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 Wound dressing (100% soduim carboxymethylcellulose NACMC fibrous hydrocolloid dressing containing ionic silver with nylon stitching 17 x 15cm) - 3000 boxes 2018-03-06 10:00 225/ 17- 18
Request to render Security Services at Mary Moodley Child and Youth Care Centre for a period of 24 Months 2018-03-16 11:00 GT/ GDSD/ 055/ 2018
Supply: Elastic bandage 50mm x 4.5m(stretched) (12 rolls per pkt); Elastic bandage 100mm x 4.5m(stretched) (12 rolls per pkt) 2018-03-02 11:00 ZNQ 132/ 2017
Request for proposal for the appointment of a contractor for construction of electrical works, access road and water supply system 2018-03-27 11:00 GGDA/ 19/ 2017- 18/ GIDZ_INFRASTRUC
Rendering of a Security Service for period of two years (24 months) at CNR Leta & Moropotsane Street ,Phuthaditjhaba ,Qwa-qwa, 9866 2018-03-15 11:00 FSDOL07/ 2018
Appointment of a service provider for the supply, installation and maintenance of backup generators, uninterrupted power supply (UPS) unit, air-conditioners including consequential general building, electrical, mechanical, civil and engineering works in various DHA offices and Port of Entry for a period of three (3) years. 2018-03-16 11:00 DHA04- 2018
Re-Advert - Provision of alarm with armed response services and security guards at the CETA head office in Midrand. 2018-03-02 11:00 018- 2017/ 2018
Provision of ICT desktop support services for a period of 3 years. 2018-03-16 11:00 CONHILL/ 02/ FAC/ 2018
Request for proposal for the appointment of a service provider to project manage the GIDZ marketing campaign 2018-03-26 11:00 GGDA/ 18/ 2017- 18/ GIDZ_MARKETING
Faulty Find and Repair Calorifier Since Has No Hot Water in Nurses Home Building 2018-03-02 11:00 ZNQ 133/ 2017
Provision of internet connectivity services for a period of 3 years. 2018-03-15 11:00 CONHILL/ 04/ FAC/ 2018
Supply of maintenance, support and a minor upgrade for the Department of Trade and Industries (the dti) Checkpoint infrastructure. 2018-03-16 11:00 RFB 1704/ 2017
Invitation to service providers to supply MPLS connectivity between The Commission’s Main Data Center located at The DTI Campus, 77 Meintjies Street, Sunnyside, Pretoria and the Remote Sites. 2018-03-16 11:00 CIPC BID NUMBER: 31/ 2017/ 2018
Repair and Maintenance of Accessible Lifts, for a period of 3 years, including Lift Replacement Project 2018-03-16 11:00 CONHILL/ 01/ FAC/ 2018
Identification of premises for office space for the NDA to be occupied over a period of three years with an option to renew at NDA’s sole discretion for an additional twenty-four months at intervals of twelve months each 2018-03-22 14:00 NDA26/ FIN15/ 18
Manufacturing, supply and delivery of poncho, HRD trainee for a period of three (3) years in accordance with specification SAPS 3231/17 Version 01.0/June 2017: Division: Supply Chain Management. 2018-03-27 11:00 19/ 1/ 9/ 1/ 95TC (17)
Appointment of Suitable Service Provider to Provide Office Accommodation to the MICT Seta Cape Town Offices for a period 36 months Subject to Renewal Of MICT Seta License 2018-03-16 11:00 MICT- SETA/ OACPT/ 2018
Manufacturing, supply and delivery of jersey HRD trainee unisex for a period of three (3) years in accordance with specification SAPS 3206/17 Version 01.0/ April 2017 2018-03-27 11:00 19/ 1/ 9/ 1/ 94TC (17):
Appointment of Suitable Service Provider to Provide Office Accommodation to the Mict Seta Durban Offices for a period 36 months subject to Renewal of MICT Seta License 2018-03-16 11:00 MICT- SETA/ OADBN/ 2018
The supply and delivery of protective clothing and uniform for mortuaries 2018-03-02 11:00 339, 340, 347, 335/ 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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