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.
Appointment of a capable service provider to manage gym / wellness centre for the Department of Sport & Recreation South Africa for a period of three years 2018-08-24 08:00 SRSA001/ 2018- 19
Servicing of Genset -{960&240- Hour Service and Annual Electrical Service} at Psychiatric,Pabx And Odtc Genset Plant as per Specification 2018-08-06 11:00 ZNQ 403/ 18- 19
Repairs to UPS Complete. 2018-07-27 11:00 ZNQ 42- 2018/ 19
Major Service to Intaka Generator. 2018-07-27 11:00 ZNQ 36- 2018/ 19
Major service to Fire Fighting Equipment. 2018-08-27 11:00 ZNQ 38- 2018/ 19
Empty, De - Sludge and Clean Out Sewer Sump Tank X 2 2018-07-30 11:00 ZNQ 81/ 2018/ 19
Major Service to Fire Detection. 2018-07-27 11:00 ZNQ 37- 2018/ 19
Major Service to 3 Autoclaves. 2018-07-27 11:00 ZNQ 33- 2018/ 19
Appointment of a service provider to provide security services to the Department of Sport, Arts and Culture for a period of thirty six (36) months. 2018-08-10 11:00 NCDSAC- 002- 2018/ 19
Service provider to service air-conditioner at Qulashe clinic, the company must be CIDB 1ME or above x 01 unit: Kilometers = +/- 52km. 2018-08-02 11:00 110/ 2018/ 2019NSI
Once-off supply of bench-top digital Plankton Image Scanner for acquisition of high resolution images of liquid immersed zooplankton specimens to aid software-based species identification and enumeration 2018-08-20 16:00 NRF/ SAEON/ PLNKIMSCAN/ 2018
Supply and delivery of two new 6m to 6.5m Category C (15 nautical miles offshore) research semi-rigid vessels with trailers for SAEON (South African Environmental Observation Networks), in Port Elizabeth. 2018-08-20 16:00 NRF/ SAEON/ SMALLVESSELS/ 2018
Service provider to repair Ahuja Ssb-45m Pa System x 01 unit 2018-08-02 11:00 108/ 2018/ 2019NSI
Provision of security services 2018-08-20 12:00 MTK 10/ 2018
Service provider to replace miranti door with a double alluminium door for paeds entrance service provider must be CIDB grade 1GB x 01 unit. 2018-08-02 11:00 163/ 2017/ 2018NSI
Service provider to service air-conditioner at Sphamandla clinic, the company must be CIDB 1ME or above x 01 unit kilometers = +/- 18km 2018-08-02 11:00 115/ 2018/ 2019NSI
Demarcation Tape 2018-08-13 12:15 10383891
Service provider to service borehole pump, the kilometers from St. Apollinaris Hospital to the clinics (single trip to) is Malenge Clinic x 01 (+/- 27km); Riverside clinic x 01 (+/- 18km); Qulashe clinic x 01 (+/- 52km) 2018-08-02 11:00 81/ 2018/ 2019NSI
Service provider to service air-conditioners at gateway clinic, the company must be CIDB 1ME or above x 8 units. 2018-08-02 11:00 114/ 2018/ 2019NSI
Finger Print Pads “micro porous” 2018-08-13 12:45 10383914

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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