Issue Date: 
Tuesday, February 7, 2017

New Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, have been finalized and gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. We start off with 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 to empower certain categories (Small Medium and Micro Enterprises (SMME) also classified as EMEs or QSEs, Co-operatives, Township and Rural enterprises) through procurement. This was a product of social dialogue on the New Growth Path (NGP), wherein government and social partners signed a Local Procurement Accord on 31 October 2011. To this end, a commitment was made by government to leverage public procurement.

The revised regulations are also aligned to President Jacob Zuma's pronouncement in his 2015 State of the Nation Address, wherein he said, that government will set-aside 30% of appropriate categories of State procurement for purchasing from SMMEs or co-operatives as well as township and rural enterprises. Also, giving impetus/ incentive to the NGP. The highlights of the revision are:
 

  • Introducing the prequalification criteria, which allows the advancement of these selected categories of people, by limiting competition to only amongst themselves. This restricts the inclusion of well established companies, unless they meet further requirements of subcontracting to these groups, should they (established company) be successful. (Refer to regulation 4).
  • Acknowledging that in the main, that high value tenders in the region of R30 million and above have a tendency to be awarded to established companies, due to economies of scale and affordability, leaving out categories of aspiring businesses. The revised regulations require all those, with the ability to deliver the required service, to demonstrate the element of subcontracting to the categorised groups at a tendering stage. (Refer to regulation 9).
  • Addressing the outcry of the categorised groups, who felt that the threshold of R1 million is too insignificant for them to grow to a level of established companies. Current regulations have increased to R50 million. This now gives smaller companies a greater chance to compete in the economy, in a meaningful way. (Refer to 6 & 7)

Commenting on the release of the regulations, Minister Pravin Gordhan said that the regulations aim to use public procurement as a lever to promote socio-economic transformation, empowerment of small enterprises, rural and township enterprises, designated groups and the promotion of local industrial development. He said this is in line with the current dialogue on inclusive economic growth in South Africa.

To learn more about this and all the other new developments regarding tenders, please attend one of our How-to-Tender workshops. Tender Workshop dates are published on our website at www.how2tender.com. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

Title Closing Date Tender No.
Thabamoopo Magistrate Office: Repairs and renovations 2019-06-18 11:00 PLK19/ 04
Pretoria: Silverton SAPS: Yankee Base: Phase II: Replacement of 20 Containers and Construction of Roof and Stairs 2019-06-25 11:00 Pt19/ 004
Supply, deliver, install and commissioning of laundry equipment: Benedicitine Hospital 2019-06-24 11:00 ZNB 9654/ 2018- H
Preventative and corrective maintenance contract of steam tube bundles calorifiers: 3 year contract: various institutions 2019-06-25 11:00 ZNB 5118/ 2019- H
Refurbishment of Tennant Road Kenilworth. CIDB Grading GB Level 4. 2019-07-31 11:00 SPSC- B- 007- 2019
Refurbishment of Porterville Crescent, Monte Vista. CIDB Grading GB Level 3. 2019-07-30 11:00 SPSC- B- 006- 2019
Repair of the Burned Building at Northern Military Headquarters. 2019-06-27 11:00 CPSC- B- G- 266- 2018
NDPW: Repairs, Maintenance, Service and Replacement of Refrigeration to various areas within the Johannesburg Regional Office’s jurisdiction for 24 months period. 2019-06-18 11:00 JHB.19/ 15
RFP 0014/2019: Provision of integrated pest management program for all SARS offices, countrywide 2019-06-25 11:00 RFP0014/ 2019
Request for provision of exhibition management services for Govtech 2019 2019-06-13 11:00 RFB 1945/ 2019
Bloemfontein: South African Social Security Agency (SASSA): Mangaung Metro District Local Office: New office accommodation: and parking facilities: 1287.73m² and 40 parking bays 2019-06-18 11:00 BL19- 008
Bethlehem Department of Rural Development and Land Reform (DRD & LR): Thabo Mofutsanenyane District: Alternative office accommodation and parking facilities: 1994.17m² and 25 parking bays for 5 years 2019-06-18 11:00 BL19- 007
Welkom Department of Rural Development and Land Reform (DRD & LR): Thabo Mofutsanyane District: Alternative office accommodation and parking facilities: 2019-06-11 11:00 BL19/ 004
The iSimangaliso Wetland Park Authority invites suitable, qualified and competent Suppliers for the supply and delivery of Uniforms to iSimangaliso Wetland Park Authority 2019-06-07 16:00 RFP NUMBER: 02/ MAY/ 2019
Supply of Corporate Gifts, Clothing & Branding - This is an all inclusive National tender that will be urtilised by all our 64 members across South Africa on an as and when required. 2019-06-13 12:00 PUR 3600/ 2
Three year contract for the Disposal of Aluminium Lithographic Plates from Naval Publication Unit, Simon’s Town as per Statement of Work. 2019-06-26 11:00 SPSC- B- 004- 2019
Request For Proposals for the Appointment of a Professional Service Provider to Provide Facilities Management for the Playhouse Company for a preiod of 3 years 2019-06-24 11:00 PHC 59/ 2019
Appointment of a service provider to print barcoded Quarterly Labour Force Survey (QLFS) questionnaires for the third quarter, July-September 2019 and Survey of Activities of Young People (SAYP) questionnaires for the third quarter, July-September 2019 for Statistics South Africa 2019-06-07 11:00 Stats SA 001/ 19
Design and construction of world-class international exhibitions stands for South African Tourism 2019-06-14 12:00 SAT 142/ 19
Provision of Leadership Development and Coaching Services at Sanas for a period of twelve (12) months 2019-06-14 11:00 SANAS/ LDCS/ 2019- 20/ 01

Pages

Tender Knowledge

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Sometimes I am surprised at how little business people in South Africa know about Tenders and the Tender Process. Simple things like terminology and general tender information are difficult for people to comprehend not to mention the Standard Bidding Documents and Tender Pricing.

Unbelievably there are still Entrepreneurs that thinks to respond to tenders are an actual business? You will find that these Entrepreneurs would... Read More

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