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.
Provision of cleaning, hygiene and pest control services at GPAA offices 2020-06-22 11:00 GPAA 10/ 2020
Appointment of a security company to provide security services, Alarm installation with armed response in Bredasdorp, Anene Booysen Skills Development Centre 2020-06-19 11:00 002- 2020/ 2021
Appointment of a security company to provide security services, Alarm installation with armed response in Bethal, Gert Sibande Skills Development Centre 2020-06-19 11:00 004- 2020/ 2021
Appointment of a security company to provide security services, Alarm installation with armed response in Muden, Zibambeleni Skills Development Centre 2020-06-19 11:00 003- 2020/ 2021
Appointment of a panel of service providers for the procurement of the 32 inch IDTV for 2020 indegent matriculants 2020-06-19 11:00 USAF- IDTV/ 01/ 2020
Dube TradePort Corporation hereby invites proposals from Trend Micro accredited partners to provide Trend Micro Enterprise Protection Platform (EPP) for DTPC for a three (3) year period. 2020-06-23 11:00 DTP/ RFP/ 13/ CEO/ 09/ 2019
Supply, delivery, and installation, inclusive of setup of production scanners: 3 year period contract, various head offices 2020-06-17 11:00 ZNB 5336/ 2020- H
Provision of Security Services in the Departmental Offices and Institutions for a period of 36 months at CLUSTER 5 (King Cetshwayo District Offices) 2020-06-18 11:00 DARD05/ 20
Provision of Security Services in the Departmental Offices and Institutions for a period of 36 months at CLUSTER 4 (UMkhanyakude District offices) 2020-06-18 11:00 DARD04/ 20
Provision of Security Services in the Departmental Offices for a period of 36 months at CLUSTER 3 (ILembe District, UGu and UThukela District offices) 2020-06-18 11:00 DARD03/ 20
Provision of Security Services in the Departmental Offices for a period of 36 months at CLUSTER 2 (Zululand and Harry Gwala District Offices) 2020-06-18 11:00 DARD02/ 20
Provision of security services in the Departmental Offices, Institution and Residence for the period of 36 months at CLUSTER 1 (MEC Residence, UMgungundlovu District, Truro house, EThekwini District, Amajuba District and UMzinyathi District) 2020-06-18 11:00 DARD01/ 20A
Supply, deliver, offload, install and servicing of ablution and hygiene services for departmental offices, research stations and institutions for the period of three years 2020-06-19 11:00 DARD08/ 20A
Appointment of a service provider to rehabilitate the pumps at Makhathini Irrigation Scheme 2020-06-19 11:00 DARD07/ 20A
Supply, deliver and offloading of veterinary remedies at Department of Agriculture: Uthukela District Office. 2020-06-19 11:00 DARD06/ 20A
Printing, supply and delivery of promotional material for the South African Police Service: Division: Corporate Communication and Liaison on a once off basis 2020-06-30 11:00 19/ 1/ 9/ 1/ 65TS(19)
Supply and delivery of consumables used in the forensic science laboratories to the SAPS for a period of two (2) years 2020-06-18 11:00 19/ 1/ 9/ 1/ 69TD (19)
Implementation of Biogas and required associated training for DOD 2020-06-19 11:00 128
Supply, delivery, installation, commissioning, end-user training, of 21 x ICU beds: Dr Pixley Ka Seme Memorial Hospital: once-off 2020-06-17 11:00 ZNB 9768/ 2019- H
Request for proposal: Establishment of a frame agreement for provision of cafeteria and catering services at UNHCR RBSA Pretoria office 2020-07-02 16:00 RFP/020/HCR/RBSA/SUP/014.

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