ANNOUNCEMENT 21 Dec 2016
On 21 December 2016, the South African National Treasury issued National Treasury designated sectors Instruction No. 14 of 2016/2017 designating firefighting vehicles as a sector for public procurement under the Preferential Procurement Regulations, 2011.
NUMBER OF INTERVENTIONS
National Treasury designated sectors Instruction No. 14 of 2016/2017, 21 December 2016: http://ocpo.treasury.gov.za/Resource_Centre/Legislation/NATIONAL%20TREASURY%20DESIGNATED%20SECTORS%20INSTRUCTION%20NUMBER%2014%20OF%202016-2017%20-%20FIRE%20FIGHTING%20VEHICLES.pdf
The Instruction designates minimum procurement localisation requirements for firefighting vehicles. Firefighting vehicles procured by South African government entities must contain a local content threshold of 100%. The components utilised for and the manufacturing process of the subject good concerning crew cabin, superstructure and assembly must be 100% undertaken in South Africa. Additionally, the assembly of certain components for the manufacturing of firefighting vehicles must be undertaken in South Africa. The minimum public procurement requirements entered into force on 15 December 2016.
Under the procurement rules of 2011, the South African Department of Trade and Industry (DTI), alongside the National Treasury, has the power to designate specific sectors in which public procurement bids have to comply with a set of minimum local production requirements. Such minimums vary by sector. If input materials or components of the subject good cannot be obtained in South Africa a written exemption must be submitted and approved by the DTI.
Any organ of the state may also choose to establish a local manufacturing minimum for non-designated sectors. Such minimums must follow the DTI and the National Treasury’s directives and consult with them beforehand.
Such minimums may include small variations amongst the percentage of a minimum required depending on the length of the public procurement contract.