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 and deliver Duplex Dermatome. 2018-06-25 11:00 H109/ 18/ 19
Supply and install high security fence at Mphohadi campus - Kroonstad 2018-07-13 11:00 T/ IM/ 01/ 18 fence
Cut, Make and Trim (Outer Material will be supplied by SA Air Force) of SA Air Force Ladies Windbreakers. Quantity 500. Main Contractor or Sub- Contractor must have a valid SABS Capability Report (not older that 12 Months). 2018-07-19 11:00 SPU/ B/ DSS/ 038/ 18
2 Units - Insulated Beverage Containers - 5.7 Liter Capacity Granite Grey (Polycarbonate) 2018-07-04 11:00 195/ 18
1 Unit - Food Waste Disposer/Macerator 3hp 2.2 Kw - Supply and Install (Specification Attached on the Documents) 2018-07-04 11:00 193/ 18
Cut, Make and Trim (Outer Material will be supplied by SA Air Force) of SA Air Force Skirt Evening Wear, Black. Quantity 150. Main Contractor or Sub-Contractor must have a valid SABS Capability Report (not older that 12 Months). 2018-07-17 11:00 SPU/ B/ DSS/ 036/ 18
Rendering of Health Care Risk Waste handling service to Western Cape Government: Health for three (3) year period 2018-07-13 11:00 WCGHSC 0090/ 2017
Cut, Make and Trim (Outer Material will be supplied by SA Air Force) of SA Air Force Coverall Jackets (Quantity 1000) and Trousers Coverall (Quantity 1500). Main Contractor or Sub-Contractor must have a valid SABS Capability Report (not older that 12 Months). 2018-07-18 01:00 SPU/ B/ DSS/ 032/ 18
Tumble Dryer - 55kg 2018-07-03 11:00 ZNQ 287/ 18- 19 GAZ
Hyster Canopy 2018-07-03 11:00 ZNQ 288/ 18- 19 GAZ
Digital Steam Press 2018-07-03 11:00 ZNQ 289/ 18- 19 GAZ
Cut, Make and Trim (Outer Material and Metal Buttons will be supplied by SA Air Force) of SA Air Force Caps, Service Dress, Men. Quantity 67. Main Contractor or Sub-Contractor must have a valid SABS Capability Report (not older that 12 Months). 2018-07-16 11:00 SPU/ B/ DSS/ 030/ 18
Removal and Disposal of Used Fluorescent Tubes 2018-07-03 11:00 ZNQ 277/ 18- 19 GAZ
Supply and Delivery of SA Air Force Embroidered Onlays (Quantity 140), Hand Embroidered Cap Badges (Quanity 147) and Gorget Patches (Quantity 321). Main Contractor or Sub-Contractor must have a valid SABS Capability Report (not older that 12 Months). 2018-07-18 11:00 SPU/ B/ DSS/ 029/ 18
Provision of Porter, Messenger and Cleaning Services for a period of 12 months - 4 staff 2018-07-03 11:00 ZNQ 278/ 18- 19 GAZ
Washer Extractor - 57kg 2018-07-03 11:00 ZNQ 286/ 18- 19 GAZ
Appointment of a service provider to supply the Council for Geoscience (CGS) with a vehicle and equipment tracking management system for a period of 5 years 2018-07-20 11:00 CGS- 2018- 017K
Appointment of a Company to Review Business Continuity Programme 2018-07-23 11:00 CGS- 2018- 018K
South African Social Security Agency hereby invites of suppliers to bid for the supply and delivery of stationery for SASSA - Limpopo Region for a period of 36 months 2018-07-13 11:00 SASSA: 04/ 18/ CS/ LP
Nelson Mandela Museum seeks the services of a qualified and experienced company to supply 4 in 1 color multi-function printers for a period of two years (twenty four months). 2018-07-13 12:00 NMM 2018- 07

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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