Acts Governing the South African Tender Environment - PPPFA
The other day I was attending a session on "How-to-tender" (not our own) and it was shocking to see the lack of knowledge regarding South African tender procedures. In South Africa the tender processes are ruled by various Acts, Regulation and Guidelines that are specifically designed to ensure that the tender process are in line with the Constitution of South Africa which dictates that the tender process should be fair, equitable, transparent, competitive and cost-effective.
First and foremost is The Preferential Procurement Policy Framework Act, 2000. This act was specifically introduced to comply with Section 217 (2) (a) of the Constitution of South Africa. This act must be followed by ALL Government entities. It is not a choice. It is not something that they can ignore if they feel like it. It must be followed.
Then there is the Preferential Procurement Regulations, 2017. These Regulations are there to guide Government entities on how to implement the Preferential Procurement Policy Framework Act. The Act and its Regulations go hand in hand and the one cannot exist without the other.
In these Regulations you will also find clear guidelines on the 80/20 and 90/10 Preferential Procurement Points scoring system. All tender responses must be evaluated according to one of these points scoring systems regardless of any other special conditions that might be applicable for a specific tender. Remember that the:
- 80/20 system is for tenders with a Rand value of up to R50 000 000 (all applicable taxes included); and
- The 90/10 system is for tenders with a Rand value above R50 000 000 (all applicable taxes included).
Don't let anybody tell you that this is not important. It is the heartbeat of all tender evaluations in South Africa. Our advice to you is to familiarize yourself with this Act and its Regulations. When you do so, you will empower yourself to have bargaining power when tenders are awarded.
One way to ensure you know all that there is to know is to attend our How-to-Tender workshops that we present Country wide. Please email us at email@example.com should you be interested in attending one of these workshops.
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