Issue Date: 
Monday, May 29, 2017

Tenders, B-BBEE and the new Preferential Procurement Regulations 2017

Having a good B-BBEE status level is VERY IMPORTANT in the tender process!

All tender documents will have the NEW Standard Bidding Document 6.2, which is used to claim your Preference Points for B-BBEE. The higher your B-BBEE status level, the more points you will score on the Preference Points System. Ultimately the bidder or bidders scoring the highest points will be awarded the tender.

One of the major changes in the Preferential Procurement Regulations 2017, is the increase in the threshold value on the 80/20 and 90/10 Preference Point Systems.

The following Preference Point Systems are applicable from 1 April 2017, to all Organ of State bids:

  • the 80/20 Preference Point System for bids with a Rand value of more than R30,000-00 but not exceeding R50,000,000-00 (all applicable taxes included); and
  • the 90/10 Preference Point System for bids with a Rand value above R50,000,000-00 (all applicable taxes included).

This means that on the 80/20 system your B-BBEE status level will earn you a point out of 20, and on the 90/10 system your B-BBEE status level will earn you a point out of 10.

To earn these points a potential bidder must have a B-BBEE certificate that has been issued by a verification agency accredited by the South African Accreditation System (SANAS) or the bidder must submit an affidavit stating its B-BBEE status level.

Exempt Micro Enterprises (EME's) must acquire an affidavit regarding their B-BBEE status level - no verification is required. This is also applicable to Qualifying Small Enterprises (QSE's) with 51% or more black ownership.

The various B-BBEE status levels that an EME can achieve, through an affidavit, are:

  • EME's that are not Black-owned automatically qualifies as a Level 4 contributor to B-BBEE,
  • EME's that have 51% or more (but not 100%) black ownership qualifies as a Level 2 contributor to B-BBEE and
  • EME's that have 100% black ownership qualifies as a Level 1 contributor to B-BBEE.

A 100% Black-owned EME will therefor earn maximum points (either 20 or 10, depending on the value of the tender) on the Preference Point System.

A valid B-BBEE certificate or B-BBEE affidavit is very important in the Tender Process. Ensure your business scores the highest possible score on its B-BBEE certificate or B-BBEE affidavit.

To learn more about this and all the other new developments regarding tenders, please attend one of our How-to-Tender workshops. Tender Workshop dates are published on our website at www.how2tender.com. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

 

Title Closing Date Tender No.
Supply, Delivery and Installation of Servers for the College 2018-11-09 11:00 Ingwe/ 04/ 2018
Supply, Delivery and Installation of IT Equipment for the Eastern Cape Department of Health for a period of twelve (12) months 2018-11-16 11:00 SCMU3–18/ 19- 0363- HO
Invitation to Service Providers to Submit Proposals for the Procurement of a Quantum Scalar 16000 Generation 2 Robotics Tape Library Including Standard OEM Support and Maintanance 2018-11-20 11:00 CIPC BID NUMBER: 14/ 2018/ 2019
Invitation to Service Providers to Supply Laptops and Desktops to Cipc on a “as and when” basis under a warranty and Support Contract for three years (36 months) 2018-11-21 11:00 CIPC BID NUMBER: 15/ 2018/ 2019
Invitation to Service Providers to Submit Proposal to Supply Mpls Connectivity Between the Commission’s Main Data Center Located at the DTI Campus, 77 Meintjies Street, Sunnyside, Pretoria and the Remote Sites” 2018-11-19 11:00 CIPC BID NUMBER: 16/ 2018/2019
Supply and Delivery of one Piece Coverall to the South African Police Service for a period of two (02) years 2018-11-16 11:00 19/ 1/ 9/ 1/ 63TT(18)
Identification of Premises for Office Space (Provincial & District)for the NDA to be occuoied over a period of five years. 2018-11-12 14:00 NDA32/ FIN20/ 18
Appointment of a Service Provider for the Provision of Employment Wellness Services to All NDA Employees Over a period of three (3 years) 2018-11-12 14:00 NDA31/ CS15/ 18
Removal of Safes 2018-10-26 11:00 RFQ/ 2018/ 87
Invitation to an open tender for the Design, Supply, Installation And Certification Of Fire Sprinkler System at Building A8 Within Automotive Supplier Park Situated At Rosslyn (North Of Pretoria) 2018-11-14 11:00 AIDC T09/ 2018
Appointment of a Service Provider to Upgrade and Render Support Services for a Performance and Management System for a period of three years 2018-11-12 11:00 DST02/ 2018- 19
Mossel Bay : New offices of 173.86m2 and 5 undercover secured parking bays for the Department of Agriculture Forestry & Fishaeries for a 5 year lease : BBBEE Level - 4 Category A, B, C, & D 2018-11-09 11:00 CPTL30 / 18
Paarl : SASSA : New office accommodation : District Office : 453.82m2 & 10 parking bays : Category A, B, C, & D : BBBEE Level - 4 2018-11-09 11:00 CPTL38 / 18
Paarl: SASSA: New office accommodation: Local Office: 868.75m2 & 8 Lockup garages, 2 open parking bays and 5 visitors parking bays: Category A, B, C, & D: BBBEE Level - 4 2018-11-09 11:00 CPTL39 / 18
Supply, install and service wall mounted automatic Air Fresheners x 100 units to be installed in Eastboom CHC and 12 Clinics - public and staff toilets (12 months contract) 2018-10-26 11:00 ZNQ 263/ 18
Supply, install and service Sanitary Towel Bins x 64 units to be installed in Eastboom CHC and 12 Clinics - public and staff toilets (12 months contract) 2018-10-26 11:00 ZNQ 230/ 18
Industrial Tilting Pan 2018-10-30 11:00 PSH 926/ 1819
Measuring Cylinders -Stainless Steel 1,2,5 And 10 Litre 2018-10-30 11:00 PSH 864/ 1819
Betterment and Regravelling on District Road D761 between Chainage 0.00km to 4.00km in the KwaDukuza Local Municipality for Grade 3CE Vukuzakhe Contractors 2018-11-20 11:00 ZNT373T/ 3/ C2930/ 019/ S/ 1/ 2018- 2019
Betterment and Regravelling on District Road D1575 between Chainage 0.00km to 1.50km in the Ndwedwe Local Municipality for Grade 3CE Vukuzakhe Contractors 2018-11-20 11:00 ZNT373T/ 3/ C2930/ 017/ S/ 1/ 2018- 2019

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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