30 Subcontracting Agreement

Nhleko added that all projects that will be awarded after April 1 would be subject to the 30% allocation policy. Preferential procurement should be used by the government to promote transformation,” including the empowerment of designated groups and MMS by subcontracting and pre-qualification. A person who obtains a mandate from a state body can only enter into a contract of subcontract with the agreement of the state body. Public tenders must indicate whether they have pre-qualifying criteria to advance certain groups. Persons who obtain a contract can only enter into a subcontract with the agreement of the state body. When compulsory subcontracting is applied as part of a tendering process, successful bidders are required to pass on at least 30% of the market value to one or more suppliers registered in a database approved by the National Ministry of Finance for the provision of the necessary goods or services. Where possible, the government must impose a 30% subcontracting for tenders for 30 million ZAR. The 2017 PPPFA regulations stipulate that compulsory outsourcing, when applied, must be used to promote the same categories of EMEs, QSEs and cooperatives as those provided for with respect to qualification criteria. It called on the provincial coffers to ensure that provincial and local authorities comply with the rules and report to law enforcement authorities any interruptions to public projects on the basis of 30% subcontracting. He added that the new policy allowed subcontracting as a condition for R.30 million bids, with bidders required to assign at least 30% of the market value to designated groups where possible. The remedial provision in the 2017 pppfa regulations differs from the corresponding provision of the 2011 regulations in that the list of events that could lead to the exclusion of bidders or the blacklisting of suppliers was no longer limited to poor performance under a government contract.

In PPPFA`s 2017 regulations, it may be disqualified or blacklisted when a bidder has disclosed incorrect information about its black economic clearance status, local production or any other material governed by the 2017 pppfa regulations that influenced or influenced the valuation of an offer, or did not report subcontracts. The preferential contract rules provide that, where possible, governments apply subcontracting conditions to contracts worth more than R30 million. These conditions are that 30% of the value of the contract is awarded to designated groups, the majority of which include black and emerging companies, which may be managed by military veterans or women`s cooperatives for women`s groups or cooperatives of businesses for the disabled. “All offers that should be made after this directive comes into force are aligned with our new preferences policy. The effect of these provisions is to allow a contracting authority to delay contracts for bidders meeting its prequalification criteria. Under the 2011 regulations, the provisions were not admissible and it is questionable whether the preferential policy framework under the Framework Preferred Markets Act is broad enough to allow for exclusionary practices such as surface rules. Companies and other organisations wishing to do business with a state body after April 1, 2017 are subject to PPPFA Regulations 2017, the main features of which are described below. When a contracting authority decides to apply one or more of the above prequalification criteria, the bid must be tendered on the specific condition that only bidders meeting these pre-qualification criteria can meet.