GEORGE NEWS - The Preferential Procurement Regulations, 2022 (PPR, 2022) for George Municpality took effect on 13 January 2023.
The Preferential Procurement policy and an amendment to the Supply Chain Management policy became effective on 12 February 2024.
In short, the major changes to the PPR, 2022 entail the following:
An 80/20 preference point system is applicable for the acquisition of goods or services worth R50m or less, and a 90/10 preference point system is applicable for the acquisition of goods or services worth more than R50m.
The PPR, 2022 specifically refers to “written offer”; therefore, the PPR, 2022 and the policy of the council will be applied to the procurement of goods and services above R2 000 but not for R30 000 and above.
The preference point system in terms of the PPR, 2022 and the policy of the council is applied as follows:
- 80/90 points will be scored for the price of the tenderer under consideration, and
- 20/10 points will be awarded to a tenderer for the specific goal in terms of the Preferential Procurement Policy of the council.
The specific goals referred to in the council's preferential procurement policy are:
- B-BBEE (contracting with persons, or categories of persons, historically disadvantaged by unfair discrimination based on race, gender or disability); and
- Locality (promoting enterprises in the municipal area, district, and province).
The weight for the two specific goals per the preferential procurement policy are:
- 50% of the 20/10 points will be allocated towards B-BBEE; and
- 50% of the 20/10 points will be allocated towards locality.
The points a tenderer can achieve for B-BBEE:
The points a tenderer can achieve for the locality:
What is the purpose of completing the MBD 6.1 form?
The MBD 6.1 must be completed and signed to claim preference points for the specific goals included in the preferential procurement policy. The information in the MBD 6.1 form must correspond with the proof attached for the specific goals.
As proof of evidence to claim preference points, one of the following must be submitted:
- A valid original or originally certified B-BBEE certificate from a verification agency accredited by SANAS; or
- A valid original or originally certified affidavit
As proof of evidence for locality, bidders must submit proof of address (eg, municipal account, rental/lease agreement, or affidavit) not older than three (3) months. No points will be awarded for specific goals if proof of locality is not supplied.
Repercussions of providing false information or documents
The purpose of the locality points is to promote local economic development within the George Municipal area, and any bidder attempting to circumvent the substance of this initiative through any means, including through fronting, will be reported to the national treasury for blacklisting on the central supplier database (CSD).
The new procurement thresholds for George Municipality are:
- R0 - R2 000 = One (1) written quotation from the supplier database (CSD)
- R2 000 – R30 000 = At least three (3) written quotations from the supplier database (CSD)
- R30 000 – R300 000 = Formal written quotations to be advertised for at least seven (7) days
- Above R300 000 = Bidding/tender process to be advertised for at least twenty-one (21) days
Enquiries
For enquiries, contact Denzil Eksteen on 044 801 9111 #9523 or send an email to djeksteen@george.gov.za / scm@george.gov.za
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