Issue Date: 
Thursday, October 31, 2019

Preferential Procurement Regulations 2017

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

The Preferential Procurement Regulations 2017 have been finalized and gazetted on 20 January 2017.

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 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 tend 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 many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Training of 23 EPWP participants on Occupational Certificate: Health Promotion Officer: SAQA ID 94597: NQF Level 3: QCTO Learnership Registration Number 11Q110030001633 in Gert Sibande District Municipality: Project Name: Isiphephelo HBC 2020-09-01 11:00 HP20/ 003GS
Training of 25 expanded public works programme (EPWP) participants on Further Education and Training Certificate: Child and Youth Care Work: SAQA ID: 60209: NQF level 4: HWSETA learnership registration number: 11Q110014351554 in Capricorn District Municipality: Bakone HCBC 2020-09-01 11:00 HP20/ 002GS
Training of 25 EPWP participants on Further Education and Training Certificate: Child and Youth Care Work: SAQA ID 60209: NQF Level 4: HWSETA Learnership Registration Number: 11Q110014351554 in West Rand District Municipality. 2020-09-01 11:00 HP20/ 005GS
Training of 20 expanded public works programme (EPWP) participants on National Certificate: general security practice: SAQA ID: 58577: NQF level 3: SASSETA learnership registration number: 29Q290038431243 in Garden Route District Municipality: Law Enforcement 2020-09-01 11:00 HP20/ 004GS
Provision of haemodialysis services to selected institutions in Kwazulu-Natal Department of Health: 3 year contract. 2020-09-02 11:00 ZNB 5284/ 2020- H
The objective of this Terms of Reference (TOR) is to outline the scope of work for the provision of the MPLS services for CATHSSETA. 2020-08-31 11:00 CATHS/ MPLS/ 021/ 2020
The objective of this bid is to appoint a panel of three (3) Legal and Compliance Experts to assist CATHSSETA with legal matters and ancillary related services. 2020-08-31 11:00 CATHS/ PLCE/ 024/ 2020
The NEF herewith invites potential service providers to submit proposals for the provision of Reliable and Secured Internet Connectivity. 2020-09-01 15:00 RFP: NEF 02/2020/21: (Provision of Reliable and Secured Internet Connectivity)
Procurement Of Supply, Installation, Configuration, Maintenance And Support For NGN Edge Routers, Servers And Peripherals For The National Department Of Labour For The Period Of Five (5) Years. 2020-08-28 11:00 RFB 2217/ 2020
Provide Enterprise Content Management (ECM) Implementation Services for KZN COGTA including Maintenance and Support for a period of three (3) years. 2020-08-28 11:00 RFB 2171/ 2020
Provision of Vulnerability Management Solution with support for the Department of Defence (DOD) for a period of thirty-six (36) month 2020-09-04 11:00 RFB 2200/ 2020
Provision of health and hygiene packages to ECD centres in the Northern Cape Province 2020-08-14 11:00 NC/ SOC/ 007/ 2020
Provision of personal protective equipment (PPEs) for soup kitchens and nutrition centres in NC 2. 2020-08-14 11:00 NC/ SOC/ 008/ 2020
Panel of Three (3) Suppliers for Maintenance/Services and Repairs on Fleet (Trucks, Cars and LDV`s) for Two (2) Years 2020-09-07 12:00 GTLM/INFR17/2020/2021
Supply and Delivery of 500PPM Farm Grade Diesel Fuel for Onrus caravan Park for a contract period ending 30 June 2023 2020-09-11 12:00 SC 2110/2020
Supply and Delivery of 3-Ton Truck with a Canopy 2020-08-21 12:00 GTLM/INFR22/2020/2021
Supply and Delivery of Two Double Cab LDV (4X2) 2020-08-21 12:00 GTLM/INFR23/2020/2021
Planning, Design, Construction Monitoring, Construction and Close Out (Turnkey) of Rooiwal Access Road 2020-09-07 12:00 GTLM/INFR18/2020/2021
Quotation for Wireless Project 2020-08-14 11:00 KCDM/Quote/48/2020
As and When Electrical and Refrigeration Contract for East London 2020-08-15 16:00 ECR/08/08/2020

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