Preferential Procurement Policy Framework Act, 2000

Jurisdiction
South Africa
Citation
Act 5 of 2000
Date
3 February 2000
Language
English
Type
Legislation
Download
Download PDF (849.8 KB)
Taxonomies
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
Commenced
02 February 2000
Assented to

Cited documents 2

Legislation 2
1. Public Finance Management Act, 1999 2185 citations
2. Constitution of the Republic of South Africa, 1996 584 citations

Documents citing this one 365

Gazette 299
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
11. Eastern Cape Provincial Gazette dated 2006-03-30 number 1512
12. Eastern Cape Provincial Gazette dated 2009-01-23 number 2048
13. Eastern Cape Provincial Gazette dated 2009-02-05 number 2052
14. Eastern Cape Provincial Gazette dated 2009-02-09 number 2060
15. Eastern Cape Provincial Gazette dated 2009-08-14 number 2175
16. Eastern Cape Provincial Gazette dated 2009-09-11 number 2196
17. Eastern Cape Provincial Gazette dated 2009-09-16 number 2195
18. Eastern Cape Provincial Gazette dated 2010-01-27 number 2270
19. Eastern Cape Provincial Gazette dated 2010-07-28 number 2421
20. Eastern Cape Provincial Gazette dated 2010-12-17 number 2488
21. Eastern Cape Provincial Gazette dated 2010-12-24 number 2494
22. Eastern Cape Provincial Gazette dated 2011-01-24 number 2508
23. Eastern Cape Provincial Gazette dated 2011-01-25 number 2509
24. Eastern Cape Provincial Gazette dated 2011-03-31 number 2543
25. Eastern Cape Provincial Gazette dated 2011-05-10 number 2560
26. Eastern Cape Provincial Gazette dated 2011-05-16 number 2565
27. Eastern Cape Provincial Gazette dated 2011-05-17 number 2564
28. Eastern Cape Provincial Gazette dated 2016-06-27 number 3693
29. Eastern Cape Provincial Gazette dated 2016-08-08 number 3717
30. Eastern Cape Provincial Gazette dated 2016-09-05 number 3729
31. Eastern Cape Provincial Gazette dated 2016-12-19 number 3779
32. Eastern Cape Provincial Gazette dated 2016-12-26 number 3781
33. Eastern Cape Provincial Gazette dated 2019-04-01 number 4217
34. Eastern Cape Provincial Gazette dated 2019-08-12 number 4287
35. Eastern Cape Provincial Gazette dated 2019-08-19 number 4293
36. Eastern Cape Provincial Gazette dated 2022-03-10 number 4700
37. Free State Provincial Gazette dated 2000-06-05 number 61
38. Free State Provincial Gazette dated 2007-09-21 number 77
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41. Free State Provincial Gazette dated 2008-11-21 number 93
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43. Free State Provincial Gazette dated 2009-09-11 number 69
44. Free State Provincial Gazette dated 2015-11-13 number 63
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46. Free State Provincial Gazette dated 2019-07-19 number 38
47. Free State Provincial Gazette dated 2022-03-10 number 99
48. Gauteng Provincial Gazette dated 2000-07-05 number 86
49. Gauteng Provincial Gazette dated 2004-10-04 number 415
50. Gauteng Provincial Gazette dated 2009-08-14 number 187
51. Gauteng Provincial Gazette dated 2009-09-11 number 210
52. Gauteng Provincial Gazette dated 2009-12-15 number 278
53. Gauteng Provincial Gazette dated 2014-08-18 number 230
54. Gauteng Provincial Gazette dated 2016-09-14 number 294
55. Gauteng Provincial Gazette dated 2018-11-28 number 359
