Have your say on the Preferential Procurement Policy Framework Amendment Bill

The Preferential Procurement Policy Framework Amendment Act of 2023 aims to update and simplify South Africa’s procurement policy. The Act modernises South Africa’s procurement policy by replacing the old point system with a more flexible one, aligning it with sustainable development goals (SDGs), and removing references to the old Broad-Based Black Economic Empowerment Act. It also requires a review of existing laws to make them consistent with the new policy.

Key points about this bill:

• Definition of sustainable development goals: The bill adds a definition for SDGs as goals referred to in section 2(1)(d).
• Preference point system change: It replaces the obligation for state organisations to follow a preferential point system with discretionary power.
• Specific goals for procurement: The bill allows0the achievement of specific SDGs to be used as a tiebreaker mechanism or earn a maximum of 10 or 20 points, depending on the contract’s value.
• Repeal of Broad-Based Black Economic Empowerment Act: It repeals the B-BBEE Act, 2003, and all references to it in other legislation.
• Regulations and parliamentary oversight: The bill obligates the minister to make regulations, including details on sustainable development goal contributions, and these regulations must be submitted to the national assembly for consideration.

Key features of this bill:

• Preference Points System: The bill replaces the requirement for organs of state to follow a preferential point system with discretionary power, meaning they can choose how to implement preferential procurement policies.
• Maximum Points: It removes specific references to the maximum number of points for certain contracts and introduces a tiebreaker mechanism based on specific goals. For contracts above a certain value, it allows a maximum of 10 points, while for contracts below that value, a maximum of 20 points can be allocated based on specific goals.
• Specific Goals: The bill updates the specific goals that may be considered for preferential procurement. Instead of the old Reconstruction and Development Programme, it now includes contributions to Sustainable Development Goals, which encompass various social and environmental objectives.
• Regulations: The bill changes the Minister’s discretion to make regulations into an obligation to do so. These regulations should clarify how Sustainable Development Goals contributions are measured and points allocated. Draft regulations must be submitted to the National Assembly for consideration.
• Repeal of BBBEE Act: The bill repeals the Broad-Based Black Economic Empowerment Act, 2003, and references to it in other legislation. This indicates a shift away from policies related to broad-based black economic empowerment.
• Transitional Arrangements: The bill sets out transitional provisions, requiring the Minister and the Commission to conduct an analysis of all laws and measures related to the Broad-Based Black Economic Empowerment Act within three months of the bill’s commencement. They must report to the National Assembly and propose changes where necessary.

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