On 14 June 2016, National Treasury published the Draft Preferential Procurement Regulations (“Draft Regulations”) of 2016 in terms of section 5(2) of the Preferential Procurement Policy Framework Act 5 of 2000 (“PPPFA”) for public comment until 15 July 2016. The Draft Regulations intend to repeal the 2011 Preferential Procurement Regulations in their entirety.
The PPPFA and the related regulations form the legislative framework which governs all procurement processes run by the State.
If the new regulations are implemented in their current form, they will significantly alter the criteria in terms of provision of services for government contracts and the corresponding assessment of these services.
Please find a link here to the Alert summarising all potential implications.