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.

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www.how2tender.com

Title Closing Date Tender No.
Supply: Tunic, Man’s (Qty 2150 ea), Trousers, Men’s (Qty 2050 pr), Shirts, Man’s; Tropical (Qty 5000 ea). 2018-04-17 11:00 SPSC- B- 052- 2017
Request for proposal to dispose Office Furniture and Equipment for GPAA. 2018-03-16 11:00 GPAA 04/ 2018
Request for proposal to dispose ICT equipment for GPAA. 2018-03-16 11:00 GPAA 03/ 2018
Request for proposal for the appointment of a service provider to project manage the Design@50 skills development programme 2018-03-15 11:00 GGDA/ 17/ 2017- 18/ GIDZ_DESIGN@ 50
Sales of vehicles: Colesberg Management Area: Correctional Centre: Once -off 2018-03-09 11:00 COBQ 01/ 2018
Supply, delivery & installation of palisade fencing at Tshabo RED Hub 2018-03-16 11:00 SCMU 12 – 2017/18
The objective of this bid is to appoint a service provider to conduct research within the wholesale and retail sector to update the current SSP. 2018-03-16 11:00 SSP/ 2018/ 0004
The objective of this bid is to appoint Accredited Training Providers and TVET Colleges to up skill and train 220 18.2 members from 10 Cooperatives within the Northern Cape and 10 within the North West Provinces on W&RSETA Skills Programmes. 2018-03-16 11:00 RDO/ 2018/ 0010
Drivers License Training Programme 2018-03-27 11:00 ZNB 1413/ 18 T
The purpose of this bid is to invite Accredited Training Providers to train and up skill 550 18.2 learners identified within the AmaNdlambe AkuGompo Villages, AmaHleke Villages and Ten Traditional Councils within Nqgushwa Local Municipality. 2018-03-16 11:00 RDO/ 2018/ 0008
The objective of this bid is to appoint and contract Accredited Training Providers and TVET Colleges with Accreditation and/or scope with the W&RSETA to offer W&RSETA Unit Standards. 2018-03-16 11:00 RDO/ 2018/ 0009
Pretoria: Bryntirion Heritage: Construction of gate 1 and 2 as well as the Dog Unit 2018-03-27 11:00 Pt18/ 005
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the appointment of individual entities or groups of service providers consisting of a bank(s) as well as System Operators to enter into an agreement to provide banking services to SANRAL. 2018-03-23 14:00 NRA
Repair and Renovation to existing Community Library in Barkley West 2018-03-26 11:00 DRPW 044/ 2017
Provision of travel management services at SANAS for a period of 36 months 2018-03-09 11:00 SANAS/ TRAVEL/ 2017- 18/ 02
Department of Labour: Procurement of alternative Office accommodation comprising 2 533.64m² and 20 Parking Bays in Germiston CBD for a period of three (3) years 2018-03-16 11:00 JHB.17/ 41
Request for proposals from property management companies or landlords to lease office space in the Midrand area. 2018-03-16 11:00 RFP/ SASSETA/ 1718006
Appointment of a service provider for the infrastructure / refurbishment / construction including consequential general building, electrical, mechanical, civil and engineering works at DHA offices and Ports of Entry for a period of three (3) years 2018-03-16 11:00 DHA05- 2018
Rendering of security service to the Northern Cape Department of Sport, Arts and Culture. 2018-03-16 11:00 NCDSAC- 004- 2017
Re-Advert - Appointment of a CIDB registered contractor for the construction of a technology laboratory building at the University of Venda 2018-03-02 11:00 019- 2017/ 2018

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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