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 service provider to assist with the recruitment and selection process of Section 56 Managers 2018-02-27 12:00 RFQ 293/2017/18
Supply padlock; brass 2018-02-22 11:30 GG11800711
Accredited Firefighter 1 Training (Firefighter 1 course and Hazmat Awareness) 2018-02-27 11:00 296/2017/18
Supply ceramic tiles 2018-02-28 12:00 GG11800710
Trencing and Installation of Cables as and when required 2018-03-26 12:00 ENG012/2018
Provide Health Care Services - Medical Surveillance 2018-03-13 12:00 JCPZ/SHEQ01/2017
Recruitment Services 2018-03-13 12:00 JCPZ/HR03/2017
Monitoring and Inspection Services. 2018-03-13 12:00 JCPZ/RFP/NBD01/2017
To Operate, Maintain and to Supply Equipment in Sewer Treatment Plant 2018-03-27 10:00 MPPPSC001082
Supply solid SA pine timber 2018-02-28 12:00 GG11800714
Supply and deliver new borehole motor and pump combination 18.5KW 8.3l/s @ 125m (head) 2018-02-27 12:00 294/2017/18
Provision of Cleaning Services. 2018-03-14 11:00 OTT/444/201802
Request for Proposals are Invited for Investment in the Refurbishment and Management of the Rustenburg Showgrounds on a Long-Term Lease Basis 2018-03-27 10:00 RLM/DLED/0101/2017/18
Maintenance of Hydraulic Bin Compactors for two (2) years. 2018-03-15 14:00 58726
Request for Proposal for Drilling Two (2) Slim Hole Geologic Characterization Wells in the Zululand Basin for the South African Pilot Carbon Storage Project. 2018-03-16 11:00 435
Provisioning of Security Services in Mangaung Metropolitan, surrounding towns and Thabo Mofutsanyana District. 2018-03-16 11:00 FDC BID NO. 004/2018
Supply Metal pedestal fans 2018-02-26 12:00 GL11800584
Supply and Delivery of Protective Clothing: O.R. Tambo District Municipality Department of Water and Sanitation Services (DWASS) for a period of 2 years. 2018-03-16 10:00 ORTDM SCMU 59-17/18
Appointment of a Panel of Events Managers for Various Municipal Events for a period of three years 2018-03-27 11:00 RLM/DELD/0080/2017/18
Supply, delivery, installation, commissioning and training of Rea-time Polymerase Chain reaction (PCR) Instrument 2018-03-16 12:00 MW/25/2017

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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