(1) A procuring institution must develop and implement a procurement policy providing for—
(a) categories of preference in the allocation of contracts; and
(b) the protection or advancement of persons, or categories of persons, disadvantaged by unfair discrimination, envisaged in section 217(2) and (3) of the Constitution, in accordance with the objects of this Act, the framework in this Chapter and regulations made in terms of this Act.
(2) The procurement policy of a procuring institution, referred to in subsection (1), must provide for—
(a) setting aside bids in accordance with section 17; and
(b) if setting aside in accordance with section 17 is not possible, pre-qualification in accordance with section 18.
(3) If procurement in accordance with section 17, 18 or 19 is not possible, the procuring institution must record and report the reasons to the Public Procurement Office and the relevant treasury in the prescribed manner.
(4)(a) The threshold prescribed for section 18(1) must be higher than the threshold prescribed for section 17(1).
(b) The threshold prescribed for section 19(1) must be higher than the threshold prescribed for section 18(1).
(5) A bid subject to this Chapter must in addition to the applicable provisions of this Chapter, be evaluated in terms of the criteria envisaged in section 24(1)(d).
(6) Any procurement in terms of this Act must comply with a designation for local production and content in terms of section 20, if applicable.