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.
Appointment of Seven (07) Service Providers for Routine Road Maintenance per Cluster in Polokwane Municipal Area Plus Two (02) Backup Service Providers for all clusters (Multi Year)(3 YEARS) 2019-04-24 10:00 PM118/2018
Appointment of Seven (07) Service Providers for Regravelling of Roads per Cluster in Polokwane Municipal Area Plus Two (02) Backup Service Providers for all clusters (Multi Year)(3 YEARS) 2019-04-24 10:00 PM119/2018
Transport of Green Waste from Sedgefield to Old Place Garden Refuse Site 2019-03-26 12:00 371/2018/19
Provision of accredited contract administration and management training for the municipal environment 2019-03-26 12:00 369/2018/2019
Preferred service providers for technical services (specialised bulk water systems) for COEGA Development Corporation (PTY) Ltd 2019-04-08 12:00 CDC/ 70/ 19
Preferred service providers for technical services (electrical low voltage reticulations) for COEGA Development Corporation (PTY) Ltd 2019-04-08 12:00 CDC/ 115/ 19
Preferred service providers for technical services (emergency power (generators and UPS’s)) for COEGA Development Corporation (PTY) Ltd 2019-04-08 12:00 CDC/ 122/ 19
Preferred service providers for technical services (plumbing) for COEGA Development Corporation (PTY) Ltd. 2019-04-08 12:00 CDC/ 113/ 19
Preferred service providers for technical services (electrical medium voltage reticulations) for COEGA Development Corporation (PTY) Ltd (CDC) 2019-04-08 12:00 CDC/ 67/ 19
Call for expression of interest: Supply and delivery of perishable provisions and groceries, pest control services and disposal of waste food at seven (7) management areas 2019-03-29 11:00 REFERENCE NUMBER 1/ 2019
Outright purchase or placement for cassette printers with 2D barcode scanners for the anatomical pathology laboratory, Charlotte Maxeke Hospital for a period of five (5) years. 2019-04-04 11:00 RFB 165/ 18/ 19
Placement and maintenance of fully automated fluorescent slide processor and fluorescent microscope for a period of five(5) years at Tswane Hospital 2019-04-05 11:00 RFB 166/ 18/ 19
Placement and maintenance of Luminex immune based system of tissue typing and antibody screen for a period of five(5) years at Tswane hospital 2019-04-05 11:00 RFB 167/ 18/ 19
Procure a pathogen identification system for public health laboratory, infection services laboratory for a period of five (5) years at Charlotte Maxeke Hospital 2019-04-04 11:00 RFB 160/ 18/ 19
Bid for the supply and delivery of theatre consumables to all hospitals/institutions under the control of the Department of Health, Western Cape Government for a three year period 2019-04-12 11:00 WCGHCC041/ 2018
Supply and delivery of one optical fibre reflectometer to characterise optical fibre networks and photonic subsystems used for radio astronomy applications including all test peripherals required by the reflectometer, calibration, and routine servicing support. The contract is for a period of five years 2019-04-05 11:00 NRF SARAO SKRF 001 2019
(Re-advertisement) Supply, delivery and commissioning of electrical equipment and panels for NQF level 3, 4 & trade test 2019-04-12 11:00 LEPTVETCOL2019/ 001
Supply, delivery, installation, commissioning and training of a variable energy 70MEV H- cyclotron and associated beam lines for isotope production and the provision of spare parts at iThemba Labs, Cape Town, South Africa. 2019-05-10 11:00 NRF/ iThemba LABS/ 2019 - 20: 01
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the appointment of a Service Provider for the provision of Consulting Engineering Services for the Special Maintenance of Structures and Drainage on an ad-hoc basis on the National Route network in the Western and Northern Cape. 2019-04-12 14:00 X005- 021- 2018/ 1F
Panel of service providers to provide an electronic / web based or application solution access to credit and background information of individuals, companies , fixed properties etc. and ability to conduct searches on such information to the NPA for a period of three (3) years 2019-04-15 11:00 NPA 14- 18/ 19

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The 8 steps in the Tender Adjudication process

By W van Rooyen

www.howtotender.co.za

31 January 2019

It is important to understand the Adjudication process when one responds to a Tender or Request for Proposal. If you have these 8 steps under control when responding to tenders, changes are good that you will proceed to the next round.

Here are 8 steps in the adjudication process that Organs of State will most often follow in determining which bidder will win the tender:

  1. Opening... Read More
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