Preferential Procurement Policy Framework Act, 2000

Act 5 of 2000

Preferential Procurement Policy Framework Act, 2000

South Africa

Preferential Procurement Policy Framework Act, 2000

Act 5 of 2000

(English text signed by the President.)ACTTo give effect to section 217(3) of the Constitution by providing a framework for the implementation of the procurement policy contemplated in section 217(2) of the Constitution; and to provide for matters connected therewith.BE IT ENACTED by the Parliament of the Republic of South Africa, as follows;—

1. Definitions

In this Act, unless the context indicates otherwise—acceptable tender” means any tender which, in all respects, complies with the specifications and conditions of tender as set out in the tender document;Minister” means the Minister of Finance;organ of state” means—(a)a national or provincial department as defined in the Public Finance Management Act, 1999 (Act No. 1 of 1999);(b)a municipality as contemplated in the Constitution;(c)a constitutional institution defined in the Public Finance Management Act, 1999 (Act No. 1 of 1999);(d)Parliament;(e)a provincial legislature;(f)any other institution or category of institutions included in the definition of “organ of state” in section 239 of the Constitution and recognised by the Minister by notice in the Government Gazette as an institution or category of institutions to which this Act applies;preferential procurement policy” means a procurement policy contemplated in section 217(2) of the Constitution;prescribed” means prescribed by regulation made under section 5;this Act” includes any regulations made under section 5.

2. Framework for implementation of preferential procurement policy

(1)An organ of state must determine its preferential procurement policy and implement it within the following framework:
(a)A preference point system must be followed;
(b)
(i)for contracts with a Rand value above a prescribed amount a maximum of 10 points may be allocated for specific goals as contemplated in paragraph (d) provided that the lowest acceptable tender scores 90 points for price;
(ii)for contracts with a Rand value equal to or below a prescribed amount a maximum of 20 points may be allocated for specific goals as contemplated in paragraph (d) provided that the lowest acceptable tender scores 80 points for price;
(c)any other acceptable tenders which are higher in price must score fewer points, on a pro rata basis, calculated on their tender prices in relation to the lowest acceptable tender, in accordance with a prescribed formula;
(d)the specific goals may include—
(i)contracting with persons, or categories of persons, historically disadvan­taged by unfair discrimination on the basis of race, gender or disability;
(ii)implementing the programmes of the Reconstruction and Development Programme as published in Government Gazette No. 16085 dated 23 November 1994;
(e)any specific goal for which a point may be awarded, must be clearly specified in the invitation to submit a tender;
(f)the contract must be awarded to the tenderer who scores the highest points, unless objective criteria in addition to those contemplated in paragraphs (d) and (e) justify the award to another tenderer; and
(g)any contract awarded on account of false information furnished by the tenderer in order to secure preference in terms of this Act, may be cancelled at the sole discretion of the organ of state without prejudice to any other remedies the organ of state may have.
(2)Any goals contemplated in subsection 1(e) must be measurable, quantifiable and monitored for compliance.

3. Exemption

The Minister may, on request, exempt an organ of state from any or all the provisions of this Act if—
(a)it is in the interests of national security;
(b)the likely tenderers are international suppliers; or
(c)it is in the public interest.

4. Transitional provision

Any procurement process implemented under a preferential procurement policy where the invitation to tender was advertised before the commencement of this Act, must be finalised as if this Act had not come into operation.

5. Regulations

(1)The Minister may make regulations regarding any matter that may be necessary or expedient to prescribe in order to achieve the objects of this Act.
(2)Draft regulations must be published for public comment in the Government Gazette and every Provincial Gazette before promulgation.

6. Short title

This Act is called the Preferential Procurement Policy Framework Act, 2000.
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History of this document

03 February 2000 this version
Published in Government Gazette 20854
Commenced
02 February 2000
Assented to

Cited documents 2

Act 2
1. Constitution of the Republic of South Africa, 1996 12333 citations
2. Public Finance Management Act, 1999 2720 citations

Documents citing this one 441

Gazette 303
1. Eastern Cape Provincial Gazette dated 2000-09-04 number 644
2. Eastern Cape Provincial Gazette dated 2000-12-02 number 687
3. Eastern Cape Provincial Gazette dated 2004-07-02 number 1184
4. Eastern Cape Provincial Gazette dated 2004-10-04 number 1218
5. Eastern Cape Provincial Gazette dated 2005-09-26 number 1432
6. Eastern Cape Provincial Gazette dated 2005-12-05 number 1458
7. Eastern Cape Provincial Gazette dated 2006-02-15 number 1487
8. Eastern Cape Provincial Gazette dated 2006-02-20 number 1490
9. Eastern Cape Provincial Gazette dated 2006-02-27 number 1494
10. Eastern Cape Provincial Gazette dated 2006-03-23 number 1507
Judgment 123
1. Buffalo City Metropolitan Municipality v Asla Construction (Pty) Limited (CCT 91/17) [2019] ZACC 15 (16 April 2019) 60 citations
2. Shaik and Others v S (CCT 86/06) [2007] ZACC 19 (2 October 2007) 24 citations
3. Millennium Waste Management (Pty) Ltd v Chairperson of the Tender Board: Limpopo Province and Others (31/2007) [2007] ZASCA 165 (29 November 2007) 22 citations
4. Manong & Associates (Pty) Ltd v Minister of Public Works and Another (518/2008) [2009] ZASCA 110 (23 September 2009) 14 citations
5. Minister of Finance v Afribusiness NPC [2022] ZACC 4 (16 February 2022) 12 citations
6. Viking Pony Africa Pumps (Pty) Ltd t/a Tricom Africa v Hidro-Tech Systems (Pty) Ltd and Another [2010] ZACC 21 (23 November 2010) 12 citations
7. Airports Company South Africa SOC Ltd v Imperial Group Ltd and Others (1306/2018) [2020] ZASCA 2 (31 January 2020) 10 citations
8. City of Tshwane Metropolitan Municipality and Others v Nambiti Technologies (Pty) Ltd (20580/2014) [2015] ZASCA 167 (26 November 2015) 10 citations
9. Moseme Road Construction CC and Others v King Civil Engineering Contractors (Pty) Ltd and Another (385/2009) [2010] ZASCA 13 (15 March 2010) 10 citations
10. Chairperson: Standing Tender Committee and Others v JFE Sapela Electronics (Pty) Ltd and Others (511/2004) [2005] ZASCA 90 (26 September 2005) 9 citations
Act 13
1. KwaZulu-Natal Umzimkhulu Alignment Act, 2017 2 citations
2. Mpumalanga Tourism and Parks Agency Act, 2005 2 citations
3. National Health Insurance Act, 2023 1 citation
4. Public Procurement Act, 2024 1 citation
5. Financial Management of Mpumalanga Provincial Legislature Act, 2010
6. Financial Management of the Eastern Cape Provincial Legislature Act, 2009
7. Free State Provincial and Local Houses of Traditional Leaders Act, 2017
8. Mpumalanga Economic Growth Agency Act, 2010
9. Mpumalanga Economic Regulator Act, 2017
10. Northern Cape Consumer Protection Act, 2012
Government Notice 1
1. Regulations Regarding the Impact of Severe Electricity Supply Constraint, 2023
Law Reform Report 1
1. Investigation into Legal Fees - Including Access to Justice and Other Interventions - Project 142