Guiding Principles

Value for Money (VfM)

is a philosophy that refers to the optimal application of scarce resources through programming. SSF III has an obligation to those living in target locations and to donor taxpayers to ensure that it does everything it can to maximise the VfM of its actions. This involves comparing alternative goods and services available in the market in order to achieve the 4 E’s:

  • Economy is the process of acquiring human and material resources of appropriate quality and quantity at the lowest possible cost. Judgements about economy are made by looking at the unit costs of key inputs, benchmarking against market rates and similar programmes in the locations where SSF III activities are implemented.
  • Efficiency is the production of maximum output for any given set of inputs (or the use of minimum inputs to achieve required outputs). Judgements about efficiency are made by looking at the activities used to produce outputs and the costs of those outputs
  • Effectiveness is the achievement of a set of desired outcomes and impact in both quantitative and qualitative terms. Effectiveness is the most important aspect of the VfM assessment as it involves comparing the realised outcomes to the costs incurred in the investment. Understood in this way, the approach provides the basis for assessing the most cost-effective way to achieve a given set of objectives when alternative options are similarly assessed.
  • Equity is the distribution of benefits across segments of the community. 
VfM assessment will be carried out at regular intervals over the lifetime of the programme. An important aspect of this assessment is a focus on analysis that goes beyond economy savings and begins to seriously assess efficiency and effectiveness aspects.

Open and Effective Competition

 this will ensure that adequate and timely information is provided to all suppliers to enable them to effectively participate in the procurement process.

Transparency

published SSF III procurements will be made available to the market with complete information unless there are valid and legal reasons to keep certain information confidential. Such information shall contain sufficient details for interested contractors, suppliers and service providers to understand in order to determine if they are qualified to compete. The solicitation documents shall be made widely available and at no cost.

Business Ethics, Integrity and Fair Dealing

this aims to ensure that: Purchases are conducted with high ethical and moral standards.
* Recognised standards of fair dealing and personal integrity are upheld.
* Any known illegal or unethical act is not wilfully condoned or approved.
* Confidentiality of information is always adhered to.
* All dealings are fully compliant with all requirements of competition legislation.
* SSF III staff involved in the procurement process should always disclose any possible conflict of interest and / or fraud to the relevant tender evaluation committee.
* There must be impartiality and objectivity in the conduct of bid evaluations. Not soliciting or accepting money, loans, and credits or prejudicial discounts, gifts, entertainment, favours or services from present or potential suppliers which might influence or appear to influence a procurement decision/ process.
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Localisation and Empowerment

where possible, the objectives of preferential procurement will be integrated into supplier evaluations. SSF III shall seek to utilise:
* Local, small and independent companies from area of program implementation.
* Minority, women or other underrepresented group owned businesses.
* Purpose driven businesses or non-profit organisations.
* Companies located in low-income areas or that provide job opportunities to people with barriers to employment.
* Companies certified for or can demonstrate strong social or environmental practices or products.
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