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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www.how2tender.com

Title Closing Date Tender No.
Supply & delivery quick service application (QSA's) & 3/4" air cock valves - as & when required. 2018-07-18 11:00 DBN/OPS (RTPC) 758
Repairs to blower motor invertors & fans - as & when required. 2018-07-18 12:00 DBN/OPS (RTPC) 770
Repairs to doors (all components) - as & when required. 2018-07-18 13:00 DBN/OPS (RTPC) 779
Repairs & replacement of components in various substations (CIDB Grading 4EP). 2018-07-19 10:00 DBN/CAP (RTPC) 760
For conducting Occupational Hygiene Surveys over a period of three (3) years at all Petroleum and Flow Sciences Laboratories, i.e. Rosherville x 3, Seshego, Witbank, Pietermaritzburg, Port Elizabeth, Brackenfell, Bloemfontein and Klerksdorp on an as and when required basis. 2018-07-17 10:00 ERIC6303
Provision of operating/technical training services. 2018-07-18 10:00 59CON1869
The appointment of consulting engineers for various projects in Hessequa Municipal area for a three (3) year period. 2018-07-20 12:00 HES-TECH 35/1819
Supply and delivery of chemicals for Ash water system scale control, Auxiliary cooling water treatment and main cooling water system scale control at Matla Power Station on an as and when required basis. 2018-07-17 10:00 MPGXC005156
Provision of single phase testing training services. 2018-07-20 10:00 59CON1870
Supply, Delivery and Installation of 75 Litre Galvanised Swivel Street Litter Bins (Coastal,Inland and Midland Regions of BCMM). 2018-07-22 12:00 3175
Provision of Co-Sourced Internal Audit Services to Buffalo City Metropolitan Municipality. 2018-07-22 12:00 3174
Alienation and Development of Erf 21161 Paarl for Housing Development Purposes 2018-07-26 10:00 CORPORATE 07/2018
A Pre-Qualification Process for the provision of Debt Collection Services in Kwa Zulu Natal, Free State and North West Operating Units, for a period of thirty six (36) months. 2018-07-18 10:00 DD6665/CS
Risk assessment specialist for risk assessment analysis at the Afrikaans Language Museum, -Monument And Amphitheatre, Paarl. 2018-07-31 11:00 ATM007-2018/2019
Construction of Sikhulile Circuit Office in Ehlanzeni District. 2018-07-18 10:00 PWRT/2290/18/MP
Lady Frere Magistrate Office: Repairs and Renovations 2018-07-23 12:00 CDC/ 229/ 18
Provision of short term insurance services. 2018-07-19 12:00 06/06/02018
Supply and delivery of aerial ladder/platform 30m with articulated cage boom. 2018-07-21 12:00 B/SM 112/18
Electrical Reticulation Maintenance for Three Years at Bloemfontein Airport. 2018-07-23 10:00 BFN14/2018
Maintenance of Electrical Reticulation Infrastructure at Kimberley Airport. 2018-07-24 10:00 KIM10/2018

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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