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.
Betterment and Re-gravelling of Local L1428 in the Amajuba District 2019-06-12 11:00 C253/ 1920/ BR/ 800
Betterment and Re-gravelling of P43 in the Amajuba District. 2019-06-11 11:00 C253/ 1920/ BR/ 815
ZNTD 03846W: WIMS 063754: Kwazulu-Natal: Department of Education: Kranskop: Sibanisethu Primary School: Water and Sanitation: Phase 3 2019-06-20 11:00 ZNTD 03846W
Betterment and Re-gravelling of District Road D89 Ext. in the Amajuba District 2019-06-12 11:00 C253/ 1920/ BR/ 809
Provisioning of Satellite Airtime in support of systems in service in the S.A. Navy. (Bgan, Fleet Broadband & Iridium). 2019-06-19 11:00 SPSC- B- 003- 2019
Re-gravelling of Local Road L3353 in the Amajuba District 2019-06-11 11:00 C253/ 1920/ BR/ 801
RFI - Request for information from industry on the upgrading, repair and commissioning of automotive fuel storage and dispensing facilities for the South African Navy as per Specification: RFI/NES/FUEL/001 dated April 19. 2019-07-17 11:00 RFI- SPSC- 1- 19
Request for acquisition of Online Information Resource Services for a period of two (02) years 2019-06-10 11:00 RFB 1940- 2019
Appointment of a service provider to supply, deliver and assemble office furniture to the Department of Agriculture, Forestry and Fisheries for a period of three (3) years 2019-06-06 11:00 4.4.12.4/ 2/ 19
Appointment of a Suitable Service Provider to Provide Office Accomodation to the MICT Seta Midrand Head Offices for a period of sixty months (5 years), subject to Mict Seta Licence Renewal on 31 March 2020 2019-06-07 11:00 MICT- SETA/ GAU/ 2019
Request for Proposals for appointment of an service provider for security services for a period of five (5) years 2019-06-10 11:00 CMS/ 012019/ 2020
Re- Advertisement: Appointment of a Building Contractor for Refurbushment and Alterations Project of Old Ehc Offices to Retail Space at Pharoe Park Block H 2019-06-18 11:00 EHCCRP/05/19
Request for Proposals for the Construction of Civil and Electrical Infrastructure to Service Agrizone 2 Located at Dube Tradeport DTPC was created as a provincial public entity to develop Dube TradePort 2019-06-17 11:00 DTP/ RFP/ 36/ IFR/ 01/ 2019
The South African Social Security Agency hereby invites of suppliers to bid for the supply and delivery of stationery for SASSA - Limpopo Region for a period of 36 months 2019-06-07 11:00 SASSA: 06/ 1/ CS/ LP
Supply and delivery of sterilisation related items 2019-06-18 11:00 RT28- 2019
Appointment of a Registered Professional Architect to Provide Professional Services at Faith Mlaba Primary School 2019-06-14 11:00 WIMS 064213
Replacement of Radioimmunoassay (RIA) system) for Challotte Maxeke for a period of five (5) years. 2019-06-07 11:00 RFB002/ 19/ 20
Appointment of a Registered Professional Quantity Surveyor to Provide Professional Services at Faith Mlaba Primary School 2019-06-14 11:00 WIMS 064213
Placement of Automated Real time PCR system for Charlotte Maxeke for a period of five years with service and maintenance. 2019-06-07 11:00 RFB207/ 18/ 19
Placement of MagnaPure 24 automated DNA extraction system for NICD for a period of three years. 2019-06-07 11:00 RFB206/ 18/ 19

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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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