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margin-right 0cm; margin-bottom 0cm; margin-left 2.0cm; margin-bottom .0001pt; text-indent -1.0cm; font-size 12.0pt; font-family "Times New Roman",serif; color windowtext;} p.Para, li.Para, div.Para {mso-style-name Para; margin-top 0cm; margin-right 0cm; margin-bottom 0cm; margin-left 3.0cm; margin-bottom .0001pt; text-indent -1.0cm; font-size 12.0pt; font-family "Times New Roman",serif; color windowtext;} p.Subpara, li.Subpara, div.Subpara {mso-style-name Subpara; margin-top 0cm; margin-right 0cm; margin-bottom 0cm; margin-left 4.0cm; margin-bottom .0001pt; text-indent -1.0cm; font-size 12.0pt; font-family "Times New Roman",serif; color windowtext;} p.Item, li.Item, div.Item {mso-style-name Item; margin-top 0cm; margin-right 0cm; margin-bottom 0cm; margin-left 5.0cm; margin-bottom .0001pt; text-indent -1.0cm; font-size 12.0pt; font-family "Times New Roman",serif; color windowtext;} .MsoChpDefault {font-size 10.0pt;} @page WordSection1 {size 595.45pt 841.7pt; margin 2.0cm 2.0cm 2.0cm 2.0cm;} div.WordSection1 {page WordSection1;}      PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT 5 OF 2000   (English text signed by the President)    [Assented to  2 February 2000]     [Commencement date  3 February 2000]       proposed repeal by     Public Procurement Act 28 of 2024 - See S. 65 for Transitional measures      ACT     To give effect to section 217(3) of the Constitution by providing a framework for the implementation of the procurement policy contemplated in section 217(2) of the Constitution; and to provide for matters connected therewith.     BE IT ENACTED  by the Parliament of the Republic of South Africa, as follows -    ARRANGEMENT OF SECTIONS      1. Definitions       2. Framework for implementation of preferential procurement policy       3. Exemption       4. Transitional provision       5. Regulations       6. Short title           1. Definitions          In this Act, unless the context indicates otherwise-           (i)   acceptable tender   means any tender which, in all respects, complies with the specifications and conditions of tender as set out in the tender document; (i)           (ii)   Minister   means the Minister of Finance; (iii)            (iii)   organ of state   means-           (a) a national or provincial department as defined in the Public Finance Management Act, 1999 (Act No. 1 of 1999);           (b) a municipality as contemplated in the Constitution;           (c) a constitutional institution defined in the Public Finance Management Act, 1999 (Act No. 1 of 1999);           (d) Parliament;           (e) a provincial legislature;           (f) any other institution or category of institutions included in the definition of organ of state in  section 239  of the Constitution and recognised by the Minister by notice in the  Government Gazette  as an institution or category of institutions to which this Act applies; (iv)           (iv)   preferential procurement policy   means a procurement policy contemplated in  section 217 (2) of the Constitution; (vi)           (v)   prescribed   means prescribed by regulation made under  section 5 ; (v)           (vi)   this Act   includes any regulations made under  section 5 . (ii)        2. Framework for implementation of preferential procurement policy          (1) An organ of state must determine its preferential procurement policy and implement it within the following framework            (a) A preference point system must be followed;           (b)      (i) for contracts with a Rand value above a prescribed amount a maximum of 10 points may be allocated for specific goals as contemplated in paragraph (d) provided that the lowest acceptable tender scores 90 points for price;           (ii) for contracts with a Rand value equal to or below a prescribed amount a maximum of 20 points may be allocated for specific goals as contemplated in paragraph (d) provided that the lowest acceptable tender scores 80 points for price;           (c) any other acceptable tenders which are higher in price must score fewer points, on a pro rata basis, calculated on their tender prices in relation to the lowest acceptable tender, in accordance with a prescribed formula;           (d) the specific goals may include-           (i) contracting with persons, or categories of persons, historically disadvantaged by unfair discrimination on the basis of race, gender or disability;           (ii) implementing the programmes of the Reconstruction and Development Programme as published in  Government Gazette  No. 16085 dated 23 November 1994;           (e) any specific goal for which a point may be awarded, must be clearly specified in the invitation to submit a tender;           (f) the contract must be awarded to the tenderer who scores the highest points, unless objective criteria in addition to those contemplated in paragraphs (d) and (e) justify the award to another tenderer; and           (g) any contract awarded on account of false information furnished by the tenderer in order to secure preference in terms of this Act, may be cancelled at the sole discretion of the organ of state without prejudice to any other remedies the organ of state may have.           (2) Any goals contemplated in subsection 1 (e) must be measurable, quantifiable and monitored for compliance.        3. Exemption          The Minister may, on request, exempt an organ of state from any or all the provisions of this Act if-           (a) it is in the interests of national security;           (b) the likely tenderers are international suppliers; or           (c) it is in the public interest.        4. Transitional provision          Any procurement process implemented under a preferential procurement policy where the invitation to tender was advertised before the commencement of this Act, must be finalised as if this Act had not come into operation.        5. Regulations          (1) The Minister may make regulations regarding any matter that may be necessary or expedient to prescribe in order to achieve the objects of this Act.           (2) Draft regulations must be published for public comment in the  Government Gazette  and every  Provincial Gazette  before promulgation.        6. Short title          This Act is called the Preferential Procurement Policy Framework Act, 2000.                

To give effect to section 217(3) of the Constitution by providing a framework for the implementation of the procurement policy contemplated in section 217(2) of the Constitution; and to provide for matters connected therewith.

Preferential Procurement Policy Framework Act 5 of 2000