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.
Ventilation,ligthing and noise survey for all wards and clinics according to specs 2017-12-03 11:00 ZNQDN265/ 17GAZ
Tender No. 38/2017 - Provision of Insurance Brokerage Services to Legal Aid South Africa for a period of three (3) years 2018-01-12 11:00 38/ 2017
Cleaning of diesel tanks 2017-12-03 11:00 ZNQDN264/ 17GAZ
Co-operation Agreements with Legal Aid SA for the Provision of Civil Legal Services to indigents of a particular specialist nature or in specific areas situated throughout the Republic of South Africa for a period of three (3) years. 2018-01-12 11:00 40/ 2017
Service Theater Tables Including Casualty 2017-11-24 11:00 ZNQ1544/ 17/ 18
To appoint a suitably qualified Events Management company to conceptualize and implement the Annual Simon “Mabhunu” Sabela Film and Television Awards for a period of 3 years. 2017-12-15 11:00 T30/ 2017/ 18
Supply and delivery of 24000 comfort packs (toiletries, towels, slippers etc for a period of thirty-six (36) months 2017-12-08 11:00 SCMU3- 17/ 18- 0029- HO
Supply: 100 rolls of paper thermal printing type v (high gloss 110mm x 18m (10 units per box) 2017-12-04 11:00 ZnqSN555/ 17gaz
Provision of turnkey services/solutions for delivery of the following: Space Planning, interior design, fit-out and supply & delivery of furniture; Interior refurbishment and upgrade of existing office facilities.; Re-Installation and upgrades of electrical/mechanical and ICT infrastructure. 2017-12-15 11:00 GGB/ RFP/ 001/ 2017
Supply: 20 units of toner cartridges black hp laser jet CE390A (original) 2017-12-04 11:00 ZnqSN516/ 17gaz
Suitably qualified service provider to be appointed to conduct price rationalization and standardization fro GEP BDS & TBR Projects 2017-12-13 11:00 GEOP08/ SP/ Price Rationalization
Appointment of a suitable travel management service provider to administer and service in conjunction with the FDC all the travel requirements and related requirements. 2017-12-12 12:00 FDC BID NO. 005/ 2017
Supply of funeral palor services (collection, transportation, storage and burial) to Nkqubela TB hospital in the Buffalo City Metro Health District, Eastern Cape Department of Health for a period of thirty-six (36) months 2017-12-08 11:00 SCMU3- 17/ 18- 0035- HO
Request for proposal - Review of Value Added Tax (VAT) for the Free State Development Corporation. 2017-12-13 12:00 FDC RFP NO. 006/ 2017
Service of High Voltage Transformer and Medium Voltage Switchgear at dannhauser chc 2017-12-06 11:00 ZNQ 235/ 17/ 18
The Financial Intelligence Centre request proposals from service providers for procurement of an Automated Web Search Application for use by the Financial Intelligence Centre 2017-12-12 11:00 FIC/ RFB/ 0009/ 2017/ 18
Fasset is seeking to appoint a panel of accredited, suitably qualified and experienced train-ing providers to work with Fasset to train employees of Fasset member organisations 2017-12-08 10:00 FAS/ LD/ RES/ LL_GENERICM/ CON934
Servicing of Electrical Substation Kiosks 2017-11-24 11:00 494/ 017/ 018
Request for proposals from a Professional Registered Structural Consultants Firm to act as a principal agent for Roofing (Harvey tile), Roads construction and Gate construction for Ezemvelo KZN Wildlife resorts. 2017-12-07 11:00 EKZNW 29/ 2017
Road to Health Booklet 2017-11-24 11:00 ZNQ 437/ 17- 18

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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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