Issue Date: 
Tuesday, September 13, 2016

New Functionality Scoring Rules

The new Preferential Procurement Regulations 2017 makes provision for new Functionality Scoring rules.

It is stipulated in the new Preferential Procurement Regulations 2017, that the evaluation criteria should be objective, giving enterprises a fair shot at being able to advance to the next phase of evaluation, namely Price and B-BBEE.

Most tenders are evaluated on Functionality, but an Organ of State will indicate in the tender documents how the tender will be evaluated.

The tender document will normally specify the evaluation standards for measuring functionality. It will also state the following:

  • The points available for each criteria and, if any, each sub-criteria;
  • The minimum qualifying score needed to advance. Usually the threshold is between 65% and 85% out of 100%;

All tenders achieving less than the minimum qualifying score will be declared non-responsive, and will not qualify to be evaluated on Price and B-BBEE.

When an Organ of State sets the minimum qualifying scores for Functionality, the scores should:

  • Not be generic;
  • Be determined separately for each tender;
  • Not be so low that it jeopardises the quality of the required goods/services;
  • Not be so high that they are impossible to attain.

All tenders that score the minimum qualifying score for functionality must be evaluated further, in terms of Price and B-BBEE as stated by the preference point systems in accordance with the Preferential Procurement Regulations 2017.

To learn more about this and many other tender conditions please attend one of our How-to-Tender workshops. Tender Workshop dates are published on our website at www.how2tender.com. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

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The bidding process can be very tedious sometimes. Here are some of the disadvantages of the bidding process.

1.    Leading suppliers may not tender

In Australia, for example, government procurement guidelines only allow suppliers who actually tender to be considered for a procurement decision. If the leading supplier or suppliers do not tender, the purchaser can only consider bids from suppliers who do tender. If leading suppliers are not considered, the purchaser may end up buying inferior product or service... Read More

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