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.
Steam Bend Mild Steel 1/2” (15mm) Male Thread Both Ends, Sabs Approved Only 2018-10-02 11:00 ZNQ NO.1645/ 06/ 18
V-Loc Sutures 180 2/0 Gs-21 Taper 1/2 Circle 37mm 2018-10-02 11:00 ZNQ NO.2292/ 07/ 18
Pliable Polymer Tubing for Suction Sterile Id 6mm X Od 11mm, Six Months Period Contract Request 720 Pkts of 7.5 Mtr = 5400 Mtrs/Month. 2018-10-02 11:00 ZNQ NO.2969/ 09/ 18
Provision of ICT Infrastructure upgrade tender notice of closing date extension. 2018-09-25 11:00 OPFA/ INUP2019/ T1
Disposable Laparoscopic Scissors Curved With Monopolar Cautery 5mm Shaft 30-35cm In Length Sterile Expiry Date, Single Use Shears With Monopolar Cautery. 2018-10-02 11:00 ZNQ NO.2473/ 08/ 18
Appointment of a service provider to supply and deliver feed grower for PTO farming in Boshof, ward 2 Tokologo Local Municipality within Lejweleputswa District in the Free State Province. 2018-10-05 11:00 GROWER- REIDFS- 0001 (2018/ 2019)
Supply and Close Up the Sides of the Shelter at Oncology,as per spec 2018-10-02 11:00 ZNQ NO.2502/ 08/ 18
Site Service Of Mv Breakers and Protection Relays In SUB 1, SUB 2, SUB 3, SUB 4, SUB 5, SUB 6, SUB 8, SUB 10, SUB 11 AND SUB 12. 2018-10-02 11:00 ZNQ NO.2486/ 08/ 18
Appointment of a service provider to render standard cleaning and hygiene services for the Department of Rural Development and Land Reform for Welkom Office, 11 Heeren Street, Mercantile Bank Building, Lejweleputswa District Office, Welkom within Lejweleputswa District in the Free State province for a period of twenty four (24) months. 2018-10-05 11:00 WEL- CLEANINGFS- 0003 (2018/ 2019)
Disposable Caesarean Section Drape, Both Arms out on Armboards With Screen Height Style, With Barrier Type Drape Impenetrable to Blood, and Liquor 2018-10-02 11:00 ZNQ NO.2702/ 08/ 18
Supply: T-shirts for Election Day 2018-10-26 11:00 10388287
Manufacturing, supply and delivery jacket bunny blue male and female; jacket bunny SAPS guards male and female for a period of three (3) years. 2018-10-23 11:00 19/ 1/ 9/ 1/ 16TC (18)
The South African National Roads Agency Limited (SANRAL) hereby invites Service Providers that are registered on the National Treasury Central Supplier Database (CSD) and offers accredited training / workshops / seminars and conferences that earn Continuing Professional Development (CPD) points to express their interest by responding to this EOI. 2018-10-03 12:00 WR2018/ 09/ 04
Supply Materials, Remove & Replace all the Broken and Cracked Window Panes & Glass Louvers in Identified Areas of Grey’s Hospital as per specification. 2018-10-02 11:00 ZNQ NO.2940/ 09/ 18
The MAJV has been appointed by the South African National Roads Agency SOC Ltd (SANRAL) to provide a comprehensive property service. 2018-10-18 14:00 N001- 025- N- P12250
Disposable Surgeons Gowns - (Reinforced Gown) Aami Level 3, Size Xtra-Large. 2018-10-02 11:00 ZNQ NO.2532/ 08/ 18
Sale of cardboard boxes and waste paper for a period of two years 2018-10-05 11:00 ZNQ 571 OF 2018 / 19
The objective of this bid is to appoint an Accredited Training Provider who has a valid approved programme to deliver W&R Informal Business Practice NQF Level 3 Qualification. The Training Provider to train 37 unemployed learners who reside within ward 14 of the Amahlathi Local Municipality in the Eastern Cape. 2018-10-12 11:00 RDO/ 2018/ 0011
30 Gauge Hypodermic Needles: 0.30x12mm (30gx1/2inch) 2018-10-02 11:00 ZNQ NO.2774/ 08/ 18
Disposable Surgeons Gowns - (Reinforced Gown) Aami -Level 3, Size Large. 2018-10-02 11:00 ZNQ NO.2533/ 08/ 18

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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
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