Supplier assessment for labour practices

The Procurement Committee is mandated to consider and approve procurement transactions for all goods and services required by the IDC. It ensures that all procurement processes are fair, competitive, transparent and cost-effective and complies with relevant legislation.

Although assessing our suppliers’ labour practices is not always applicable to the IDC’s procurement requirements, the Corporation adheres to relevant regulations including labour regulations as part of its supplier screening and selection processes, and procurement transactions are facilitated in line with approved procurement policies, procedures and governance structures.

The criteria used to screen suppliers are dependent on the type of services procured and in most cases cover issues such as minimum wages based on sectoral determinations for services such as security guard services, cleaning services, catering services, etc.

Local procurement

The promotion of local content in tenders was utilised as far as possible for procurement of supplies in terms of designated sectors for local production. The IDC has over the last financial year procured office furniture and textile supplies from locally based manufacturers to promote local content. In addition, the IDC further introduced tender selection criteria to promote the supply of locally manufactured cleaning chemicals for its hygiene requirements at its Head Office. More than 90% of the total discretionary spend facilitated through the procurement process in the year under review was with South African-based suppliers, referred to herein as local suppliers.

The IDC focused on the development of youth-owned businesses through the following initiatives:

  • Development of supplier databases constituted by youth-owned businesses to promote targeted procurement when required
  • Facilitation of supplier development training for youth-owned and black-owned small businesses
  • Introduction of supplier incubation programmes
  • Increased visibility of IDC procurement opportunities on the National Youth Development Agency (NYDA) website and the introduction of preferential tender criteria to promote youth-owned, small- and medium-sized entities
  • Our rating for the Preferential Procurement element of the B-BBEE Scorecard improved as follows:
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  • The IDC appointed a youth-owned entity on a three-year contract to provide electrical maintenance and supplies at the IDC Head Office. This contract will ensure the supply of electrical maintenance services to the IDC’s Head Office and will assist this youth-owned enterprise to develop its skills and experience at a corporate client site which may prove to be invaluable to secure future business opportunities of similar standing. The company employed 10 full-time personnel at the time of tendering for the IDC’s business and the IDC will monitor its growth as an organisation going forward.
  • Enrolment of two (2) youth-owned businesses on the incubation programme for catering and cleaning service contracts under the mentorship of experienced contractors.
  • SME development initiatives undertaken during the year included training of 12 black-owned IDC contracted suppliers and youth-owned entities with the intent to capacitate them in terms of business management skills and to improve their competitive advantage when responding to government and State-owned company tenders.