Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000)

2. Framework for implementation of preferential procurement policy

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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.