Issue Date: 
Tuesday, March 8, 2016

Acts governing the South African tender environment - PPPFA

There appears to be a serious lack of knowledge regarding South African tender procedures. Here, the tender processes are ruled by various Acts, Regulation and Guidelines which are specifically designed to ensure that the tender processes 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, 2011. 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, it must be adhered to.

Then there is the Preferential Procurement Regulations, 2011. 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 operate without the other.

In these Regulations you will also find clear guidelines on the 80/20 and 90/10 Preferential Procurement Points scoring system which all tender responses are evaluated on, regardless of any other special conditions that might be applicable.

Remember that the:

  • 80/20 system is for tenders with a Rand value of up to R1 000 000 (all applicable taxes included); and
  • The 90/10 system is for tenders with a Rand value above R1 000 000 (all applicable taxes included).

Do not believe that it is not important. It is at the heart of all tender evaluations in South Africa. Familiarize yourself with this Act and its Regulations so that you will have bargaining power when tenders are awarded.

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www.how2tender.com

Brand new Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, has been finalized and was gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. This is the official media release from National Treasury:

The regulations were initially promulgated in 2001 and revised in 2011 thus making this the second revision since the initial promulgation.

The revision of the Preferential Procurement Regulations of 2011 was largely influenced by the need... Read More

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