Issue Date: 
Monday, May 29, 2017

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

We have previously asked: How important is a good B-BBEE status level of contributor in the tender process?

The answer is still the same: VERY IMPORTANT!

In all tender documents, you will find 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 of contributor, 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 of contributor will earn you a point out of 20 and on the 90/10 system your B-BBEE status level of contributor 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 issue an affidavit stating its B-BBEE status level of contributor. Exempt Micro Enterprises (EME’s) must complete an affidavit regarding their B-BBEE status level of contributor – 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 level of contributor 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 of B-BBEE afidavit is very important in the Tender Process. The higher your B-BBEE status level of contributor, the more points on the Preference Point System you are going to score. 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.

Learn to earn.

Title Closing Date Tender No.
Cummunications Services and Media Buying for MMM for a period of two years 2018-01-10 11:30 MMM/BID 443: 2017/2018
The Municipality encourage service providers to make quotations for in-house training. External training will be exceptional due to cost cutting measures. 2017-12-20 12:00 No reference number
Supply and application of Herbicides within the MMM for a period of two years 2018-01-08 11:30 MMM/BID 441: 2017/2018
Provision of electrical consumables, supply and delivery for a period of two (2) years 2018-01-23 12:00 395/08/12/2017
Supply and delivery of compression tube fittings to PetroSA Mossel Bay 2018-01-26 16:00 CTT16894
Supply and delivery of Maintenance Equipment for period of two years 2018-01-09 11:30 MMM/BID 404(A): 2017/2018
Supply and delivery of 600 grocery hampers 2017-12-21 12:00 8/2/5/8-2017
Constuction of Parkhome at Kendal 2018-01-04 11:00 OLT1087125
The Design, Manufacture, Supply and Commissioning of an Exhaust Valve Testing Facility for the Armscor Dockyard in Simon's Town. 2018-01-03 11:00 ARMD/21/17
Provision of security services 2018-01-12 12:00 KMLM2018-013
Training of ward committees and councillors on office administration and minute taking 2017-12-20 16:00 MBIZLM/12/12/2017TOWC
Construction of Mdeni community all with a with a CIDB Grading of 4 GB or Higher 2018-01-15 12:00 066/2017/18
Construction of Mdeni community all with a with a CIDB Grading of 4 GB or Higher 2018-01-15 12:00 066/2017/18
Construction of Nkwalweni to Zilinyama Access road with a CIDB Grading of 5 CE or Higher 2018-01-17 12:00 067/2017/18
Appointment of a Services provider for the maintenance of Abattor to Amendu Road with a CIDB Grading of 4 CE or Higher 2018-01-17 12:00 065/2017/18
Supply and delivery of thinkcentre tiny 90W adapter – slim tip (South Africa ac power adapter) P/N:4X20E75147 2017-12-19 11:00 GK1180342A
Supply and delivery of 1X thinkpad EM7455 4G LTE mobile broadband P/N:4XC0M95181 2017-12-19 11:00 GK1180279A
Supply: Pvc vinyl wristband 2017-12-22 12:00 GL11800456
Supply: 80 each x hypochlorite;tablet 2017-12-21 16:00 GC11800399
Supply Spirits;Methylated Ethyl;20L 2017-12-18 16:00 GC11800400

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Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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