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.
The Road Accident Fund (RAF) wishes to appoint a service provider for the Automated creditors reconciliation system for a period of five (5) years 2018-02-26 11:00 RAF/ 2018/ 00002
This request is for a bidder to supply, install, configure and license an Enterprise Architecture (EA) tool as a repository to store, maintain, integrate & structure the EA information. 2018-02-27 11:00 RAF/ 2018/ 00003
Appointment of a Security Services company 2018-02-23 11:00 FB SETA (17- 18) T0005
Appointment of a service provider to Lease Printers from 2018-02-23 11:00 FB SETA (17- 18) T0004
Appointment of a service provider to conduct Tracer and impact studies. 2018-02-23 11:00 FB SETA (17- 18) T0008
Appointment of a service provider for placement of learners in China for learning the Chinese Culture and International Education Work Integrated Learning Exchange Program 2018-02-23 11:00 FB SETA (17- 18) T0009
Appointment of a service provider for placement of learners in the workplace 2018-02-23 11:00 FB SETA (17- 18) T0007
Appointment of a Courier Services company. 2018-02-23 11:00 FB SETA (17- 18) T0003
Appointment of a company that will offer IT Support Services 2018-02-23 11:00 FB SETA (17- 18) T0002
Appointment of Travel Services and Reservations company. 2018-02-23 11:00 FB SETA (17- 18) T0001
Procurement of RPL Program Service Provider 2018-02-23 11:00 FB SETA (17- 18) T0006
Department of Public Works: Amawele Government Building: Phase 1: Block A: General Maintenance And Repairs 2018-02-26 11:00 ZNTD04268W
George: New Office Accommodation For Department Of Rural Development And Land Reform: Regional Office For 5 Years: 1847.7m2 Office Space,6 Secured Covered Parking Bays,2 Covered Parking Bays,2 Parkings For People With Disabilities,20 Safe Parkings For Private Vehicles Of Staff Members,6 Parking Bays For Visitors And Departmental Customers 2018-02-28 11:00 CPTL013/ 17
George: New Office Accommodation For Sassa: Eden Karoo District Office for a 500m2 Office Space and 10 Under Cover,Secured and Lockable Parking Bays 2018-02-28 11:00 CPTL012/ 17
Western Cape: Cape Winelands Region: Maintenance of HVAC and refrigeration systems and other mechanical related repairs at provincial buildings for a period of three (03) years. 2018-02-21 11:00 S116/ 17
Western Cape: West Coast Region: Maintenance of HVAC and refrigeration systems and other mechanical related repairs at Provincial Buildings for a period of three (03) years 2018-02-21 11:00 S113/ 17
The RAF seeks to appoint service providers to manage the Implementation of the Youth Driver Development. 2018-03-02 13:00 RAF 2018/ 00006
Rendering Of Gardening Services within the Theewaterskloof Sub District Which Includes Caledon District Hospital, Overberg District Office, Emergency Medical Services, Bereaville Satelite Clinic, Villiersdorp Clinic & Mobile Grounds, Genadendal Clinic, Voorstekraal Satelite Clinic, Riviersonderend Clinic, Greyton Clinic, Botrivier Clinic, Caledon Clinic And Grabouw Community Day Centre, Department Of Health, Western Cape Government for a three (3) year period 2018-02-23 11:00 WCGHSC0138/ 2017
The RAF hereby invites service provider to provide Corporate Uniform for a period of five ( 5) years 2018-02-26 11:00 RAF 2018/ 00007
Supply and Delivery of Bath Linen SANParks for a period of three (03) years with an potion of renew for additional two (02) years. 2018-02-26 11:00 GNP- 031- 17

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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