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.
Supply: 3 x gbc fusion 3000l laminator a3 2018-02-26 11:00 GM11800634
Supply and delivery of duffel bag to the saps for a period of two (2) years 2018-03-16 11:00 19/ 1/ 9/ 1/ 63TD (17)
Routine (preventative) and breakdown maintenance of eleven (11) Fuji Frontier Digital Minilab printers for a period of three (3) years 2018-03-27 11:00 Bid no. 19/ 1/ 9/ 1/ 98 TR (17/ 18)
Annual Servicing of Pharmaceutical Fridge At KwaDabeka Community Health Centre. 2018-03-02 11:00 ZNQ 649/ 17
Supply Only Red Central Storage Areal Container As Per Specification At Halley Stott Clinic 2018-03-02 11:00 ZNQ 647/ 17
Supply Only Red Central Storage Areal Container As Per Specification At KwaDabeka Community Health Centre Clinic 2018-03-02 11:00 ZNQ 648/ 17
Supply Only Red Central Storage Areal Container as per specification at Clermont Clinic 2018-03-02 11:00 ZNQ 646/ 17
Procurement of Inductively Coupled Plasma - Optical Emission Spectrometer (ICP-OES) instrument. 2018-03-09 11:00 NMISA (17- 18) T0061
Supply Suture Vicryl V486g 90cm 40mm Reverse Cutting as per specification 2018-03-12 11:00 ZNQ 1139/ 17- 18
Travel Management Bid For 2018-2020 2018-03-16 14:00 CBRTA/ HO/ 0040
Re-Advert - Appointment of a service provider for the rollout and management of biometric learner attendance monitoring system 2018-03-02 11:00 013- 2017/ 2018
Procurement of supercritical fluid extraction - chromatography system with UV detector and fraction collector 2018-03-09 11:00 NMISA (17- 18) T0058
Supply suture 1g 75cm/3/8c 60mm cutting needle as per specification 2018-03-12 11:00 ZNQ 1138/ 17- 18
Supply: Caesarean section drape with pouch and incise and with mayor cover, disposable. 2018-03-12 11:00 ZNQ 1022/ 17- 18
Supply: Wound dressing double hydrocolloid hydrogel containing pectin and sodium CMC 15g - 3000 boxes, please provide sample. 2018-03-06 11:00 67/ 17- 18
Re-Advert - Provision of insurance services by an insurance underwriter 2018-03-02 11:00 016- 2017/ 2018
Appointment of a Group Risk Insurance/Assurance Provider for all CIPC Employees 2018-03-26 11:00 CIPC BID NUMBER: 30/ 2017/ 2018
Supply Wound dressing (triple hydrocolloid dressing with polyurethane foam 20 x 20 cm) - 3000 boxes 2018-03-06 11:00 438/ 17- 18
Rendering a hospitality service, including a small retail component, aligned with the Mcgregor Museum brand, in the Mcgregor Museum shop located at the premises known as the Mcgregor Museum. 2018-03-09 11:00 NCDSAC- 003- 2017
Supply Wound dressing (100% soduim carboxymethylcellulose NaCMC fibrous hydrocolloid dressing 15 x 15 cm) - 3000 boxes. please provide sample 2018-03-06 11:00 437/ 17- 18

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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