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.
Request for Proposals for the Appointment of a Panel of Attorneys who will Render Specialised Legal Services to SALGA for a Period of 36 x Months 2019-03-20 11:00 SALGA/ 75/ 2019
Provision of Insurance services to the RTMC for a period of 9 months with an option to extend for another 3 months 2019-03-18 11:00 RTMC BID 22/ 2018/ 19
Provision of Driver Simulators to The RTMC 2019-03-12 11:00 RTMC BID 21/ 2018/ 19
The RAF invites proposals from Assessor (s) suitably qualified and experienced to perform investigative services on behalf of the Road Accident Fund, within a prescribed time frame to meet the service delivery standards of the RAF. 2019-03-19 11:00 RAF/ 2019/ 00005
The Road Accident Fund (RAF) seeks to appoint a security and OHS systems services provider to render services, repairs and maintenance of RAF electronics and Occupational Health and Safety (OHS) security systems at Menlyn Regional Office and its Customer Service Centers (CSC’s) for a period of five (5) years 2019-03-20 11:00 RAF/ 2019/ 00006
Appointment of a corporate governance panel for the National Lotteries Commission for a period three (3) years 2019-03-19 11:00 NLC/ 2019- 1
The provision of Learnership Programme for the National Energy Regulator of South Africa (NERSA) for the period of two (2) years 2019-03-07 11:00 NERSA/ 1819/ HRD/ FLP/ BID007
Appointment of a service provider for Project CoE 180601, “Develop A Feasible Methodology for Real - Time Personal Monitoring and Measurement of Respirable Dust” 2019-03-18 11:00 MHSC022/ 2018- 19
Appointment of a service provider for Project CoE 180701, “Review the Current SAMI Noise Exposure Limit and Conduct a Study on Vibration OEL in Relation to SAMI” 2019-03-18 11:00 MHSC021/ 2018- 19
Appointment of a service provider for Project CoE 180901, “Development of a Framework for Employees to Effectively Manage Contractors to Improve Occupational Health and Safety (OHS) Performance in the South African Mining Industry (SAMI)” 2019-03-18 11:00 MHSC020/ 2018- 19
Appointment of a service provider for Project CoE 180902, “Develop Occupational Health and Safety (OHS) Risk Management Guidelines for The South African Mining Industry (SAMI)” 2019-03-18 11:00 MHSC019/ 2018- 19
Appointment of a service provider for Project CoE 180603, “Assess Feasibility of Utilising Exhaled Breath Screening as an Accurate and Reliable Alternative to Blood Sample Analysis as a Method to Indicate Over Exposure to Carbon Monoxide (co)” 2019-03-18 11:00 MHSC018/ 2018- 19
Evaluation of the merSETA Retrenchment Assistance Programme 2019-03-07 12:00 RFP017/ 2018
LGSETA want to appoint a service provider to Develop Learning Material for Municipal Property Assessor qualification (SAQA ID 99700) 2019-03-08 12:00 LGSETA/ PROPERTYASSE/ 18/ 19/ 16
LGSETA want to appoint a service provider to Develop of Learning Material and Recognition of Prior Learning (RPL) toolkit for Environmental Science Technician (SAQA ID 99508) 2019-03-08 12:00 LGSETA/ ENVIRONMENTAL/ 18/ 19/ 15
Placement/Outright Purchasing and Maintenance of Liquid Handling System for a Period of Five (5) years at Groote Schuur Hospital 2019-03-11 11:00 RFB 096/ 18/ 19
LGSETA want to appoint a service provider to Develop learning material and Recognition of Prior Learning (RPL) Toolkit for Municipal Property Assessor qualification (SAQA id 99700 2019-03-08 12:00 LGSETA/ PROPERTYRPL/ 18/ 19/ 17
Terms of Reference for the Appointment of a Suitable External Audit Firm to Perform The External Audit on the Annual Financial Statements for the 2015, 2016, 2017 And 2018 Financial Years For Kwazulu Natal Community Education And Training College 2019-03-18 11:00 CET- KZN10
The provision of alternating pressure relieving mattress (60 per day-30 to general wards and 30 to ICU) on a rental basis over a thirty six (36) month period, to Groote Schuur Hospital. With an option to extend the contract by an additional twelve (12) months. 2019-03-15 11:00 GSHPT26/ 2018
Development of a Bank of Assessment Instruments, Model Answers and Compilation of Suitable External Examination Question Papers and Model Answers on Short-Term, Risk, Long-Term and Health Insurance Qualifications 2019-03-12 11:00 ETQA/ 2018/ 10

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The 8 steps in the Tender Adjudication process

By W van Rooyen

www.howtotender.co.za

31 January 2019

It is important to understand the Adjudication process when one responds to a Tender or Request for Proposal. If you have these 8 steps under control when responding to tenders, changes are good that you will proceed to the next round.

Here are 8 steps in the adjudication process that Organs of State will most often follow in determining which bidder will win the tender:

  1. Opening... Read More
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