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

Title Closing Date Tender No.
Cleaning of reservoirs and towers. 2018-03-27 10:30 JW OPS 015/17
Appointment of a Travel Agent for the period of 3 years 2018-03-27 11:00 MHSC015/2017-18
Supply & Delivery of Borehole Maintainance Spares to Mopani District Municipality for 36mothns Multi-framework contract. 2018-03-27 12:00 MDM 2017-055/1
Requests for proposals are hereby invited from relevant services providers for the lease of Desktops and Laptops for a period of 36 months 2018-03-29 12:00 UGU-05-1466-2018
Repairs to roads including pothole patching using environmentally friendly technology within the Msunduzi Municipality’s area of Jurisdiction. 2018-03-27 12:00 SUPPLY AND SERVICES CONTRACT No. 80 OF 2018
Appointment of a Panel of a Maximum Ten (10) Service Providers for the Supply and Delivery of Additional Emergency Relief Stock for a period of 36 months 2018-03-29 12:00 UGU-05-1467-2018
Appointment of Three (3) Service Providers for Supply and Delivery of Free Basic Alternative Energy for Polokwane Municipality for a Period of Two (2) Years (Re-Advert). 2018-03-27 10:00 291/2016
Supply and Delivery of water purification chemicals to Mopani District Municipality for 36Months Multi-Framework Contract. 2018-03-27 11:00 MDM 2017-054
Appointment of service provider to provide courier services for a period of 3 years (Re-Advert) 2018-03-28 10:00 222/2016
Appointment of accredited service providers to service, repair and replacement of the following fire equipment, fire extinguishers, fire hoses reels, fire hydrants, fire hydrant boosters, symbolic signs of the municipality for the period of three (3) year. 2018-03-28 10:00 PM92/2017
Supply and delivery of Sanitary Hygiene Services for the period 01 July 2018 to 30 June 2021 2018-03-23 12:00 WDM 03/2018
Request For Information (RFI) for the Automation Identification Data Capture. 2018-03-29 10:00 CORP 4359
Supply delivery and installation of Outdoor Gym Equipment for a contract period of 24 months 2018-03-29 12:00 BSM 69/18
Supply and delivery of Artificial Grass for a contract period of 24 months. 2018-03-29 12:00 BSM 70/18
Construction of Idas Valley Merriman outfall sewer and associated works. 2018-03-29 12:00 BSM 65/18
Supply and delivery of chemicals for use in the purification of water. 2018-03-29 12:00 TENDER 72-17/18
Refuse removal in Brandwag and Ruiterbos. 2018-03-29 12:00 TENDER 73-17/18
Statutory inspection and testing of lifting equipment 2018-04-03 10:00 246S/2017/18
Invitation to service providers: Appointment for facilities management and cleaning services in the Bojanala, Dr Kenneth Kaunda and Ngaka Modiri Molema Areas. 2018-04-11 11:00 NWDC/BOJANG/2018
Request for information - Precinct development 2018-04-10 11:00 RFI-001-2017/2018


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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