Issue Date: 
Tuesday, March 1, 2016

Rules and Guidelines for Government Accounting Authorities

It is important to know that when you respond to a tender there are certain guidelines that Government Officials need to follow in order to evaluate your tender. According to the Implementation Guide*, Accounting Officers and Accounting Authorities of all public entities** and municipal entities must comply with the rules and guidelines stipulated below.

Prior to the invitation of bids, Accounting Officers and Accounting Authorities are required to:

  • Properly plan for the provision of services, works or goods in order to ensure that the resources that are required to fulfill the needs identified in the strategic plan of the institution, are delivered at the correct time, price, place and that the quantity and quality will satisfy those needs.
  • As far as possible, accurately estimate the costs for the provision of the required services, works or goods. This is in order to determine and stipulate the appropriate preference point system to be utilized in the evaluation and adjudication of the bids and to ensure that the prices paid for the services, works and goods are market related.
  • Estimated costs can be determined by conducting an industry and commodity analysis whereby prospective suppliers may be approached to obtain indicative market related prices that may be utilized for benchmarking purposes. Based on the findings, the relevant preference point system (80/20 or 90/10) to be utilized for the evaluation of the bid must be stipulated in the bid documents; and
  • Determine whether the services, works or goods for which an invitation is to be made have been designated for local production and content in terms of Regulation 9 of the Preferential Procurement Regulations. This will entail the inclusion of a specific condition in the bid documents that only locally produced services, works or goods or locally manufactured goods with a stipulated minimum threshold for local production and content will be considered. This will subsequently have a direct impact on the evaluation of the bid.

It may seem at times that not all Accounting Officers and Accounting Authorities necessarily follow these procedures. But it is worthwhile know this rules so that you can hold them to it.

Learn to earn

www.how2tender.com  :   How to tender, B-BBEE and how to start your own business.

*Preferential Procurement Regulations, 2011, pertaining to the Preferential Procurement Policy Framework Act

** As listed in Schedules 2, 3A, 3B, 3C and 3D to the PFMA

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... Read More

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