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61. KwaZulu-Natal Provincial Gazette dated 2008-09-18 number 171
62. KwaZulu-Natal Provincial Gazette dated 2009-08-14 number 320
63. KwaZulu-Natal Provincial Gazette dated 2012-11-14 number 854
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69. KwaZulu-Natal Provincial Gazette dated 2017-11-09 number 1897
70. KwaZulu-Natal Provincial Gazette dated 2022-03-10 number 2376
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254. South Africa Government Gazette dated 2017-04-21 number 40803 part 1
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256. South Africa Government Gazette dated 2017-08-11 number 2977
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271. South Africa Government Gazette dated 2020-02-21 number 43035
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273. South Africa Government Gazette dated 2020-09-21 number 43728
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275. South Africa Government Gazette dated 2021-04-28 number 44500
276. South Africa Government Gazette dated 2021-05-04 number 44526
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281. South Africa Government Gazette dated 2022-11-04 number 47452
282. South Africa Government Gazette dated 2023-10-20 number 49518
283. South Africa Government Gazette dated 2024-01-12 number 49989
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286. Western Cape Provincial Gazette dated 2000-07-05 number 5543
287. Western Cape Provincial Gazette dated 2003-02-28 number 5988
288. Western Cape Provincial Gazette dated 2003-04-04 number 5996
289. Western Cape Provincial Gazette dated 2003-08-08 number 6055
290. Western Cape Provincial Gazette dated 2004-10-04 number 6174
291. Western Cape Provincial Gazette dated 2008-02-15 number 6501
292. Western Cape Provincial Gazette dated 2009-08-14 number 6650
293. Western Cape Provincial Gazette dated 2009-09-11 number 6658
294. Western Cape Provincial Gazette dated 2010-06-15 number 6733
295. Western Cape Provincial Gazette dated 2016-06-07 number 7627
296. Western Cape Provincial Gazette dated 2016-09-02 number 7672
297. Western Cape Provincial Gazette dated 2017-03-27 number 7750
298. Western Cape Provincial Gazette dated 2017-09-22 number 7828
299. Western Cape Provincial Gazette dated 2022-03-10 number 8562
Judgment 50
1. Shaik and Others v S (CCT 86/06) [2007] ZACC 19 (2 October 2007) 25 citations
2. Viking Pony Africa Pumps (Pty) Ltd t/a Tricom Africa v Hidro-Tech Systems (Pty) Ltd and Another [2010] ZACC 21 (23 November 2010) 13 citations
3. Airports Company South Africa SOC Ltd v Imperial Group Ltd and Others (1306/2018) [2020] ZASCA 2 (31 January 2020) 6 citations
4. Minister of International Relations and Co-operation and Others v Simeka Group (Pty) Ltd and Others (610/2021) [2023] ZASCA 98 (14 June 2023) 6 citations
5. Offit Enterprises (Pty) Ltd and Another v Coega Development Corporation (Pty) Ltd and Others [2010] ZACC 20 (18 November 2010) 6 citations
6. Minister of Public Works v Roux Property Fund (Pty) Ltd (779/2019) [2020] ZASCA 119 (1 October 2020) 3 citations
7. Overstrand Municipality v Water and Sanitation Services South Africa (Pty) Ltd (143 of 2017) [2018] ZASCA 50 (29 March 2018) 3 citations
8. Afribusiness NPC v The Minister of Finance (1050/2019) [2020] ZASCA 140 (2 November 2020) 2 citations
