Written by Werner van Rooyen
In accordance with the Preferential Procurement Regulations, 30% of all Government Contracts exceeding R30 million must be subcontracted to specific categories of SMMEs, provided it is feasible. These categories include:
- Black female-owned EMEs or QSEs.
- Black youth-owned EMEs or QSEs.
- Black-owned EMEs or QSEs.
Following the gazetting of the Preferential Procurement Regulations, businesses are now tasked with finding suitable subcontractors.
But where can these businesses, responding to tenders, locate subcontractors? One solution we have identified is attending Briefing Sessions. These sessions, also known as Information Sessions, are typically mandatory for all bidders interested in a specific tender. Consequently, anyone aiming to win that tender will be present at the Briefing/Information Sessions.
At these sessions, you’ll encounter a diverse range of businesses, from large Johannesburg Stock Exchange-listed companies to small sole proprietorships. Often, smaller businesses may struggle to meet all the tender requirements, leading to unsuccessful bids, while larger companies are more likely to comply and succeed.
By enforcing the 30% subcontracting rule, the Government aims to distribute the wealth associated with winning tenders. This initiative is expected to benefit the growth of SMMEs in the long run. We anticipate that Briefing Sessions will become key venues for establishing potential subcontracting partnerships.
It’s important to note that for a business to qualify as a subcontractor, it must be a viable operation. Larger companies will seek reliable subcontractors with a proven track record.