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.
Provision of Internal Services and the construction of top structures-Potsdam/ Ikhwezi Block 1 housing 656 units. 2017-11-28 12:00 BCMM/COO/HM/1384/2017
Contract for stabilization of BCMM access roads using polymer products and associated services for a period of three years 2017-11-24 12:00 CE:263
Upgrade and Refurbishment of Coastal Nature Reserves in BCMM until June 2020 2017-11-24 12:00 BCMM/DCOMMS/NR/12/2017/18
Provision of Professional Services: Development, Upgrade and refurbishment of Sport Fields and Stadiums in BCMM until June 2020 2017-11-24 12:00 BCMM/DCOMMS/SF/11/2017/18
Supply & delivery of Disinfection Chemicals, for a contract period ending 30 June 2020 2017-11-28 12:00 B/SM 26/18
Construction of Wisani Primary School 2017-11-29 10:00 MPGXC004909
Supply and delivery of Relays to various Eskom Power Stations on an as and when required basis for a period of 3 years 2017-11-29 10:00 MPGXC004910
Supply and delivery of Tubes and Pipes to Eskom Power Stations as and when required for a 3 year period 2017-11-29 10:00 MPGXC004911
Supply and Delivery of Herbicides and Insecticides for a Period of Three Years 2017-11-29 10:00 PM99/2017
Appointment of a Service Provider to Supply and Deliver Irrigation Materials for Period of Three (3) Years 2017-11-29 10:00 PM100/2017
Supply and Delivery of 30 M3 Skip Containers for a Period of three years 2017-11-29 10:00 PM115/2017
Website Migration, Hosting, Enhancement and Maintenance 2017-11-28 11:00 CATHS/WMHEM/011/2017
Two Bidding Stage: Proposal for Rural Domestic Waste Collection for a period of three (3) years 2017-11-29 11:00 SCM/MLM09/10/2016
Proposal- Cost of Supply and Engineering Contribution Study 2017-11-29 09:00 RLM/DTIS/0056/2017/18
Re-Advert: Appointment of a Panel of Experience Attorney to Render Various Specialised Legal Services for Rustenburg Local Municipality for a period of three years 2017-11-29 11:00 RLM/MM/0083/2017/18
Appointment of a Qualified Contractor for National Stations Improvement Programme (NSIP) at Akasiaboom Station for the Construction of Security Brick wall and Upgrade of Storm Water Drainage and Ticket Offices (6GB) 2017-11-29 12:00 CRES/NGR/38/10/2017
Appointment of a Qualified Contractor For National Stations Improvement Programme (NSIP) at Hercules Bus Staging Yard for the Upgrade of Storm Water Drainage and Electrical Works and the Construction of A Guardhouse, Ablutions and Carports 2017-11-29 12:00 CRES/NGR/39/10/2017
Appointment of Contractors for the Design,Supply, Install,Delivery, Offloading, Test, Commissioning and Retrofit of Existing Streetlighting and Floodlighting Luminaires Conventional Types High Intensity Discharge (Hid) with Light Emitting Diodes (Led) From The Date Of Award Until 30 June 2020 2017-11-30 10:00 A-EE 01-2018
Appointment of Electrical Contractors for the Design, Manufacture, Supply, Delivery, Offloading, Installation, Testing and Commissioning of Integrated Solar Photovoltaic Led Street Lighting on An As-And-When Required Basis From Date of Award Until 30 June 2020 2017-11-30 10:00 A-EE 02-2018
Supply and delivery of Actuators to various Eskom Power Stations on an as and when required basis for a period of 3 years. 2017-11-30 10:00 MPGXC004912

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Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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