PROCUREMENT
Why your tender submission must be as accurate as possible
State tender awards are often plagued with difficulties and have generated a substantial amount of litigation, write Julia Ferraz-Cardoso and Razina Thokan
The government spends approximately R500bn on procurement each year, accounting for roughly one-third of the budget and more than 10% of SA’s GDP. Given the large figures involved and the sheer number of tenders issued annually, state tender awards are often plagued with difficulties — for those tendering and those tasked with evaluating and adjudicating bids. Unsurprisingly, public procurement has generated a substantial amount of litigation. Section 217 of the Constitution requires state-owned entities to procure goods and services in accordance with a system that is fair, equitable, transparent, competitive and cost-effective. Generally, this requires advertising and holding competitive bidding processes. At national and provincial government level, all contracts above R500,000 must be awarded subject to a competitive bidding process. The Preferential Procurement Policy Framework Act prescribes that an organ of state must evaluate tenders on the basis of a statutory preferential ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.