Issue Date: 
Monday, October 20, 2014

The new QSE B-BBEE Scorecard

By Werner van Rooyen

www.how2tender.com

20 October 2014

On Friday 10 October 2014 the Minister of Trade and Industry, Minister Rob Davies, published the long anticipated draft Phase 2 B-BBEE Codes of Good Practice for public comment. In Phase 2 the Qualifying Small Enterprise (QSE) statement, Code 600, sets out the guidelines for measuring the B-BBEE Status Level for QSE’s.

When the Amended Codes of Good Practice first came out there was no QSE Scorecard. This created a lot of confusion because it looked like QSE’s will have to comply with the Generic Scorecard which is a monster of a scorecard to comply with. Now, exactly a year later, the DTI as published a QSE Scorecard.

For those of you that are familiar with the current QSE Codes, these new Codes might come as a bit of a shock. The main difference between the Old Codes and the New Codes is that with the Old Codes QSE’s were allowed to choose four of the seven elements of B-BBEE and comply only with those four B-BBEE elements. The New Codes doesn’t give QSE’s that luxury - QSE’s have to comply with ALL five of the new elements on the Scorecard.

The old QSE scorecard versus the new QSE Scorecard:

Element Old weighting New weighting
Ownership 25 25
Management Control 25 15
Employment Equity 25  
Skills Development 25 25
Preferential Procurement 25  
Enterprise & Supplier development 25 30
Socio-economic development 25 5
Total 100 100

There are several differences between the old and the new Codes but the two most important ones are:

  • Employment Equity becomes part of Management Control in the New Codes; and
  • Preferential Procurement becomes part of Enterprise and Supplier Development in the New Codes.

I have said it before and I am going to say it again: the New Codes haven’t been reduced to five elements; instead it has increased to eight elements! The reason is simply because Employment Equity has become part of Management Control and is still a sub-element that has to be complied with and Preferential Procurement became a sub-element of Enterprise and Supplier Development. Supplier Development is a totally new element that has to be complied with, thus increasing the previous seven elements to eight elements.

The reason why all of this is important is because when you respond to a tender it is important to have a good B-BBEE Score. It is going to be extremely hard for QSE’s that enjoys a Level Four or great B-BBEE status Level to keep that Status Level, especially if the QSE does not have any Black Ownership. Even then, Black Ownership is not going to guarantee a good B-BBEE Status Level.

The ripple effect of all this is you as QSE is going to find it more and more difficult to win tenders if you do not have a good B-BBEE Status Level and to achieve a good B-BBEE Status Level is going to become harder and harder, especially if you do not have some kind of Black Ownership in your QSE.

Please visit our website at www.how2tender.com for more on these as well as other interesting topics. You will also find our Tender Manual there - the Tender Manual guides you through the whole process of responding to a Tender or a Request for Proposal.

Until next time.

Title Closing Date Tender No.
Provision of Professional Engineering Services in Respect of Decommissioning the Radnor Landfill Site. 2019-02-19 10:00 218C/2018/19
Supply and delivery of mill liners -reissue 2019-02-25 09:00 MPGXC005365R1
ICT Infrastructure Services 2019-01-25 14:00 TCTA/2018/IT/ICT INFRASTRUCTURE/024
Construction of Civil Engineering Services - Macassar Housing Project 2019-02-26 10:00 234Q/2018/19
Tender for the purchase, development and management of industrial park on Erven 804, 806, 807, 809, 39202, 39203, 39204, 39207, 39208, 39209, 39210, 39211, 39212, 39213, 39215, 39216, 39217, 39218, 39219, 39220, 45089, 51104, 51105, zoned general industrial 2 except for Erf 45089 which has a general business 4 zoning, bound by Spine Road (South) and, Phumakani Road (West) and Railway Line (East), Khayalitsha 2019-03-11 10:00 219P/2018/19
Provision of Banking Services for a period of five (05) years 2019-03-15 12:00 75 of 2018
Hire of Refuse Truck for a period of 3 years 2019-03-29 12:00 MPO/03/2019
Re-advert for auditing of animal pounds in Elundini Local Municipality 2019-01-22 12:00 ELM-5/006/2018-2019
Facilitation of strategic planning session for budget and treasury / finance section 2019-01-21 12:00 ELM-2/027/2018-2019
Appointment for a service provider for VAT recovery services for a period of three years 2019-02-11 11:00 PSJLM-BTO-2018/19-15
Disconnection, reconnection and inspection/audit of electrical services for a period of three (3) years 2019-02-11 12:00 T01/2019
Supply, installation of wireless internet and wireless access 2019-01-18 11:00 290653
Consulting engineering services for the contract administration for the construction of a pedestrian bridge in Touwsriver. 2019-01-23 11:00 291491
Appointment of a Professional Engineering Service Provider to Carry out the Project Management scope for various Electricity Bulk Infrastructure Projects within KSDLM 2019-02-11 12:00 038/2018/19
Appointment for (02) Electrical Contractors for Electrification of 193 infill Connections in Maiden Farm Township with a CIDB Grading of 4 EP or Higher 2019-02-11 12:00 036/2018/19
Appointment for (02) Electrical Contractors for Electrification of 193 infill Connections in Hillcrest Township with a CIDB Grading of 4 EP or Higher 2019-02-12 12:00 037/2018/19
Bid Specification for Appointment of a Programme Support Unit (PSU) for a three (3) year period to assist the Provincial Department of Education in various aspects of the management of its infrastructure programme. 2019-02-22 11:00 SCMU6-18/19-0007
Supply and Delivery of suction pipes - Honeysucker 2019-01-18 12:00 B424/2018/19
All prospective bidders are hereby invited to submit quotations for accommodation: bed, dinner, breakfast & conference package, supply chain management as specification appear below 2019-01-22 12:00 RFQFIN/01/2018/19
Development of an Implementation Plan and Budget for a Multi-Year History Festival in Plettenberg Bay 2019-01-18 13:00 SCM/RFQ/2019/042/EDP

Pages

Two types of Joint Ventures and Joint Venture agreements 

By W van Rooyen

www.howtotender.co.za

The structure of the joint venture should set out the nature of your partnership. There are two main types of agreements:

  1. If the joint venture is a business in its own right, it will be an incorporated joint venture. This type is not... Read More
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