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.
Installation of Anti Climb, Anti Cut Fencing Material for the Gert Sibande District Airport (Re-Advert) 2018-02-23 12:00 91/2017
Supply Abrasive belt 2018-02-22 12:00 GD11800746
Supply, Delivery and Training in the Operation of a Hover Drone 2018-02-23 12:00 161/2017
Supply SA pine flooring 2018-02-23 12:00 GG11800703
Provision of Gases to Perform Analyses for Gert Sibande District Municipality Water Laboratory for the period of 3 years. 2018-02-23 12:00 159/2017
Supply and delivery of Sanitary hygiene services for the period 1 July 2018 tot 30 June 2021. 2018-03-23 12:00 Te
Appointment of a service provider for the provision of advertising services (creative media planning and buying services). 2018-03-23 11:00 NEPO/079/2018
Appointment of a service provider for renewable energy and smart energy saving lighting systems. 2018-04-06 11:00 ESUS/2017/21
Supply, delivery and registration of a 14 seater combi 2018-03-22 12:00 FTM/TS72/17/18
Hiring of Audio Visual Equipment and Related Professional Services: Career Expo @ Belhar Indoor Sport Centre @ 17.03.2018 @ 07:30-15:30 2018-02-26 09:00 SM11800371
Roads and storm water master plan 2018-03-27 12:00 FTM/TS71/17/18
Supply: Microwave and fridge 2018-02-22 12:00 GL11800580
Appointment of a professional consultants to conduct a comprehensive feasibility study to assess the capability of the Municipality for the provision of water services 2018-03-27 12:00 FTM/TS70/17/18
Provision of professional services: For contract administration, construction supervision and close out for the proposed offices: Extension for Bloem Water 2018-03-23 12:00 BW189/HO/12
Appointment of a service provider for the procurement of protective clothing for hundred (100) community members to embark on Bush Encroachment and Allien Species Control Project (as part of Soil Rehabilitation Programme) in the Oretele Agri-Hub Grazing at Makapanstad Village which is located in Moretele Local Municipality in Bojanala District Municipality, North West Province 2018-03-01 11:00 NW-TEN 02 (011) 17/18
Provision of emergency medical service on 24 hours basis 7 days a week including Wilge properties personnel, Khutala Mine, Kusile and first aid training only for emergency care team members at Kendal Power Station for the period of 3 years. 2018-03-26 10:00 MPGXC005059
Appointment of an Environmental Consultant to execute an Environmetal Impact Assessment (EIA) Process for the Proposed Matlosana Agri-Hub, situated in the Remainder of Portion 1 of the Farm Townlands of Klerksdorp 424 IP in Matlosana Local Municipality under Dr Kenneth Kaunda District Municipality in the North West Province 2018-03-01 11:00 NW-TEN 02 (009) 17/18
Supply: Capacity Building- Ward 33 Seniors Event: Cooler bag and mugs 2018-02-26 12:00 GL11800575
Appointment of an environmental consultant to execute an Environmental Impact Assessment (EIA) process for the proposed Vryburg Agri-Hub, situated in Commonage ERF506 Camp G in Naledi Local Municipality under Dr Ruth Segomotsi Mompati District Municipality in the North West Province 2018-03-01 11:00 NW-TEN 02 (008) 17/18
Request for proposals for production of a documentary video on illegal, unregulated and unreported fishing in Africa 2018-03-23 15:00 AUC/IED/119

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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