Issue Date: 
Thursday, October 31, 2019

Local Content calculation in tenders

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

The National Government has introduced “designated sectors” which are sectors, sub-sectors or industries that have been designated by the Department of Trade and Industry in line with national development and industrial policies for local production, where only locally produced services, works or goods or locally manufactured goods meet the stipulated minimum threshold for local production and content1.

What is Local Content and how must we apply it in our tender responses?

Local Content is Local Value Added in South Africa by South African recourses.  Where a tender response contains a combination of local and imported goods and/or services, the tender price must be separated into its local and imported components as per the Standard Bidding Document 6.2

Where it becomes tricky is Annexure C, D and E that needs to be completed before Standard Bidding Document 6.2 can be completed.  Because little of tender responders read the tender document very carefully this requirement is overlooked.  This makes it exceedingly difficult to complete Standard Bidding Document 6.2.

It is important to know the sequence in which these annexures must be completed.  Completing it in the wrong sequence is going to lead to much frustration on the side of the bidder.

Please remember that you as bidder will be contractually required to maintain records to certify imported content, for example, invoice of materials, expenditure records and income statements.

It must be emphasized that when you respond to a tender you must ensure you know which goods and/or services you can claim as Local Content.  Be aware that certain tenders will exclude cost such as the following from Local Content:

  • finance charges;
  • property; and
  • Deployment fees of the operations contractor.

The designated sectors together with its minimum thresholds can be found at: http://www.thedti.gov.za/industrial_development/ip.jsp.

There is an increase in the drive from National as well as Provincial Government to promote Local Content.  This drive is not a South African initiative but a world-wide trend.  In a South African context, it is good because it stimulates internal growth of the economy.

Local Content is a difficult item in any tender.  Many bidders do not know whether it is applicable to them. 

How to Tender presents a “Specialised Local Content workshop” that teaches the bidder how to complete the Local Content Documents (SBD 6.2 and Annexures C, D & E) correctly. You can book and pay online at  https://howtotender.co.za/local-content-specialist/ 

To learn more about 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.

1.  Definition of “designated Sectors” as per SBD document 6.2.

Title Closing Date Tender No.
Security Service at Emmasdal Child and Youth Care Centre 2020-11-13 11:00 GT/ GDSD/ 052/ 2020
Appointment of service provider to assist the Department of Small Business Development with conducting a longitudinal study on SMMEs and Co-operatives within South Africa covering the period 2021-2024 2020-11-20 11:00 DSBD Research 002/ 2020
DPW : DMRS : DOD Lenasia : Lenz Miltary Base : Replacement and Ugrade of Civil Engineering Services 2020-11-12 11:00 JHB 20/ 04
Appointment of a Panel of Attorneys to Render Debt Management Services to the Department Of Health For A Period Of 3 Year Adhoc Contract. 2020-11-16 11:00 ZNB 5128/ 2020- H
Supply, Delivery, Installation and Commissioning of Horizontal Bedhead system services for Dora Nginza Regional Hospital 2020-11-20 11:00 SCMU3- 20/ 21- 0181- DNG
Request for proposals for the supply and delivery of mobile communication services to the state for a period of 60 months (5 years) 2020-11-27 11:00 RT15
Virkons Disinfectant (10 kg x 5) 2020-11-06 11:00 RFQ 000412
Supply and deliver of concrete ready mix concrete at Mzimvubu water project – access road for construction east near Maclear in the Eastern Cape Province for a period of 12 months 2020-11-20 11:00 DWS12- 1020 WTE
Procurement of 11,5 % sodium hypochlorite (Must be in blue cans) 10 x 25 litres 2020-11-06 11:00 RFQ 000411
Appointment of a Service Provider to repair the roof & infrastructure for the Hamburg Aquaculture Project facility, situated in Hamburg, Eastern Cape. Repair infrastructure for the following: Office space; Boardroom; Laboratory; Aquaculture products packing room and Ablution facilities 2020-11-06 11:00 RFQ 000410
Hach DR 6000 spectrophotometer annual calibration, servicing and repairs (currently switches on but does not allow for testing).; Hach DR 900 colorimeter annual calibration and servicing x2; Hach HQ40D probe annual calibration and servicing x 2; Hach LDO rugged probe annual calibration, servicing and replacement sensor; Hach pH rugged probe annual calibration and servicing; Hach CDC410 laboratory probe annual calibration and servicing; Hach pH/ Conductivity Pocket Pro 2 annual calibration, servicing and replacement sensor; Hach Conductivity Pocket Pro annual calibration, servicing and replacement sensor 2020-11-06 11:00 RFQ 000409
Appointment of a service provider to procure maintenance tools and accessories for the South African Nursing Council. 2020-11-11 11:30 RFQ 41/2020
To Appoint The Suitable Service Provider To Render Project Management Services to the Department Of Environment, Forest and Fisheries to Remove And/Or Clear Illegal Dumping and Cleaning Streets In Matjhabeng Local Municipality Over A Period Of Twenty Four (24) Months. 2020-11-13 11:00 E 1582
Supply & delivery of cleaning material to National dept of Public Works & Infrastructure, Cape Town Regional Office ( 24 months) 2020-11-13 11:00 CPTSC14/ 20
24 months term contract: Supply and delivery of toilet paper and hand paper towels 2020-11-13 11:00 CPTSC 15/ 20
To Appoint The Suitable Service Provider to Render Project Management Services to the Department of Environment, Forest and Fisheries to Remove and/Or Clear Illegal Dumping and Cleaning Streets in Mangaung Metropolitan Municipality Over a Period Of Twenty-Four (24) Months 2020-11-13 11:00 E 1583
To Appoint The Suitable Service Provider To Render Project Management For The Procurement of Equipment for The Thaba-Nchu Buy-Back Centre and Transfer Station; Botshabelo and Chris Hani Buy–Back Centres and to Train and Support The Existing Three (3) Waste Cooperatives and Or Non-Profit Organisations to Be Able to Operate and Manage The Thaba-Nchu; Botshabelo And Chris Hani Buy Back Centres In Mangaung Metropolitan Municipality Over a Period of Twenty-Four (24) Months. 2020-11-13 11:00 E 1584
To Appoint the Suitable Service Provider to Render Project Management Services to Train and Support Existing Waste Pickers Cooperative to be able to Operate And Manage The Buy-Back Centre At Odendaalrus In Matjhabeng Municipality Over A Period Of Twenty-Four (24) Months. 2020-11-13 11:00 E 1585
Establishment of a Panel (Database) Of Due Diligence Service Providers to Support The Implementation Of The Operation Vula 2020-11-24 11:00 ZNT 09 EDTEA 20/ 21
Outsourcing of a Contractor that will Provide Background Research, Updating , Development and Printing of Joint Doctrine in a Form of Publication and Manuals in the South African National Defence Force for a Period of Three (03)Years. 2020-11-24 11:00 CPSC- B- PC- 060- 2018RR

Pages

Who is the bidder or his or her representative?

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

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative... Read More

Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.