Issue Date: 
Thursday, October 31, 2019

Preferential Procurement Regulations 2017

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

The Preferential Procurement Regulations 2017 have been finalized and gazetted on 20 January 2017.

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 influenced by the need 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 a product 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, a commitment was made by government 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 or co-operatives as well as township and rural enterprises.  Also, giving impetus/ incentive to the NGP.  The highlights of the revision are:

  • Introducing the prequalification criteria, which allows the advancement of these selected categories of people, by limiting competition to 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, that high value tenders 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 require all those, with the 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 gives smaller companies a greater chance to compete in the economy, in a meaningful way.  (Refer to 6 & 7)

Commenting on the release of the regulations, Minister Pravin Gordhan said that 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 the 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 many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Appointment of a private security contractor to render security service at Arundel Crescent, Stirling, East London, Eastern Cape Province to the Department of Agriculture, Land Reform and Rural Development for a period of 3 years 2020-12-17 11:00 4.4.12.4/ 7/ 20
Appointment of the service provider to supply and deliver multi-functional drill rigs (core and percussion) to augment the council for geoscience drilling capacity for period of three years 2020-12-22 11:00 CGS- 2020- 03T
Appointment of the service provider to supply and deliver diamond core drilling of Molteno-Indwe Coalfield for drilling and appraisal of the economic recovery projects (base and precious metals, pegmatites) 2020-12-21 11:00 CGS- 2020- 021T
Supply and Delivery of Hypodermic Syringes, Needles and Bloodletting Devices and Related Items to the State for the period ending 31 October 2022 2020-12-18 11:00 RT284- 1- 2019
Placement / Outright Purchase of Automated Embedder Units; one (1) for Charlotte Maxeke & one (1) for Universitas including service and maintenance for a period of five (5) years 2020-12-18 11:00 RFB046/ 20/ 21
Outright Purchase of a Bench-top Semi-Automated Gel Protein Electrophoresis and Isoelectric Focusing analyser for Universitas including service and maintenance for a period of five (5) years 2020-12-18 11:00 RFB045/ 20/ 21
Outright purchase of Real Time PCR System for Tygerberg Medical School Campus, Virology Department Including Service and Maintenance for a period of five (5) years 2020-12-18 11:00 RFB 155/ 19/ 20
Placement/Outright purchase of High Volume DNA/RNA Extraction Instrument Including Service and Maintenance for a period of five (5) years for Tygerberg Medical School. 2020-12-18 11:00 RFB 063/ 20/ 21
Placement of Early Infant Diagnosis Assay (HIV Nucleic Acid Qualitative Detection) for the National Health Laboratory Service (NHLS) with Service and Maintenance for a period of three (3) years 2020-12-17 11:00 RFB016/ 20/ 21
Supply, install, test and commission one (1) x 220kva – 250 kva generator at The Playhouse Company, Mayville Complex 2020-12-29 11:00 PHC 70/ 2020
Consultancy service for: Expert Consultant Statistician to prepare “A Database on Trafficking in Persons and Smuggling of Migrants in the Horn of Africa” towards the production of “First Statistical Report on Trafficking in Persons and Smuggling of Migrants in Member States of the AU-Horn of Africa Initiative” 2020-12-15 11:00 AUC/DSA/C/010
Appointment of a Service Provider to Provide Fully Telephony Services for the KwaZulu-Natal Office of the Premier for Period of Thiry Six (36) Months. 2021-01-05 11:00 KZNB 40/ 2020/ 21
Appointment Of Service Provider To Provide Security and Guarding Services To The National Library Of South Africa Cape Town Campus In 5 And 62 Queen Victoria Street, For Period Of (36) Thirty-Six Months 2020-12-18 11:00 NLSA.SECURITY. CT16/ 2020- 2021
Appointment of a Cleaning Service Provider to Provide Cleaning Services to The National Library of South Africa Campus in Cape Town in 5 and 65 Queen Victoria Street for a period of (36) thirty-six months 2020-12-17 11:00 NLSA/ CLEANING. CT19/ 2020- 2021
Terms of Reference for the Appointment of a Service Provider to Digitise Selected Paper-Based Archival Records at the National Archives and Records Service of South Africa (NARSSA) 2020-12-21 11:00 NLSA/ NARRSA 09/ 2020- 2021
Terms of Reference for the Appointment of a Service Provider to Digitise 16mm and 35mm Films at the National Archives and Records Service of South Africa (NARSSA) from the date of appointment until the 31 march 2020. 2020-12-21 11:00 NLSA.NARSSA 05/ 2020- 2021
Provision of the Development and Maintenance of Learnership Programme within the NHFC 2021-01-08 11:00 CM01/ 11/ 2020
The appointment of a service provider to assist the National Energy Regulator with Translation Services for a period of three (3) years 2020-12-17 11:00 NERSA/ 2021/ CSM/ TS/ BID/ 005
Provision of Travel Management Services to MICT SETA for a period of five (5) years 2020-12-18 11:00 MICT- SETA/ TRAVEL/ 002/ 2020
Insurance Brokerage Services 2020-12-17 12:00 FAC/ 2020/ 037

Pages

Who is the bidder or his or her representative?

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative... Read More

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