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 and deliver 30 First Aid Kits 2017-12-19 11:00 GQ12171660
Atlantis Swimming Pool: Repair & service of pumps, motors & gauges. 2017-12-20 09:00 SB11800514
Supply and deliver Wire Aluminium binding wire 4mm 2017-12-19 11:00 SQ12171150
Supply Polymer grids, covers and frames 2017-12-19 15:00 GE11800873
Supply and deliver VALVES 100MM SPIGOT ENDED left hand closing with non rising spindle fitted,CAST IRON wedge gate EPOXY coated,to SPECS CLASS 16(S.A.B.S. 664) 2017-12-19 11:00 SQ12171150
Supply Civil materials 2017-12-14 14:00 GE11800874
Supply: Polymer covers and frames 2017-12-19 14:00 GE11800872
Supply and deliver Tinned Wire Copper 2.0mm,fusewire in 500gram rolls 2017-12-19 11:00 SQ12171150
Supply Sheet metal 2017-12-14 14:00 GE11800871
Supply and deliver Ball Markers Type 1401 (MOQ24).Colour RED only 2017-12-19 11:00 SQ12171150
Supply Clamps 2017-12-19 14:00 GE11800869
Supply Water distribution materials 2017-12-19 14:00 GE11800870
Supply and deliver Joint Troughs c/w Fibre Lid cement flame resistant 2017-12-19 11:00 SQ12171151
Supply: Water distribution materials 2017-12-18 14:00 GE11800868
Supply: Water distribution materials 2017-12-18 14:00 GE11800867
Supply Sand 2017-12-14 14:00 GE11800866
Supply and installation of sluice gates with solid ACME thread spindles to be manufactured usind 316 s/steel plates 6mm thick spindles and guides to be of the same 316 s/steel material 2017-12-19 11:00 CSQ12171197
Printing of Municipal Tabloid 2017-12-19 11:00 CSQ12171197
Supply manhole lock 2017-12-18 14:00 GE11800865
Supply Building material 2017-12-14 14:00 GE11800864

Pages

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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