Issue Date: 
Tuesday, February 7, 2017

New Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, have been finalized and gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. We start off with 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 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 a product 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, a commitment was made by government 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 or co-operatives as well as township and rural enterprises. Also, giving impetus/ incentive to the NGP. The highlights of the revision are:
 

  • Introducing the prequalification criteria, which allows the advancement of these selected categories of people, by limiting competition to 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, that high value tenders in the region of R30 million and above have a tendency to be awarded to established companies, due to economies of scale and affordability, leaving out categories of aspiring businesses. The revised regulations require all those, with the 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 gives smaller companies a greater chance to compete in the economy, in a meaningful way. (Refer to 6 & 7)

Commenting on the release of the regulations, Minister Pravin Gordhan said that 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 the 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. Tender Workshop dates are published on our website at www.how2tender.com. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

Title Closing Date Tender No.
The appointment of a service provider to assist GGDA with its 6th term of governance 5 year strategy 2019-2024. 2018-08-24 11:00 GGDA/ 06/ 2018- 19/ CORPORATE STRA
The appointment of an external service provider to undertake evaluation of GGDA programmes. 2018-08-24 11:00 Gauteng: Gauteng Growth and Development Agency
Sasria SOC Limited hereby invites proposals from suitably qualified companies to provide Change Management Services to the company 2018-08-22 12:00 2018/ 06
Supply, installation and maintenance of standby generators and general electrical reticulation: 17 devolved stations in Eastern Cape Province Region one (01) for the period of three (3) years. 2018-08-28 11:00 19/ 1/ 9/ 1/ 33TB(18)
Supply, installation and maintenance of standby generators and general electrical reticulation: 15 devolved stations in Eastern Cape Province Region two (02) for the period of three (3) years. 2018-08-28 11:00 19/ 1/ 9/ 1/ 34TB(18)
Supply, installation and maintenance of standby generators and general electrical reticulation: 15 devolved stations in Eastern Cape Province region three (03) for the period of three (3) years. 2018-08-29 11:00 19/ 1/ 9/ 1/ 35TB(18)
Black & White Printing Multi-Function Copy Machine (80PPM – 90PPM) – 10 Machines (see description for more required items) 2018-09-07 11:00 MTVET\PRNT\2019
C1009: Rehabilitaion of a section of Divisional Road 1111 between Main Road 217 and Kalbaskraal (km 12.31 to km 23.50). 2018-08-22 11:00 S065/ 18
Kuilsriver: Western Cape Sports School: Structural completion of swimming pool and installation of Filtration System. 2018-08-22 11:00 S064/ 18
C1008.01: Rehabilitaion of Divisional Road 1688 from Calitzdorp (km1.00) to the Calitzdorp Spa turnoff (km 15.64). 2018-08-23 11:00 S066/ 18
C1114.09 - C1114.12: Four routine road maintenance contracts in the Paarl District Roads Engineers Region. 2018-08-23 11:00 S067/ 18
Rehabilitation of Asbestos Mine: Streatham Limpopo Province, South Eastern Works. 2018-08-24 12:00 MTK12/ 2018
Outsourcing of Electronic Document Management System (EDMS) for the Department of Defence, Simonstown Procurement Service Centre for a Period OF One(01) Year. 2018-08-22 11:00 SPSC- B- 041- 2018
Supply and deliver suction pyrometer probes S-Type Pitot Tubes and Thin Wall Stainless Steel Tube for a period of two (2) years. 2018-09-19 12:00 CORP 4515
Interested and suitable qualified parties are hereby invited to submit proposals on the following fields: Cleaning Services 2018-09-14 11:00 SDT116/2018-19
Supply and delivery of various valves on an as and when required basis for a period of five (5) years. 2018-08-22 14:00 MAT00312
Design, Manufacture, FAT, Delivery of new 400V AC Unit Boards System and Associated Equipment to Site, Offloading, Rigging, Erection, Installation, Site Testing and Commissioning for Units 1 - 4 at Drakensberg Power Station. 2018-08-23 10:00 E/LH3681
Completion of Libode Social Development Offices – including remedial works. 2018-08-23 11:00 SCMU5-18/19-0016
Provision of professional services in consortium/joint venture or multi-disciplinary practice for SCM offices. 2018-08-23 11:00 SCM/18-100/S
Provision of professional services: Review and development of an automated fare collection system (AFC) tender including contract management for the NMBM Integrated Public Transport System. 2018-08-23 11:00 SCM/18-230/S

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10 steps in the bid process

Each year, Organs of State invite the Private Sector to submit competitive bids for the supply of goods and services. Organs of State bid requests attract SMME's and large businesses across a wide range of sectors - from office supplies to major construction projects.

Here is an overview of 10 steps you should take to prepare a competitive bid.

1.    Register your interest

Follow the instructions in the bid document to register your interest with the purchasing agency. This important step will help keep you up to... Read More

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