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.
Appointment of a suitably qualified Electrical service provider to perform electrical maintenance on PRASA infrastructure on an ‘AS & When’ required basis for Free State and Northern Cape Provinces for a period of 36 months. 2018-02-19 12:00 HO/CRES/SGR/03/01/2018
Supply and installation of eight (8) x tap connected wall mounted deionizers 2018-01-29 12:00 T/ING/001/2018
Supply, installation and commissioning of a pre-reduction furnace. 2018-02-19 12:00 MTK18/2017
Appointment of a service provider to perform a full sans 241:2015 water analysis and sludge classification analysis 2018-01-29 12:00 T/ING/002/2018
Cleaning of Ash Spillage at Hendrina Power Station and surrounding areas and Cooling Towers Offline Maintenance 2018-02-26 10:00 MPGXC005000
Supply Various electrical goods 2018-01-25 11:00 GH11800359
Supply: Pole boxes, spreaders & stay guards 2018-01-25 11:00 GH11800360
Horticultural maintenance i.e. litter picking, cleaning etc. on Public Parks and Public Open Spaces in Ward 13 in Delft 2018-02-05 14:00 SN11800519
Mole control in Delft area 2018-02-05 14:00 SN11800520
Taxi/Shutttle services Constantia Nek WTP 2018-01-25 09:00 WJ11800304
Hiring of 3 x 10 000L Water Tanker Trucks for 60 days 2018-01-25 09:00 WJ11800305
Quotes : Repairs on Skip Bin Trailer NDH 1962. 2018-01-30 12:00 RFQ / 352
Tender for the supply, delivery and off-loading of a test bench for energy meters, as and when required: three-year period. 2018-02-20 10:00 USD EE 33-2017/18
Appointment of a Professional Service Provider to Establish Transport and Urban Development Authority's Carbon Footprint 2018-02-20 10:00 220C/2017/18
Request for quotation for supply and delivery of oils and lubricants for the fleetworkshop of Oudtshoorn Municipality (period of 12 months) 2018-01-30 12:00 SCM 05/2018
Construction of a Permanent 11KV Switching Station at Thornhill (Multi Year Project) 2018-02-20 10:00 PM89/2017
Supply and Delivery of 60000x 40 Micron Bin Bags Packed in 20’s A Bailer. Colour: Black 2018-01-29 12:00 RFQ / 349
New Township Development (Water & Sewer Reticulation in PLK EXT 126 & 127) 2018-02-20 10:00 PM19/2017
Supply and Delivery of 2000x30kg Bags of Coldmix and 2x200 Litres of Prime. 2018-01-29 12:00 RFQ / 350
Construction of Kanana New, Police Station: North West Province 2018-02-20 11:00 19/1/9/1/142TB(17)

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
Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.