Role of SITA

SITA has a statutory mandate to provide Information and Communication Technology (ICT) systems and related services to, or on behalf of Government departments and to act as an agent of Government in the procurement of such services.

SITA has embarked on a journey to automate the whole procurement process in Government, this will include the rolling out of the gCommerce solution to all Government entities (National, Provincial, Local and State Owned Entities (SOEs)) over a five-year period.

Scope for centrally negotiated contracts

Centralising public procurement provides Government with an opportunity to reduce cost and increase value leveraging from economies of scale. The Office of the Chief Procurement Officer (OCPO) currently has 40 centrally negotiated contracts worth R28 billion in place. Departments, municipalities and public entities spend in excess of R17 billion annually procuring from central contracts. These centrally negotiated contracts:

Eliminate unnecessary duplication, reduce leakage and ensure better utilisation of scarce procurement skills;

Reduce the administrative burden for suppliers and result in policy consistency;

Provides an opportunity for long term supplier relationships and certainty in the market place;

Provide an opportunity for market intelligence across Government;

Reduce the administrative burden Government has with repetitive quotes which could have been directed towards contracts

Allow Government to refocus on contract management.

The OCPO and SITA will continue to strive to accelerate the centralisation of common goods and services across Government and goods and services that are unique but common within a specific sector over the next three years.