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.
Professional service provider (PSP) to provide a mobile phone based incident response activation system including a five year incident location and support data service as part of the incident response activation programme (IRAP) at all Department of Water and Sanitation Government Water Works 2018-02-27 11:00 WP11262
Appointment of a Professional Service Provider to Provide Specialist Support Resources to Drinking Water Quality, Water Use Efficiency and Waste Water Services Regulation within the Context of the Blue Drop, No Drop, and Green Drop Certification Programmes for a Period of 24 Months 2018-02-27 11:00 WP11263
Request for Proposals to appoint a panel of service providers for an Intellectual Property Services for a period of three years. 2018-02-26 11:00 ARC/ 43/ 01/ 18
Provision of physical security services at Water and Wastewater Treatment Facilities in Giyani 2018-02-27 11:00 LNW 02/ 17/ 18
The Supply and Delivery of Dry Rations to the Department of Defence (Johannesburg Area) for a Period of Three (03) Years. 2018-02-26 11:00 CPSC- B- PC- 036- 2017
The Supply and Delivery of 1500 x Boxes of Paper Tabulating Machine Continuous Flat Fold 3 Ply Paper to the Department of Defence. 2018-02-28 11:00 CPSC- B- G- 305- 2017
Supply, delivery, maintenance and commission of twenty four (24) starring fans in four (4) houses and two(2) laying cages at house D: Losperfontein Correctional Centre :Rustenburg Management Area 2018-02-26 11:00 LMN/ RTB 01/ 2018
Requirement for the placement of seventy (70) calf compressor devices inclusive of all servicing and maintenance of the devices and the supply of consumables for Groote Schuur Hospital over three (3) year period. 2018-02-26 11:00 GSH: PT91/ 2017
Supply and Delivery of Cleaning Material and Toiletries for a period of 01 year to Krugersdorp Management Area. 2018-02-26 11:00 KRU01/ 2018
Request for Proposals for Cleaning Services for all the ARC Pretoria based offices for a period of three years. 2018-02-26 11:00 ARC/ 37/ 12/ 17
Erection of Fencing at ARC Robertson Research Farm 2018-03-05 11:00 ARC/ 42/ 01/ 18
Leasing of Office Space for Empangeni Satellite Office for the Duration of Five (05) years for 500 sqm 2018-02-28 11:00 RFB/ 2017/ PSIRA/ 12
Panel of Emerging Firms For Provision of Professional Services Infrastructure Planning, Project Preparation, Project Implementation and Specialised Project Support Services for the Delivery of Social, Economic and other 2018-03-02 11:00 RFP004/2018
Provision of Professional Services Infrastructure Planning, Project Preparation, Project Implementation and Specialised Project Support Services for the Delivery of Social, Economic and Other Infrastructure 2018-03-02 11:00 RFP003/2018
Provision of Security Services to Rand West City Local Municipality 2018-02-26 11:00 RWCLM-5/007/2017-2018
Reinstatement of the 20 inch jet a1 fuel feeder line at O. R Tambo International Airport 2018-03-07 10:00 ORT146/2017
Tender for the supply and delivery of prepaid envelopes on a monthly basis for municipal accounts for a (period of 36 months) 2018-03-02 12:00 SCM 02/2018
Tenders are invited for the purchase of the contents of a Well-establised Tannery on a piecemeal basis or as a lot, Sutherland Tannery Pietermaritszburg, Kwazulu-Natal. 2018-02-28 12:00 N139/2017/PMB
Re Advertisement -Panel of LED Source Funding Consultants 2018-02-27 12:00 8/1/1/4/1 – SOC01/2017
Provision of cash management services for the okhahlamba local municipality for the period of thirty six (36) months 2018-02-27 10:00 8/1/1/4/1 – FIN02/2018


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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