Draft Procurement Regulations Media Release | Page 5 | SA-Tenders.co.za
Issue Date: 
Tuesday, July 5, 2016

Draft Procurement Regulations Media Release

 The Draft Procurement Regulations 2016 were released on 14 June 2016. If these regulations are going to be implemented it will change the Tender environment in South Africa. Below is the media release from the Office of the Chief Procurement Officer, explaining the major changes in the Regulations:

“The Office of the Chief Procurement Officer (OCPO) has published the proposed new Preferential Procurement Regulations*, to afford the public an opportunity to comment.

The revision of the Preferential Procurement Regulations was influenced, to a large extent, by the need to provide a mechanism that will assist targeting certain categories of persons, including investigating ways for government to procure at least 30 per cent from SMMEs, co-operatives, township and rural enterprises, and other targeted groups.

The main changes contained in the proposed new Preferential Procurement Regulations are the following:

  • 80/20 preference points system

In the current 80/20 preference point system, 80 points are allocated for the lowest price and a maximum of 20 points count allocated towards the BB-BEE level of the supplier. This applies to tenders equal to or above R30 000 up to a maximum of R1 million.

The points for price (80) and the B-BBEE level (20) are combined and only a tender with the highest number of points scored out of 100 may be selected.

The draft regulations propose that this threshold for the application of the 80/20 system be increased to R100 million to further stimulate the development of small enterprises.

  • 90/10 preference points system

Similarly, in the current 90/10 preference point system, 90 points are allocated for price and a maximum of 10 points for B-BBEE status level. The 90/10 applies to tenders that are above R 1 million, with all applicable taxes included.

The proposal in the draft regulations is for the 90/10 rule to apply to tenders above R100 million.

  • 30 per cent sub-contracting

The current regulations do not make sub-contracting compulsory, however with the new draft regulations it will be compulsory to sub-contract a minimum of 30 per cent of the value of the contract (above R30 million) to further develop emerging suppliers.

These emerging suppliers have to be-

(a) one or more black female-owned Exempted Micro Enterprises (EMEs); or

(b) one or more black youth-owned EMEs; or

(c) one or more black-owned EMEs; or

(d) one or more Qualifying Small Business Enterprises (QSE); or

(e) one or more small business, as defined in the National Small Business Act, 1996 (Act No. 102 of 1996).”

We will keep you up-to-date with the Draft Regulations and how it plays out.

*in terms of section 5(2) of the Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000) (PPPFA)

Earn to learn

Visit www.how2tender.com for Tender workshops around the country.

Title Closing Date Tender No.
Supply, implement, maintain and support a Commercial off-the-shelf (COTS) innovative solution to replace the current South African School Administration and Management System (SA-SAMS) to the Department of Basic Education (DBE), North West Provincial Education, and Free State Provincial Education. 2018-06-08 11:00 RFB1743/ 2018
Appointment of a service provider for SANParks to act as a Single Service Aggregator (SSA) for all ICT services for a period of five (5) years with an option to renew. 2018-08-25 11:00 GNP- 008- 18
Provision of Catering Services for Ngwelezane Place of Safety. 2018-06-22 11:00 KZNB07/ DSD/ 2018
Security Services at West Rand Region - Randfontein & Kagiso Service Points for Gauteng Department of Social Development 2018-06-08 11:00 GT/ GDSD/ 070/ 2018
Appointment of a (1) firm or a consortium of suitability qualified professionals to review the John Taolo Gaetsewe ( JTG) District Rural Development Plan (DRDP) situated in the Northern Cape province for a period of ten (10) months. 2018-06-01 11:00 5/ 2/ 2/ 1 NC RDLR- 0001(2018/ 2019)
Rendering of fleet garage card for a period of five (5) years. 2018-06-18 11:00 RFB 032- 18- 19
Appointment of a panel of Universities to conduct research for the National Lotteries Commission. 2018-06-21 11:00 NLC/ 2018- 4
Supply and Installation CCTV control access control system including maintenance for one (1) year . 2018-06-18 11:00 ZNTD 02953W
Free State Saps: Bothaville Police Station: Repair cracked walls, parameter lights and fencing (OHS). 2018-06-12 11:00 BL18/ 007
Contract for removal of recyclable (Boxes Office Paper,Plastics and Packaging) 12 months contract 2018-05-28 11:00 ZNQ 167 of 18/ 19
The appointment of a project management service provider to provide project management services for the implementation of infrastructure projects and related services at the Kwazulu-Natal Museum. 2018-06-19 11:00 KZN.M/ PM- 01/ 2018
Repair Annual and Service Maintenance to Nurse Call System at MSB, MS1, MS2, MS3, MS4, MS5 AND STAR SHAPE 1&2 as per specification 2018-06-11 11:00 ZNQ 986/ 17- 18
The supply and delivery of IT Equipment (laptops, computers and accessories). 2018-06-20 11:00 KZNL 16/ 2017
Appointment of a service provider to transport workers and learners from Delft TRA 5 And TRA 6 to Langa and back to Delft TRA 5 and TRA 6 for a period of twelve (12) months 2018-06-04 11:00 HDA/ CPT/ 2018/ 001
Security Services-Cash in Transit-2 years contract 2018-06-22 11:00 ZNQ 0029/ 18
Request for proposal to appoint a panel of recruitment companies to render recruitment services for the Government Pensions Administration Agency (GPAA). 2018-06-11 11:00 GPAA 07/ 2018
Appointment of an insurance broker to provide comprehensive insurance cover for the freedom park for a period of three (3) years. 2018-06-20 11:00 FP04/ 18FN
Appointment of panel of legal expert for a period of three years on as and when required. 2018-06-21 11:00 FP01/ 18/ CG
Appointment of a Travel Management Company for a period of three years on as when required. 2018-06-22 11:00 FP02/ 18/ FN
Fire Equipment (Supply and Install New Fire Extinguishers) 2018-06-08 11:00 ZNQ 13/ 18- 19


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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