Issue Date: 
Tuesday, February 7, 2017

New Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, have been finalized and gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. We start off with 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 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 have a tendency 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 all the other new developments regarding tenders, please attend one of our How-to-Tender workshops. Tender Workshop dates are published on our website at www.how2tender.com. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

Title Closing Date Tender No.
Appointment of a service provider to render internal audit services to Robben Island Museum for a period of three (3) years 2018-10-12 11:00 RIM EXE 01-2018 /2019
Design and develop a renewable energy hybrid mini-grid that is sustainable 2018-09-21 12:00 #91119897
Appointment of a Principal Agent to provide Civil and Structural services for the proposed Telecommunication site at Colesberg in the Northern Cape. 2018-10-23 12:00 SENT/030/2018-19
EMC Infrastructure Upgrade. 2018-10-09 13:00 RFP-18/19/28/EMC Infrastructure Update
For ¾ Pillow Top Bed Including Base for NHLS Delmas Laboratory, Mpumalanga. 2018-09-26 08:30 1420581
IBM Infrastructure Upgrade/AVW. 2018-10-09 11:00 RFP-18/19/29/IBM Infrastructure Upgrade/AVW
Biosafety Cabinet 2018-09-21 11:00 RFQ 1446901
1 x Upright Light Microscope 2018-09-25 11:00 1667839
Request for the Installation of access Control to the NICD Cottage Gates 2018-10-01 11:00 0911059/18-19
HP Infrastructure Upgrade. 2018-10-09 11:00 RFP-18/19/30/HP Infrastructure Upgrade/AVW
Microscope 2018-09-21 11:00 RFQ 1469472
Provision of Design, Supply, Install, Test And Commission Of Roof At Limpopo Lumber Politsi. 2018-10-09 12:00 TPIR/TZA/680 (Q) CIDB
For 4x Wooden Oak Filing Cabinets For Evander Laboratory 2018-09-26 10:00 RFQ 1420571
Provision of professional services for the implementation and management of the rural road asset management system in the Frances Baard District for a period of three (3) years. 2018-10-09 12:00 BID 14/18
Request for Proposal for Tourism Strategy and Implementation Plan. 2018-10-09 12:00 2/2/4/2018-19
For 4x Wooden Oak Filing Cabinets For Piet Retief Laboratory 2018-09-26 10:00 RFQ 1420574
For 4x Wooden Oak Filing Cabinets for Mmamethlake Laboratory 2018-09-26 10:00 RFQ 1420570
Request for Proposal and Repair/Sealing of Maokeng Reservoir. 2018-10-09 12:00 3/2/7/2018-19
For time and date Recorder for Tonga Labaratory 2018-09-26 10:00 RFQ 0704979
Establishment of a panel of service providers for provision of financial technical support services to provincial Departments and public entities in the North West Province on an as-and -when required basis for a period of two (2) years. 2018-10-10 11:00 NWDF04/2018

Pages

Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.