Pppfa no 5 of 2000 and regulations
Download
1 / 12

PPPFA NO 5 OF 2000 AND REGULATIONS - PowerPoint PPT Presentation


  • 423 Views
  • Updated On :

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.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'PPPFA NO 5 OF 2000 AND REGULATIONS' - aubrie


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Pppf act no of 2000 and regulations l.jpg
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.

    • Thus allowing for a preference system without forfei- ting the principles of fairness, equitable, competitive- ness, transparent and cost effectiveness

    • PPPFA and Regulations came into effect on

      10 August 2001


Application of the act l.jpg
APPLICATION OF THE ACT

  • Compulsory when applying the PPPFA to consider the following:

    • Points for HDI ownership.

      Proviso: HDI must be actively involved in day-to- day management of business.

    • RDP-goals to be promoted must be clearly

      specified in the tender documents, including

      points.


Slide4 l.jpg

Goals must be measurable, quantifiable and moni-

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

law.

Tax matters must be in order.


Possible goals to be achieved l.jpg
POSSIBLE GOALS TO BE ACHIEVED

  • The promotion of South African owned enterprises:

  • The promotion of export orientated production to create jobs;

  • The promotion of SMME’s:

  • The creation of new jobs or the intensification of labour absorption.


Slide6 l.jpg

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;


Slide7 l.jpg

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

  • The upliftment of communities through, but not limited to, housing, transport, schools, infrastruc- ture, donations and charity organisations.


Slide8 l.jpg

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

  • The 90/10 system was only applicable to Projects

  • by Department of Public Works – irrespective of

  • amount of contract.


Slide9 l.jpg

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

i.e.

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.


Slide10 l.jpg

Contracts in excess of R500,000 apply 90/10 system. level of skill and knowledge of workers;

i.e.

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.


Slide11 l.jpg

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.


Slide12 l.jpg

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)


ad