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PPR training teaches supply chain officials, bid committee members and suppliers how the Preferential Procurement Regulations, 2022 work. It covers the 80/20 and 90/10 preference point systems, how specific goals are chosen and scored, and how an organ of state’s own procurement policy fills the gaps. BOTI runs this training as part of its supply chain, procurement and contracts courses, in-house or live online.
The Preferential Procurement Regulations, 2022 (the 2022 Regulations) came into effect on 16 January 2023. They widened the aims of preferential procurement and gave organs of state more discretion to apply their own procurement policies. The 2022 Regulations still govern preferential procurement today, so understanding them remains essential for anyone who runs or responds to public tenders.
Overview of preferential procurement in South Africa
South Africa’s Constitution sets the standard for how an organ of state in national, provincial or local government contracts for goods and services. The system must be “fair, equitable, transparent, competitive and cost effective”. Organs of state may also adopt procurement policies that give preference in the allocation of contracts. These preferences may protect or advance people who were disadvantaged by unfair discrimination.
In terms of Section 217 of the Constitution, Parliament has also prescribed a statutory framework for preferential procurement: the Preferential Procurement Policy Framework Act, 2000 (“PPPFA”).
The PPPFA provides a preference points system. Contracts below a prescribed value are evaluated out of 100 points: 80 points for price and 20 points for “specific goals”. Contracts above that value are evaluated with 90 points for price and 10 points for specific goals.
“Specific goals” therefore encompass:
- Contracting with individuals or categories of individuals that have been previously disadvantaged in terms of unfair discrimination with regards to race, gender or disability.
- Implementing programmes in line with the Reconstruction and Development Programme.
Several sets of regulations have been issued under the PPPFA since it came into effect, including the Preferential Procurement Regulations, 2017 (“PPR 2017”). The 2022 Regulations replaced them.
State organs have greater choice under the 2022 Regulations
One key difference between the PPR 2017 and the 2022 Regulations is pre-qualification criteria. Under the PPR 2017, an organ of state could apply pre-qualification criteria “to advance certain designated groups”. These groups included black people, women, persons with disabilities and small enterprises. The 2022 Regulations no longer allow pre-qualification criteria.
The 2022 Regulations do give procuring institutions some discretion when they allocate preference points. The 80/20 system (for contracts up to R50 million) and the 90/10 system (for contracts above R50 million) still apply. The procuring institution, however, now decides on “the specific goal specified for the tender”. Under the PPR 2017, preference points were awarded only for B-BBEE contributor status level. Whatever goals are chosen, they must fall within the PPPFA definition: contracting with people historically disadvantaged by unfair discrimination, or implementing programmes of the Reconstruction and Development Programme.
The 2022 Regulations cover tenders for the acquisition of goods or services. They also cover tenders for income-generating contracts, such as concessions and the letting of government assets and property. This means contracts entered into for commercial gain are bound by public procurement rules, as well as contracts for buying goods or services.
2022 Regulations Exclusions
- There is an important exclusion from the 2022 Regulations: they do not regulate local content requirements. A later procurement Act was expected to deal with preference and localisation more broadly. That Act never came into force and has since been declared invalid[1].
- The 2022 Regulations do not regulate two further matters: awarding a contract to a tenderer who did not score the highest points, and the permissible grounds for cancelling a tender. Organs of state are expected to deal with these matters in their own procurement policies.
The 2022 Regulations do not refer to B-BBEE contributor status level or local content as grounds for preference. This does not stop organs of state from allocating preference points to B-BBEE or localisation as “specific goals” in a tender. Some organs of state may keep B-BBEE contributor status level as the main basis for preference points. Others may apply other specific goals, for example:
- job creation;
- local or regional presence;
- participation by women or people with disabilities;
- green procurement;
- employment equity.
How specific goals are applied in practice
Each organ of state now makes more of its own preference decisions, so its procurement policy matters more than before. In practice, that means:
- The policy comes first. The organ of state’s procurement policy should set out which specific goals it pursues and how it weighs them.
- The tender documents must be clear. Each tender should state the specific goals that apply, the points allocated to each and the proof a bidder must submit to claim them.
- Evaluation must be consistent. Bid evaluation committees should score price and specific goals exactly as the tender documents describe. Unclear or inconsistent scoring is a common cause of complaints and challenges.
