Issue Date: 
Tuesday, March 8, 2016

Acts Governing the South African Tender Environment - PPPFA

The other day I was attending a session on "How-to-tender" (not our own) and it was shocking to see the lack of knowledge regarding South African tender procedures. In South Africa the tender processes are ruled by various Acts, Regulation and Guidelines that are specifically designed to ensure that the tender process are in line with the Constitution of South Africa which dictates that the tender process should be fair, equitable, transparent, competitive and cost-effective.

First and foremost is The Preferential Procurement Policy Framework Act, 2000. This act was specifically introduced to comply with Section 217 (2) (a) of the Constitution of South Africa. This act must be followed by ALL Government entities. It is not a choice. It is not something that they can ignore if they feel like it. It must be followed.

Then there is the Preferential Procurement Regulations, 2017. These Regulations are there to guide Government entities on how to implement the Preferential Procurement Policy Framework Act. The Act and its Regulations go hand in hand and the one cannot exist without the other. 

In these Regulations you will also find clear guidelines on the 80/20 and 90/10 Preferential Procurement Points scoring system. All tender responses must be evaluated according to one of these points scoring systems regardless of any other special conditions that might be applicable for a specific tender. Remember that the:

  • 80/20 system is for tenders with a Rand value of up to R50 000 000 (all applicable taxes included); and 
  • The 90/10 system is for tenders with a Rand value above R50 000 000 (all applicable taxes included).

Don't let anybody tell you that this is not important. It is the heartbeat of all tender evaluations in South Africa. Our advice to you is to familiarize yourself with this Act and its Regulations. When you do so, you will empower yourself to have bargaining power when tenders are awarded.

One way to ensure you know all that there is to know is to attend our How-to-Tender workshops that we present Country wide. Please email us at werner@how2tender.com should you be interested in attending one of these workshops.
 
Learn to earn
 

Title Closing Date Tender No.
Vacant land - old scrap metal site 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3C
Supply: Furniture 2018-09-27 12:00 GL11900254
Vacant Land - Gately (Erf no. 20436) 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3C
Supply and install ferric dosing station at Voelvlei Water Treatment Plant. 2018-10-05 12:00 SK11900114
Workshop adjacent to Dry dock 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3C
Land and face-brick building adjacent to Car Terminal 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3C
Land and building - Radio workshop 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3C
Appointment of a Civil Maintenance Contractor for a Period of three years. 2018-10-16 12:00 PLZ 17/2018
Land and building-Old dredging building 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3C
Heritage Houses 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3B
Cape Town Stadium two day catering(25 and 26 September 2018). 2018-09-21 10:00 SD11900231
Supply: Tools and equipment 2018-09-26 12:00 GD11900336
Supply: Clothing 2018-09-26 10:00 GA11900263
Supply: Tools and equipment 2018-09-26 12:00 GD11900339
Land and building - Old Shipyard 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3A
Supply & printing of no access notebooks Water & Sanitation Department. 2018-09-28 12:00 SK1190034A
Network Partner 2018-09-28 16:00 No Reference
Provision of a Talent Management Solution 2018-10-08 12:00 RFP GvdW-4601170/2018
Supply Tools and equipment 2018-09-21 12:00 GD11900341
Catering for Tourism Workshop. 2018-10-21 10:00 SD11900230

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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