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.
Paediatric Negative Pressure Chest Drainage Bag Xl200 -With A Collection Chamber Of 400ml & A Compact Hanger. Must Have Accurate Volume Measurement, A Large Diameter Drainage Tap, A Needle Free Sampling Port. 2018-08-28 11:00 ZNQ NO.1861/ 07/ 18
Placement or Outright purchase of an automated scanning and imaging system for Cytogentics and Fish Diagnostic tests 2018-09-11 11:00 RFB 0088/ 17/ 18
Brother Printer Drum Unit. Dr3215 (Original Only) 2018-08-28 11:00 ZNQ NO.2145/ 07/ 18
Provision of panel of auditors nationally to the NHLS for a period of three (3) years. 2018-09-11 11:00 RFB 073/ 18/ 19
Appointment of a service provider to supply and erect trellis system for Coboop Irrigation Project, situated under Khai-Ma Local Municipality in the Namakwa District, Northern Cape Province 2018-09-07 11:00 5/ 2/ 2/ 1 NC RDLR- 0003(2018/ 2019)
Extremity Drape - Size 220cm X 320cm, Spunbond Drape With Laminated Spun Bond Under Leg Area To Ensure Impervious Nature, Integrated Velcro Cable Holders, Loose Non-Slip Pad Included, Sterile, Single Packed, With Expiry & Package Date, Latex Free, Water Proof. 2018-08-28 11:00 ZNQ NO.1845/ 07/ 18
Placement or Outright purchase of Point of Care Troponin Analyser in Kwazulu Natal region for a period of (3) three years 2018-09-10 11:00 RFB 068/ 18/ 19
Sterile Needles for Injection 30g 1/2 “ 0.3 X 13mm 2018-08-28 11:00 ZNQ NO.1814/ 07/ 18
Placement or Outright purchase of Automated Glass Coverslipper for Universitas for a period of (3) three years 2018-09-11 11:00 RFB 072/ 18/ 19
Spring Loaded Biopsy Needle, 14g X 20cm W 2018-08-28 11:00 ZNQ NO.1821/ 07/ 18
Hard, Plastic, Blue Scissor Clamps with Locking Ability for Clamping Lines 2018-08-28 11:00 ZNQ NO.1820/ 07/ 18
The Gauteng Department of Health invites of proposal from qualified medical doctors to perform Voluntary Medical Circumcision (VMMC) service as will be determined by the Department for a period of Three (3) years. 2018-08-31 11:00 GT/ GDH/ 099/ 2018
Supply: 300 units - Cannula manual vacuum aspiration size: 6mm; 250 units - Cannula manual vacuum aspiration size: 7mm; 100 units - Cannula Manual vacuum aspiration size: 8mm; 50 units - Syringe manual and vacuum aspiration double valve autoclavable to 121 degrees celsius 2018-08-29 11:00 356/ 18
Disposable Endoscopic Bite Blocks, 2cm Opening In Diameter & 48 French Depth, with Side Holes for Suctioning, Head Strap Inclusive. 2018-08-28 11:00 ZNQ NO.1819/ 07/ 18
Bid for the supply and delivery of pet bottles used for sugar and salt solution to assist with alleviating diarrhoea. These bottles to be supplied and delivered to various sub-structures and districts under the control of The Department of Health: Western Cape Government for a two year period. 2018-09-14 11:00 WCGHCC033/ 2018
Arterial Line Single Transducer Dtx Plus 2018-08-28 11:00 ZNQ NO.1786/ 07/ 18
Ultra Sound Assisted Liposuction Machine with an Infiltration Pump with a Variety Of Sizes Of Infiltration and Suction Cannulas. 2018-08-28 11:00 ZNQ NO.1659/ 06/ 17
Supply 3000 Units - Nebulizer Oxygen mask for peads 2018-08-29 11:00 ZNQ 318/ 18
Supply: Swabs gauze 100 X 100MM X 8Ply - non-sterile (200 PKTS X 6 months) 2018-08-24 11:00 ZNQ 435/ 18
Locking Pigtail Drain Sets - 8fr 10fr & 12fr - 25cm. 2018-08-28 11:00 ZNQ NO.1542/ 06/ 18

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In Australia, for example, government procurement guidelines only allow suppliers who actually tender to be considered for a procurement decision. If the leading supplier or suppliers do not tender, the purchaser can only consider bids from suppliers who do tender. If leading suppliers are not considered, the purchaser may end up buying inferior product or service... Read More

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