Sunday, October 21, 2018 | Awards: SACCI Chamber of the year 2011; World Chamber Forum Finalist 2013

Preferential Procurement

How easy is it to do business with our local municipality?

On several occasions business commented that the local municipality needs to support local businesses.  This asks the question: “How easy is it to do business with the municipality?”  With this in mind the Middelburg Chamber of Commerce & Industry (MCCI) jumped at the change to be part of finding the solution for this question.  

A relationship has been established in 2009 between the municipalities of Leeds City Council in the United Kingdom, EThekwini Municipality in Kwa-Zulu Natal, Steve Tshwete local municipality and MCCI. Commonwealth Local Government Forum (CLGF) in partnership with the South African Local Government Association (SALGA) was implementing a Good Practice Scheme project (GPS) which involved above mentioned municipalities. The main purpose of this exercise was to identify and implement the best practices between the three municipalities. 

The procurement departments of the three municipalities exchange operation practices and vigorously discuss their problems and solutions.  These discussions give the participants the opportunity to find possible solutions to their problems, benefits and potential savings to the municipalities. 

A tangible result of these activities and meetings is a tender guideline document by the three participating municipalities that gives business clear information and guidelines on how to tender for municipal contracts.

Copies of these tender guidelines are available at the Information Office for the public.  It is also available electronically; businesses interested in this document can contact Valerie Pienaar at 013 243 2253.  The MCCI congratulates the Steve Tshwete Local Municipality in their openminded approach to ensure business knows on how to prepare their documents.

What is Preferential Procurement?

Preferential Procurement is derived from the Preferential Procurement Policy Framework Act, Act 5 of 2000 and its Regulations. This Act provides for the implementation of a policy and system where bids (tenders) are not awarded on being to specification and having the lowest price but on a prescribed point system where preference is given to Historical Disadvantaged Individuals (HDI's) South African citizens:

Who had no voting rights in the national elections prior to the introduction of the 1983 Constitution or the 1994 "Interim Constitution"(i.e. people of colour)
Who is a female (any race)
Who has a disability

A person who obtains SA citizenship after the Interim Constitution came into effect is NOT considered an HDI.
It should be noted that: a person can only score points if they are involved in the day-to-day running of the business.

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