Issue Date: 
Monday, September 14, 2015

Joint Ventures - important tool in the Tender Process

By Werner van Rooyen

14 September 2015

www.how2tender.com

On 1 May 2015 the Amended B-BBEE Codes of Good Practice came into effect. These Amended Codes have a major impact on the B-BBEE Scores of all businesses that participate in B-BBEE in South Africa. The bottom line is that the B-BBEE scoring levels have changed drastically. If a company does not have any sort of Black Ownership it is going to be very difficult to achieve a decent B-BBEE Score.

In the Amended B-BBEE Codes of Good Practice the Ownership Element Score has been adjusted from 20 points to 25 points. It is widely accepted that on the “Old Codes” a good B-BBEE score was between 65 to 75 points. Businesses that achieved such a score usually got a Level Four B-BBE Score which in turn meant that these businesses had a 100% Procurement Recognition Level. A Level Four Procurement Recognition Level was great and everybody was happy.

The problem is that due to new changes in the Amended B-BBEE Codes such as Priority Elements and higher scoring levels, it will become a challenge to reach the same recognitions levels as in the past. This is where Joint Ventures will play a major role in ensuring that good B-BBEE Scores can be achieved by businesses.

One of the most important instances where B-BBEE Scores are of utmost importance is in the tender process. It is common knowledge that the better your B-BBEE Score, the better your chances of winning a tender. Government Entities must use the Preferential Procurement Point System (either the 80/20 or 90/10 system) to calculate which tender response will be awarded the tender – if you do not have a good B-BBEE Score and if it is a close race, you are going to lose out with a low B-BBEE Score.

Keeping all the above in mind, Joint Ventures can be a great tool to use to increase B-BBEE Scores. Remember that when you tender through a Joint Venture you must submit a Consolidated Joint Venture B-BBEE Certificate. If you have the correct Joint Venture partner, with a good B-BBEE score, the overall score that you will achieve in the Preferential Procurement Point System can be much higher than going into the tender alone.

Happy tendering.

Title Closing Date Tender No.
Conference facility with catering 2018-02-26 12:00 B651/2017/18
Supply: Gauge for spray Gun;1.3 Spray Gun;1.8 Spray Gun 2018-02-28 12:00 GD11800771
Service Provider to Train 50 Smme’s on the tender Document Processes 2018-03-01 12:00 RFQ / 358
Supply: Hardware items 2018-02-28 12:00 GG11800716
Appointment of a service provider to assist with the recruitment and selection process of Section 56 Managers 2018-02-27 12:00 RFQ 293/2017/18
Supply padlock; brass 2018-02-22 11:30 GG11800711
Accredited Firefighter 1 Training (Firefighter 1 course and Hazmat Awareness) 2018-02-27 11:00 296/2017/18
Supply ceramic tiles 2018-02-28 12:00 GG11800710
Trencing and Installation of Cables as and when required 2018-03-26 12:00 ENG012/2018
Provide Health Care Services - Medical Surveillance 2018-03-13 12:00 JCPZ/SHEQ01/2017
Recruitment Services 2018-03-13 12:00 JCPZ/HR03/2017
Monitoring and Inspection Services. 2018-03-13 12:00 JCPZ/RFP/NBD01/2017
To Operate, Maintain and to Supply Equipment in Sewer Treatment Plant 2018-03-27 10:00 MPPPSC001082
Supply solid SA pine timber 2018-02-28 12:00 GG11800714
Supply and deliver new borehole motor and pump combination 18.5KW 8.3l/s @ 125m (head) 2018-02-27 12:00 294/2017/18
Provision of Cleaning Services. 2018-03-14 11:00 OTT/444/201802
Request for Proposals are Invited for Investment in the Refurbishment and Management of the Rustenburg Showgrounds on a Long-Term Lease Basis 2018-03-27 10:00 RLM/DLED/0101/2017/18
Maintenance of Hydraulic Bin Compactors for two (2) years. 2018-03-15 14:00 58726
Request for Proposal for Drilling Two (2) Slim Hole Geologic Characterization Wells in the Zululand Basin for the South African Pilot Carbon Storage Project. 2018-03-16 11:00 435
Provisioning of Security Services in Mangaung Metropolitan, surrounding towns and Thabo Mofutsanyana District. 2018-03-16 11:00 FDC BID NO. 004/2018

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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