Source: Priority Point Request Form in terms of Priority Procurement Rules 2022 in accordance with Official Gazette 52957 dated July 8, 2025.
Thousands of companies want to work with the South African government, and there are many standards and regulations, all of which are now led by the framework of priority procurement policies.
The previous article, “Preferred Procurement and Policy Framework,” published in April 2020, is also useful for readers.
Procurement is legislated through the Public Financial Management Act (PFMA), which applies to domestic and state governments, but municipalities are regulated through the Local Government Financial Management Act (MFMA). The procurement of South African goods and services by state and national organs arises from S217 of the Constitution.
According to this, section 217 of the Constitution is as follows:
(1) The territory of national, state, or local government, or national institutions in contracts of goods or services identified in national laws must do so in accordance with a system that is fair, fair, transparent, competitive, and cost-effective.
(2) Subsection (1) does not prevent the organs of the state or agency mentioned in that subsection from implementing a procurement policy that provides -.
(a) Preferred categories in contract assignments. (b) protection of a person who is disadvantaged by unfair discrimination or protection or advancement of a person;
(3) National law must provide for a framework in which the policies mentioned in subsection (2) must be enforced. ”
The Priority Procurement Policy Framework Act provides for the Minister of Finance to promulgate regulations regarding the issues necessary or appropriate to provide for achieving the objects of the Procurement Act.
When bidding for business with the government, a system of priority points is used.
The following priority points system applies to bidding invitations:
80/20 system with requirements with RAND values up to R50 000 000 (including all applicable taxes). 90/10 systems with requirements with RAND values exceeding R50 000 000 (including all applicable taxes).
Points for bidding (even in the case of bidding for contracts that generate income) are awarded as follows:
(a) Price. and
(b) Specific goals
A bidder's failure is interpreted to fail to provide the evidence or documentation necessary for this bid, and the documentation required to request points for a particular goal of a bid is to mean that the priority points of a particular goal have not been asserted.
The State Agency reserves the right to request a bidder before the bid is awarded or at any time thereafter, before demonstrating a request regarding preference in the manner required by the State Agency.
Definition
(a) “Bid” means a written offer in a form determined by a state agency in response to an invitation to provide the goods or services through price estimates, competitive bidding processes, or other means envisaged by law.
(b) “Price” means the amount bid on a product or service and includes all applicable taxes with fewer unconditional discounts.
(c) “RAND Value” means the total estimated value of the RAND contract calculated at the time of the BID invitation and includes all applicable taxes.
(d) “Bid for an Income Generating Contract” means a written offer of a form determined by the State organ in response to an invitation to the origin of an Income Generating Contract through the manner in which the State organ is envisaged. Through public auctions; (e) “Law” means the Priority Procurement Policy Framework Act of 2000 (Act No. 5 of 2000).
Official for the procurement of goods and services
Points awarded at price
80/20 or 90/10 Priority Point System
Forms for disposal or lease of state assets and procurement that generates revenue
Points awarded at price
Up to 80 or 90 points will be allocated at the following prices:
Points awarded for a specific goal
Regarding rules 4(2), 5(2), 6(2), and 7(2) of the Priority Procurement Rules, priority points must be awarded for the specific targets listed in the bid. In the case of a bid, the bidder will be assigned points based on the stated goals, as supported by the proof/documentation stated in the terms of this bid. If a state agency intends to use Regulation 3(2) and it is unclear whether the 80/20 or 90/10 priority points system applies, state organs state that they must stipulate in their bidding documents. Applicable priority point system. or
(b) For other invitations for bidding, the 80/20 or 90/10 priority points system must be applied and both the 90/10 and 80/20 Preference Points systems must indicate the points assigned to a particular goal that the lowest allowed bid will be used to determine the applicable priority points system.
Additionally, all bidders must complete a table of specific goals for bids and claimed points. The national agency must indicate whether the 90/10 or 80/20 priority points system applies and also indicate the corresponding points.
Company/Company Declaration
Company name/Company company registration number Company partnership/Joint venture/Consortium type
One Business/One Validity
Close Corporation
Public company
Personal responsibility company
(Pty)Limited
Non-profit company
State-owned enterprises
