2nd Amendment to PFMA SCM Instruction No. 02 of 202122 - Procurement Thresholds and processes
Intelligence Summary
National Treasury has published a second amendment to the 2021/22 PFMA SCM Instruction governing procurement thresholds and processes. The revision adjusts the monetary values that determine whether a procurement follows quotation, three-quote, or competitive bidding routes, and updates associated delegation and approval requirements. All national and provincial departments and listed public entities must align their SCM policies and bid committees immediately.
Why This Matters for Procurement
Thresholds dictate the procurement method, competition intensity, evaluation criteria, and award authority. Any change reshapes the addressable market for suppliers and the compliance burden for organs of state.
Key Points
- National Treasury has issued a second amendment to PFMA SCM Instruction No. 02 of 2021/22, modifying procurement thresholds and processes
- Threshold changes directly affect which procurement method applies (quotations vs competitive bids) and delegation levels
- All national and provincial departments, constitutional institutions, and public entities listed in Schedules 2 and 3 of the PFMA must comply
- Suppliers need to monitor updated thresholds to identify which tenders they qualify for and which procurement routes apply
Industry Impact
Procurement threshold values and associated SCM processes under PFMA Instruction No. 02 have been amended for the second time since 2021/22.
Industry-Wide Effect
This amendment ripples across the entire public procurement ecosystem — every tender advertisement, evaluation, and award from national to provincial level must now reference the revised thresholds. It also signals National Treasury's ongoing recalibration of the PFMA SCM framework ahead of the Public Procurement Bill's full implementation.
Affected Sectors
Affected Provinces
Affected Organs of State
Supplier Opportunity Signal
Suppliers must verify the new threshold bands to confirm which tenders they are eligible for and whether quotation-based opportunities have expanded or contracted. SMMEs should monitor if the R30k–R1M quotation window has shifted, as this directly affects set-aside and subcontracting prospects.
Risk / Compliance Signal
Organs of state that fail to update SCM policies, bid committee delegations, and e-procurement system rules face irregular expenditure findings. Bidders relying on outdated thresholds risk non-responsive bids or challenges.
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