Issue Date: 
Monday, August 24, 2015

Code of Good Practice is causing confusion

The government is committed to break the barriers that have been hindering small companies from winning tenders. One of the biggest challenges for small companies was the red tape that often would hinder their tender success.

The amended broad-based BEE Code of Good Practice came into effect on 1 May 2015. It aims to have more small businesses classified as micro-enterprises. It also aims to remove the onus for small, black-owned businesses to go through the BEE audit process. One of the major changes to the Code of Good Practice is that, companies' BEE recognition levels have been boosted to improve opportunities for them in tender bidding.

Previously, level-one Broad-Based Black Economic Empowerment (B-BBEE) status was not being recognised on the procurement system if a company was using an affidavit as proof of company's turnover and ownership. The broad-based BEE codes also classified a company as an Exempt Micro-Enterprise (EME) only when their turnover was less than R5 million.

The newly amended codes have now increased the turnover threshold for micro-enterprises to R10 million. The amended codes also remove the need for a company to obtain an auditor's letter or a certificate from a verification agency. Instead, a black-owned micro-enterprise can provide a sworn affidavit attesting to its turnover and ownership to qualify for EME status.

What do the amendments mean?

These amendments mean more companies, which have a net turnover between the stipulated ranges, can now bid for tenders without having to produce a B-BBEE certificate. This is what most small companies have been struggling with as they were not scoring enough points due to the absence of such B-BBEE certification.

However, the newly amended Code of Good Practice seems not to align with the Preferential Procurement Policy Framework Act. This Act is strictly followed by many tender-issuing organizations. This has caused a lot of confusion and frustration.

According to reports, the new EME requirements are leading certain departments to be more cautious about taking on new suppliers. They believe that the more lenient requirement of just an affidavit makes fraud or fronting prone and easy. Importantly, small companies must be warned that even when they have a sworn affidavit, some companies may require more paperwork as additional proof.

Companies claiming to be 100% black-owned now may be vigorously scrutinized as many tender-issuing organizations fear the risk of fronting. These risks could have very negative effects, especially if we take into account the steep penalties for fronting in the B-BBEE Amendment Act. This can make the organization itself to be found guilty of 'fronting' if the necessary measures are not put in place to weed out the potential fronting practices by its suppliers.

The government is doing its best to enable small and medium businesses to get a slice of the cake. However, don't rely too much on their efforts as it can happen that they forgot to tie the loose ends. Be proactive and make sure you've got your ducks in a row.

Title Closing Date Tender No.
Supply: 10/0 nylon 3/8 circle needle 6.4200 micron black monofilament non absorbable double arm premium spatula 30cm 2017-10-03 11:00 ZNQ No.2377/ 08/ 17
Arceole sf 6 hexafluorvre desoufre 30mls set for infusion & ophthalmic gas ref. SF6 2017-10-03 11:00 ZNQ No.2375/ 08/ 17
Chin tuck against resistance (CTAR) ball - inflatable rubber ball, 12cm diameter 2017-10-03 11:00 ZNQ No.2344/ 08/ 17
Suture 8/0 vicryl violet braided suture 3/8 circle spatula double needle 2017-10-03 11:00 ZNQ No.2374/ 08/ 17
Irrigation / aspiration cannulae(simcoe) 60mm /60mm (23ga) 0.3mm aspiration port 2017-10-03 11:00 ZNQ No.2376/ 08/ 17
Cystofix supra pubic catheter size 5fr 2017-10-03 11:00 ZNQ No.2372/ 08/ 17
A Nipple protector / shield made from odourless ultra fine silicone 2017-10-03 11:00 ZNQ No.2343/ 08/ 17
Syringe irrigation urethral 4oz bulb syringe sterile 60ml. 2017-10-03 11:00 ZNQ No.1993/ 07/ 17
Fetoscopes plastic (as per spec) 2017-10-03 11:00 ZNQ No.1961/ 07/ 17
Clear adhesive dressing sterile 55cm x 45cm. 2017-10-03 11:00 ZNQ No.1717/ 07/ 17
Baby bottle 0-3 months 160ml peristaltic nipple to encourange natural tongue movement and imitate natural sucking, wide based nipple to help baby open mouth widely , nipple must be be from ultra- soft silicone with double thickness- allows softness and elasticity matt surface nipple reduces stickiness and stops baby’s mouth slipping, nipple hole must be small, bottle must be BPA free and made of polypropylene 2017-10-03 11:00 ZNQ No.2107/ 07/ 17
Nicu premature pacifier (34-3 months) no flavour, it must provide a superb fit for new babies and babies over 34weeks gestation during their hospital stay, it must be designed to accommodate cpap tubing, mechanical ventilation or tube feeding the pacifier must not manufactured with BPA, DEHP or natural rubber latex , it must be able to be sterilized BPA free made of medical grade silicone and made as one piece construction 2017-10-03 11:00 ZNQ No.2108/ 07/ 17
sterilisation wrap 137cm x 137cm dual colour sterilization wrap, disposable non- woven polypropylene, altex free does not contain deph, two sheets C6 34. 78g/m2 thermally sealed on two opposite edges melting point of 150degree antistatic properties. Microbial barrier 2017-10-03 11:00 ZNQ No.2170/ 08/ 17
PTA dilatation balloon 8mm x 4cm, & 10mmx4cm 80-140cm delivery length 2017-10-03 11:00 ZNQ No.2151/ 08/ 17
Supply: Nicu premature pacifier(30-34 weeks) no flavour, it must provide a superb fit for growing preemies 30-34weeks gestation or smaller term babies during their hospital stay, it must be designed to accommodate cpap tubing, mechanical ventilation or tube feeding the pacifier must not manufactured with BPA, DEHP or natural rubber latex , it must be able to be sterilized BPA free made of medical grade silicone and made as one piece construction 2017-10-03 11:00 ZNQ No.2109/ 07/ 17
Supply: Pulmocath mucus extractor with funnel shaped adaptor at the proximal round of the end of the suction tube for simple and secure connection 2017-10-03 11:00 ZNQ No.2101/ 08/ 17
Supply: XL 1000 chest drainage kit not under water, no suction control 2017-10-03 11:00 ZNQ No.2008/ 07/ 17
Endo tracheal tube size 3cm soft and pliable blue ivory non cuffed latex free 2017-10-03 11:00 ZNQ No.2100/ 08/ 17
Norco rainbow- therapeutic putty, medium ref 454g 2017-10-03 11:00 ZNQ No.2027/ 07/ 17
Mobiderm pad, cubes 15mmx15mm for mobilization of subcutaneous tissue 2017-10-03 11:00 ZNQ No.2028/ 07/ 17

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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