Brand new Preferential Procurement Regulations 2017 for Tenders | Page 2 | SA-Tenders.co.za
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.

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Title Closing Date Tender No.
Supply and deliver blood alcohol kits x 100 kits 2018-05-25 11:00 08/ 2018/ 19
Facial nerve monitoring for ENT surgery period: 12 months 2018-05-31 11:00 ZNB 23/ 2018- 2019
Construction of new Southey Community Library: CIDB grading 7GB or higher. 2018-06-22 11:00 PWR 63/17
Construction of new Southey Community Library: CIDB grading 7GB or higher. 2018-06-22 11:00 PWR 63/17
Supply bandages and dressing (see description for details) 2018-05-28 11:00 06/ 18- 19
The appointment of a service provider to render Municipal Finance Management Act (act 56 of 2003) regulations on minimum competencies training to ERWAT Employees. 2018-06-22 12:00 ERW201801/TNDR-001
Acquisition of office Accommodation Measuring Approximately 2017sqm and 27 Parking Bays 2018-06-20 11:00 NST18/ 018
Supply and delivery of diagnostic sets to all hospitals/ institutions under the control of the Department of Health, Western Cape Government for a three year period. 2018-06-15 11:00 WCGHCC007/ 2017
Repairs and renovations Contract period: Six (06)Calendar months 2018-06-18 11:00 ZNTL 03426 W
Supply and installation of air-conditioners at East London Airport. 2018-06-22 12:00 RFQ10614
Supply and Deliver Portable Tonometer - Rebound Technology. 2018-05-25 11:00 ZNQ0097/ 18/ 19
Appointment of service provider for the supply of Internet Services to Sentech SOC Ltd for a period of three (3) years with optional extension of two (2) years. 2018-06-22 12:00 SENT/007/2018-19
Remedial works to roof coverings and accessories at Dl1 Hospital as per specification 2018-06-11 11:00 ZNQ 981/ 17- 18
Supply and Deliver Ophthalmic Laser, ND, Yag, Photo-Disruptive 2018-05-25 11:00 ZNQ0098/ 18/ 19
Gowns 2018-05-30 11:00 ZNQ: 78/ 2018/ 19
Professional services (management and supervision) for the dry dock pump house upgrade, civil works, trenching and resurfacing and ancillary plinths in the port of Durban. 2018-06-26 10:00 TNPA 729
Contract for Cleaning of Buildings (4 Months) 2018-05-30 11:00 ZNQ: 71/ 2018/ 19
Appointment of a Service Provider to Provide Ticket Sales Services for the South African State Theatre for a period of three years 2018-06-15 14:00 SAST/ 2018/ TICKET SALES
The Supply and Delivery of Dry Rations, Juices Dried Fruit & Veg, Canned Fruit & Veg, Canned meat etc to the Department of Defence (Cape Metropole Area). 2018-11-22 11:00 SPSC- B- 019- 2018
Aprons plastic disposable 2018-05-30 11:00 ZNQ: 79/ 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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