The Preferential Procurement Policy Framework Regulations: Here At Last

The National Treasury has published the Preferential Procurement Policy Framework Regulations (PPPFA) Regulations which have been discussed by various stakeholders for a number of years now.  It is important to note that the regulations will only come into effect on the 7 of December 2011.

Tenders being evaluated on functionality.

In terms of the new Regulations, an organ of State must indicate in the invitation to submit a tender that the tender will be evaluated on functionality.  Evaluation criteria must be objective and the criteria, the weighting of each criterion, the applicable values and the minimum qualifying score must be clearly specified in the invitation to submit a tender.

Preference points.

The 80/20 system is applicable for work up to a value of a million rand and the 90/10 system applicable to works over one million rand.  The important point to note, and an innovation that is introduced by these regulations, is the fact that the preference points system is now based on the B:BBEE status level of the contributor.  This now takes away the possibility for organs of State to determine their own criteria for measuring preferential status and allows everyone to work off an objective and widely understood base.

To download PPPFA Regulations and to post your comments, visit our Forum.

Brandon Abdinor | Executive Director