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.
Removal of Existing Boundary Fence, Supply and Erect New Clearview (or Equal – Must Be Approved), Anti-Climb Security Fence, Pedestrian and Drive Gates at Lere La Tshepe Campus 2019-03-15 10:00 LERE- FENCE- 2019
Removal of Existing Boundary Fence, Supply and Erect New Clearview (Or Equal – Must Be Approved), anti-Climb Security Fence, Pedestrian and Drive Gates at Bonamelo Campus 2019-03-15 10:00 BON- FENCE- 2019
Structural Repairs, Internal and External Repairs and Renovations, Plumbing and Electrical Repairs and Renovations to the Classroom Block at the Bethlehem Campus Heritage Building. 2019-03-15 10:00 BETH- OLDBLOCK- 2019
Construction of New Male and Female Ablution Facilities Including Water Storage Facilities, Grey Water Treatment Facilities and Electrical Installation at Lere La Tshepe Campus. 2019-03-15 10:00 LERE- ABLUTION- 2019
Structural Repairs and Foundation Repair to External Classroom Walls at Itemoheleng Campus 2019-03-15 10:00 ITEM- WALLS- 2019
Roof Structure and Roof Sheeting Repairs and Replacement, Where Necessary, Including Waterproofing at Lere La Tshepe Campus 2019-03-15 10:00 LERE- ROOF- 2019
Repairs Including Structural, Roof and Internal Changes to Fire Damaged Office Building – Central Office 2019-03-15 10:00 CENT- BUILDING- 2019
Supply and Establishment of Park Homes: Chwezi Clinic 2019-03-14 11:00 ZNB 9505/ 2018- H
Maintenance and operation of the Air Conditioners: Natalia Building: 3 year contract 2019-03-15 11:00 ZNB 5480/ 2018- H
Construction of New Educational Facilities and Demolition of Old Structures at Sophatisana Secondary School 2019-03-11 12:00 CDC/ 59/ 19
Renewal of Nintex Licenses, Including Support and Maintenance for Period of Twelve (12) ,Months for South African Social Security Agency (Sassa). 2019-03-11 11:00 RFB 1816/ 2018
Procurement of an Integrated IT Operations Network Troubleshooting Tool Including Maintenance and Support Services 2019-03-18 11:00 RFP 35- 2018
Appointment of a Contractor to Conduct Various Construction Projects, Including Installation of Bird Netting, Installation of Foot Baths and Vehicle Tyre Baths, Renovations to Enclosure Wire Roofs; and Modification To Small Mammal Enclosures, at the National Zoological Garden In Pretoria 2019-03-05 11:00 SANBI NZG: 326/ 2019
Appointment of a Contractor for the Design and Construction a New Animal Quarantine Facility at the National Zoological Garden In Pretoria. 2019-03-05 11:00 SANBI NZG: 329/ 2019
Appointment of a Contractor for the Design and Construction of a Masonary Boundary Wall, Covered Staff Parking and to Conduct Remedial Work at Food and Beverage Outlets at the National Zoological Garden In Pretoria. 2019-03-05 11:00 SANBI NZG: 328/ 2019
Appointment of a Contractor for the Design, Installation and Commissioning of an Incinerator at the National Zoological Garden In Pretoria. 2019-03-04 11:00 SANBI NZG: 322/ 2019
Appointment of a Contractor for the Design, Supply and Installation of Mechanical Equipment, Including Pumps, Stand By Generators and HVAC at the National Zoological Garden In Pretoria. 2019-03-04 11:00 SANBI NZG: 323/ 2019
Procurement of Cleaning and Hygiene services to SITA Durban building for a period of 36 Months 2019-03-08 11:00 RFB 1866/ 2018
Invitation to tender for Rental Office Space for Seda’s Tshwane Branch Office in Pretoria for a period of Three (3) or Five (5) years 2019-03-08 12:00 RFP/ T 14- 2018/ 19
Invitation to tender for Rental Office Space for Seda’s Gauteng Provincial Office in Johannesburg for a period of Three (3) or Five (5) years 2019-03-08 12:00 RFP/ T 13- 2018/ 19

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10 things to remember when you tender

By Werner van Rooyen

31 January 2019

There are many things that you as a small business owner must remember when you respond to a tender and sometimes responding to a tender can be overwhelming. Experience has taught me that there are some important things to remember when responding to a Tender and there are some less important things to remember when responding to a Tender.

Here are ten of the important things to remember when responding to a Tender. Please remember that all ten of these items mention here are equal... Read More

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