Ultimate Guide To The Public Procurement Bill: Essential FAQs
Chapter 1: DEFINITIONS, OBJECTS, APPLICATION AND ADMINISTRATION OF ACT
Q: What are some of the key definitions established in this chapter?
The chapter defines crucial terms, including "accounting authority" (from the Public Finance Management Act), "bid," "bid committee," "black people," and others, ensuring clarity in the Act's context.
Q: What is the core objective of this Act?
The Act aims to establish a public procurement system guided by fairness, equity, transparency, competitiveness, and cost-effectiveness. It introduces standardized treasury norms and a preferential procurement framework to address historical inequalities.
Q: To whom does this Act apply?
The Act applies to all government departments, constitutional institutions, municipalities, and public entities listed in the Public Finance Management Act. Its provisions override conflicting legislation.
Q: Who is responsible for this Act's administration?
The Minister of Finance is responsible for administering this Act.
Chapter 2: PUBLIC PROCUREMENT OFFICE, PROVINCIAL TREASURIES AND PROCURING INSTITUTIONS
Q: What body does this Act establish?
The Act establishes a Public Procurement Office within the National Treasury, led by a Head expected to act impartially.
Q: What are the functions of the Public Procurement Office?
Promoting compliance, offering advice, ensuring transparency, and managing procurement-related databases.
Q: What role do provincial treasuries play?
They monitor implementation within provinces, promote transparency, intervene in material breaches, and provide required information to the Public Procurement Office.
Chapter 3: PROCUREMENT INTEGRITY AND DEBARMENT
Q: What standards of conduct are expected?
Ethical conduct applies to accounting officers, bid committee members, and bidders, prohibiting personal gain or interference.
Q: What is "automatic exclusion"?
Certain individuals (public office bearers, officials, employees, or their close relations) are barred from submitting bids to prevent conflicts of interest.
Q: What is the process for debarment?
It includes notice, response, issuing a debarment order, and maintaining a public debarment register.
Chapter 4: PREFERENTIAL PROCUREMENT
Q: What is the Act's approach to preferential procurement?
It mandates uplifting historically disadvantaged groups, especially Black-owned enterprises, using set-asides and pre-qualification criteria.
Q: What are set-asides, and who do they target?
- Black people
- Black women
- Women
- People with disabilities
- Military veterans
- Small enterprises
Q: Can preferential bids still be assessed on traditional criteria?
Yes, they are evaluated on cost-effectiveness, capability, functionality, and technical requirements to ensure fair and transparent awards.
Chapter 5: GENERAL PROCUREMENT REQUIREMENTS
Q: Who sets standards for procurement systems?
The Minister prescribes the framework, covering strategic procurement, methods, procedures, and evaluation criteria.
Q: Can institutions use other state organs for procurement?
Yes, but only under prescribed regulations.
Q: What ensures fair and ethical procurement?
Steps include investigating corruption, verifying credentials, and disqualifying misrepresenting bidders.
Chapter 6: DISPUTE RESOLUTION
Q: What can bidders do if unhappy with a decision?
They can apply for reconsideration by the procuring institution before escalating to the Tribunal or courts.
Q: What is the function of the Public Procurement Tribunal?
It provides independent reviews of bid awards and debarment decisions.
Q: What options does the Tribunal have?
It can confirm, set aside, or substitute decisions and direct specific actions.
Chapter 7: GENERAL PROVISIONS
Q: When can the Public Procurement Office investigate?
It can investigate suspected non-compliance, independently or on request, even if no offense has been committed.
Q: Can it access and search premises?
Yes - but accessing residences requires consent or a warrant.
Q: Is the Act reviewed post-implementation?
Yes, the Minister must review its impact within 24 months and identify amendments.