Issue Date: 
Tuesday, February 7, 2017

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 to provide for a mechanism 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 an outcome 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, commitment made by government was 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, co-operatives as well as township and rural enterprises. Also, giving impetus to the NGP the highlights of the revision are: -

  • Introducing the prequalification criteria which allow the advancement of these selected categories of people by limiting competition 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, the high value tender 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 requires all those with 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 give the smaller companies greater chances to compete in the economy in a meaningful way. (Refer to 6 & 7)

Commenting on the release of the regulations, Minister Pravin Gordhan says 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 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 all the other new developments regarding tenders, please attend one of our How-to-Tender workshops.

Learn to earn

www.how2tender.com

Title Closing Date Tender No.
Appointment of a Panel to Supply ICT Hardware 2018-07-12 12:00 RFP006/ 2018
Service Theatre Table X 01 2018-06-29 11:00 ZNQ: 8975/ 18 NIEM
Service dental chair at Niemeyer Hospital X 01 KwaZulu-Natal. 2018-06-29 11:00 ZNQ: 8971/ 18 NIEM
C993.02: Reseal of TR75/1 (KM 0.00 to KM 16.50) Holgaten to Oudtshoorn. Designated CIDB Grading: 8CE or higher 2018-07-26 11:00 S048/ 18
Procurement of Human Resource Recruitment & Selection Service (x3) 2018-07-12 12:00 RFP004/ 2018
Inspection, maintenance & repair of the department fleet. 2018-08-19 11:00 ZNB468/ 15T
Supply, Installation and Maintenance of Multi functional Photo Copiers 2018-07-12 12:00 RFP008/ 2018
Appointment of a property management company or an agent to source office accommodation for USAASA for a period of five years in Gauteng. 2018-07-17 11:00 USAASA- OFS/ 04/ 2018
Provision of Legal Services 2018-07-23 11:00 EWSETA008/ 2018
Request for bid for renovation services for the National Health Laboratory Service at Bongani Provincial Hospital, Welkom. 2018-07-16 11:00 RFB 022/ 18/ 19
Terms of Reference for the maintenance of Security Operational Centre for GDED 2018-07-13 11:00 GT/ GDED/ 089/ 2018
Department of Health: RK Khan: Repairs and waterproofing of flat roof over physiotherapy department (contract period: 6 calendar Months). 2018-07-20 11:00 ZNTD 03917W/ WIMS 063046
Department of Public Works: Ethekwini Regional Office-Mayville: Tender Office relocation 2018-07-23 11:00 ZNTD 04435W
Appointment of a service provider to render cleaning and hygiene services for the Department of Rural Development and Land Reform - Mpumalanga Deeds Registry for a period of 24 months. 2018-07-16 11:00 DRDLR (CRD- 10) 2018/ 19
Annual service of Theatre UPS. 2018-07-02 11:00 C23/ 18/ 19
Supply , Installation and Commissioning of Bio-metric system 2018-07-24 11:00 EEC/ T06/ 2018
Appointment of Consultants/Professional Services for designing of plans for the following campuses: 1. Brakpan Campus-classrooms and offices. 2.Springs Campus-classrooms, offices and Hospitality kitchen 2018-07-24 11:00 EEC/ T10/ 2018
Appointment of Service provides to supply, deliver and offload Fertilizer for supplementing. 2018-06-28 11:00 ZNB 4261/ 18A
Appointment of a service provider for the revision of the HDA Business case, organisational design and resourcing framework. 2018-07-16 11:00 HDA/ JHB/ 2018/ 001
Appointment of Consultant/Professional Services for designing of 7 Main Entrances at College delivery sites 2018-07-24 11:00 EEC/ T09/ 2018

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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