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PUB2610 PORTFOLIO MAY/JUNE 2026 (Answer Guide) – Due 02 June
2026
PUBLIC PROCUREMENT AND LOGISTICS MANAGEMENT
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2026
Contents
QUESTION 1 .............................................................................................................................................. 2
1.1 General aspects of public procurement .................................................................................. 2
1.2.1 Continuous stocktaking ........................................................................................................... 5
1.2.2 Periodic stocktaking ................................................................................................................. 7
QUESTION 2 .............................................................................................................................................. 9
2.1 Two-stage bidding......................................................................................................................... 9
2.2 Prequalifying bidders ................................................................................................................. 10
2.3 Single source bidding ................................................................................................................ 12
2.4 E-procurement ............................................................................................................................. 13
2.5 Establishment of a panel of professional service providers (PSP’s) ............................ 14
REFERENCES ......................................................................................................................................... 15
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QUESTION 1
1.1 General aspects of public procurement
Public procurement refers to the process through which government departments and
public institutions acquire goods, services and works from external suppliers in order to
fulfil public needs and deliver services to citizens. Public procurement is an important
component of public administration because it ensures that public institutions obtain the
required resources in a lawful, economical, efficient and transparent manner. In South
Africa, public procurement is guided by the Constitution of the Republic of South Africa,
1996, as well as supply chain management regulations and policies that promote
fairness, equity, transparency, competitiveness and cost-effectiveness.
One of the general aspects of public procurement is accountability. Public officials
involved in procurement processes are accountable for the decisions they make and for
the manner in which public funds are utilised. Accountability ensures that procurement
activities are monitored and that officials can explain and justify procurement decisions.
This aspect is important because public procurement involves taxpayer money and
therefore requires responsible financial management. For example, when a provincial
health department purchases medical equipment for hospitals, procurement officials
must account for how suppliers were selected and whether the procurement process
complied with applicable regulations (Fourie & Opperman, 2019:45).
Another important aspect is transparency. Transparency means that procurement
procedures should be open, clear and accessible to all interested parties. The
procurement process should provide sufficient information regarding tender
opportunities, evaluation criteria and contract awards. Transparency helps to reduce
corruption and favouritism within public institutions. For example, municipalities in South
Africa publish tender advertisements on the eTender Publication Portal and municipal
websites so that all potential suppliers have equal access to procurement opportunities
(Ambe & Badenhorst-Weiss, 2012:244).
Fairness and equity are also key aspects of public procurement. All suppliers should
be treated equally and without discrimination during procurement processes.
Procurement systems must create equal opportunities for businesses to compete for
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government contracts. In South Africa, fairness is further promoted through policies that
support previously disadvantaged individuals and small businesses. For instance, a
municipality may allocate preference points to businesses owned by historically
disadvantaged groups in line with the Preferential Procurement Policy Framework Act
(PPPFA) to promote inclusive economic participation (Bolton, 2016:89).
A further aspect is competitiveness. Public procurement should encourage competition
among suppliers to ensure that government institutions obtain quality goods and
services at the best possible price. Competitive bidding allows different suppliers to
submit bids, enabling the institution to compare prices, quality and delivery capabilities
before making a final decision. For example, the Department of Basic Education may
invite several companies to tender for the supply of textbooks to public schools.
Through competition, the department can identify the supplier offering the best value for
money while still meeting quality standards (Thai, 2017:17).
Cost-effectiveness and value for money are central principles in public procurement.
Government institutions are expected to spend public funds economically and efficiently
while achieving the intended outcomes. Procurement decisions should therefore not
focus only on the lowest price, but also on quality, durability and long-term benefits. For
example, when a public hospital procures ambulances, it may select vehicles that are
slightly more expensive but have lower maintenance costs and better reliability over
time. This ensures effective use of public resources and improved service delivery
(Migiro & Ambe, 2008:231).
