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.
Supply paper towel - type: interfold 2017-12-15 15:00 GB118A0592
Hire of digger loader 2017-12-20 09:00 WJ11800280
Hire of digger loader 2017-12-20 09:00 WJ11800279
Cleaning services at transport management centre / disaster risk management buildings, City of Cape Town. 2017-12-20 12:00 SC11800080
Audit Services of NIM Projects 2017-12-17 12:00 43093
Provision of transaction advisory services to INSETA 2017-12-18 11:00 RFQ/2017/56
Supply Pre-printed stock stationery- book pediatric 2017-12-15 11:00 GM11800520
Hire of digger loader 2017-12-20 09:00 WJ11800281
The appointment of a service provider to conduct enumeration services for Komatiland Forests for a period of three (3) years 2018-01-25 11:00 RFB 072/2017
Construction Of Dakota Pilot Street 2018-01-25 12:00 164/2017
Construction Of Cessna Street 2018-01-25 11:00 165/2017
Bid for the supply and delivery of 6 cubic metre skip bins for Midvaal Local Municipality 2018-01-26 10:00 8/2/4/121
Request for Proposals for the Appointment of a Service Provider to Assist with the Insurance Broking Service for I’ts Requirements in Respect of I’tsshort Term Insurance Portfolio (Non – Motor) 2018-01-25 10:30 A748
Supply Plants 2018-01-12 16:00 GC11800395
Supply and deliver liquid petroleum gas 2017-12-15 16:00 GC11800396
Bid for the supply and delivery of uniform and protective clothing for the Waste and Environmental Management Section of Midvaal Local Municipality. 2018-01-26 10:00 8/2/4/122
Construction of Luthuthu Community Hall with a CIDB Grading of 4 GB or Highe 2018-01-15 12:00 068/2017/18
Construction Of Mkhuhlu & Mthonjaneni Streets 2018-01-26 11:00 161/2017
Supply & delivery of PE 100 class HDPE pipes & fittings 2018-01-30 10:00 SAZ RME 3001/2017
Travel Agency Services from date of Award to 30 December 2018 2017-12-14 12:00 6/5/2/350

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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