Brand new Preferential Procurement Regulations 2017 for Tenders | Page 4 |
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.
Once off Removal of the existing Co2 Gas Cylinders then supply, delivery and installation of the new Inert Gas Suppression. 2018-06-22 10:00 ERI/2018/STR/06
Replacement of vertical mixers at various ERWAT WWCW: Manufacture, supply, deliver, install & commission. 2018-06-22 12:00 ERW201708/TNDR-015
Appointment of an Electrical Engineering Consultant for Review and Development of Bulk Service Contribution fee Formula for Electrical Infrastructure for 2018/19; 2019/20 and 2020/21 financial year on an as and when required basis 2018-06-21 12:00 BS12/04/2018
Transport of containerised waste from Klapmuts and Franschhoek for a contract period ending 30 June 2021. 2018-06-22 12:00 B/SM 93/18
Civil Maintenance of Eskom Buildings in Standerton and Thuthukani on an “as and when required basis” 2018-06-26 10:00 MPGXC005166
Provision of Consulting Electrical Engineering Services to Conduct a Study, Design and Project Management to ensure that Mhluzi Area Has Firm Supply Without Compromising Other Areas 2018-06-06 12:00 BS13/04/2018
Design, Manufacture, Supply, Installation, Testing and Commissioning of a new Automated Test Bench for Coach Business. 2018-06-26 10:00 TE18-SRX-1DF-03218
Supply & deliver Glue Stick Large 22 Gram.Pritt or approved equal 2018-05-30 11:00 SQ05181206
Supply and services contract no. 6 of 2018 – section 11. Provision of a general cleaning and garden service at the Municipal Market, Pietermaritzburg. 2018-06-26 12:00 SUPPLY AND SERVICES CONTRACT No. 6 OF 2018 – SECTION 11
Erection of library furniture: Rudolf Balie library 2018-05-24 12:00 B946/207/18
The construction of Wisani Primary School. 2018-05-27 10:00 MPGXC004909R
Supply, installation, commissioning and maintenance of CCTV and panic alarm systems at the Pietermaritzburg airport. 2018-06-27 12:00 SPECIALISED CONTRACT No. SCM 63 OF 17/18
Tender for the provision of catering services for events in the local municipalities of King Cetshwayo District for the period ending 30 June 2021. 2018-06-27 12:00 KCDM/12/2018
The supply of veterinary services for the treatment of sick or injured dogs And / Or Dog food and other accessories at Koeberg Nuclear Power Station on an as and when required basis for 3 years. 2018-06-28 10:00 KBG1841R
Supply: gloves 2018-05-30 10:00 GA11800697
Supply Boots 2018-05-30 10:00 GA11800695
Supply Fuser units for samsung scx8240 2018-05-25 11:00 GM11800764
Supply Hp laser jet d7h14a transfer and roller kit 2018-05-25 11:00 GM11800765
Supply: Bond paper 2018-05-25 11:00 GM11800756
(Re-Advert) - Calling for Tenders for Construction Work Package 3- Refurbishment of Secondary Sedimentation Tanks and Horizontal Aerators - Civil, Mechanical and Electrical Works 2018-06-19 12:00 BS02/04/2018


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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