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.
Storage (SAN) Capacity Upgrade 2019-03-11 11:00 IEC/ ICT- 01/ 2019
Appointment of a Service Provider to Supply and Deliver 4 Diesel Containers for Stellenbosch Farmers Production Support Unit (Fpsu) in the Cape Winelands District Municipality, Western Cape Province. 2019-02-22 11:00 SSC WC Q23 (2018/ 2019) DRDLR
Request to supply, install and configure firewalls solution for the Limpopo Department of Health with maintenance and support for period of twelve (12) months. 2019-03-08 11:00 RFB 1887/ 2017
Appointment of a capable service provider to deliver and install outdoor gym equipment and advertising boards on behalf of the Department of Sport and Recreation South Africa to 10 municipalities in all 9 provinces for a period of three years. 2019-03-15 11:00 SRSA 004/ 2018- 19
The appointment of a service provider (s) to supply medication and medical consumables on an as and when required basis over a period of three years. 2019-03-19 11:00 PU059/ 2018
Appointment of a Service Provider to Implement The Greenhouse Project Through Construction of 4 X 3m X 30 M Greenhouses for the Atlantis Agricultural Project Situated in the City of Cape Town Local Municipality, Cape Metropolitan District in the Western Cape Province 2019-03-01 11:00 SSC WC 31 (2018/ 2019) DRDLR
Procurement of Class II B2 biological safety cabinets and fume hoods including delivery, installation, commissioning, testing, and training. 2019-03-08 11:00 NMISA (18- 19) T0023
Professional Services to Conduct and Document a Feasibility Study on Truck Stops and their Location in Gauteng 2019-03-15 11:15 DRT 10/ 06/ 2018
Professional Services: Beitbridge: Land Ports Of Entry: Appointment of a Service Provider for the Maintenance and Repairs of Building, Civil, Mechanical, Electrical Infrastructure and Installations for a Period Of 36 Months 2019-03-15 11:00 H 18/ 048 AI
Procurement of a high accuracy manual lathe. 2019-03-08 11:00 NMISA (18- 19) T0026
Appointment of a service provider for a study to determine foods and drinks consumed by various LSM groups in South Africans and to understand factors influencing their intake 2019-03-08 11:00 NDOH 45/ 2018- 2019
Procurement of three-dimensional powder bed fusion metal printer including delivery, commissioning and training. 2019-03-08 11:00 NMISA (18- 19) T0024
Appointment of a service provider for the supply,installation and maintenance of X-Ray machines for a period of 36 Months at Civitas Building NDOH 2019-03-08 11:00 NDOH 44/ 2018- 2019
Procurement of Electrical Grinder Machine to Macerate Shark Carcasses. 2019-02-28 11:00 ZNT18/ 19KZNSB03
Appointment of a service provider for the upgrading of network infrastructure for security system at Civitas Building in the National Department of Health 2019-03-08 11:00 NDOH 43/ 2018- 2019
Envelopes Disputed Ballots B5 (Marked); Envelopes Disputed Ballots C5 (Unmarked) 2019-03-08 11:00 0010399217
Appointment of a service provider for medical screening and surveillance program for the National Department of Health for a period of three (3) years 2019-03-08 11:00 NDOH 42/ 2018- 2019
Ballot boxes 2019-03-08 11:00 10398761
Appointment of a Service Provider to Assist the Department of Environmental Affairs (Dea) With Conducting a Critical Evaluation of Air Quality Management Capacity Development and Suport Programmes for a period of 12 months 2019-03-08 11:00 E1499
To Appoint A Law Firm To Provide Legal Services In Corporate Commercial Law And Related Litigation For Emfuleni Local Municipality 2019-03-08 11:00 COGTA 4/ 2/ 2- 2018/ RFP/ 01

Pages

Tender Site Visits

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

If you are so fortunate to have reached the stage where Organs of State or Private Sector Companies want to do a site visit, you must know that you are in the final stage in winning that tender that you have responded to.

But what must you do to prepare for a site visit?

The first thing is to ensure that your place of business is in excellent order. Be sure everything is clean and neat. A clean workshop or office is a pre-... Read More

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