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.
Development of a training programme and to train 100 TVET College Lecturers in 9 provinces to offer INSETA qualifications and also lead to certification for College of Insurance 2019-03-12 11:00 ETQA/ 2018/ 11
Appointment of a centralized Marking Centre Services for final external examination scripts (FISA) 2019-03-12 11:00 ETQA/ 2018/ 12
Request to Procure an Integrated Business & IT Service Continuity Solution With Fully Integrated Offsite Data Backup & Protection for a Period of five (5) years. 2019-03-18 11:00 ICASA 01/ 2019
Supply and delivery of Gelport Laparoscopic System and woundprotector/retractor to theatre for laparoscopic surgery for Groote Schuur Hospital over a one (1) year period. 2019-03-15 11:00 GSH: PT95/ 2018
Provision for a service provider to Design, Edit and Print GMA’s Integrated Annual Reports for the 2018/19, 2019/20 and 2020/21 Financial Years 2019-03-08 11:00 GMA/ 008/ 18
Automation of Annual Financial Statements (AFS) For GPG Departments 2019-03-08 11:00 GT/ GPT/ 016/ 2019
Appointment of a service provider to develop, implement and maintain an automated price data collection system for the Gauteng Provincial Government. 2019-03-08 11:00 GT/ GPT/ 015/ 2019
Supply and delivery of disposable prefilled humidifier sterile water bottles for Groote Schuur Hospital over a one (1) year period. 2019-03-15 11:00 GSH: PT52/ 2018
Specification for Automated Supplier Statement Reconciliation System for a Period of Thirty Six (36) Months 2019-03-08 11:00 GT/ GPT/ 013/ 201
Development of Office layout and design, supply and installation of office furniture for the Finance and Accounting Services Sector Education and Training Authority (Fasset) office. 2019-03-08 11:00 FAS/ LT/ SCM/ OFFI_FURNIT/ CON1091
Appointment of the Team of Technical advisors (legal, Financial and Eco-Tourism) to assist with the evaluation of expression of interest proposals 2019-03-15 11:00 EKZNW 14/ 2019
Provisioning of Hosted Digital Voice Communication system ( Voip) 2019-03-18 12:00 KZNLA 09/ 2018/ 19
Terms of Reference to appoint a service provider to conduct research in research organizations as an ETD subsector for the purpose of 2020/21 Sector Skills Plan (SSP) update 2019-03-12 11:00 SCMU: 31 - 2018/ 19
Terms of Reference to appoint a service provider to conduct research in early childhood development as an ETD subsector for the purpose of 2020/21 Sector Skills Plan (SSP) update 2019-03-12 11:00 SCMU: 30 - 2018/ 19
Terms of Reference to appoint a service provider to conduct research in libraries and archives as an ETD subsector for the purpose of 2020/21 Sector Skills Plan (SSP) update 2019-03-12 11:00 SCMU: 32 - 2018/ 19
Terms of Reference for the appointment of a service provider to supply ETDP SETA with servers for its provincial offices 2019-03-11 11:00 SCMU: 28 - 2018/ 19
Appointment of Panel of Legal services providers for a period of three (03) years. 2019-03-18 12:00 KZNLA 08/ 2018/ 19
DTPC hereby invites proposals from suitably experienced and competent service providers to provide leased managed printing services for a period of three (3) years. 2019-03-11 11:00 DTP/ RFP/ 27/ CEO/ 10/ 2018
Bids for manufacturing, branding, supply and delivery of groundBREAKER[Gb] Gear for New LoveLife Trust 2019-03-06 12:00 LL2019/006
DTPC requires the services of a suitably qualified service provider to provide the design, supply, maintenance and support for a period of three (3) years 2019-03-11 11:00 DTP/ RFP/ 33/ CEO/ 11/ 2018

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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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