Issue Date: 
Tuesday, July 31, 2018

3 Sub-contracting rules to be aware of when responding to tenders

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting, due in large part to The Preferential Procurement Regulations, 2017 that has been implemented on the 1st of April 2017. Many entrepreneurs ask us whether they should sub-contract or not, in responding to a tender and how and where do they get onto the sub-contracting lists.

There are 3 sub-contracting rules in the Preferential Procurement Regulations 2017 that Organs of State can/must apply when issuing tenders to the general public.

The first Regulation is Regulation 4 which state inter alia: if an Organ of State decides to apply pre-qualification criteria to advance certain designated groups that Organ of State must ADVERTISE the tender with a specific tendering condition that certain bidders can or may respond.

The second Regulation is Regulation 9 which state inter alia: if it is feasible to sub-contract for a contract above R30 million, an Organ of State must apply sub-contracting to advance designated groups.

The designate groups mentioned in both Regulation 4 and 9 are Black Owned Enterprises with 51% or more black ownership and any of female Black owned, youth black owned, black people with disabilities owned or black military veterans owned enterprises.

The third sub-contracting rule has to do with sub-contracting after the award of the tender. Regulation 12 states inter alia: (3) a person awarded a contract may not subcontract more than 25% of the value of the contract to any other enterprise that does not have an equal or higher B-BBEE status level of contributor than the person concerned, unless the contract is subcontracted to an EME that has the capability and ability to execute the subcontract.

The tender document will dictate how you should or should not sub-contract. Read the tender document carefully; follow the instructions precisely and to the point. Organs of State are applying these Regulations rigorously and failing to comply will lead to your tender response being disqualified.

Tender trends and Regulations are changing frequently. To keep up to date with these changes we recommend attending one of our How-to-Tender workshops that are presented across South Africa. Tender Workshop dates are published on our website at www.how2tender.com or for more information on the How-to-Tender workshops please email us at werner@how2tender.com

This article was written by Werner van Rooyen, Director of HowToTender which specializes in tender consulting and tender training.

Title Closing Date Tender No.
Supply of Red Hat Enterprise Linux Maintenance and Support for thirty six (36) months. 2018-09-06 11:00 RFB 1781/ 2018
Supply Plumbing tools (specification will be available on request) 2018-08-24 11:00 ZNQ 095 2018/ 19
The appointment of a panel to supply ICT hardware 2018-09-06 12:00 RFP013/ 2018
Supply Plumbing materials (specification will be available on request) 2018-08-24 11:00 ZNQ 096 2018/ 19
Lease of the cottage with a portion of municipal land (±1. 7138 ha) situated on a remainder of portion 13 of the Farm Long Valley No.15, Dassieshoek, Robertson 2018-09-14 12:00 48/ 2018
Request for the provision of services to department of planning, monitoring and evaluation (DPME) to support, maintain and enhance the web-enabled local government management improvement model (LGMIM) assessment tool and technical/content advisory services for a period of 12 months with the option to extend the contract for an additional 24 months. 2018-09-07 11:00 RFB 1785/ 2018
Alienation of various available erven 2018-09-14 12:00 49 /2018
Tenders are hereby invited for the Supply, Delivery, Installation and maintenance of Photocopier machines for a 5 Year Operational Lease and Maintenance Agreement. 2018-09-07 11:00 Tender 3/ 2018 (PUR 401/ 9)
Supply , Deliver and Offload Protective Clothing for Land Care. 2018-09-06 11:00 ZNB 4266/ 18A
Supply of Equipment and Software (Shipment and Delivery), Equipment Installation, Configuration, VM Migration and Project Management and 5-year Support and Maintenance. 2018-09-07 11:00 SCMU3- 18/ 19- 0121- HO
Supply, delivery , Offload and installation of Two Center Pivot for Hlubi project at Alfred Duma (Ladysmith) Uthukela District. 2018-09-06 11:00 ZNB 4270/ 18A
Phototherapy (Puva)/ Narrow Band UVB 2018-08-28 11:00 ZNQ NO.5882/ 04/ 18
Slimroll Hand Towel Sheet Size 200mm X 155m to Fit Kimberley Clark Slimroll Hand Dispensers. 2018-08-28 11:00 ZNQ NO.5565/ 03/ 18
Supply, delivery, Offload and installation of Irrigation at Block 1 Mbonwa Irrigation scheme at Umuziwabantu Local Office Ugu District. 2018-09-06 11:00 ZNB 4269/ 18A
Portable Rebound Tonometer 2018-08-28 11:00 ZNQ NO.2303/ 07/ 18
Appointment of a service provider for the Landcare alien weeds and bankrupt bush control projects. 2018-09-07 11:00 GT/ GDARD/ 114/ 2018
Heat & Moisture Exchanger for Attachment to a 15mm Connector, with Oxygen Supply Port 2018-08-28 11:00 ZNQ NO.2148/ 07/ 18
Supply Paper photocopy white bond 80GSM A4 X 3000 reams 2018-08-24 11:00 ZNQ 436/ 18
A Simple System for Accurate Intra Abdominal Pressure Monitoring In Criticallly Ill Patients. 2018-08-28 11:00 ZNQ NO.1863/ 07/ 18
Supply and delivery of frozen chicken products and frozen fish products to the Red Cross War Memorial Children’s Hospital for two years (24 month) contract period with an option to extend the contract for a further 1 year (twelve months) based on performance. 2018-09-14 11:00 RCCH04/ 2018

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