Central Supplier Database surpasses milestone with 150 000 registered suppliers
The number of suppliers registered on the Central Supplier Database (CSD) has passed the 150,000 mark, signifying a key milestone in government’s objective of making the procurement processes fair, equitable, transparent and competitive.
Launched by the Office of the Chief Procurement Officer (OCPO) on 1 September 2015, the CSD simplifies the process of doing business with government. It reduces the carbon footprint for both government and the private sector by moving away from paper by enabling an electronic registration and verification processes. It also brings about significant cost savings in terms of reduced paper use and less time spent on the procurement process.
Suppliers save time as they no longer have to physically deliver documentation as all the relevant information is captured centrally on the CSD.
Government procurement practitioners also save time in that they can find suppliers in one easily accessible source: the CSD. Registration on the CSD is free of charge. All organs of state will be required to use suppliers registered on the database. Suppliers therefore only have to register on this singular platform, rather than registering with each organ of state individually.
The CSD interfaces with numerous institutions e.g. the South African Revenue Service (SARS), the Companies and Intellectual Property Commission (CIPC), the Department of Home Affairs, National Treasury Tender defaulters etc. to verify supplier information and check compliance.
This process provides a quick and easily-accessible snapshot of supplier records to government procurement practitioners, to see if a supplier qualifies to do business with government.
Modernising and streamlining procurement processes through the use of technology is one of the mechanisms that will enable government to realise value for money and save R25 billion a year in costs. Over the next three years, the public sector will spend approximately R1.5 trillion on goods and services.
Centralising supplier records on an online platform will enhance administrative efficiencies. The CSD is one of the several measures being implemented by government to modernise procurement systems.
The eTender publication portal (www.etenders.gov.za) is another such measure. It is an online platform through which suppliers can access government tenders free of charge. Once completely rolled out, tender advertisements in newspapers and government gazettes will be phased out, saving government an estimated R700 million in advertising costs annually.
Municipalities are anticipating going live with the CSD on 1 July 2016. An important function of the CSD is to help procurement practitioners identify local suppliers thus developing local economies, with an emphasis on uplifting rural areas.
The fastest option for suppliers will be to register online at www.csd.gov.za. User guides and help options on the website assist users with registration. The attached brochure also gives guidance on the registration process.
Please note that provincial treasuries and departments will also be able to assist suppliers with registration. The contact details for the provincial treasuries can be found at https://secure.csd.gov.za/Feedback/ProvincialContacts.
The National Treasury walk-in centre is situated at: 240 Madiba Street, Pretoria. The call centre can be reached on 012 406 9222.
Before starting registration, suppliers need to make sure that they have:
- a valid email address
- identity number
- cellphone number and
- correct bank account details, as per the FAQ on the CSD website
Kenneth Brown, the Chief Procurement Officer, urged all suppliers to ensure that they enter the correct bank details when they register on the CSD. Currently, a large number of suppliers are not entering the correct bank details for the business they are registering. This means that their bank account details cannot be verified against their business and that the supplier can therefore not be verified completely.
All suppliers will be required to fill in the following information on the CSD website and must ensure that it is complete, accurate and comprehensive:
- Supplier identification information e.g. supplier type and identification number.
- Supplier contact information e.g. preferred contact name, preferred communication method, email address, cell phone number, telephone number, etc.
- Supplier address information e.g. country, province, municipality, city, suburb, ward and postal code.
- Bank account information.
- Supplier tax information, e.g. valid tax number.
- Ownership information, e.g. name and identification number of directors, members etc.
- Association to any other suppliers e.g. branch, consortium member etc.
- Commodities that the supplier can supply.
- B-BBEE information.
Background on the OCPO
The Office of the Chief Procurement Officer (OCPO) was established in February 2013, to:
- Modernise government procurement
- Put systems in place that will help curb leakage in public expenditure and
- Ensure that government realises maximum value on the R500 billion spent on goods and services annually.
The work of the OCPO is to give expression to section 217 of the Constitution, which requires that the procurement of goods and services be fair, transparent, competitive and cost effective. The proposed Procurement Bill, which is still in draft stage, will further define the role of the OCPO.