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

Title Closing Date Tender No.
Provision of Office Accommodation: Siyabuswa Satellite Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered) 2018-08-24 11:00 32/ 2018
ORBIT TVET College invites capable and competent service providers to supply and deliver New Classroom Furniture for CET. 2018-08-24 11:00 CET01/ 2018
Provision of Office Accommodation: Dundee Satellite Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered). 2018-08-24 11:00 33/ 2018
Provision of a comprehensive catering service to Eerste River Hospital under control of the Department of Health, Western Cape Government for a 3-year period. 2018-08-17 11:00 WCGHSC0096/ 2018
Provision of Office Accommodation: Ladysmith Local Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered) 2018-08-24 11:00 29/ 2018
Provision of Office Accommodation: Estcourt Satellite Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered) 2018-08-24 11:00 27/ 2018
Supply Chest Freezer - Frost Free. 410 - 500L 2018-07-27 11:00 ZNQ 07/ 05/ 2018
Request for the procurement of external vendors to assist with creation of Records Centre. 2018-08-14 11:00 RFB 1773/ 2018
Provision of Office Accommodation: Port Shepstone Local Office for a lease period of 5 years or more 2018-08-24 11:00 28/ 2018
Provision of Office Accommodation: Grahamstown Local Office for a lease period of 5 years or more. 2018-08-24 11:00 35/ 2018
Draining Pumps; Circulator Pump 2018-07-27 11:00 ZNQ 30- 2018/ 19
Hosting Event Management, Erection Exhibition Stalls and Décor Services for the Department of Defence for the DOD Suppliers day. (Procurement Plan Number: DOD PROC PLAN 18-19/LOG DIV/572). 2018-08-20 11:00 CPSC- B- G- 085- 2018
Supply and delivery of building materials to 11 Sections in Tshakhuma Village, Vhembe District. 2018-08-13 11:00 WRC- 010- 18/ 19
Pounding yard for Department of Community Safety for a period of 60 months (05 years) 2018-08-10 11:00 GT/ GDCS/ 083/ 2018
Establishment of a Pre-Qualified Service Providers for the Supply and Installation of library furniture (including space planning and layout) for a period of 36 months. 2018-08-10 11:00 GT/ GDSACR/ 091/ 2018
The Rural Housing Loan Fund NPC (RHLF) is a Schedule 3A public entity and Development Finance Institution reporting to the Minister of Human Settlements. In terms of PFMA, the company is required to have an internal audit function reporting to its Audit and Risk Committee. As RHLF is a small entity this function is outsourced and the company now calls for tenders, from established internal auditing firms, to undertake this work from August 2018 for a three-year period. 2018-08-21 16:00 IA001
Appointment of a Qualification Development Facilitator to develop and realign occupational qualification. 2018-08-21 11:00 QDF/ PSETA/ 2018- 07
Mixer Pillar Elbow; Mixer Bib Elbow; Geyser 200 L; Geyser 150 L; Heavy Duty shire low level Cistern; PVC Toilet Flushing Mechanism 2018-07-27 11:00 ZNQ 31- 2018/ 19
NC092 - Dikgatlong Local Office Accommodation. 2018-08-10 11:00 IEC/ NC- 03/ 2018
Appointment of a service provider to supply, install and integrate an enterprise level Nintex or equivalent business process automation tool solution with the NRF’s existing sharepoint infrastructure and support the tool solution for a period of five years. 2018-08-16 11:00 NRF/ CORP- RISA ICT/ 002/ 2018


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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