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.

Title Closing Date Tender No.
Supply & delivery of cable. 2018-06-26 15:00 GJ1181037A
Supply: Electrical accessories 2018-06-29 15:00 GJ11801096
Supply: Hardware items 2018-06-26 12:00 GG11801523
Department of Labour: Procurement of Office accommodation comprising 3 134.09m² and 20 undercover Parking Bays in Johannesburg CBD for a period of five (5) years 2018-07-24 11:00 JHB.18/ 08
Department of Labour: Procurement of Office accommodation comprising 2 533.64m² and 20 undercover Parking Bays in Germiston CBD for a period of three (3) years 2018-07-24 11:00 JHB.18/ 09
Supply, Maintenance and Servicing of Tractors and Accessories for SANParks for a period of five (5) years 2018-07-16 11:00 GNP- 014- 18
Service Laundry 2x Drier, 2x Washing Machine and 1X pressure. 2018-06-29 11:00 ZNQ: 8973/ 18 NIEM
Service to Air-conditioners split unit x 44 units & window unit x 32 units. 2018-06-29 11:00 ZNQ: 8965/ 18 NIEM
Robben Island Museum (RIM) Intends on Creating an Open Database of Service Providers to Provide Suitable Options In Procuring a Passenger Ferry or In Providing Alternatives Such as; Leasing with the Option to Procure, Outright Purchase, Etc 2018-07-20 11:00 RIM FER 01- 2018 / 2019
Service to calorifiers x 02 units. 2018-06-29 11:00 ZNQ: 8968 NIEM
Service Voltage Switch Gears X 03. 2018-06-29 11:00 ZNQ: 8976/ 18 NIEM
RAF would like to appoint an experienced and suitably qualified service provider to provide leasing of office space in Durban Regional Office for a period of five (5) years 2018-07-17 11:00 RAF/ 2018/ 00026
Service of fire equipment at Groenvlei clinic X 12. 2018-06-29 11:00 ZNQ: 8980/ 18 NIEM
Service infra red testing to DB boards. 2018-06-29 11:00 ZNQ: 8982/ 18 NIEM
Maintenance of Telephone Management System (PBX) for Parliament of RSA 2018-07-06 12:00 B8/ 2018
Service medical gas plant, all oxygen & vacuum points in all three wards and two vacuum pumps x52 points. 2018-06-29 11:00 ZNQ: 8967/ 18 NIEM
Service of fire equipment at Niemeyer Memorial Hospital X 56. 2018-06-29 11:00 ZNQ: 8979/ 18 NIEM
Appointment of a service provider to provide Internal Audit Services to the National Arts Council for a period of three (3) years on 80/20 PPPFA 2018-07-24 11:00 NAC- 01- 2018- 19
Service Genset 350KVA at Niemeyer Hospital 2018-06-29 11:00 ZNQ: 8977/ 18 NIEM
Service Particle Count Test X 01 2018-06-29 11:00 ZNQ: 8981/ 18 NIEM

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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