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.
Ceza Stand Alone Water Supply Phase 2: Reticulation 09 2018-09-04 12:00 ZDM 089/ 2018
Ceza Stand Alone Water Supply Phase 2: Reticulation 08 2018-09-04 12:00 ZDM 088/ 2018
Supply and Installation of Concrete Universal Sleepers at various Turnouts within Western Cape Region. 2018-09-11 12:00 02/2018/CTN/INFRA
Ceza Stand Alone Water Supply Phase 2: Reticulation 07 2018-09-04 12:00 ZDM 087/ 2018
Installation of concrete mast poles and optic fibre cable. 2018-09-11 10:00 RFQ CRAC-KGG-27518.
Ceza Stand Alone Water Supply Phase 2: Reticulation 06 2018-09-03 12:00 ZDM 086/ 2018
Ceza Stand Alone Water Supply Phase 2: Reticulation 05 2018-09-03 12:00 ZDM 085/ 2018
A5 -Informal Trading- Permit Paper. 2018-08-29 12:00 SD11900134
Supply and delivery of iphone. 2018-08-24 11:00 GK11900074
Ceza Stand Alone Water Supply Phase 2: Reticulation 04 2018-09-03 12:00 ZDM 084/ 2018
For the provision of stripping, fault finding, repair, installation, testing and commissioning of coiling machine situated at RSE Business Bay 64 Durban. 2018-09-11 10:00 TE18-DBN-06I-06087
Supply and Delivery of Cape Times or Cape Argus (Morning Edition) and Die Burger Newspapers for the Business Express Train Services. 2018-09-11 12:00 12/2018/CTN/CS
Rural Roads Assets Management system 2018-09-19 12:00 ZDM095/2018
Water Loss and Demand Management System 2018-09-19 12:00 ZDM096/2018
Rehabilitation of Service Roads within the Western Cape Region. 2018-09-11 12:00 01/2018/CTN/INFRA
Register on the Database for Panel of Attorneys 2018-09-10 12:00 ZDM 098/2018
Supply and delivery of security clothing. 2018-09-18 11:00 CD19 B/2018
Hiring of an excavator for 30 days for Regravelling of Gravel Roads in Region 1 (Bethal and Emzinoni) 2018-08-27 12:00 RFQ NO: 8/3/2- 59/2018
Sethembe Emerging Contractors Programme 2018-08-30 12:00 ZDM103/2018
Head of actuarial function services. 2018-09-19 12:00 2018/11

Pages

7 Disadvantages of Competitive Bidding

The bidding process can be very tedious sometimes. Here are some of the disadvantages of the bidding process.

1.    Leading suppliers may not tender

In Australia, for example, government procurement guidelines only allow suppliers who actually tender to be considered for a procurement decision. If the leading supplier or suppliers do not tender, the purchaser can only consider bids from suppliers who do tender. If leading suppliers are not considered, the purchaser may end up buying inferior product or service... Read More

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