locally produced goods for preferential procurement by organs of state is intended to boost local demand. Social partners agreed that current ‘designation’ processes are too slow and cumbersome to be effective. In addition, enforcement of compliance needs to be improved. Social partners agreed to strengthen, expand and fast-track additional local procurement of goods and services by Government through the implementation of the following measures: • Implementation of a set timeframe of 60 days for concluding the designation analysis, ; • Establishment of a standing list of industry experts to support the designation analysis and to play an advisory role in terms of the percentage of local content to be set for designated products, ; • Implementation of a set timeframe of 30 days for the National Treasury to finalise and issue the circular for designated products; once the final circular that has been agreed upon circular has been is received by NT from the dti. ; • The dti to improve the capacity of the South African Bureau of Standards (SABS) to certify local content and to consider allowing firms’ external auditors to verify local content, ; and • Establishment of a hotline to receive and deal with complaints on fraudulent claims of local content, claims that a tender specification is flawed, and claims that designations are being ignored or circumvented. through implementing the following measures: • Organised labour commits to train its affiliates on the successful SACTWU tender monitoring system in partnership with Proudly SA, and to proactively identify opportunities for new designations designations. • Proudly SA working with the dti, National Treasury, provincial Treasuries and SALGA will roll out a nation-wide series of workshops and establish public sector procurement fora to educate procurement officials in the public sector including all municipalities on the localisation regulations. This with the intention of improving compliance by public sector procurement officials. • The Auditor-General of SA will specifically include the auditing of Departments’ procurement practices in its audit scope; this with the intention of enforcing compliance by public sector procurement officials. • Organised labour, Community and Business to support and communicate the details of the hotline to its members and constituency for tenders that seek to bypass local procurement regulations. Social partners recognised the complexity of company level procurement and that individual firms can have very different needs for products and therefore may require different approaches to local procurement. Nevertheless, social partners agreed that a concerted and more visible public exercise to highlight the importance of local procurement is imperative. Social partners therefore commit to the following measures: • The dti will, over the next 12-months, assist Business to secure structured interactions with at least 500 corporates to discuss new opportunities for local procurement. • Business will strengthen its support for inter alia Proudly SA’s Buy Local Campaign. • Business will list locally produced goods on Proudly SA’s on-line purchasing portal where appropriate. • Business supported by Proudly SA will explore the creation of a B2B transparent procurement platform where firms can list their tenders and procurement requirements to allow more firms and especially Black firms to compete for their procurement. • Business will encourage SA corporates to procure SA-produced goods into export markets where appropriate. • Business will encourage SA corporates to embark on good corporate citizenship campaigns highlighting support for localisation and compliance with import requirements and payment of import tariffs. • Government will request its State-owned Companies, such as South African Airways (SAA), to provide complimentary advertising space on in-flight entertainment consoles and magazines for Proudly SA’s buy local campaign advertisements. • Business at company and sector level will review the list of designated products with a view to using it to inform purchasing decisions relating to the same products from local suppliers provided that products are cost- competitive for similar quality levels and it makes business sense to do so. • Working at a sectoral and company level with Government to improve the efficiency and effectiveness of designation of local products for procurement by all organs of state. This commitment includes working with government to: o Ensure that tender specifications for designated products achieve the intended objective; that is to ensure that preference is given to locally produced goods and supporting a mechanism for reporting specifications which will not achieve the intended objective, and o Identify products that should be designated. • Working at sectoral and company level with government to identify imported products that are purchased in large enough volumes to warrant exploration of local production. • Strengthening understanding of value chains with a view to increasing opportunities for local producers. • Strengthen support for supplier development (see agreements under support for SMMEs) and inclusion in company supply chains. • Convene high-level sectoral engagements to explore additional mechanisms for stimulating local demand.