Issue Date: 
Tuesday, February 7, 2017

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 to provide for a mechanism 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 an outcome 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, commitment made by government was 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, co-operatives as well as township and rural enterprises. Also, giving impetus to the NGP the highlights of the revision are: -

  • Introducing the prequalification criteria which allow the advancement of these selected categories of people by limiting competition 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, the high value tender in the region of R30 million and above tend to be awarded to established companies due to economies of scale and affordability, leaving out categories of aspiring businesses, the revised regulations requires all those with 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 give the smaller companies greater chances to compete in the economy in a meaningful way. (Refer to 6 & 7)

Commenting on the release of the regulations, Minister Pravin Gordhan says 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 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.

Learn to earn

www.how2tender.com

Title Closing Date Tender No.
Lease Vehicle 2018-08-10 14:00 CBRTA/HO/0041
Support and Maintenance of the C-BRTA Permit Management System 2018-08-16 14:00 CBRTA/HO/0050
Supply and Delivery of Repair Coupling Cl.16 Upvc 2018-07-23 12:00 B 036/2018/19
To Provider Socio-Economic Impact Assessment (SEIA) for the Operator Compliance Accreditation Scheme 2018-08-15 14:00 CBRTA/HO/0048
Supply and Delivery of Cast Iron Short Collars & CI Saddles 2018-07-23 12:00 B037 /2018/19
Supply, Delivery & Installation of Large Volume Water Storage Tanks to CTICC 1. 2018-08-03 12:00 CTICC 002/2019
Presenter for SAICA’s 2019 and 2020 IFRS Update and the Financial Reporting Update for Executives Seminars 2018-07-31 12:00 SAICA072018
Panel Environmental Professionals for a Period of 36 Months. 2018-08-03 12:00 A043-2017/18
Supply and Delivery of Plumbing Material 2018-07-23 12:00 B038 /2018/19
Presenter for SAICA’s Seminar on the New Leases Standard (IFRS 16 – Leases) 2018-07-31 12:00 SAICA062018
Supply, Lay & Delivery of Slurry Surfacing, Bitume and Emulsions, and Treatment of Road Surfacing Cracks. 2018-08-03 12:00 A054-2017/18
Analysis and Streamlining of CTICC Marketing Collateral 2018-07-27 12:00 RFQ 001/2019
10M3 Tipper Truck 2018-08-07 11:00 MBIZ LM 0007 TIP
Supply and Delivery of Wheelbarrow Concrete with Rubber wheels 2018-07-23 12:00 B041 /2018/19
Management of municipal construction plan. 2018-08-07 11:00 MBIZ LM 003 MMCP
Fuel Tanker Truck. 2018-08-07 12:00 MBIZ LM 0006 FUE
Refurbishment of Relay Room Roofs at Roode, Welgedag, Boekie, Avondsrus, Zesfontein, Slimesdam, Withok and Fuelgridge. 2018-08-07 10:00 RFQ: SIM 18021 CIDB
Provision of Group B hire cars for Outage 223 for Koeberg Operating Unit. 2018-08-07 10:00 KBG1860 & RFP1861
Provision of Driver’s License Learnership Code 10 (C1) 2018-07-24 12:00 12/2018/19
Construction of Lencane to Newtown Access Road. 2018-08-10 11:00 MBH/MIG/0002/2018-19

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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