Issue Date: 
Monday, January 4, 2016

Central Supplier database versus vendor registration

As you know the Government has launched the Central Supplier Database on 1 September 2015. One of the purposes is "the establishment of a Central Supplier Database (CSD) that will result in one single database to serve as the source of all supplier information for all spheres of government. The purpose of centralising government's supplier database is to reduce duplication of effort and cost for both supplier and government while enabling electronic procurement processes". If you are doing business with the Government or if you intend to do business with Government in the near future, you will have to register on the Central Supplier Database by 1 April 2016.

The question that arises and is often asked is should we as business owners still register as vendors with the different municipalities and government departments that we do business with? The short answer is yes - you will still have to register as a vendor if it is required from the municipality, government entity or government department.

The reason for this is because there is no link between all municipalities, government entities or government departments as yet. However, certain National Departments such as the National Department of Health is linked to the Central Supplier Database. There will be a transitional period from 1 September 2015 to 31 March 2016 when existing supplier databases will be transferred to the Central Supplier Database. Once this has been completed you might be requested to validate your information on the Central Supplier Database.

Therefore we urge you to register your business on the Central Supplier Database as quickly as possible if you want to do business or continue to do business with government in the future. And the process to register is easy anyway.

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Tenders, B-BBEE and the new Preferential Procurement Regulations 2017

We have previously asked: How important is a good B-BBEE status level of contributor in the tender process?

The answer is still the same: VERY IMPORTANT!

In all tender documents, you will find the NEW Standard Bidding Document 6.2 which is used to claim your Preference Points for B-BBEE. The higher your B-BBEE status level of contributor, the more points you will score on the Preference Points System. Ultimately the bidder or bidders scoring the highest points will be awarded the tender.

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