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.
Installation of Anti Climb, Anti Cut Fencing Material for the Gert Sibande District Airport (Re-Advert) 2018-02-23 12:00 91/2017
Supply Abrasive belt 2018-02-22 12:00 GD11800746
Supply, Delivery and Training in the Operation of a Hover Drone 2018-02-23 12:00 161/2017
Supply SA pine flooring 2018-02-23 12:00 GG11800703
Provision of Gases to Perform Analyses for Gert Sibande District Municipality Water Laboratory for the period of 3 years. 2018-02-23 12:00 159/2017
Supply and delivery of Sanitary hygiene services for the period 1 July 2018 tot 30 June 2021. 2018-03-23 12:00 Te
Appointment of a service provider for the provision of advertising services (creative media planning and buying services). 2018-03-23 11:00 NEPO/079/2018
Appointment of a service provider for renewable energy and smart energy saving lighting systems. 2018-04-06 11:00 ESUS/2017/21
Supply, delivery and registration of a 14 seater combi 2018-03-22 12:00 FTM/TS72/17/18
Hiring of Audio Visual Equipment and Related Professional Services: Career Expo @ Belhar Indoor Sport Centre @ 17.03.2018 @ 07:30-15:30 2018-02-26 09:00 SM11800371
Roads and storm water master plan 2018-03-27 12:00 FTM/TS71/17/18
Supply: Microwave and fridge 2018-02-22 12:00 GL11800580
Appointment of a professional consultants to conduct a comprehensive feasibility study to assess the capability of the Municipality for the provision of water services 2018-03-27 12:00 FTM/TS70/17/18
Provision of professional services: For contract administration, construction supervision and close out for the proposed offices: Extension for Bloem Water 2018-03-23 12:00 BW189/HO/12
Appointment of a service provider for the procurement of protective clothing for hundred (100) community members to embark on Bush Encroachment and Allien Species Control Project (as part of Soil Rehabilitation Programme) in the Oretele Agri-Hub Grazing at Makapanstad Village which is located in Moretele Local Municipality in Bojanala District Municipality, North West Province 2018-03-01 11:00 NW-TEN 02 (011) 17/18
Provision of emergency medical service on 24 hours basis 7 days a week including Wilge properties personnel, Khutala Mine, Kusile and first aid training only for emergency care team members at Kendal Power Station for the period of 3 years. 2018-03-26 10:00 MPGXC005059
Appointment of an Environmental Consultant to execute an Environmetal Impact Assessment (EIA) Process for the Proposed Matlosana Agri-Hub, situated in the Remainder of Portion 1 of the Farm Townlands of Klerksdorp 424 IP in Matlosana Local Municipality under Dr Kenneth Kaunda District Municipality in the North West Province 2018-03-01 11:00 NW-TEN 02 (009) 17/18
Supply: Capacity Building- Ward 33 Seniors Event: Cooler bag and mugs 2018-02-26 12:00 GL11800575
Appointment of an environmental consultant to execute an Environmental Impact Assessment (EIA) process for the proposed Vryburg Agri-Hub, situated in Commonage ERF506 Camp G in Naledi Local Municipality under Dr Ruth Segomotsi Mompati District Municipality in the North West Province 2018-03-01 11:00 NW-TEN 02 (008) 17/18
Request for proposals for production of a documentary video on illegal, unregulated and unreported fishing in Africa 2018-03-23 15:00 AUC/IED/119

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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