New procurement rules a transformation game changer

Major reform of the Preferential Procurement Policy Framework Act (PPPFA) regulations, which came into effect last month, has been held up as a key tool in driving radical economic transformation by providing greater opportunities for SMMEs.

Previously, tenders under R1-million were given an 80% weighting for price and a 20% weighting for nonprice factors. The new regulations have dramatically increased the tender threshold to R50-million, meaning that tenders between R30 000 and R50-million will be scored using the 80:20 principle, while tenders above R50-million will be scored on the 90:10 principle.

“This is a very significant change and it opens more tenders to be awarded on nonprice factors,” says Werksmans Attorneys director Pieter Steyn.

For more details about the changes and implications read the original article at Creamer Media's Engineering News.