Issue Date: 
Monday, March 31, 2014

Tenders and Local Content

By Werner van Rooyen

www.how2tender.com

31 March 2014

Did you know that the Gauteng Provincial`s target on procurement spent on Local Content is 75%? This can also be said for the National Government`s procurement spent.

That is very good news! It can also be considered that most of the nine Provinces have got the same target. This means that Local Content is a priority to National as well as Provincial Governments, when it comes to their Procurement spent. This is good news for local manufacturers and services providers. Local manufacturers and service providers has at least a 75% change of winning a tender.

But what is the definition of Local Content?

Local Content is Local Value Added in South Africa by South African recourses. Where a tender response contains a combination of local and imported goods and/or services, the tender price must be separated into its local and imported components as per the Standard Bidding Document 6.2 Annexure D and E, summarized in Annexure C. Local Content is total spend less any imported component. Remember that you as suppliers will be contractually required to maintain records to certify imported content, for example, invoice of materials, expenditure records and income statements.

It must be emphasized that when you tender that you ensure you know which goods and/or services you can claim as Local Content. Be aware that certain tenders will exclude cost such as the following from Local Content:

  1. finance charges;
  2. property; and
  3. deployment fees of the operations contractor.

Currently the new B-BBEE Codes of Good Practice that will come into effect on 30 April 2015 strong emphasis is given to Enterprise and Supplier Development, one of the five elements of B-BBEE. This element will count 40 out of the 109 points on the B-BBEE scorecard and this element is all about developing the Local Entrepreneur. This will and must stimulate the manufacturing and producing of Local Content.

The National Government has also introduced designated sectors which are sectors, sub-sectors or industries that have been designated by the Department of Trade and Industry in line with national development and industrial policies for local production, where only locally produced services, works or goods or locally manufactured goods meet the stipulated minimum threshold for local production and content1. If your business enterprise falls into one of these 12 designated sectors then you will have to comply with these minimum thresholds. These designated sectors together with its minimum thresholds can be found at: http://www.dti.gov.za/industrial_development/ip.jsp.

There is an increase in the drive from National as well as Provincial Government to promote Local Content. This drive is not a South African initiative but a world wide trend. In a South African context it is good because it stimulates internal growth of the economy. So next time when you tender consider Local Content as an option.

Local Content and much more tender issues are discussed in our Tender Manual. If you want to know more about the tender process and how to complete a tender correctly and hopefully successfully, please visit our website at www.how2tender.com to find out more.
Until the next time - happy tendering.

Don`t delay, get educated today!

1. Definition of designated Sectors as per SBD document 6.2.

Title Closing Date Tender No.
Seaview Satelite Police Station: Condition based maintenance on civil, electrical & structural elements of station & official quarters. 2019-06-19 11:00 PE08/ 2019
King Williams Town: Zwelitsha SAPS complex: Repairs & maintenance of electrical, civil, mechanical & structural elements to the complex. 2019-06-19 11:00 PE07/ 2019
Thabamoopo Magistrate Office: Repairs and renovations 2019-06-18 11:00 PLK19/ 04
Pretoria: Silverton SAPS: Yankee Base: Phase II: Replacement of 20 Containers and Construction of Roof and Stairs 2019-06-25 11:00 Pt19/ 004
Supply, deliver, install and commissioning of laundry equipment: Benedicitine Hospital 2019-06-24 11:00 ZNB 9654/ 2018- H
Preventative and corrective maintenance contract of steam tube bundles calorifiers: 3 year contract: various institutions 2019-06-25 11:00 ZNB 5118/ 2019- H
Refurbishment of Tennant Road Kenilworth. CIDB Grading GB Level 4. 2019-07-31 11:00 SPSC- B- 007- 2019
Refurbishment of Porterville Crescent, Monte Vista. CIDB Grading GB Level 3. 2019-07-30 11:00 SPSC- B- 006- 2019
Repair of the Burned Building at Northern Military Headquarters. 2019-06-27 11:00 CPSC- B- G- 266- 2018
NDPW: Repairs, Maintenance, Service and Replacement of Refrigeration to various areas within the Johannesburg Regional Office’s jurisdiction for 24 months period. 2019-06-18 11:00 JHB.19/ 15
RFP 0014/2019: Provision of integrated pest management program for all SARS offices, countrywide 2019-06-25 11:00 RFP0014/ 2019
Request for provision of exhibition management services for Govtech 2019 2019-06-13 11:00 RFB 1945/ 2019
Bloemfontein: South African Social Security Agency (SASSA): Mangaung Metro District Local Office: New office accommodation: and parking facilities: 1287.73m² and 40 parking bays 2019-06-18 11:00 BL19- 008
Bethlehem Department of Rural Development and Land Reform (DRD & LR): Thabo Mofutsanenyane District: Alternative office accommodation and parking facilities: 1994.17m² and 25 parking bays for 5 years 2019-06-18 11:00 BL19- 007
Welkom Department of Rural Development and Land Reform (DRD & LR): Thabo Mofutsanyane District: Alternative office accommodation and parking facilities: 2019-06-11 11:00 BL19/ 004
The iSimangaliso Wetland Park Authority invites suitable, qualified and competent Suppliers for the supply and delivery of Uniforms to iSimangaliso Wetland Park Authority 2019-06-07 16:00 RFP NUMBER: 02/ MAY/ 2019
Supply of Corporate Gifts, Clothing & Branding - This is an all inclusive National tender that will be urtilised by all our 64 members across South Africa on an as and when required. 2019-06-13 12:00 PUR 3600/ 2
Three year contract for the Disposal of Aluminium Lithographic Plates from Naval Publication Unit, Simon’s Town as per Statement of Work. 2019-06-26 11:00 SPSC- B- 004- 2019
Request For Proposals for the Appointment of a Professional Service Provider to Provide Facilities Management for the Playhouse Company for a preiod of 3 years 2019-06-24 11:00 PHC 59/ 2019
Appointment of a service provider to print barcoded Quarterly Labour Force Survey (QLFS) questionnaires for the third quarter, July-September 2019 and Survey of Activities of Young People (SAYP) questionnaires for the third quarter, July-September 2019 for Statistics South Africa 2019-06-07 11:00 Stats SA 001/ 19

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Tender Knowledge

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Sometimes I am surprised at how little business people in South Africa know about Tenders and the Tender Process. Simple things like terminology and general tender information are difficult for people to comprehend not to mention the Standard Bidding Documents and Tender Pricing.

Unbelievably there are still Entrepreneurs that thinks to respond to tenders are an actual business? You will find that these Entrepreneurs would... Read More

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