PPPFA
All SectorsPreferential Procurement Policy Framework Act
The PPPFA establishes the framework for preferential procurement in South Africa. It mandates the use of a preference points system where tenders are evaluated based on price and specific goals such as B-BBEE status, local content, and job creation. The Act applies to all organs of state at national, provincial, and local levels. For contracts up to R50 million, the 80/20 system applies (80 points for price, 20 for specific goals). For contracts above R50 million, the 90/10 system applies (90 points for price, 10 for specific goals). The PPPFA is currently being replaced by the Public Procurement Act (Act 28 of 2024).
80/20 Preference Points System
For contracts valued up to R50 million: 80 points for price, 20 points for specific goals (mainly B-BBEE).
90/10 Preference Points System
For contracts valued above R50 million: 90 points for price, 10 points for specific goals.
Specific Goals
Preference points awarded for achieving specific goals including B-BBEE status level, local content, job creation, and youth/women/disabled participation.
Conditional Award
Contracts must be awarded to the tenderer scoring the highest total points, unless objective criteria justify otherwise.
- Confirm correct preference points system (80/20 or 90/10) for the tender value
- Prepare valid B-BBEE affidavit or certificate from accredited verification agency
- Complete declaration of specific goals as required in bid documents
- Verify local content percentage where applicable with SANS 1286 declaration
- Ensure price and preference points are calculated correctly