Another aspect is compliance with legal and regulatory frameworks. Public
procurement activities must comply with legislation, policies and ethical standards
established by government. These frameworks guide procurement procedures and help
to ensure consistency and legality in procurement operations. In South Africa,
procurement officials must comply with the Public Finance Management Act (PFMA),
Municipal Finance Management Act (MFMA) and supply chain management
regulations. Failure to comply with these laws may lead to disciplinary action or legal
consequences. For example, if a department awards a tender without following the
PUB2610 PORTFOLIO MAY/JUNE 2026 (Answer Guide) – Due 02 June
2026
PUBLIC PROCUREMENT AND LOGISTICS MANAGEMENT
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2026
Contents
QUESTION 1 .............................................................................................................................................. 2
1.1 General aspects of public procurement .................................................................................. 2
1.2.1 Continuous stocktaking ........................................................................................................... 5
1.2.2 Periodic stocktaking ................................................................................................................. 7
QUESTION 2 .............................................................................................................................................. 9
2.1 Two-stage bidding......................................................................................................................... 9
2.2 Prequalifying bidders ................................................................................................................. 10
2.3 Single source bidding ................................................................................................................ 12
2.4 E-procurement ............................................................................................................................. 13
2.5 Establishment of a panel of professional service providers (PSP’s) ............................ 14
REFERENCES ......................................................................................................................................... 15
,2|Page
QUESTION 1
1.1 General aspects of public procurement
Public procurement refers to the process through which government departments and
public institutions acquire goods, services and works from external suppliers in order to
fulfil public needs and deliver services to citizens. Public procurement is an important
component of public administration because it ensures that public institutions obtain the
required resources in a lawful, economical, efficient and transparent manner. In South
Africa, public procurement is guided by the Constitution of the Republic of South Africa,
1996, as well as supply chain management regulations and policies that promote
fairness, equity, transparency, competitiveness and cost-effectiveness.
One of the general aspects of public procurement is accountability. Public officials
involved in procurement processes are accountable for the decisions they make and for
the manner in which public funds are utilised. Accountability ensures that procurement
activities are monitored and that officials can explain and justify procurement decisions.
This aspect is important because public procurement involves taxpayer money and
therefore requires responsible financial management. For example, when a provincial
health department purchases medical equipment for hospitals, procurement officials
must account for how suppliers were selected and whether the procurement process
complied with applicable regulations (Fourie & Opperman, 2019:45).
Another important aspect is transparency. Transparency means that procurement
procedures should be open, clear and accessible to all interested parties. The
procurement process should provide sufficient information regarding tender
opportunities, evaluation criteria and contract awards. Transparency helps to reduce
corruption and favouritism within public institutions. For example, municipalities in South
Africa publish tender advertisements on the eTender Publication Portal and municipal
websites so that all potential suppliers have equal access to procurement opportunities
(Ambe & Badenhorst-Weiss, 2012:244).
Fairness and equity are also key aspects of public procurement. All suppliers should
be treated equally and without discrimination during procurement processes.
Procurement systems must create equal opportunities for businesses to compete for
, 3|Page
government contracts. In South Africa, fairness is further promoted through policies that
support previously disadvantaged individuals and small businesses. For instance, a
municipality may allocate preference points to businesses owned by historically
disadvantaged groups in line with the Preferential Procurement Policy Framework Act
(PPPFA) to promote inclusive economic participation (Bolton, 2016:89).
A further aspect is competitiveness. Public procurement should encourage competition
among suppliers to ensure that government institutions obtain quality goods and
services at the best possible price. Competitive bidding allows different suppliers to
submit bids, enabling the institution to compare prices, quality and delivery capabilities
before making a final decision. For example, the Department of Basic Education may
invite several companies to tender for the supply of textbooks to public schools.
Through competition, the department can identify the supplier offering the best value for
money while still meeting quality standards (Thai, 2017:17).
Cost-effectiveness and value for money are central principles in public procurement.
Government institutions are expected to spend public funds economically and efficiently
while achieving the intended outcomes. Procurement decisions should therefore not
focus only on the lowest price, but also on quality, durability and long-term benefits. For
example, when a public hospital procures ambulances, it may select vehicles that are
slightly more expensive but have lower maintenance costs and better reliability over
time. This ensures effective use of public resources and improved service delivery
(Migiro & Ambe, 2008:231).
Another aspect is compliance with legal and regulatory frameworks. Public
procurement activities must comply with legislation, policies and ethical standards
established by government. These frameworks guide procurement procedures and help
to ensure consistency and legality in procurement operations. In South Africa,
procurement officials must comply with the Public Finance Management Act (PFMA),
Municipal Finance Management Act (MFMA) and supply chain management
regulations. Failure to comply with these laws may lead to disciplinary action or legal
consequences. For example, if a department awards a tender without following the
