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: Valve 2017-10-25 14:00 GE11800590
Supply, deliver and install 42 INCH UV INK TUBE for HP5500 DESIGNJET(AO) PLOTTER 2017-10-27 11:00 CSQ10171147
Supply: Valve 2017-10-25 14:00 GE11800589
Provide monthly Media Monitoring Services for a period of 12 months 2017-10-27 11:00 CSQ10171152
Supply: 5 off 1730 x 1600 x 10mm bennox plates 2017-10-26 14:00 GE11800583
Supply and Delivery of Type 2 - PRE - CAST SUPPORT KERB 2017-10-27 11:00 GQ10171614
Supply and Delivery of Type 1 - PRE - CAST SUPPORT KERB 2017-10-27 11:00 GQ10171614
Supply and Delivery of PRE -CAST CANTILEVER BEAM 2017-10-27 11:00 GQ10171614
Mowing of Halls Recreation ans Parks, Area 3.5. 2017-10-27 14:00 SN11800372
Supply and Delivery of PRE -CAST FRAME BEAMS 2017-10-27 11:00 GQ10171614
Horticultural Maintenance Mowing at Manenberg Community Centre, Manenberg Bathhouse, The Downs Community Centre, Druiwevlei Comm & Sherwood Park Multi Purpose Centre. 2017-10-27 14:00 SN11800371
Request for proposals for sourcing of funding 2017-11-06 11:00 SCM 01/10/2017
Supply and deliver Electrical Cable - STRAL 25m2 x 3c + 54,6 N XLPE,insulated 600/1000v insulated NEUTRAL 2017-10-26 11:00 GQ10171613
Tenders are invited to service and maintain a Toc Analyser 2017-10-27 11:00 CSQ10171146
Horticultural Maintenance for Clarke Estate 2017-10-30 09:00 SN11800366
Tenders are invited to provide a five day Air Quality Management Training 2017-10-30 11:00 CSQ10171148
Erf clearing and removal of illegal dumping and nuisance on overgrown properties, within City of Cape Town - (Cape Town - AREA 1) 2017-10-30 12:00 SC11800023
Supply and Delivery of Panel Build Material 2017-10-30 11:00 GQ10171611
Service and Maintenance of Spares of Inductively Coupled Plasma - Mass Spectrometer (ICP - MS ) 2017-10-30 11:00 CSQ10171149
Erf clearing and removal of illegal dumping and nuisance on overgrown properties, within City of Cape Town - (Tygerberg - area 3) 2017-10-30 12:00 SC11800021

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
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.