PPPFA NO 5 OF 2000 AND REGULATIONS. PPPF ACT NO OF 2000 AND REGULATIONS. PURPOSE To give effect to constitutional requirements as stipula- ted in sections 217(3) and 217(2) To address the imbalances of the past.
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10 August 2001
Proviso: HDI must be actively involved in day-to- day management of business.
specified in the tender documents, including
tored for compliance.
Tender must be awarded to tenderer who scored the highest number of points, unless sound reason
justify award to another tenderer.
Sound reason must stand the test of any court of
Tax matters must be in order.
The promotion of enterprises located in a specific province for work to be done or services to be rendered in that province.
The promotion of enterprises located in a specific region for work to be done or services to be done in that region;
The promotion of enterprises located in a specific municipal area for work to be done or services rendered in that municipal area;
The promotion of enterprises located in rural areas;
The empowerment of the work force by standar- dising the level of skill and knowledge of workers;
The development of human resources, including by assisting in tertiary and other advanced trai- ning programmes, in line with key indicators such as percentage of wage bill send on education and training and improvement of management skills; and
POINTS ALLOCATION level of skill and knowledge of workers;
Previously the system operated on a 88/10/2 basis for contracts up to R2milion only.
(No preference for all amounts exceeding R2million)
i.e. Price max 88 points
Equity ownership max 10 points
Women ownership max 2 points
Tenders would be awarded to tenderers who scored the highest number of points
CURRENT SITUATION level of skill and knowledge of workers;(Based on 2001 regulations) Preference applicable to all tenders.
Contract less than R500,000 apply 80/20 system
Price Functionality max 80 points
HDI and other RDP goals max 20 points
This means government is prepared to pay a 25% premium on these contacts.
Contracts in excess of R500,000 apply 90/10 system. level of skill and knowledge of workers;
Price and Functionality Max 90 points
HDI and other RDP goals Max 10 points
This equals to a 11,11% premium which govern-ment pays for these contracts.
CONCERNS/CHALLENGES level of skill and knowledge of workers;
No formulated means of applying policy.
(GOALS ARE SET BY OFFICIALS WITHOUT SPECIFIC TARGETS TO BE ACHIEVED)
Lack of capacity/systems to monitor fronting “Rent a Black”.
Non uniform applications by various forms of State.
BEE and PPPFA not aligned.
Limited expertise and knowledge in all spheres of government of how to implement and apply act.
Fragmented interpretation of definitions.
Some RDP goals are not measurable.
Calculations are laborious (Too many calculations)