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.
Terms of Reference to Request for Bids From Service Providers for BID NO OCJ2019/06: Re-Advertisement of the Anti-Virus and Malware Protection Solution for the Office of the Chief Justice 2020-02-07 11:00 OCJ2019/ 06
The RAF hereby invites experienced, suitably qualified service providers to provide Research Services for the RAF for the period of five (5) years 2020-02-21 11:00 RAF/ 2019/ 00027
Sekgosese Magistrate Court: Repairs and Renovations 2020-02-18 11:00 PLK 20/ 02
Appointment of service provider for e-mail continuity, archiving and spam filtering services (unified email management solutions) for a period of five (5) years. 2020-02-14 11:00 HSRC/ 13/ 2019/ 20
iSimangaliso Wetland Park Authority, a schedule 3A public entity invites suitably qualified service providers to bid for construction and rehabilitation of roads situated in the Maphelane section of the iSimangaliso Wetland Park, Kwa-Zulu Natal 2020-02-14 16:00 RFP NUMBER: 15/ 2019
Office Accommodation for the merSETA Western Cape Regional Office – FAC/2020/004 The primary objective of this request for proposal is to invite landlords and agencies to submit proposals to the merSETA to provide leasing of Office Accommodation for Western Cape Regional Office for a period of five (5) years. 2020-02-06 12:00 FAC/ 2020/ 004
The objective of the bid is to appoint External Moderator(s) Nationally to form part of a panel that will provide the verification of Learning Programmes and Workplace Approvals for FoodBev SETA on a rotational basis for a period not exceeding three (3) years from date of appointment. 2020-02-24 11:00 FB SETA (19- 20) T0022
Office Accommodation for the merSETA Gauteng North Regional Office – FAC/2020/002 The primary objective of this request for proposal is to invite landlords and agencies to submit proposals to the merSETA to provide leasing of Office Accommodation for Gauteng North Regional Office for a period of five (5) years. 2020-02-06 12:00 FAC/ 2020/ 002
Office Accommodation for the merSETA Mpumalanga Regional Office – FAC/2020/003 The primary objective of this request for proposal is to invite landlords and agencies to submit proposals to the merSETA to provide leasing of Office Accommodation for Mpumalanga Regional Office for a period of five (5) years 2020-02-06 12:00 FAC/ 2020/ 003
FoodBev SETA would like to invite a suitable service provider to project manage the recruitment and placement of 2017/2018 learners in workplace within the Food and Beverages Manufacturing Sector and/or Government department (National, provincial, local). 2020-02-25 11:00 FB SETA (19- 20) T0023
Office Accommodation for the merSETA Eastern Cape Regional Office – FAC/2020/001 The primary objective of this request for proposal is to invite landlords and agencies to submit proposals to the merSETA to provide leasing of Office Accommodation for Eastern Cape Regional Office for a period of five (5) years. 2020-02-06 12:00 FAC/ 2020/ 001
Appointment of a Well-Established Service Provider for the Provision Of Cafés / Restaurants, Shops, Outdoor Weekend Recreational Activities (Such as a Market) 2020-02-14 11:00 DMSA 014/ 2019
Appointment of a panel of service providers to assist with sighting, drilling, testing & equipping of boreholes in the Ngaka Modiri Molema District Municipality of the North West Province 2020-02-06 11:00 NW- TEN02(011)19/ 20
Appointment of a Well-Established Service Provider for the Provision Of Cafés / Restaurants, Shops, Outdoor Weekend Recreational Activities (Such as a Market) 2020-02-14 11:00 DMSA 014/ 2019
Port Alfred: Department of Agriculture, Forestry & Fisheries: 8 William Cock Street: Repairs & Renovations. 2020-02-18 11:00 PE01/ 2020
Appointment of a panel of service providers to assist with sighting, drilling, testing & equipping of boreholes in Bojanala District Municipality of the North West Province 2020-02-06 11:00 NW- TEN02(013)19/ 20
Department of Agriculture: Paulpietersburg: Construction of new District office 2020-02-21 11:00 ZNTU 01858 W
Replacement of fence at Nkunzana Clinic, Pongola 2020-02-21 11:00 ZNTU 04233 W
Once Off Supply, Delivery and Installation of Office Furniture for the Pietermaritzburg Deeds Registry. 2020-02-17 11:00 DRDLR (CRD- 07) 2019/ 20
Request to purchase laptops at North Coast Region, Ulundi Contract period: 30 days. 2020-02-21 11:00 ZNQ 19/ 20/ 0024/ NCR

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