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.
The RAF would like to appoint an experienced and suitably qualified service provider to provide office space for it’s Head Office for a period of 9 years and (11) months 2019-03-06 11:00 RAF/ 2019/ 00001
NC061 - Richtersveld Local Office Accommodation 2019-03-08 11:00 IEC/ NC- 01/ 2019
Terms Of Reference For The Lease Of Office Space For The ETDP Seta Western Cape Provincial Office Fro 01 April 2019 To 30 June 2020 2019-03-11 11:00 SCMU: 27 - 2018/ 19
Repair and Renovation storm damage school throughtout the Province of Kwazulu Natal at Mkhonjeni Primary School 2019-03-15 11:00 ZNTU 04394 W
Repair and Renovation storm damage school throughtout the Province of Kwazulu Natal at Mavana Primary School 2019-03-15 11:00 ZNTU 04103 W
SAPS: Procurement of alternative office accommodation comprising 820.0m² and 22 Parking Bays in Florida for a period of five (5) years 2019-03-12 11:00 JHB.18/ 55
Roof Structure and Roof Sheeting Repairs and Replacement, Where Necessary, Including Waterproofing at Bonamelo Campus 2019-03-15 10:00 BON- ROOF- 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 Harrismith Campus 2019-03-15 10:00 HAR- FENCE- 2019
Makopong McCarthy’s Rest & Middelputs Border Post: Appointment of a service provider for the maintenance and repairs of building,civil,mechanical, electrical infrastructure and installations for a period of 36 months he requirement of this project is the below: B-BB-EE Level 2019-03-12 11:00 H18/ 033 AI
Makopong McCarthy’s Rest & Middelputs Border Post: Appointment of a service provider for the maintenance and repairs of building,civil,mechanical, electrical infrastructure and installations for a period of 36 months he requirement of this project is the below: B-BB-EE Level 2019-03-12 11:00 H18/ 033 AI
Request for the Establishment of a two (2) Year Contract for Licensing, Maintenance And Support For Symantec Products For The South African Police Service (SAPS) 2019-03-01 11:00 RFB 1889/ 2018
Request for the Establishment of a Two (2) Year Contract for Licensing, Maintenance and Support for Veritas Products for the South African Police Service (SAPS) 2019-03-01 11:00 RFB 1888/ 2018
Procurement of Uniforms & Personal Protective clothing for SITA Facilities Management & Logistics Department for a period of two (2) years 2019-03-08 11:00 RFB 1891/ 2018
Supply and Delivery of Footwear and Leather Products to the State. 2019-03-15 11:00 RT59- 2019
Supply and Delivery of Clothing to the State 2019-03-15 11:00 RT64- 2019
Supply of Trend Micro Licenses for the Office of the Premier (North West Province) which includes maintenance and support for a period of thirty six (36) months 2019-03-08 11:00 RFB1791/ 2018
SAP System Support and Training for Magalies Water 2019-03-08 11:00 RFB 1796/ 2018
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route N11 from Mookgopong municipal border through Marble Hall to Elias Motsoaledi municipal border, R573 from Dr JS Moroka municipal border to Marble Hall, R579 from Elias Motsoaledi municipal border through Nebo to Lepelle-Nkumpi municipal border 2019-03-07 14:00 NRA X.002- 100- 2019/ 1F
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Road R33 from Modimolle Municipal border to Lephalale, R520 from the R510 intersection to Modimolle Municipal Border and R510 from Lephalale to Thabazimbi Municipal border. 2019-03-07 14:00 NRA X.002- 084- 2019/ 1F
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R81 from Polokwane Municipal boundary to Molemole Municipal boundary R521 from Polokwane Municipal boundary to Molemole Municipal boundary R36 from Greater Letaba Municipal boundary to Molemole Municipal boundary and N1-28X from Polokwane Municipal boundary to Molemole Municipal boundary 2019-03-14 14:00 NRA X.002- 079- 2019/ 1F (NONTOLL) &

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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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