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.
Appointment of a service provider for the cycling cutting of grass at various sport facilities, as and when required, for a period of three years from date of appointment 2021-04-05 12:00 COM004/2021
Supply and delivery of hypodermic syringes, needles, and bloodletting devices to the state for the period ending 31 October 2022 2021-03-10 11:00 RT284-2-2019
Supply, Delivery and Installation of Autoclave and Steam Generator Equipment 2021-03-24 11:00 SAMRC/PUDAC-SDIA&SGE/2020/15
Appointment of service provider to Supply, delivery and offloading of 2021 Personal Protective Equipment (PPE) for KSD TVET College as a when required basis for a period of three years. 2021-03-31 11:00 KSDTVET2021/003
Supply and delivery of non-contracted medical & surgical items: cold chain equipment (WHO qualified) and infrastructure for the storage of vaccines to the Department of Health for a 3 year period 2021-03-19 11:00 SCMU3-20/21-0270-HO
Request of Information (RFI) and Industry Specification meeting for Radiological and Imaging Equipments. 2021-03-19 16:00 RFI2021-SP01
Occupational medical practitioners for a period of (12) months part – time 2021-03-17 12:00 UMN 03/2021
Operation and maintenance of the George swimming pool, as and when required, for a period of three (3) years, from date of appointment 2021-04-05 12:00 COM003/2021
Request for Expressions of Interest: Individual consultancy services for a skills gap anaysis /capacity need assessment expert at APRM continental offices, South Africa. 2021-03-18 11:00 APRM /EOI/IC/ 19/2021
Appointment of a Service Provider for the Leasing and Maintenance of Copier Machines for a period of 36 months 2021-04-06 12:00 EPMLM/8/3/384
Replace, Repair & Restore Vandalised Electrical Supply at Signal Equipment Room 2021-03-16 10:00 10321687
Appointment of a service provider to perform an external quality assessment review of the Department of Environment, Forestry And Fisheries’ internal audit activity for a period of three (3) months 2021-04-16 11:00 Q-155-20-21
Upgrading of the Riversdale Wastewater Treatment Works: Phase 3 mechanical and electrical related works 2021-04-09 12:00 HES-TECH 33/2021
Supply and Deliver gardening equipment 2021-03-05 11:00 R-S-2021-1909
Rehabilitation Ga Sekororo Road Boq Rev3 Summary 2021-03-12 11:00 MLM/SCM/39/2020
Request For Proposal for an alternative design/solution to the current non-functional eternal flame at Freedom Park 2021-03-23 11:00 RFQ14544
Provision of catering services at Transnet/Safa School of Excellence 2021-03-19 12:00 GSM/21/02/2066
Organising, supervising and management for the development of parks and recreational areas on cleaned up selected illegal waste dumping site and under power lines within the Sharpeville area 2021-03-26 10:00 CORP5311
Appointment of preferred Service Provider for the supply of One 72 MHz C-band Space Segment Capacity for a period of Five (5) years 2021-04-01 12:00 SENT/041/2020-21
Supply and Delivery of Water and Waste Infrastructure Maintenance Materials 2021-03-26 11:00 INF-O&M58/2020/2021

Pages

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.