Issue Date: 
Tuesday, July 19, 2016

Evaluation of Technical criteria according to the Draft Regulations

All Government Tenders in South Africa are evaluated on Technical criteria (also known as Functionality) before it is evaluated on Price and B-BBEE. The current Preferential Procurement Regulations of 2011 does not address this matter specifically however, this has been changed by the new Draft Preferential Procurement Regulations of 2016.

According to the Draft Preferential Procurement Regulations 2016, paragraph 4, it states the following:

  1. An Organ of State (or company requesting tenders) must indicate in the tender documents if the applicant will be evaluated on functionality.
  2. The evaluation criteria for measuring functionality must be objective.
  3. When evaluating a tender on functionality, the tender documents must specify –
    • The evaluation criteria for measuring functionality;
    • The points for each criteria and, if any, each sub-criteria; and
    • The minimum qualifying score for functionality.
  4. The minimum qualifying score for functionality for a tender to be considered further–
    • May not be generic;
    • Must be determined separately for each tender; and
    • May not be–
      • Low that it may jeopardise the quality of the required goods or services; or
      • High that it is unreasonable restrictive.
  5. A tender that fails to obtain the minimum qualifying score for functionality as indicted in the tender documents is not an acceptable tender.
  6. Each tender that obtains the minimum qualifying score for functionality must be evaluated further in terms of price and then the preference point systems.

This is very good news. If these Regulations are implemented it is going to make tenders much more transparent because currently it can be a struggle to determine how many points one can score on specific functionality criteria.

We are eagerly awaiting the final amended Regulations and as soon as it has been gazetted we will report on all the changes that will have an effect on your tender responses.

 Visit to find out more about tendering.

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When Must I Sub-Contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

The Draft Preferential Procurement Regulations stipulates the following: 

  1. For contracts above R30 million, the tenderer MUST sub-contract a minimum of 30% of the value of the... Read More
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