Issue Date: 
Thursday, October 31, 2019

Is it compulsory to sub-contract part of the tender?

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

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 which came into effect on 1 April 2017.  Many entrepreneurs ask us whether they should sub-contract or not, when responding to a tender.

Regulation 9 of The Preferential Procurement Regulations 2017, stipulates the following:

  1. 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.
  2.  The Organ of State must advertise this specific tender condition that the successful bidder must sub-contract at a minimum of 30% (of the value of the contract) to (one or more) to an EME or QSE which is at least 51% owned by:
    1. black people;
    2. black people who are youth;
    3. black people who are women;
    4. black people with disabilities;
    5. black people living in rural or under develop areas or townships;
    6. black people who are military veterans;
    7. A cooperative which is at least 51% owned by black people;
  3. In paragraph 3 of Regulation 9 it also states that the Organ of State must make available the list of all suppliers registered on a database approved by the National Treasury to provide the required goods or services in respect of the applicable designated groups mentioned above from which the bidder must select a supplier.

Regulation 9 is very clear because its states “the tenderer MUST sub-contract…” Thus, according to the Regulations all contracts with a value of R30 million and above will have to comply with this Regulation.  Read the tender document carefully because somewhere in the tender document it will stipulate whether the bidder will have to sub-contract.  Follow those rules.  If the tender document does not contain any sub-contracting instructions, then it is not necessary to sub-contract.

The fact is that the tender document will dictate what you should or should not do.  Read the tender document carefully, follow the instructions precisely and to the point.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Terms of Reference to Request for Bids From Service Providers for BID NO OCJ2019/06: Re-Advertisement of the Anti-Virus and Malware Protection Solution for the Office of the Chief Justice 2020-02-07 11:00 OCJ2019/ 06
The RAF hereby invites experienced, suitably qualified service providers to provide Research Services for the RAF for the period of five (5) years 2020-02-21 11:00 RAF/ 2019/ 00027
Sekgosese Magistrate Court: Repairs and Renovations 2020-02-18 11:00 PLK 20/ 02
Appointment of service provider for e-mail continuity, archiving and spam filtering services (unified email management solutions) for a period of five (5) years. 2020-02-14 11:00 HSRC/ 13/ 2019/ 20
iSimangaliso Wetland Park Authority, a schedule 3A public entity invites suitably qualified service providers to bid for construction and rehabilitation of roads situated in the Maphelane section of the iSimangaliso Wetland Park, Kwa-Zulu Natal 2020-02-14 16:00 RFP NUMBER: 15/ 2019
Office Accommodation for the merSETA Western Cape Regional Office – FAC/2020/004 The primary objective of this request for proposal is to invite landlords and agencies to submit proposals to the merSETA to provide leasing of Office Accommodation for Western Cape Regional Office for a period of five (5) years. 2020-02-06 12:00 FAC/ 2020/ 004
The objective of the bid is to appoint External Moderator(s) Nationally to form part of a panel that will provide the verification of Learning Programmes and Workplace Approvals for FoodBev SETA on a rotational basis for a period not exceeding three (3) years from date of appointment. 2020-02-24 11:00 FB SETA (19- 20) T0022
Office Accommodation for the merSETA Gauteng North Regional Office – FAC/2020/002 The primary objective of this request for proposal is to invite landlords and agencies to submit proposals to the merSETA to provide leasing of Office Accommodation for Gauteng North Regional Office for a period of five (5) years. 2020-02-06 12:00 FAC/ 2020/ 002
Office Accommodation for the merSETA Mpumalanga Regional Office – FAC/2020/003 The primary objective of this request for proposal is to invite landlords and agencies to submit proposals to the merSETA to provide leasing of Office Accommodation for Mpumalanga Regional Office for a period of five (5) years 2020-02-06 12:00 FAC/ 2020/ 003
FoodBev SETA would like to invite a suitable service provider to project manage the recruitment and placement of 2017/2018 learners in workplace within the Food and Beverages Manufacturing Sector and/or Government department (National, provincial, local). 2020-02-25 11:00 FB SETA (19- 20) T0023
Office Accommodation for the merSETA Eastern Cape Regional Office – FAC/2020/001 The primary objective of this request for proposal is to invite landlords and agencies to submit proposals to the merSETA to provide leasing of Office Accommodation for Eastern Cape Regional Office for a period of five (5) years. 2020-02-06 12:00 FAC/ 2020/ 001
Appointment of a Well-Established Service Provider for the Provision Of Cafés / Restaurants, Shops, Outdoor Weekend Recreational Activities (Such as a Market) 2020-02-14 11:00 DMSA 014/ 2019
Appointment of a panel of service providers to assist with sighting, drilling, testing & equipping of boreholes in the Ngaka Modiri Molema District Municipality of the North West Province 2020-02-06 11:00 NW- TEN02(011)19/ 20
Appointment of a Well-Established Service Provider for the Provision Of Cafés / Restaurants, Shops, Outdoor Weekend Recreational Activities (Such as a Market) 2020-02-14 11:00 DMSA 014/ 2019
Port Alfred: Department of Agriculture, Forestry & Fisheries: 8 William Cock Street: Repairs & Renovations. 2020-02-18 11:00 PE01/ 2020
Appointment of a panel of service providers to assist with sighting, drilling, testing & equipping of boreholes in Bojanala District Municipality of the North West Province 2020-02-06 11:00 NW- TEN02(013)19/ 20
Department of Agriculture: Paulpietersburg: Construction of new District office 2020-02-21 11:00 ZNTU 01858 W
Replacement of fence at Nkunzana Clinic, Pongola 2020-02-21 11:00 ZNTU 04233 W
Once Off Supply, Delivery and Installation of Office Furniture for the Pietermaritzburg Deeds Registry. 2020-02-17 11:00 DRDLR (CRD- 07) 2019/ 20
Request to purchase laptops at North Coast Region, Ulundi Contract period: 30 days. 2020-02-21 11:00 ZNQ 19/ 20/ 0024/ NCR

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