National Treasury (NT) issued further guidelines on its amended Preferential Procurement Policy Framework Act (PPPFA) on December 2, just days before today’s December 7 deadline when the amendments become active.
In the latest guidelines NT and the DTI have issued the list of designated industries, which must define criteria and thresholds for local production and content:
• Textile, clothing, leather and footwear.
• Steel and power pylons.
• Rolling stock.
• Canned / processed vegetables.
• Buses (bodies).
Further designations will be announced in 2012.
The local content criteria and thresholds are meant to aid the competitiveness of South African companies, to which the regulations apply, with international companies, to which the regulations do not apply.
Furthermore, the December 2 guidelines include:
1) Further detail on certificate requirements as issued by verification agencies, accounting officers and registered auditors.
2) The release of new standard bids docs for, amongst others, local content, the claimed BEE level and the declaration on sub-contracting.
The guidelines have further described the details on the evaluation and scoring of local content in the implementation guide.
The amended PPPFA Regulations (National Treasury Notice No. R 501, 8 June 2011), have been aligned with the aims of the Broad-based Black Economic Empowerment (B-BBEE) Act and its associated Codes of Good Practice.
The updated regulations come into effect on 7 December 2011.
Meanwhile, the Provincial Government Western Cape (PGWC) partnered with Commerce Edge South Africa, a member of the IMPERIAL Logistics group and a leading procurement and supply chain training organisation, during November to inform more than 500 municipal and provincial officials on implementing the amended PPPFA with road shows in different regions of the province.
“Entities must get to grips with what is now required of them and must understand the implications of complying (and not complying) with the amended legislation. Commerce Edge has developed its implementation workshop to guide entities like WCPG through the process,” said Bernie van Niekerk, CEO of Commerce Edge.
PGWC’s roadshow also hosted suppliers in its regions to educate them on what they need to put in place to win government contracts. “Even private sector organisations will need to comply with the regulations to do business with government,” concluded van Niekerk.