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.
The supply and delivery various sizes of Ferrules. 2018-09-21 10:00 PTB1360
Provision for power transformer testing services at various sites for a period of 36 months as and when required basis. 2018-09-21 10:00 ERI/2018/TSS/01
Provision for power transformer testing services at various sites for a period of 36 months as and when required basis. 2018-09-21 10:00 ERI/2018/TSS/01
Maintenance to service roads, fencing and surfaces on an as & when required basis within a period of 24 months. 2018-10-02 10:00 KBY/54318
Supply and delivery of 2 (Two) 2.5 Litre Double Cab Ldvs With Canopy From an accredited Motor Vehicle Dealer 2018-09-04 12:00 BS22/07/2018
The University of South Africa invites tenders from suitably qualified service providers to provide the University with international courier services for a period of three years. 2018-09-03 12:00 PT2018/12
Re-design the existing human capital function in support of the DBSA Growth & Transformation agenda. 2018-09-10 11:00 RFP124/2018
Supply and delivery of 1(one) x TLB with Minimum Engine Gross Power (SAE) Of 29.1 Kw from an accredited Motor Dealer 2018-09-04 12:00 BS19/07/2018
Evaluation of the Global Fund Community Systems Strengthening Programme. 2018-09-10 08:30 None provided
Reconstruction of Stage Floor at Eric Jiyane Community Hall, Mhluzi 2018-09-05 12:00 BS23/07/2018
Request for proposals for total replacement of 22 lifts in the University. 2018-09-14 10:00 RFPSMU/008/2018
Request for proposals for upgrading of electrical substation and electrical cabling. 2018-09-14 10:00 RFP SMU/006/2018
Appointment of a Suitable Service Provider to Conduct Research on Tracking and Tracing of Learners who Completed TETA- supported Workplace-based Learning - WBL Programmes (Learner ships, Internships and apprenticeships) in the financial year 2016/2017. 2018-09-07 11:00 TETA18/RESEARCH/0005/WBL
Construction of Storage for Hazardous Material at Electrical Department Store, Service Centre (Magasyn), Middelburg 2018-09-05 12:00 BS24/07/2018
Request for Proposals for the Appointment of a Suitable Service Provider to Conduct a Tracer Study on ‘Teta-funded Pilots within Aviation for the Period of NSDS III (2011-2017) 2018-09-07 10:00 TETA18/RESEARCH/0004/TRACER
BBBEE Verification Agency 2018-08-28 12:00 030/2019
Supply Calcium hypochlorite 2018-08-23 16:00 GC11900071
Supply: Medical supplies 2018-08-28 15:00 GF11900120
Hiring of Water Tanker for Regravelling of Gravel Roads at Bethal and Emzinoni for 30 days 2018-08-27 12:00 RFQ NO: 8/3/2- 62/2018
Hire of a 20 Ton Excavator for Bellville South Landfill. 2018-08-28 09:00 WJ11900109

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10 steps in the bid process

Each year, Organs of State invite the Private Sector to submit competitive bids for the supply of goods and services. Organs of State bid requests attract SMME's and large businesses across a wide range of sectors - from office supplies to major construction projects.

Here is an overview of 10 steps you should take to prepare a competitive bid.

1.    Register your interest

Follow the instructions in the bid document to register your interest with the purchasing agency. This important step will help keep you up to... Read More

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