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.

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Title Closing Date Tender No.
Appointment of a Maximum of two (2) Service Providers for the Supply, Delivery and Off-Loading of Lime and Sludge Thickening Polyelectrolyte as and when required for a period of thirty six (36) months 2018-04-19 12:00 BS12/02/2018
Consultants for the Investigation, Design, Supervision and Monitoring of Rietkuil Reservoir and Bulk Supply Pipe Lines in Steve Tshwete Local Municipality 2018-04-18 12:00 BS04/02/2018
Repair of light vehicle and trucks. 2018-04-18 11:00 67/2017/2018
Supply and delivery of cleaning chemicals, equipment and accessories. 2018-04-18 11:00 65/2017/2018
Supply and delivery of traffic road marking paints. 2018-04-18 11:00 77/2017/2018
Panel of Maximum Three (03) Mechanical Contractors to Provide Services for Repair and Maintenance of Plant and Equipment at the Water and Wastewater Treatment Works as and when required for a period of thirty six (36) months. 2018-04-24 12:00 BS06/02/2018
Supply, repair, fitting of tyres, wheel alignment and balancing. 2018-04-18 11:00 73/2017/2018
Supply and delivery of sanitary bins, air fresheners and dispensers. 2018-04-18 11:00 74/2017/2018
Supply and delivery of stationery. 2018-04-18 11:00 76/2017/2018
Request for the Civil Engineering Professional Service Providers for the Design, Supervision and Monitoring of Construction of a Outfall Sewer Line From German Development to Eastdene 2018-04-05 12:00 BS10/03/2018
Recruitment Engagement and Registration of Disaster Management Volunteers 2017/2018. 2018-04-17 11:00 COMM-36/2017/2018
Panel of a maximum of three (3) civil contractors for supply, delivery, erection and commissioning of ventilated improved toilets within MP313 rural areas for a period of 36 months as and when required 2018-04-19 12:00 BS04/03/2018
Provision of Employee Wellness Service. 2018-04-17 11:00 COR-A29/2017/2018
Proposal to invite black empowered enterprises, especially women owned to supply building and construction material on an "as when required basis" 2018-04-19 11:00 RFP065/2018
Proposals for design and supply of tables and chairs for municipal council chambers. 2018-04-19 12:00 2018/01/24/CCF
The Supply and Delivery of Wet Rations, bread and rolls to the Department of Defence (Maluti area). 2018-07-05 11:00 SPSC- B- 080- 2017
The Supply and Delivery of Wet Rations, various Meat (fresh and frozen) to the Department of Defence (Maluti area). 2018-07-05 11:00 SPSC- B- 079- 2017
The appointment of a service provider for the supply and delivery of perfusion and cardiothoracic surgery requirements to Groote Schuur - Tygerberg- and Red Cross War Memorial Children’s Hospital for a period of three (3) years. 2018-04-20 11:00 TBH514/2017
The Supply and Delivery of Wet Rations, various Dairy Products to the Department of Defence (Maluti area). 2018-07-05 11:00 SPSC- B- 083- 2017
Appointment of a Panel of Maximum Seven (7) Consulting Engineers for the Provision Of Professional Services, Planning, Design And Implementation of Civil Engineering Projects for a period of 36 months as and when required 2018-04-24 12:00 BS06/03/2018


Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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