9. Joubert Galpin Searle Inc and Others v Road Accident Fund and Others (3191/2013) [2014] ZAECPEHC 19 (25 March 2014) 2 citations
10. Road Accident Fund and Others v Mabunda Incorporated and Others ; Minister of Transport v Road Accident Fund and Others (1082/2020; 1147/2020) [2022] ZASCA 169 (1 December 2022) 2 citations
11. Buhle Waste (Pty) Ltd ; In Re: Makhathini Medical Waste (Pty) Ltd v MEC for Health, KwaZulu-Natal and Others (8721/2021) [2022] ZAKZPHC 76 (7 December 2022) 1 citation
12. Dlamini Inc v Transnet SOC Ltd and Others (16593/19; 23785/19) [2022] ZAGPJHC 904 (2 June 2022) 1 citation
13. Eastern Cape Rural Development Agency and Another v Agribee Beef Fund (Pty) Ltd and Others (827 of 2020) [2022] ZASCA 2 (6 January 2022) 1 citation
14. SA Metal & Machinery Co (Pty) Ltd v The City of Cape Town (9440/2010) [2010] ZAWCHC 442 (18 August 2010) 1 citation
15. South African Container Stevedores (Pty) Ltd v Transnet Port Terminals and Others (11445/2010) [2011] ZAKZDHC 22 (30 March 2011) 1 citation
16. BKS Consortium v Mayor, Buffalo City Metropolitan Municipality and Others (641/2012) [2013] ZAECGHC 76 (1 August 2013)
17. BW Brightwater Way Props (Pty) Ltd v Eastern Cape Development Corporation (1235/2019) [2021] ZASCA 47 (19 April 2021)
18. Beyond Forensics (Pty) Ltd v National Commissioner of South African Police Services and Others (046691/2023) [2024] ZAGPPHC 68 (1 February 2024)
19. Body Corporate of Candice Glades v Derrocks Attorneys and Another (47219/21) [2022] ZAGPJHC 381 (6 June 2022)
20. CSHELL 271 (Pty) Ltd v Oudtshoorn Municipality, Oudtshoorn Municipality v CSHELL 271 (Pty) Ltd and Others (1427/2011) [2012] ZAWCHC 25 (30 March 2012)
21. Chairman of State Tender Board and Another v Supersonic Tours (Pty) Ltd (389/2007) [2008] ZASCA 56 (27 May 2008)
22. DV8 Technology Group (Pty) Ltd v Mobile Telephone Networks (Pty) Ltd and Others (8025/2022) [2022] ZAGPJHC 348 (1 June 2022)
23. DV8 Technology Group (Pty) Ltd v Mobile Telephone Networks (Pty) Ltd and Others (8025/22) [2022] ZAGPJHC 931 (1 June 2022)
24. Down Touch Investment (Pty) Limited v Transnet Soc Limited and Another (098500/2023) [2023] ZAGPJHC 1250 (27 October 2023)
25. Elliot Mobility (Pty) Ltd and Another v The Laser Transport Group (Pty) Ltd and Another (A 87/17) [2018] ZAGPPHC 45 (8 March 2018)
26. Eskom Holdings Soc Limited and Others v Babcock Ntuthuko Engineering (Pty) Ltd (137/2023; 148/2023; 156/2023) [2024] ZASCA 63 (29 April 2024)
27. Green Mile investments 340 CC v Khuthala Property Consortium (Pty) Ltd and Another; Khuthala Property Consortium (Pty) Ltd v Mtubatuba Municipality and Others (429/2016; 5188/2016) [2018] ZAKZPHC 16 (18 May 2018)
28. Indiza Airport Management (Pty) Ltd v Msunduzi Municipality (374/2012) [2012] ZAKZPHC 74 (16 November 2012)
29. Komatiland Forest SOC Limited v John Wright Veneers (Pty) Ltd and Another (56241/2021) [2023] ZAGPPHC 82 (23 February 2023)
30. Laser Transport Group (Pty) Ltd and Another v Elliot Mobility (Pty) Ltd and Another (835/2018) [2019] ZASCA 140 (1 October 2019)
31. MEC for Public Works and Infrastructure, Free State Provincial Government v Mofomo Construction CC (A 138/2016) [2016] ZAFSHC 196 (24 November 2016)
32. Minister: National Department of Public Works and Infrastructure v HBC Construction (Pty) Ltd and Others (CA213/2021) [2023] ZAECGHC 95 (3 August 2023)
