Issue Date: 
Tuesday, February 7, 2017

New Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, have been finalized and gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. We start off with 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 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 have a tendency 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 all the other new developments regarding tenders, please attend one of our How-to-Tender workshops. Tender Workshop dates are published on our website at www.how2tender.com. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

Title Closing Date Tender No.
The provision of clinker removal and rope access at Camden Power Station for a period of 36 months 2019-07-29 10:00 MPGXC005631
Panel: Client Decor Services 2019-07-08 12:00 CTICC 038/2019 PANEL: CLIENT DÉCOR
Provision of collecting, stripping and assessment of medium voltage motors including on site white meta bearing repairs of selected Medium Voltage Motors at Arnot Power Station 2019-07-25 10:00 MPGXC 005619
Germiston Station Minor Building Works Upgrade 2019-07-08 11:00 RFQ 02-1911150/06/2019
The province of KwaZulu-Natal, Department of Transport, invites tenders of Vukuzakhe Contractors for the Betterment and Regravelling of L2602 Contract 1 in the Ulundi Municipality within the Zululand District. 2019-08-13 11:00 ZNT373/ C266/ 2111/ S/ 1/ 2018T
Renovational Services for the National Health Laboratory Service (NHLS) at Pietersburg Hospital Lab, Polokwane 2019-07-18 11:00 RFB021- 19- 20
Renovation Services for the National Health Laboratory Service (NHLS) at Bongani Provincial Hospital, Welkom 2019-07-17 11:00 RFB0018- 19- 20
General maintenance including roof replacement; 25 Voortrekker Road; Murraysburg. 2019-07-24 11:00 G003/ 19
Water and sanitation programme phase 3A at Zamangothando Secondary School, Khawuleza PS, Sishongani PS and Induduzo PS, Ulundi 2019-07-26 11:00 ZNTU 02480 W
Water and sanitation programme phase 3A at Maphovela High School, Ulundi 2019-07-26 11:00 ZNTU 03956 W
Phase 14 Storm Damage: Repairs and Renovations to Storm Damaged Schools Throughout The Province of KwaZulu Natal 2019-07-22 11:00 VARIOUS
The Construction of the Apli Cold Storage Facility, Depot and Packhouse 2019-07-15 12:00 CDC/ 327/ 19
NDPW:Rehabilitation and Construction of the New Office block at 85 Anderson Street,Johannesburg (Heritage) 2019-08-06 11:00 JHB.19/ 20
TKZN intends to appoint a marketing services agency to provide integrated marketing services aligned to the TKZN’S 2014-2020 strategy and annual performance plan for the period of twelve months 2019-07-19 12:00 TKZN NO: 03/ 2019
TKZN intends to appoint a suitable service provider to provide Public Relations and Communications support to the organization for the period of twelve months. 2019-07-19 12:00 TKZN NO: 01/ 2019
TKZN intends to appoint a suitable service provider to supply, install, develop, configure and maintain the SAP Business one application system including Microsoft SQL server database 2019-07-19 12:00 TKZN NO: 04/ 2019
CapeNature seeks the expertise of a suitable service provider for the supply, delivery and installation of Atmospheric Water Generators with a solar solution at the Anysberg Nature Reserve, CIDB and Local content conditions apply 2019-07-26 11:00 WCNCB 01/ 06/ 2019
Appointment of a service provider to manage Media Relations and Communication services on behalf of the Broad-Based Black Economic Empowerment Commission (‘the B-BBEE Commission’) for a period of 2 years. 2019-07-12 11:00 dti 06/ 19- 20
Appointment of a service provider to supply, install, configure and maintain a Telephone Management and Switchboard System for the Office of the Valuer-General on a lease basis for a period of 36 Months 2019-07-12 11:00 OVG (03) 2019/ 20
TKZN intends to appoint a Social Media Management Agency to provide social media services for a period of twelve months 2019-07-19 12:00 TKZN NO: 02/ 2019

Pages

2 items that determine tender pricing

Article by Werner van Rooyen

www.howtotender.co.za

31 January 2019

Many bidders that respond to tenders struggle when it comes to calculating a price for a specific tender. One of the reasons for this is that a large number of Small Business Owners are usually new to the tender process and therefore they lack the necessary experience to price their bids correctly.

Without getting into the fundamentals of accounting there are two basic items that determine your... Read More

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