PoliciesGovernment has a preferential procurement policy. This means government takes into account factors other than price when awarding a tender. These factors are calculated according to a points formula. If you want to take advantage of preferential points, you must fill in the relevant forms. The National Preferential Procurement Policy Act sets out the general framework to be followed in creating a preferential policy. In the Western Cape, provincial government bodies who have not developed a preferential procurement policy specific to their department follow the Western Cape Preferential Procurement Policy.
Other guiding policies include:
- Procurement: General Procurement Guidelines
- Procurement: Policy Strategy Guide
- SCM: A Guide for Accounting Officers/Authorities
- Construction Industry Development (CIDB) Regulations
- Western Cape Provincial Treasury Instructions
At national level, preferential factors include:
- Local manufacture of goods.
- Equity ownership by previously disadvantaged individuals.
- Equity ownership by women.
The points formula used is described in WCBD 6.1, which must be completed (see how tenders are awarded).
For tenders under R500 000, an "80/20" points system is used (this means that tenders are evaluated 80% on price and 20% on points for factors such as historically disadvantaged individual status, ownership by women, etc). For tenders over R500 000, a "90/10" system is used.
Not all of the preferential factors will apply for every tender. The tender documents should indicate which preferential factors apply to your tender.
Each local government body has its own procurement policy, which is guided by national legislation such as the Municipal Finance Management Act, as well as the Local Government Capital Asset Management Guidelines.
The City of Cape Town's procurement policy is available here.