33. Mjayeli Security (Pty) Ltd and Another v South African Broadcasting Corporation Soc Ltd (“Sabc”) and Others (47916/2017) [2023] ZAFSHC 197 (10 October 2023)
34. Mzansi Fire and Security (Pty) Ltd v Durban University of Technology and Others (D 1464/2020) [2022] ZAKZDHC 20 (3 March 2022)
35. NMBMM v Erastyle (Pty) Ltd and Others (398/2016) [2022] ZAECPEHC 1 (26 April 2022)
36. Putco (Pty) Ltd v MEC for Roads and Transport Gauteng and Another ; Trustees of Bus Industries Restructuring Fund and Another v Gauteng Department of Roads and Transport and Others (49674/21; 51091/21) [2021] ZAGPJHC 390 (7 December 2021)
37. SA Metal & Machinery Co (Pty) Ltd v City of Cape Town (9440/2010) [2010] ZAWCHC 174 (18 August 2010)
38. SABC Soc Ltd and Another v Mott MacDonalds SA (Pty) Ltd (29070/18) [2020] ZAGPJHC 5 (8 December 2020)
39. Safeline Pharmaceuticals (Pty) Ltd v Director General National Department of Health and Others (48004/2021) [2024] ZAGPPHC 138 (13 February 2024)
40. Soma Initiative (Pty) Ltd v The Premier for the Eastern Cape and Others (353/2022) [2022] ZAECGHC 7 (17 May 2022)
41. Spec Joint Venture v Minister of Water and Sanitation and Others (2806/2022) [2023] ZAECGHC 15 (2 February 2023)
42. Special Investigating Unit v and Another v Smith and Others (1127/2017) [2018] ZAECGHC 10 (20 February 2018)
43. Tekoa Consulting Engineers v Alfred Nzo District Municipality and Others (1284/2021) [2022] ZAECGHC 25 (14 June 2022)
44. Tekoa Consulting Engineers v Alfred Nzo District Municipality and Others (1284/2021) [2022] ZAECGHC 50 (6 September 2022)
45. Thabzo Security Services CC v Msunduzi Municipality and Others (2682/23P) [2023] ZAKZPHC 125 (24 October 2023)
46. Tsogo Sun Caledon (Pty) Ltd and Others v Western Cape Gambling and Racing Board and Another (89 of 2021) [2022] ZASCA 102 (24 June 2022)
47. Urban Icon (Pty) Ltd v South African National Roads Agency SOC Ltd and Others (28814/2020) [2023] ZAGPPHC 1397 (11 December 2023)
48. Waco Africa (Pty) Ltd and Others v Eskom Soc Ltd and Others (290/22; 3047/22; 5798/21) [2022] ZAGPJHC 607 (2 September 2022)
49. Waco Africa (Pty) Ltd t/a SGB-Cape v SOC Ltd and Others ; Southey Contracting (Pty) Ltd v Eskom Holdings SOC Ltd and Others (2022/3047; 57981/2021; A009029/2023; A2022-050014) [2024] ZAGPJHC 1517 (4 March 2024)
50. Xoliswa Tini Facilities Management Services (Pt) Ltd v Mnister of PUblic Works and Infrastructure and Others (33259/21) [2022] ZAGPPHC 836 (4 July 2022)
Law Reform Report 1
1. Investigation into Legal Fees - Including Access to Justice and Other Interventions - Project 142
Legislation 12
1. KwaZulu-Natal Umzimkhulu Alignment Act, 2017 2 citations
2. Mpumalanga Tourism and Parks Agency Act, 2005 2 citations
3. Financial Management of Mpumalanga Provincial Legislature Act, 2010
4. Financial Management of the Eastern Cape Provincial Legislature Act, 2009
5. Free State Provincial and Local Houses of Traditional Leaders Act, 2017
6. Mpumalanga Economic Growth Agency Act, 2010
7. Mpumalanga Economic Regulator Act, 2017
8. Northern Cape Consumer Protection Act, 2012
9. Northern Cape Economic Development, Trade and Investment Promotion Agency Act, 2008
10. Northern Cape Sport and Recreation Authority Act, 2015
11. Northern Cape Tourism Entity Act, 2008
12. Regulations Regarding the Impact of Severe Electricity Supply Constraint, 2023