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

www.how2tender.com

Title Closing Date Tender No.
Supply with carpentry material 2018-06-04 11:00 ben03/ 2018- 2019
Supply and Deliver Filters to Main Air Handling Units. 2018-06-01 11:00 ZNQ0199/ 18/ 19
Port St Johns - : Repair & renovation without site clearance & rezoning certificate 2018-06-15 11:00 MTH 09/ 2018
Supply: 1. Patient referral letter- (qty) 50 packets - (x 50 sets per pkt) 2. Folder out patient record- (qty) 150 packets (x 250 sets per pkt) 3. Cover health service- (qty) 200 packets- (x 100 sets per pkt) specifications attached to the document. 2018-06-01 11:00 ZNQ 19/ 18- 19
Upgrade of Kitchen and Kitchen Equipment 2018-06-22 11:00 CPT 1001/ 18
Supply Two Vaccine Fridges. 2018-06-05 10:00 52/ 18/ 19PCHC
Supply: 750 - chromic 1 gut absorbable suture taper heavy strand - 50mm - 1/2 circle - 75 cm - metric 5- (12 units in a box) 2018-06-06 11:00 63/ 18
Construction of new Randfontein Community Health Centre 2018-06-18 11:00 DID06/ 05/ 2018
Supply 750 Boxes - Chromic 2 Gut Absorbable Suture Taper Heavy Strand 50MM - 1/2 Circle - 75CM - Meric – 6- ( 12 Units In A Box ) 2018-06-06 11:00 64/ 18
Servicing of Earth monitoring boards in theater, ward 9, ICU, and NICU x 10 units 2018-06-01 11:00 ZNQ 298 / 18 / 19
Service of Infrared Detection 2018-06-01 11:00 ZNQ0197/ 18/ 19
Service and Repair of Hydroboils 2018-06-01 11:00 ZNQ0198/ 18/ 19
Servicing of Laundry equipment consisting of x 11 machines 2018-06-01 11:00 ZNQ 295 / 18 / 19
The supply of medical locums of all grades and specialties including standby, on call (exclusive of nursing and administrative personnel) to all hospitals/ institutions under the Western Cape Department of Health for a three (3) year period. 2018-06-22 11:00 Western Cape: Department of Health: Supply Chain Sourcing
Completion contract for the repairs and maintenance works at Middelburg Nursing School. 2018-06-15 11:00 NDOHF 01/ 2018- 2019
Servicing of Atenuators in room 14 and theater roof ducting x 5 2018-06-01 11:00 ZNQ 296 / 18 / 19
Construction of Nyaniso Chc (Phase 2) Community Health Centre and External Works 2018-06-25 12:00 CDC/ 134/ 18
Request for proposals from reputable and suitably qualified research houses to submit proposals to conduct a departure survey for the South African Tourism 2018-06-18 12:00 SAT 129/ 18
Annual servicing of theatre tables x 4 2018-06-01 11:00 ZNQ 232 / 18 / 19
Request for proposals from reputable and suitably qualified research houses to submit proposals to conduct a domestic tourism survey for the South African Tourism 2018-06-18 12:00 SAT 128/ 18

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
Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.