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.
NW384 - Ditsobotla Local Office Accommodation 2017-11-24 11:00 IEC/ NW- 03/ 2017
NW393 - Mamusa Local Office Accommodation 2017-11-24 11:00 IEC/ NW- 04/ 2017
Supply, installation and commissioning of an overhead travelling crane, complete with all ancillary equipment and associated works as per specification 2017-11-30 11:00 SPSC- B- 028- 2017
NW405 - Ventersdorp/Tlokwe - Ventersdorp Local Office Accommodation 2017-11-24 11:00 IEC/ NW- 05/ 2017
The construction of Umzimkhulu Integrated Public Transport Facility 2017-12-01 11:00 ZNT 4188/ 17 T
Bulwer Prison: Rehabilitation of old Bulwer Prison, Dartnell Street. It is estimated that tenderers should have CIDB contractor grading designation of 8GB or higher 2017-11-30 11:00 DBN17/ 10/ 08
NDPW: Maintenance, comprehensive service and repairs of all 174 Lifts, hoist and stair lifts for paraplegic equipment for all clients within the jurisdiction of JHB Regional Office for a period of 24 months. 2017-11-24 11:00 JHB.17/ 34
Rendering of domestic and international travel & Human Resource arrangements for the Ministry of Defence and Military Veterans for a period of three years. 2017-12-04 11:00 CPSC- B- PC- 025- 2017R
Statistics SA: Procurement of alternative Office accommodation measuring 1 677,50m² and 50 Parking Bays in Braamfontein, Parktown and Johannesburg CBD for a period of five (5) years 2017-12-06 11:00 JHB.17/ 31
South African Social Security Agency Local Office: Procurement of existing Office accommodation or construction of new Office accommodation for leasing purpose by landlord measuring 400,68m² and 10 Parking Bays in Orange Farm for a period of five (5) years. 2017-12-06 11:00 JHB.17/ 32
NDPW: Operation, serNDPW: Operation, service and maintenance of Coal fired Boilers, Calorifiers, Heat pumps and Steam pipe lines at Modderbee Correctional Services for a period of 12 months. 2017-11-24 11:00 JHB.17/ 33
Polokwane Magistrate Offices: Reconstruction of office, replacement of generator, fire equipment, air conditioners damaged by fire. 2017-11-28 11:00 PLK17/ 44
Perform household surveys and GIS mapping of selected informal settlements in the Breede Valley and Drakenstein Municipalities in the Western Cape 2017-11-24 11:00 HS 04/ 2017/ 2018
Removal and replacement of roof to building 832 (Legsato) as per drawing NBW 90987. CIDB GB3 required. 2017-12-13 11:00 SPSC- B- 024- 2017
Roof and ceiling replacement for building 69, Naval Base Durban, Salisbury Island as per Specification. CIDB GB4 or SN4 required. 2017-12-06 11:00 SPSC- B- 025- 2017
Supply, Installation and commissioning of custom made security gates and burglar bars for the SA Navy at Naval Base Durban, Salisbury Island, Kwazulu-Natal as per SA Navy. 2017-12-05 10:00 SPSC- B- 026- 2017
Supply and Installation of porcelain tiles in the main admin building, Naval Base Durban, Salisbury Island, Kwazulu-Natal as per SA Navy 2017-12-05 11:00 SPSC- B- 027- 2017
Renovation and repairs of Military Houses (8) at the Bluff, Durban. CIDB GB 4. 2017-12-13 11:00 SPSC- B- 021- 2017
Renovation and repairs of Military Houses (10) at the Bluff, Durban. CIDB GB 4 required 2017-12-13 11:00 SPSC- B- 022- 2017
Renovation and repairs of Military Houses (8) at the Bluff, Durban. CIDB CB 4 required. 2017-12-13 11:00 SPSC- B- 023- 2017

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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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