Issue Date: 
Monday, March 2, 2015

Tenders and Black Ownership

By Werner van Rooyen

2 March 2015

www.how2tender.com

This article is about the fine print in tenders or request for proposals that one tends to overlook when confronted with a tender document and deadlines.

The specific fine print that we want to address is where the Organ of State make use of section 2(1) (f) of the Preferential Procurement Policy Framework Act (PPPFA). This sections states: “the contract must be awarded to the tenderer who scores the highest points, unless objective criteria in addition to those contemplated in paragraphs (d) and (e) justify the award to another tenderer; and”.

One specific Organ of State that utilizes this section of the PPPFA is ESKOM. At Eskom it is very important to promote and encourage Supplier Development and Localisation. In a recent tender that was published by ESKOM, it was made clear that the specific tender will not be awarded to the highest point scorer but rather to businesses that fall into the following criteria:

  • Preference will be given to Black Owned companies; or
  • Joint Ventures where the lead firm or company is more than 50% Black Owned.

During the briefing session for this specific tender ESKOM officials made it clear that they will adhere to these conditions. If you are a Black Owned business it will be no problem adhering to these conditions but if your business has less than 50% Black Ownership you are going to struggle to be awarded this specific tender. The thing is: this is not the exception to the rule but it is the rule!

Remember to check for specific conditions in all tender documents, whether it is for black ownership or anything else. Be sure not to get caught out by specific conditions.

To learn more about this and many other tender conditions please attend one of our tender workshops. Tender Workshop dates are published on our website at www.how2tender.com.

Happy tendering.

Brand new Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, has been finalized and was gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. This is the official media release from National Treasury:

The regulations were initially promulgated in 2001 and revised in 2011 thus making this the second revision since the initial promulgation.

The revision of the Preferential Procurement Regulations of 2011 was largely influenced by the need... Read More

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.