Title: Preferential Procurement Policy Framework Act, 2000: Preferential Procurement Regulations

Languages: English

Type: Document

Published: January 20, 2017

Region: Sub-Saharan Africa

Country: South Africa

Topics: Procurement

Keywords: Parties, Private Sector, SMEs, Local content, Local contractors, Local inclusion


Document Details:

This document is the revised version of the 2011 Preferential Procurement Regulations which aims to not only cover women, black people, people with disabilities, but also give a major emphasis to small and medium enterprises. Some aspects of this Act include:

  • Prequalification criteria: This allows for only qualifying categories of companies to participate in the process. Other companies could participate if they demonstrate that they would subcontract any of those categories of companies. (Section 4.1)
  • “An organ of state must, in the case of a designated sector, advertise the invitation to tender with a specific condition that only locally produced goods or locally manufactured goods, meeting the stipulated minimum threshold for local production and content, will be considered.” (Section 8.2)
  • If feasible to subcontract for a contract above R30 million, the procuring entity must apply subcontracting to advance designated groups. In the tender, it must be established that the successful tenderer must subcontract a minimum of 30% of the value of the contract to SME and the other individuals covered by the Act.

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Updated: March 30, 2021