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 and deliver 30 First Aid Kits 2017-12-19 11:00 GQ12171660
Atlantis Swimming Pool: Repair & service of pumps, motors & gauges. 2017-12-20 09:00 SB11800514
Supply and deliver Wire Aluminium binding wire 4mm 2017-12-19 11:00 SQ12171150
Supply Polymer grids, covers and frames 2017-12-19 15:00 GE11800873
Supply and deliver VALVES 100MM SPIGOT ENDED left hand closing with non rising spindle fitted,CAST IRON wedge gate EPOXY coated,to SPECS CLASS 16(S.A.B.S. 664) 2017-12-19 11:00 SQ12171150
Supply Civil materials 2017-12-14 14:00 GE11800874
Supply: Polymer covers and frames 2017-12-19 14:00 GE11800872
Supply and deliver Tinned Wire Copper 2.0mm,fusewire in 500gram rolls 2017-12-19 11:00 SQ12171150
Supply Sheet metal 2017-12-14 14:00 GE11800871
Supply and deliver Ball Markers Type 1401 (MOQ24).Colour RED only 2017-12-19 11:00 SQ12171150
Supply Clamps 2017-12-19 14:00 GE11800869
Supply Water distribution materials 2017-12-19 14:00 GE11800870
Supply and deliver Joint Troughs c/w Fibre Lid cement flame resistant 2017-12-19 11:00 SQ12171151
Supply: Water distribution materials 2017-12-18 14:00 GE11800868
Supply: Water distribution materials 2017-12-18 14:00 GE11800867
Supply Sand 2017-12-14 14:00 GE11800866
Supply and installation of sluice gates with solid ACME thread spindles to be manufactured usind 316 s/steel plates 6mm thick spindles and guides to be of the same 316 s/steel material 2017-12-19 11:00 CSQ12171197
Printing of Municipal Tabloid 2017-12-19 11:00 CSQ12171197
Supply manhole lock 2017-12-18 14:00 GE11800865
Supply Building material 2017-12-14 14:00 GE11800864

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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