Exploring 'cooperative public procurement' for organs of state operating within the Rustenburg Local Municipality, North West Province, South Africa

Abstract

Governments around the world spend huge portions of their budget allocations in the acquisition of supplies, services, and capital assets. Approximately thirty one (31) organs of state, representative of the three spheres of government (National, Provincial and Local), and operating within the jurisdictional area of the Rustenburg Local Municipality, North West Province, South Africa, spend millions of rands on their annual procurement budgets for the acquisition of goods and services. Unfortunately, this spending has been done independently of each other in an uncoordinated manner. The uncoordinated, spontaneous manner in which these procurement budgets are spent leaves room for incoherent developmental programmes, unsupportive of the host Municipality's strategic policies. In addition, the duplication and repetition of procurement systems and processes within the locality, also leads to increased procurement transaction costs for both Government and the (private) suppliers. This study sought to explore the possibilities for which organs of state operating in the Municipality's area of jurisdiction could purchase goods/services together under cooperative agreements. Using qualitative methods of research inquiry, the study was able to establish the general state of the ' Cooperative Public Procurement' concept within the locality. The study has further created a theoretical framework for the possible establishment of Cooperative Public Procurement systems, highlighting the need for the centralisation of a supplier/vendor database management system as a strategic, facilitation mechanism towards localised Cooperative Public Procurement.