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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Title Closing Date Tender No.
Maintenance of Air Conditioning, Including the Supply and Installations of new and Replacement Units: 5 Devolved Stations in North West Province for the period of three (3) years 2018-01-16 11:00 19/ 1/ 9/ 1/ 132TB(17)
Maintenance of Air Conditioning, Including the Supply and Installations of new and Replacement Units: 10 Devolved Stations in Northern Cape Province Region Two (02) for the period of three (3) years 2018-01-24 11:00 19/ 1/ 9/ 1/ 130TB(17)
Appointment of a Service Provider to Render Occupational Health and Safety Risk Assessment, to conduct the Health Hazard Assessment in all the GPW Offices including the Regions (East-London, Mmabatho and Polokwane) for a period of three years commencing 01 February 2018 until 31 January 2021 2018-01-22 10:30 GPW- W 2017/ 05
DTPC wishes to appoint a construction of Mount Moreland Road between Dube TradePort 29° South and Mount Moreland – earthworks and surfacing (km0.00 – km0.535). 2018-01-16 11:00 DTP/ RFP/ 29/ IFR/ 10/ 2017
Appointment of a project manager for the procurement of land and or a building, design plans and construction and or renovations of CETA Head Office 2018-01-31 11:00 022- 2017/ 2018
DTPC wishes to appoint a contractor for the construction of a new cantilevered structural steel canopy, construction of security fencing, repairs to sheet metal roof, asphalting and drainage improvements at the Dube Tradeport Cargo Terminal 2018-01-17 11:00 DTP/ RFP/ 35/ IFR/ 10/ 2017
DTPC wishes to appoint a contractor for the construction of Govender access road – earthworks, surfacing and safety improvements (km 0.00 – km 0.632). 2018-01-16 11:00 DTP/ RFP/ 28/ IFR/ 10/ 2017
Appointment of a CIDB registered contractor for the construction of a technology laboratory building at the University of Venda 2018-01-31 11:00 019- 2017/ 2018
A Three Year Term Contract for Mechanical and other related Major Plant and Machinery Installation , Maintenance , Repair , Refurbishment and Upgrade for Northern , Central , Eastern And Southern Operations(Limpopo , Mpumalanga ,North West , Gauteng, Free State , Northern Cape , Kwa-Zulu Natal And Western Cape). 2018-01-18 11:00 DWS04- 1117WTE
Request for expression of interest from qualified entities to be enlisted in the database of the Department of Environmental Affairs for the implementation, operational support, planning and training projects for Expanded Public Works Projects (EPWP) for the Natural Resource Management Programmes. 2018-01-19 11:00 E 1428
PWV 15 Preliminary design Review from the R21 (P157/1) to N3 (approximately 34.6km) and detail design of Phase 1 from R21 (P157/1) across the N12 ending before the K94 including the N12 /K94 system interchange. (approximately 10.9km) 2018-01-25 11:00 DRT 39/ 07/ 2017
Appointment of a software development service provider to review, design, develop and maintain the integrated management information system (MIS) for the CETA. 2018-01-31 11:00 021- 2017/ 2018
Supply and delivery of cleaning material and toiletries to Southern Cape- Karoo- Region (Oudtshoorn, Prince Albert, Ladismith, Beaufort West) 2018-01-26 09:00 ODN 01/ 2017
Construction of new K73 (1.381) between K58 (Allandale Road) and K71 (Woodmead Drive), the upgrading of sections of K58 (2.784 km) and K71 (0.962 km) and Rehabilitation of K58 (0.60 km) between Maple drive and K71 2018-01-29 11:00 DRT 119/ 02/ 2017
Appointment of a service provider to develop CETA occupational qualifications. 2018-01-31 11:00 020- 2017/ 2018
Appointment of a panel of legal firms. 2018-01-31 11:00 017- 2017/ 2018
Provision of insurance services by an insurance underwriter. 2018-01-31 11:00 016- 2017/ 2018
Appointment of a service provider to offer internal audit services 2018-01-31 11:00 012- 2017/ 2018
Provision of CETA branded personal protective equipment (PPE) to learners on CETA - funded projects 2018-01-31 08:45 015- 2017/ 2018
Provision of CETA toolkits to learners on CETA - funded projects 2018-01-31 11:00 014- 2017/ 2018

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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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