Issue Date: 
Thursday, October 31, 2019

Sub-contracting rules to be aware of when responding to tenders

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

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting, due in large part to The Preferential Procurement Regulations, 2017 that has been implemented on the 1st of April 2017.  Many entrepreneurs ask us whether they should sub-contract or not, in responding to a tender and how and where do they get onto the sub-contracting lists.

There are 3 sub-contracting rules in the Preferential Procurement Regulations 2017 that Organs of State can/must apply when issuing tenders to the public.

The first Regulation is Regulation 4 which state inter alia: if an Organ of State decides to apply pre-qualification criteria to advance certain designated groups that Organ of State must ADVERTISE the tender with a specific tendering condition that certain bidders can or may respond.

The second Regulation is Regulation 9 which state inter alia: if it is feasible to sub-contract for a contract above R30 million, an Organ of State must apply sub-contracting to advance designated groups.

The designate groups mentioned in both Regulation 4 and 9 are Black Owned Enterprises with 51% or more black ownership and any of female Black owned, youth black owned, black people with disabilities owned or black military veterans owned enterprises.

The third sub-contracting rule has to do with sub-contracting after the award of the tenderRegulation 12 states inter alia: (3) a person awarded a contract may not subcontract more than 25% of the value of the contract to any other enterprise that does not have an equal or higher B-BBEE status level of contributor than the person concerned, unless the contract is subcontracted to an EME that has the capability and ability to execute the subcontract.

The tender document will dictate how you should or should not sub-contract.  Read the tender document carefully; follow the instructions precisely and to the point.  Organs of State are applying these Regulations rigorously and failing to comply will lead to your tender response being disqualified.

Tender trends and Regulations are changing frequently.

To learn more about this and 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.

Title Closing Date Tender No.
Invitation to tender for Farm Rietfontein Portion 47 395 JR 2020-07-28 10:00 IRP265
OHS Agent_Upgrade of Hornlee Sewer_T06 of 2019/2020 2020-07-14 12:00 12/2020/21
OHS Agent_Hornlee_Replacement & Rehabilitation of Existing Water Network_T21 of 2019/2020 2020-07-14 12:00 13/2020/21
Supply and delivery of hand sanitizer, gloves and masks 2020-07-14 12:00 14/2020/2021
Supply and Delivery of Laptops 2020-07-16 12:00 15/2020/21
Provision of loan finance 2020-08-05 12:00 T 01 OF 2020/21
Appointment of a suitable qualified and experienced service provider as auctioneer for a period of three (3) years to conduct the auctions of municipal owned fixed assets, moveable property and impounded vehicles on behalf of the municipality 2020-08-05 12:00 T 02 of 2020/21
Erratum: Extension of validity period for additional: 120 days for electrical database and mechanical database 2020-07-10 11:00 ZNB 5731/ 2019- H/ ZNB 5730/ 2019- H
Erratum: Provide a fully managed enterprise picture archiving and communications system for the Gauteng Department of Health (GDOH) with maintenance and support for a five (5) year period 2020-07-24 11:00 RFB 2186/ 2020
Erratum: Supply & install a hosted internet protocol telephone system & IP phones for the Dep of Higher Education & Training 2020-07-17 11:00 RFB 2158/ 2020
Erratum: Request for Proposals: Appointment of a panel of suitable service providers to supply and deliver office stationery to the NHBRC for a period of three (03) years. 2020-07-10 11:00 NHBRC 41/ 2019
Erratum: Supply maintenance of network cabling for saps for a period of three (03) years 2020-07-24 11:00 RFB 2126 - 2019
Request for Proposal: Establishment of a frame agreement for provision of translation and interpretation services for UNHCR offices in regional bureau of Southern Africa. 2020-08-07 16:00 RFP/020/HCR/RBSA/SUP/019
Request for Proposal: Establishment of a frame agreement for provision of maintenance services for canon multifunction printers for UNHCR offices in South Africa 2020-08-07 16:00 RFP/020/HCR/RBSA/SUP/017
Sale of aircraft - Aero Commander 690A (ZS-JRB) and Piper Twin Comanche (ZS-CAN) 2020-07-24 11:00 DISP- 001/ 20
Appointment of a panel of Professional Property Valuation Practitioners to conduct the valuation of buildings and\or land parcels 2020-07-24 11:00 SHRA/ RFB/ PD&F/ 01/ 2020/ 21
Appointment of the service provider for the provision of Employee Health and Wellness Programme (EHWP) to PPSA nationally over a period of three (3) years 2020-08-07 11:00 PPSA 005/ 2020
Appointment of the service provider for the provision Legal Services (panel of attorneys) for a period of three (3) years 2020-08-03 11:00 PPSA 001/ 2020
Alternative suitable office space for SITA North West Rustenburg offices through an operating lease for a period of 5 years 2020-07-24 11:00 RFB 2166/ 2020
Provision of Electrical maintenance services for SITA Pietermaritzburg and Durban Offices for a period of 36 months 2020-07-27 11:00 RFB 2156/ 2020

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