Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000)RegulationsPreferential Procurement Regulations, 20179. Subcontracting as condition of tender |
| (1) | If feasible to subcontract for a contract above R30 million, an organ of state must apply subcontracting to advance designated groups. |
| (2) | If an organ of state applies subcontracting as contemplated in subregulation (1), the organ of state must advertise the tender with a specific tendering condition that the successful tenderer must subcontract a minimum of 30% of the value of the contract to— |
| (a) | an EME or QSE; |
| (b) | an EME or QSE which is at least 51% owned by black people; |
| (c) | an EME or QSE which is at least 51% owned by black people who are youth; |
| (d) | an EME or QSE which is at least 51% owned by black people who are women; |
| (e) | an EME or QSE which is at least 51% owned by black people with disabilities; |
| (f) | an EME or QSE which is 51% owned by black people living in rural or underdeveloped areas or townships; |
| (g) | a cooperative which is at least 51% owned by black people; |
| (h) | an EME or QSE which is at least 51% owned by black people who are military veterans; or |
| (i) | more than one of the categories referred to in paragraphs (a) to (h). |
| (3) | The organ of state must make available the list of all suppliers registered on a database approved by the National Treasury to provide the required goods or services in respect of the applicable designated groups mentioned in subregulation (2) from which the tenderer must select a supplier. |