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Tender Compliance

Local Content & Designated Sectors

Tracks compliance with local-content thresholds in designated sectors under the PPPFA regulations.

📖 6 min read🎯 Intermediate✍️ Updated 2026

Why local-content thresholds are binding

In designated sectors, the PPPFA regulations make minimum local-content thresholds a condition of bidding, not a tie-breaker, and the dti designation carries the force of law. Awarding or paying against a non-compliant bid in a designated sector is irregular and routinely raised by the AGSA. AuditPro Core tracks local-content declarations and verification in designated categories so compliance is evidenced rather than presumed.

The Numbers

AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.

Designated Awards

147

this year

Below Threshold

19

13% of awards

Avg Local Content

74%

▲ 3%

Unverified Declarations

31

Local Content vs Threshold by Sector (%)

Awards Below Local-Content Threshold

TenderSectorDeclared %Value (R'000)
TND-3021Steel products7114820
TND-3088Clothing/textile629340
TND-3142Valves587110
TND-3199Steel products805260
TND-3244Furniture843980

Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.

Designated sectors

The dti designates sectors such as steel, textiles, buses and pharmaceuticals where stipulated minimum local content applies. Bids below the threshold in these sectors must be disqualified.

Declaration and verification

Bidders declare local content on the SBD 6.2 form, but the declaration must be capable of verification. Unverified or contradicted declarations cannot support a compliant award.

Threshold as a gate, not a score

Local content operates as a pass-fail gate in designated sectors. A bidder failing the minimum is non-responsive regardless of price or other strengths.

Ongoing contract compliance

Compliance is not only at bid stage; the contractor must maintain local content through delivery. Slippage during execution is itself a breach.

How AuditPro Core Bridges the Gap

  • Coverage tracking: AuditPro Core flags awards in designated sectors and checks for a local-content declaration on file.
  • Reconciliation: Declared content reconciles against the designated threshold to confirm responsiveness.
  • Exception workflow: Missing or sub-threshold declarations raise a compliance case before payment.
  • Traceability to source: Each flag links to the SBD 6.2 form, the designation and the contract.

Key Takeaways

  • In designated sectors, local content is a pass-fail gate, not a preference.
  • Require verifiable declarations, not just signed forms.
  • Monitor local content through delivery, not only at award.
  • Disqualify sub-threshold bids in designated sectors to avoid irregular awards.

See This on Your Own Data

AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.