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.
Consultancy services to manage an online public health journal for Africa CDC 2018-11-09 15:00 AUC/ACDC/C/382
Supply & Install Centrifuge NHLS-Christ The King 2018-10-26 11:00 RFQ -KZN-129
Supply & Install Micro Tube Centrifuge NHLS-Mahatma Ghandi 2018-10-26 11:00 RFQ- KZN-121
Supply and Install Hydroboil X2 NHLS- Catherine Booth NHLS- Greytown 2018-10-26 11:00 RFQ-KZN-6/17
Consultancy services to facilitate the operationalization of PAWO in to AU specialized agency 2018-10-30 15:00 AUC/WGDD/C/270/2018
Supply and install centrifuge x2 2018-10-26 11:00 RFQ- KZN 89/92
For Time and Date Recorder For Tonga Labaratory 2018-10-24 09:00 RFQ 0704979
For 2x Time And Date Recorders For Themba Laboratory 2018-10-24 09:00 RFQ 0715891
Request For Laptops 2018-10-19 11:00 1493104/18-19
Consultancy service to manage the implementation of the African Women’s Legacy Project 2018-10-30 15:00 AUC/WGDD/C/269/18
Supply: Care packs / wellness 2018-10-22 12:00 GG11900596
Supply, replacement and service of first aid firefighting appliances for Overstrand Municipality for a contract period ending 30 June 2021. 2018-11-16 12:00 SC1909/2018
Installation of Sewer reticulation in Kleinmond, Phase 1 2018-11-16 12:00 SC1915/2018
Supply: Hardware items 2018-10-22 12:00 GG11900597
Installation of Sewer Reticulation at Gansbaai, Stanford and Hermanus. 2018-11-16 12:00 SC1916/2018
Replacement of Water pipes, Rooi Els to Hermanus and Construction of Sewer Pipelines 2018-11-16 12:00 SC1919/2018
Upgrade of Electrical Bulk Supply Network – Louisvale Rd 2018-11-02 14:00 TN069/2018
Mhlathuze Water hereby invites tender submissions for the supply of laboratory chemicals and consumables. 2018-11-09 12:00 MW/9/8/2018
Retrofitting of high pressure sodium floodlights with LED flood lights on existing 30 m and 40 m high mast light structures 2018-11-02 14:00 TN070/2018
Mhlathuze Water hereby invites tender submissions for the supply of Laboratory Gases to Mhlathuze Water Scientific Services laboratory. 2018-11-09 12:00 MW/17/10/2018

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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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