- Bidders must read each tender on its own terms. Two tenders from different departments may award points for different goals. A supplier’s B-BBEE certificate may earn full points in one tender and fewer in another.
PPR 2022 and the Public Procurement Act: where things stand
Parliament passed the Public Procurement Act 28 of 2024, but it never came into force. On 17 September 2026 the Constitutional Court declared the whole Act invalid because Parliament did not allow reasonable public participation[1]. Public procurement therefore still runs under the PFMA, the MFMA, the PPPFA and the Preferential Procurement Regulations, 2022. Parliament may pass a new procurement law in future, so officials and bidders should watch for changes rather than plan around the invalid Act.
What PPR training should cover
Good PPR training is practical. Delegates should leave able to apply the regulations to real tenders, not just recite them. A useful programme covers:
- the constitutional principles of Section 217 and how the PPPFA gives effect to them;
- the 80/20 and 90/10 preference point systems and how to calculate price and preference scores;
- choosing specific goals, writing them into a procurement policy and stating them in tender documents;
- the evidence bidders must provide and how evaluation committees verify it;
- income-generating tenders, such as leases and concessions;
- the matters left to an organ of state’s own policy, such as cancelling a tender or awarding to a bidder who did not score the highest points;
- governance, conflicts of interest and record-keeping that stand up to audit.
Different readers need different parts of this programme:
- Officials who run procurement can combine it with Public Finance Management (PFMA) Training.
- Supply chain practitioners can combine it with Procurement and Supply Chain Management Training.
- Suppliers who bid for government work often benefit from Proposal and Tender Writing Training and Black Economic Empowerment (B-BBEE) Fundamentals Training.
For background reading, see BOTI’s guides to procurement compliance in South Africa and how to respond to a government tender.
Frequently asked questions
What is PPR training?
PPR training explains how the Preferential Procurement Regulations, 2022 work under the Preferential Procurement Policy Framework Act, 2000. It covers the 80/20 and 90/10 preference point systems, how to set and score specific goals, how specific goals must be stated in tender documents, and how an organ of state’s own procurement policy fills the gaps the regulations leave open. It suits supply chain officials, bid committee members and suppliers who bid for government work.
What are the specific goals under the Preferential Procurement Regulations, 2022?
Specific goals come from the PPPFA: contracting with people, or categories of people, historically disadvantaged by unfair discrimination on the basis of race, gender or disability, and implementing the programmes of the Reconstruction and Development Programme. Each organ of state chooses the specific goals for a tender within its procurement policy and states them, with the points for each, in the tender documents. B-BBEE status level, job creation, local presence and participation by women or people with disabilities are examples of goals an institution may choose.
Do the Preferential Procurement Regulations, 2022 still apply?
Yes. The Public Procurement Act 28 of 2024 never came into force, and on 17 September 2026 the Constitutional Court declared the whole Act invalid because Parliament did not allow reasonable public participation. Public procurement still runs under the PFMA, the MFMA, the PPPFA and the Preferential Procurement Regulations, 2022. Parliament may pass a new procurement law, so officials and bidders should keep watching for changes.
Is BOTI’s procurement training SETA accredited?
No. BOTI’s tendering and procurement short courses are not accredited. They are practical professional skills programmes, and delegates receive a BOTI certificate of attendance. BOTI is a QCTO-accredited Skills Development Provider for its occupational certificates and skills programmes, which are listed separately.
Does BOTI offer a higher certificate in public sector procurement?
No. BOTI does not run a higher certificate in public sector procurement. It runs short courses for procurement and supply chain teams, including Governance & Efficiency in Tendering and Supply Chain Management, Procurement and Supply Chain Management Training and Public Finance Management (PFMA) Training. These can be delivered in-house for a whole department.
For PPR training built around your institution’s procurement policy, or for bidders who need to understand how points are scored, book Governance & Efficiency in Tendering and Supply Chain Management. Training runs in-house at your premises, at BOTI’s venue in Sunningdale, Johannesburg, or live online. Call BOTI on 011 882 8853 or email [email protected], or request a quote. This course is not accredited. It is delivered as a professional skills programme, and delegates receive a BOTI certificate of attendance.
Sources
- Godongwana notes Constitutional Court judgment on Public Procurement Act – SAnews (South African Government News Agency), 18 September 2026.