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.

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www.how2tender.com

Title Closing Date Tender No.
Supply and Delivery of SA Air Force Bib Woman White Evening Wear for Black Satin Bow Tie, Quantity 2500. 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/ 026/ 18
Notice of proposed disposal of 66 Greatmore Street, Woodstock. 2018-07-24 11:00 PM002/ 18
Provision of Stationery for NHLS for a period of 3 years 2018-07-24 11:00 RFB 044/ 18/ 19
Live and on-line auctioneering services for the disposal of technical equipment, movable and immovable assets for 36 months. 2018-07-13 11:00 DID 19/ 06/ 2018
Provision of A3 and A4 Paper for NHLS for a period of 3 years 2018-07-23 11:00 RFB 043/ 18/ 19
The objective of this bid is to appoint a suitable independent service provider that can provide internal audit services on a co-sourced basis to the W&RSETA. 2018-07-13 11:00 NCR/ 2018/ 0003
The Government Printing Works (GPW) is seeking to establish a panel of printers within South Africa 2018-07-13 11:00 GPW- C 68
The objective of this bid is to appoint a suitable service provider to provide the W&RSETA an Integrated IT Management System. 2018-07-13 11:00 ITD/ 2018/ 0005
Appointing a service provider to provide expertise to SANBI and Statistics South Africa in the development of ecosystem accounts and recommendations for advancing the System of Environmental-Economic Accounting (SEEA) Experimental Ecosystem Accounting (EEA) in South Africa. 2018-07-20 11:00 SANBI: BIPA299/ 2018
The appointment of a service provider to render employee health and wellness programme for Public Protector South Africa (PPSA ) Nationally for a period of three (3) years. 2018-07-13 11:00 PPSA 003/ 2018
Printing and Delivery of NPE2019 Voters’ Roll 2018-07-20 11:00 IEC/ LG- 04/ 2018
500 Units X Shelf Strips 2018-07-04 11:00 ZNQ 183/ 18
Request for Proposals for Appointment of A service Provider to Render Events Management Services for the OR Tambo 2018 Inter-Municipal Games including Sponsorship Procurement. 2018-07-20 11:00 SALGA/ 68/ 2018
Supply A4 Photocopy Paper White 80gms 500sheets per Ream 5 Reams Per Box Sabs/Ce/Isoapproved as per Specification 2018-07-09 11:00 ZNQ 310/ 18- 19
Supply Lexmark Toner X651 H31e High Yield Original only as per specification 2018-07-09 11:00 ZNQ 309/ 18- 19
Request for Information: Insurance Management Systems 2018-07-16 12:00 RFI 2018/ 01
Supply *Paper Photocopy White Bond 80gsm A3 (40 Boxes) 2018-06-29 11:00 25/ 18- 19
Appointment of a service provider for the collection, dispatch and delivering freight (courier services) between PSiRA Head Office and all PSiRA regional offices for a period of three (3) years. 2018-07-26 11:00 RFB/ 2018/ PSiRA/ 03
Supply and Install Dental System Complete Package (Hand Piece 2018-06-29 11:00 ZNQ 320 / 18- 19
Nelson Mandela Museum seeks the services of a qualified and experienced company to render internal audit services for a period of three years (thirty six months). 2018-07-13 12:00 NMM 2018- 06

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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