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.
The appointment of a service provider to provide the National Energy Regulator of South Africa (NERSA) with Online Legal Publications for a period of three (3) years. 2019-06-06 11:00 NERSA/ 1920/ IRM/ OLP/ BID/ 003
Service provider to provide comprehensive travel management service 2019-06-03 11:00 ZNT19/ 20KZNSB01
Appointment of a Panel of Service Providers to Provide Quality Learning for MHSC Employees for a Period of One Year (01) 2019-06-19 11:00 MHSC009/ 2019- 20
ZNTD 03966W: WIMS 064110: Kwazulu-Natal: Department of Education: Hillcrest: Thabela High School: Water and Sanitation: Phase 3. 2019-06-21 11:00 ZNTD 03966W
Provision of Support and Maintenance of the electronic Legal Aid Administration System at Legal Aid South Africa National Office for a period of twelve (12) months. 2019-06-18 11:00 06/ 2019
iSimangaliso Wetland Park Authority invites suitable, qualified and competent legal firms to send requests for proposal to be considered as part of a panel of attorneys to provide legal services to iSimangaliso Wetland Park Authority 2019-06-07 16:00 RFP NUMBER: 03/ 2019
ZNTD 03878W: WIMS 063900: Kwazulu-Natal: Department of Education: Stanger: Tshelabantu Primary School: Water and Sanitation: Phase 3 2019-06-20 11:00 ZNTD 03878W
Re- Advertisement: Appointment of a Professional Service Providers for the Supply, Installation and Connection of Heat Pumps for 112 Units at Delville Ext 9 2019-06-19 11:00 EHCHPD/05/19
Provision of office accommodation for the ECRDA 2019-06-07 11:00 SCMU 02 – 2019/20:
Request for Proposals for the Provision of Ad Hoc Engineering Services for Dube Tradeport Corporation for a Period of 3 years 2019-06-10 11:00 DTP/ RFP/ 32/ IFR/ 11/ 2018
Appointment of a Service Provider for the Provision of Technical Support and Monitoring of Integrated Public Transport Network in 13 Municipalities over a Period of 36 Months 2019-06-07 11:00 DOT/ 01/ 2019/ PT
Conducting research on pharmaceutical pricing policies 2019-06-07 12:00 DPME 09/ 2019- 20
Fly-Trhough / Visual Rendering In Support of the Ndp 5 Year Implementation Plan 2019-05-31 12:00 DPME 08/ 2019- 20
The Department of Local Government (DLG) requires a Service Provider to provide the Municipal Minimum Competency (MMC) Training programme to identified officials. 2019-06-18 11:00 LG 02/ 2019/ 2020
Appointment of a service provider to provide employee wellness services to the Department of Home Affairs officials across all provinces, including Head Office for a period of two (2) years and eight (8) months 2019-06-07 11:00 DHA04- 2019
Terms of Reference for the Appointment of a Suitable Service Provider to Develop Monitoring and Evaluation Framework, and Evaluation Plan and Conduct The Mid-Term and Summative Evaluation for National Open Learning Project (Nols) by the Department of Higher Education and Training 2019-06-21 11:00 DHET124
The Appointment of a Service Provider to Provide an E-Legislation Portal on the Department’s Website for a period of 3 (three) years 2019-06-07 11:00 E 1513
Request To Bid for ANSYS Technical Support (TECS) Contract for ANSYS Commercial Software on Behalf of Department of Defence (Dod) SA Navy Engineering Services (NES) for a period of three (3) years. 2019-06-05 11:00 RFB 1939/ 2019
Request for Proposals for appointment of an service provider for short term insurance for a period of five (5) years 2019-06-10 11:00 CMS/ 022019/ 2020
Request for Proposals for appointment of an Editorial Consultant for a period of three (3) years 2019-06-18 11:00 CMS/ 032019/ 2020

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Extension of validity period

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Those of you who are familiar with responding to tenders will know that it is common practice for procuring entities to extend the bid price validity period. We received the undermentioned queries regarding the extension of the validity period of the bid price.

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