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 and delivery of Ms 170 or Approved Equivalent Lightweight Petrol Chainsaw 3,9kg, 1.3kw with 30cm Bar and Chain, Including Safety Wear 2018-07-26 11:00 GQ07181842
Supply, installation and management of a prepayment electricity vending system for three (03) years to Mbizana Municipality. 2018-08-20 12:00 MBIZ LM/01/07/18/FIN/ELECT
Supply and Delivery of Cordless Telescopic Pole Pruner 3,2kg, 36v With 30cm Bar and Chain, Including Safety Wear 2018-07-26 11:00 GQ07181842
Request for Information (RFI) on Multiple Gauge Freight three piece Wagon Bogies for Transnet SOC LTD operation as Transnet Engineering. 2018-08-21 10:00 TE18-BFX-05G-04574
Supply and delivery of twelve grey 1800 x 300 x 450mm two compartment lockers, including forty eight (48) feet to be fitted onto locker. 2018-07-26 11:00 GQ07181843
Provision of a manufacturing facility in zone 1A of The Elidz. 2018-08-21 12:00 EB/ASP2/03/18/Z1A
Supply and Deliver 10 Reams CF Pink NCR Paper 2018-07-30 11:00 GQ07181838
Construction of Izixhotyeni Access Road. 2018-08-21 12:00 MNQ/SCM/04/18-19
Supply and Deliver 10 Reams CFB Green NCR Paper 2018-07-30 11:00 GQ07181838
Supply and Deliver 10 Reams CFB Yellow NCR Paper 2018-07-30 11:00 GQ07181838
Supply and Deliver 10 Reams Cf White Ncr Paper 2018-07-30 11:00 GQ07181838
Construction of Dyam-Dyam Access Road. 2018-08-21 12:00 MNQ/SCM/05/18-19
Supply and Deliver 10 Reams CB White Ncr Paper 2018-07-30 11:00 GQ07181838
Construction of Lower Toboshane Access Road. 2018-08-21 12:00 MNQ/SCM/06/18-19
Supply and delivery of various valves on an as and when required basis for a period of five (5) years. 2018-08-22 14:00 MAT00312
Tenders are invited to clear 2m strip either side of Riverstone Road from Chequers pl to Bangor Street,Kabega 2018-07-27 11:00 CSQ07181353
Design, Manufacture, FAT, Delivery of new 400V AC Unit Boards System and Associated Equipment to Site, Offloading, Rigging, Erection, Installation, Site Testing and Commissioning for Units 1 - 4 at Drakensberg Power Station. 2018-08-23 10:00 E/LH3681
Tenders are invited to clear all BUSH off ERF 3713 as well as ERF 3693 at Hilltop Road,Lovemore Lake 2018-07-27 11:00 CSQ07181353
Tenders are invited to clear all BUSH off open ERF behind 50 Aloe street, Forest Hill 2018-07-27 11:00 CSQ07181353
Completion of Libode Social Development Offices – including remedial works. 2018-08-23 11:00 SCMU5-18/19-0016

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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