Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000)
Preferential Procurement Regulations, 2001
Part Two: Preference Point System, Evaluation of Tenders, Awarding of Tenders not Scoring Highest Points, Cancellation and Re-Invitation of Tenders
8. Evaluation of tenders on functionality and price
1)An organ of state must, in the tender documents, indicate if, in respect of a particular tender invitation, tenders will be evaluated on functionality and price.
2)The total combined points allowed for functionality and price may, in respect of tenders with an estimated Rand value equal to, or below, R500 000, not exceed 80 points.
3)The total combined points allowed for functionality and price may, in respect of tenders with an estimated Rand value above R500 000, not exceed 90 points.
4)When evaluating the tenders contemplated in this item, the points for functionality must be calculated for each individual tenderer.
5)The conditions of tender may stipulate that a tenderer must score a specified minimum number of points for functionality to qualify for further adjudication.
6)The points for price, in respect of a tender which has scored the specified number of points contemplated in sub regulation (5) must, subject to the application of the evaluation system for functionality and price contemplated in this regulation, be established separately and be calculated in accordance with the provisions of regulations 3 and 4.
7)Preferences for being an HDI and/or subcontracting with an HDI and/or achieving specified goals must be calculated separately and must be added to the points scored for functionality and price.
8)Only the tender with the highest number of points scored may be selected.