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.
Pretoria: Procurement of Office Accommodation of 563.64 square meters and 19 parking bays usage by the Department of Science and Technology (National Advisory Council on Innovation) for a period of 3 years preferably in Lynwood, Sciencia Park 2019-04-09 11:00 Pt18/ 083
Remedy 2019-04-05 11:30 10401239
Pretoria: Procurement of Office Accommodation of 563.64 square meters and 19 parking bays usage by the Department of Science and Technology (National Intellectual Property Management Office) for a period of 3 years preferably in Lynwood, Sciencia Park 2019-04-09 11:00 Pt18/ 084
Bid for the Appointment of a Service Provider for the Provision of Cleaning and Hygiene Services to the Deaprtment of Labour Head Office for a period of two years 2019-04-12 11:00 BID LAB 01/ 2019
Provision of Cleaning Services at Mthatha Medical Depot 2019-04-12 11:00 SCMU3- 19/ 20- 0018- HO
Appointment of a Service Provider to Quantify Asbestos Fibres in Different Environmental Samples for a period of three (3) years 2019-04-16 11:00 CGS- 2018- 057A
Procurement of a Grade B Building for Ceta Academy 2019-04-08 11:00 010- 2018/ 2019
Preferred Service Providers for Technical Services (Roads & Civil Works) For Coega Development Corporation (Pty) Ltd 2019-04-08 12:00 CDC/ 68/ 19
Registration on New loveLife Trust Supplier Database 2019-04-12 12:00 No reference number
Preferred Service Providers for Technical Services (Aluminum Doors) For Coega Development Corporation (Pty) Ltd 2019-04-08 12:00 CDC/ 114/ 19
Preferred Service Providers for Technical Services (Signage - Road Side Signage) For Coega Development Corporation (Pty) Ltd 2019-04-08 12:00 CDC/ 116/ 19
Preferred Service Providers For Technical Services (Canteen Equipment Maintenance) For Coega Development Corporation (Pty) Ltd 2019-04-08 12:00 CDC/ 117/ 19
Preferred Service Providers For Technical Services (Fire Equipment) For Coega Development Corporation (Pty) Ltd 2019-04-08 12:00 CDC/ 120/ 19
Preferred Service Providers For Technical Services (Roof Specialist) For Coega Development Corporation (Pty) Ltd 2019-04-08 12:00 CDC/ 121/ 19
Preferred Service Providers for Technical Services (Fencing) for Coega Development Corporation (Pty) Ltd 2019-04-08 12:00 CDC/ 123/ 19
Preferred Service Providers for Technical Services (Road Markings) for Coega Development Corporation (Pty) Ltd 2019-04-08 12:00 CDC/ 69/ 19
Procurement of Enterprise Resource Plan (ERP) - Electronic Documents and Records Management System. This agreement will be applicable from date of appointment until 31 March 2020. 2019-03-25 11:00 RFP/ SASSETA/ 201819135
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R521 from Molemole municipal border through Vivo to Louis Trichardt municipal border, R523 from Blouberg municipal border to Masekwaspoort, N1 from Louis Trichardt to Beit Bridge Border Post. 2019-03-29 14:00 NRA X.002- 102- 2019/ 1F & N.001- 129
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R521 from Polokwane to Molemole municipal border and R567 from Mogalakwena municipal border to Seshego 2019-03-29 14:00 NRA X.002- 101- 2019/ 1F
Establishment of a Prequalified List of Service Providers to Render Day To Day Maintenance in the Form of Refurbishment Building , Plumbing, Electrical, Mechanical, Civil, Horticulture And Fencing Works Required at Schools and GDE Offices across Gauteng Province for a Fixed Term Period of 3 (Three) Years 2019-03-23 11:00 GT/ GDE/ 057/ 2018

Pages

Must my business be registered in order to tender?

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Once, a very anxious business owner phoned me and asked if I can supply him with a CK number. I was amused by this and first asked why he asked me for such a number and secondly for what did he need a CK number for? He said that because of my Tender Manual that he bought, he thought that maybe I can help him with a CK number. Also, at the briefing session of the tender that he was responding to, the person in... Read More

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