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Preferential Procurement Regulations


The City is implementing a new Supply Chain Management (SCM) Preferential Procurement Regulations (PPR) plan that will streamline operations and allow the City to rotate vendors so that they all have equal opportunities to do business with the municipality.

Once the Council has adopted and approved the item – approved on 23 February 2023.

If bids were advertised before that date, they can be assessed and decided upon using the 2017 PPR. All bids must be advertised following the requirements of the 2022 PPR after January 16, 2023, or the award will be irregular.

There is no need to cancel and re-advertise as long as the tenders were advertised before January 16. They can be evaluated and adjudicated based on the requirements of the 2017 PPR.

No, the pre-qualification criteria were used to exclude certain groups from the procurement process. The Constitutional Court found this requirement to be in contravention of the Constitution. As a result the pre-qualification criteria has been excluded from the 2022 PPR. Organs of state are now required to develop their own specific goals as required by Section 2 of the Preferential Procurement Policy Framework Act. Those goals must be aligned with the Reconstruction and Development Programme (RDP) document.

No.  Regulation 8 of the 2017 Regulations providing for local production and content has been omitted since it is outside the act’s scope and the Minister’s regulation. The framework (Act) does not provide for local production and content to be used as a disqualification criterion but refers to implementing the programmes of the RDP and provides for points to be awarded for specific goals. In a nutshell, the 2022 PPR does not include local production and content but has been included as a specific goal in the City’s Specific Goal Framework which can be used for point scoring criteria and not as a pre-qualification condition.

No, this requirement has been removed from the 2022 PPR as it was deemed to be unconstitutional by the court. However, there is a specific goal in the City’s Specific Goal Framework with a similar objective. It, however, does not have a threshold and seeks to develop SMMEs and can also be achieved through socio-economic projects as per the framework.

The term “locality” refers to anything within the country’s borders. 

It contains general information and serves as a reference.

Although there is no section on cancellations in the 2022 PPR, nothing prevents any organ of state from cancelling a tender before award if there are valid reasons, such as a lack of finances, a major irregularity in the tender procedure, and so on. 

The R30 000 minimum requirement for the preferential point system has been removed from the 2022 PPR, which means that all quotes, including those under R30 000, will be subject to the preferential point system. 

The 80/20 and 90/10 rules will still apply to the preference point system. The 10 or 20 points allotted to preference points, on the other hand, will be based on specific goals rather than BBBEE status level. As a result, points will be assigned based on the chosen specific aim. The method for calculating points will be included in the bid document, as previously done. 

Council has designated a certain set of persons to be targeted for preference points.

The City Framework contains four particular aims, each of which has a sub-category. The framework was created with the awareness that each tender is unique, and as a result the 20 or 10 criteria will be directed by topic experts, who will be project managers with extensive knowledge of the industry, the product, and the market. Each adopted aim must be substantiated and approved by the Bid Specification Committee.

This document contains general information and serves as a claim form for Historically Disadvantaged Individuals (HDI) preference points, as well as a summary of preference points claimed for achieving other specified goals. 

It varies depending on the designated precise purpose. This will differ from tender to tender. The bid document will specify the proof of evidence. 


More information can be obtained from the SCM Help Desks, information thereto will be published on the website, once finalised.