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 Copper Conductors 2017-11-29 11:00 SQ11171138
Demolition and Removal of Existing Fencing and Supply and Erection of New Precast Concrete Solid Slab Wall between Bonteheuwel and Lavistown (Cluster 2) 2017-12-12 12:00 51/2017/CTN/INFRA
Supply and deliver Ball Markers Type1401(MOQ2 4) 2017-11-29 11:00 SQ11171138
Demolition and Removal of Existing Fencing and Supply and Erection of High Security Precast Concrete Solid Slab Wall between Bonteheuwel and Lavistown 2017-12-12 12:00 52/2017/CTN/INFRA
The supply and delivery of power and C&I cables for Kusile Power Station 2017-12-13 10:00 ERI/2017/CS/74
The maintenance of Automated Aircraft Docking System at O. R. Tambo International Airport 2017-12-13 12:00 ORT 148/2017
Supply: fire hydrant end caps 2017-11-27 14:00 GE11800762
Supply: Fire hydrant 2017-11-27 14:00 GE11800761
Supply: Cement fundu 2017-11-23 09:00 GE11800758
Supply: Civil material 2017-11-28 14:00 GE11800759
Appointment of Service Provider to Develop a Growth Model 2017-12-08 12:00 T23/17/18
The supply, delivery and installation of firefighting equipment 2017-11-24 12:00 56897
Community Parks Maintenance for Ward 33, 43, 75 and 76 M/Plain 2017-12-01 09:00 SN11800471
Supply, Delivery and Installation of Handheld Meter Reading Equipment and Software 2017-12-08 12:00 T22/17/18
Community Parks Maintenance for Ward 78, 79, 81 and 82 - Mitchell’s Plain. 2017-12-01 09:00 SN11800472
Installation of house connections for approximately 180 informal houses in the Phola Park and De Hoop Farm in Malmesbury 2017-12-08 12:00 T21/17/18
Supply: Hardware items 2017-11-24 12:00 GG11800210
Supply: 48 each x padlock;brass;40mm;2 keys 2017-11-24 12:00 GG11800193
Supply and Delivery of Light Blue Refuse Bags 2017-11-30 11:00 SCM 52/17/18
Supply: 320 each x putty; quick set; wht; 125g 2017-11-24 12:00 GG11800213

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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