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Total Measured Procurement Spend (TMPS) forms the basis of the calculation measuring an organisation's Preferential Procurement spend. The formula is (A – B = TMPS) broken down as (Not Limited to):

A ) Cost of sales- adjusted for opening and closing stock;

Operating expenses;

Other expenses; and

Capital Expenditure

B ) Salaries, wages, remunerations and emoluments;

Empowerment-related procurement;

Supplier-specific exclusions:

  • Taxes and levies;

  • Imports, providing they meet the criteria;

  • Organ of state / public entity that enjoys a statutory/regulated monopoly in the supply of such goods or services;

  • Pass through third-party procurement;

  • Accounting-related exclusions:

  • Depreciation and amortisation;

  • Fair value adjustments; and

  • Forex transactions.

Enterprise & Supplier Development Services are available to assist members with understanding the TMPS calculation.

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