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.
Manufacture, supply and delivery of dipping warning sign boards for Limpopo, Department of Agriculture and Rural Development 2018-03-20 11:00 ACDP 17/55
Supply and Fit 600 x 600 non-slip porcelain tiles at Albow Gardens Clini 2018-03-08 09:00 SM11800386
Tenders are invited for the Provision of Consulting Services Sanas Accreditation 2018-02-28 11:00 CSQ02181224
Supply & Delivery of 150mm X 3c 11kv Fibre Glass Joint Boxes Complete with all accessories 2018-03-02 11:00 SQ02181172
Installation of Odour Control System at Foxtrot Sewerage Grinding Facility 2018-03-16 12:00 RFQ 57725
Supply and delivery of Kitchen appliances 2018-02-28 11:00 GQ02181694
Upgrading of Mshenguville wetland park 2018-03-16 12:00 JCPZ/CID01/2017
Innercity Parks Upgrade 2018-03-16 12:00 JCPZ/CID04/2017
Bosmont Stream Rehabilitation 2018-03-16 12:00 JCPZ/CID05/2017
Diepsloot Rehabilitation 2018-03-16 12:00 JCPZ/CID06/2017
Construction of Stretford Park Ablution Facilities 2018-03-16 12:00 JCPZ/CID07/2017
Trenching and installation of cables as and when required 2018-03-26 08:30 ENG012/2018
Leasing of Takkieskloof Holiday Resort 2018-04-06 12:00 HES-CORP 05/1718
Supply and delivery of protective clothing and equipment 2018-04-06 12:00 HES-GEN 05/1718
Supply Heavy duty earth clamps for welding cables 2018-02-23 11:00 GH11800431
Supply: ABB CM15 indicator 2 analogues in, 2 analogues out 2 dagital I/O and MODBUS RS 485 ABB-AIS-CM 15/2.S.M.S.0.E.0./STD 2018-02-28 11:00 GH11800429
Supply: Water distribution material 2018-02-28 14:00 GE11801131
Supply: Electrical accessories 2018-02-23 15:00 GJ11800685
Supply: Jeans 2018-02-28 10:00 GA11800450
Service for the movement of the data line from one office to the other office. 2018-02-27 14:00 SN11800564

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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