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.
Biopsy Instrument Co-Axial. 18g X 15cm Or 18g X 10cm; 18g X 9cm, 16g X 15cm,16g X 9cm Or 16g X 10cm; 14g X 9cm. 2018-08-28 11:00 ZNQ NO.139/ 04/ 18
Supply double action floor spring for timber doors. BTS 60, SS cover plate, dust cover, spindle, bottom strap, top centre, max door width: 1000mm, max door weight 80kg, hydraulic speed control. Hold open only. Components: BTS 60. Ss cover plate, dust cover, spindle, bottom strap, top centre. (to view sample at workshop - Mr. C. Fenner) (provide sample) specification will be attached. Quantity: 4 sets of double door springs 2018-08-28 11:00 ZNQ NO.2220/ 07/ 18
Appointment of a service provider to supply and deliver bee hives, super chambers, bee hive stands and bee colonies for Oranje Kalahari Bye Boerdery Pty (Ltd) project in the Dawid Kruiper Local Municipality, ZF Mgcawu District within the Northern Cape Province 2018-09-07 11:00 5/ 2/ 2/ 1 NC RDLR- 0004(2018/ 2019)
Supply & install 150MM flanged key gate valves in manholes. 2018-08-28 11:00 ZNQ NO.2219/ 07/ 18
Repairs to skywalk between nursing college & doctors quarters as per spec. 2018-08-28 11:00 ZNQ NO.2229/ 07/ 18
Supply Nitinol (Mandril) guide wire: 60cm .018” quantity: 50 units 2018-08-28 11:00 ZNQ NO.1898/ 07/ 18
Supply Brother toner cartridges tn3290 (original only) 6 month contract. (Toners to be delivered monthly in batches of 10 units.) = 60 UNITS 2018-08-28 11:00 ZNQ NO.2147/ 07/ 18
Supply, Delivery, Installation and commissioning of ICP-MS instrument 2018-09-17 12:00 MTK 08/ 2018
Long Term, Retrograde Catheters Double Lumen - 31cm’s 2018-08-28 11:00 ZNQ NO.1773/ 07/ 18
Intra Osseous Needle 15g X 30mm X 10 Units. 2018-08-30 11:00 ZNB 26/ 2018- 2019
Appointment of a service provider for the supply of Office Furniture at the Independent Communications Authority Head Office (Centurion) for a period 80/20 PPPFA 2000, Preferential Procurement Regulation: 2017. 2018-08-27 11:00 ICASA 23/ 2018
Appointment of a professional service provider for the provision of the Internet Service Provider (ISP) for the duration of 36 months for Water Research Commission. 2018-09-07 11:00 WRC- 005- 18/ 19
Fully Equiped Emergency Trolley with Rescuscitation Board, Drawers, Side Racks, Drip Stand and Defibrillator Stand (Paeds and Adults) x 02 2018-08-24 11:00 ZNQ 111 2018/ 19
The Procurement of a Level Two Field Hospital as per African Union (AU) and United Nations (UN) Standards for the South African Military Health Services. 2018-09-17 11:00 CPSC- B- M- 086- 2017RR
R/M32/2018: 4(four) x roller: vibr. pedestrian: 900kg (3E) 2018-09-18 11:00 S081/ 18
R/M43/2018: 14 (fourteen) x breaker: paving engine: standard 2018-09-18 11:00 S082/ 18
Appointment of two National Accounts Consultants to assist Statistics South Africa (Stats SA) with the rebasing and benchmarking of Gross Domestic Product (GDP) and the updating of the Supply and Use Tables (SUT’S). 2018-08-31 11:00 Stats SA 001/ 18
Provision of Travel Management Services in SIU for a period of 36 months. 2018-09-11 11:00 RFP: 030/ 08/ 2018
R/M36/2018: 8 (eight) x trailer: water: <1000l 2018-09-18 11:00 S080/ 18
Appointment a professional service provider to develop a concept document to assist PSiRA to establish a private security industry guarantee fund and perform an actuarial service to establish viability of the fund for The Private Security Industry Regulatory Authority (PSiRA) for a period of 8 months 2018-09-18 11:00 RFB/ 2018/ PSiRA/ 05

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