Issue Date: 
Tuesday, February 7, 2017

New Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, have been finalized and gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. We start off with 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 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 a product 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, a commitment was made by government 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 or co-operatives as well as township and rural enterprises. Also, giving impetus/ incentive to the NGP. The highlights of the revision are:
 

  • Introducing the prequalification criteria, which allows the advancement of these selected categories of people, by limiting competition to 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, that high value tenders in the region of R30 million and above have a tendency to be awarded to established companies, due to economies of scale and affordability, leaving out categories of aspiring businesses. The revised regulations require all those, with the 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 gives smaller companies a greater chance to compete in the economy, in a meaningful way. (Refer to 6 & 7)

Commenting on the release of the regulations, Minister Pravin Gordhan said that 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 the 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. Tender Workshop dates are published on our website at www.how2tender.com. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

Title Closing Date Tender No.
The appointment of a service provider to provide medical surveillance program for 1225 (one thousand two hundred and twenty five) consisting of 72 landfill employees and 1153 general workers over four (4) months. 2019-03-18 11:00 PU058/ 2018
The appointment of panel of service providers for the removal, cleaning and rehabilitation and/or eradication of illegally dumped non-toxic, non-objectionable solid waste and rubble on as and when required basis for thirty six (36) months period. 2019-03-15 11:00 PU047/ 2017
Appointment of service providers for insurance and administration of the subsidized motor transport scheme and the VIP vehicle fleet of the state for the period 1 April 2019 to 31 March 2024 2019-03-08 11:00 RT58- 2019
Invitation to provide catering and canteen services at national health laboratory service head office and Braamfontein office for the period of three (3) years. 2019-03-08 11:00 RFB 156/ 18/ 19
Installation and servicing of Audio Visual and maintenance of Broadcasting Systems, TV Networks including Microwave Transmission Systems for a period of three (3) years. 2019-03-19 11:00 S114/ 18
Department of Public Works: 5 Garnet Road, Park Rynie, Port Shepstone: Provision of security services for a period on thirty (36) months 2019-03-13 11:00 ZNT 2857W
Department of Public Works: Pietermaritzburg: 1 Prince Alfred Street: Provision of security services for a period on thirty (36) months 2019-03-13 11:00 ZNT 2854W
Department of Public Works: 181 Mayors Walk Road, Pietermaritzburg: Provision of security services for a period on thirty (36) months 2019-03-13 11:00 ZNT 2855W
Department of Public Works: Port Shepstone: 35-37 Ridge Road: Provision of security services for a period on thirty (36) months 2019-03-13 11:00 ZNT 2858W
Department of Public Works: Main Road, New Hanover : Provision of security services for a period on thirty (36) months 2019-03-13 11:00 ZNT 2856W
Property for hiring: Interest parties are hereby invited to submit offers to hire the following property”voetstoots” for a two (2) year period, which is owned by the National Dept of Public Works : 2019-03-20 11:00 UCACT1- 10/ 2019
Appointment of a service provider to render maintenance of the electronic security systems at the Department of Public Service and Administration for a period of two (2) years. 2019-03-08 11:00 DPSA005/ 2018
Appointment of a service provider to store records off-site for the Department of Public Service and Administration for a period of 12 months. 2019-03-08 11:00 SCM002/ 2018
Rendering of a comprehensive laundry service to institutions in the Garden Route District, Department of Health, Western Cape Government for a three (3) year period 2019-03-15 11:00 WCGHSC0160/ 2018
Painting of Animal Hospital at Military Veterinary Hospital in Potchefstroom. 2019-03-11 11:00 CPSC- B- M- 031- 2018R
Appointment of a service provider to supply and deliver water tanks to juniorcare landcare projects 2019-03-01 11:00 4.4.12.2/ 37/ 18
Appointment of a service providers for Sage HR & payroll upgrade to Sage 300 people (including e-recruitment), SCM ACCETECH (BPM) for CCMA for a period of three (3) years. 2019-03-08 11:00 CCMA/ 2018/ 19- ICT
Request for information (RFI) appointment of a service provider to provide office space on lease agreement for Mthatha Office for a period of five (5) years. 2019-03-08 11:00 CCMA/ 2018/ 28- EL
The appointment of a supplier(s) for the supply and deliver stationery to the National Energy Regulator of South Africa (NERSA) for a period of thirty-six (36) months. 2019-03-07 11:00 NERSA/ 1819/ FAD/ SOS/ BID005
Removal of Existing Boundary Fence, Supply and Erect New Clearview (Or Equal – Must Be Approved), Anti-Climb Security Fence, Pedestrian and Drive Gates at Central Office and Main Campus 2019-03-15 10:00 CENT- FENCE- 2019

Pages

Tender Knowledge

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Sometimes I am surprised at how little business people in South Africa know about Tenders and the Tender Process. Simple things like terminology and general tender information are difficult for people to comprehend not to mention the Standard Bidding Documents and Tender Pricing.

Unbelievably there are still Entrepreneurs that thinks to respond to tenders are an actual business? You will find that these Entrepreneurs would... Read More

Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.