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.
Annual Service to Earth Monitoring as per attahed specification 2018-04-27 11:00 ZNQ 23 / 18 / 19
Hard and Soft Landscaping at Cloetesville Hall/Library/Ward Admin Office for a contract period of 16 weeks. 2018-05-25 12:00 B/SM 97/18
Annual Service to Diesel Tank as per attahed specification 2018-04-27 11:00 ZNQ 16 / 18 / 19
Invitation of bids for the appointment of a service provider to render security services in the Department of Energy: Polokwane (Limpopo) regional office for a period of thirty six (36) months 2018-05-10 11:00 DOE/ 006/ 2017/ 18
Appointing of experienced service provider to read meters remotely, via Automated Meter Reading (AMR) system and manage metering services for large power users and small scale embedded generation consumers. 2018-05-25 12:00 B/SM 98/18
Major Service to Infrared Detection for all Clinics Under Bethesda Hospital as per attached specification 2018-04-27 11:00 ZNQ 14 / 18 / 19
Request For Information – database of printing and packaging service providers – South Africa. 2018-05-11 17:00 GPW- C 68
Major Service to Hospital Refrigeration as per attahed specification 2018-04-27 11:00 ZNQ 04 / 18 / 19
Supply and delivery of bricks, sand, gravel, stone and kerb mix. 2018-05-25 12:00 TENDER 104-17/18
Annual Service to Machine Tools/ Power Tools as per attahed specification 2018-04-27 11:00 ZNQ 20 / 18 / 19
Rendering of armed response and alarm system installation services for Mossel Bay Municipality. 2018-05-25 12:00 TENDER 90-17/18
Placement of Cardiac Readers for Gauteng and Eastern Cape Regions for a Period of Three Years 2018-05-14 11:00 RFB098- 17- 18
Major Service to Laundry Equipment as per attahed specification 2018-04-27 11:00 ZNQ 03 / 18 / 19
Annual Service to Water Reticulation as per attached specification 2018-04-27 11:00 ZNQ 19 / 18 / 19
Renovations to Hlabisa Laboratory 2018-05-21 11:00 RFB003/ 18/ 19
01 unit- telescope rigid 28cm length 2.7mm diameter 0 degree 2018-05-02 11:00 A 237/ 17- 18
40 units per month- 06 months contract for adult coiled 2 UFF peritoneal dialysis catheter kit 2018-05-02 11:00 A 305/ 17- 18
120 units per month- 06 months contract for disconnect Y set 2018-05-02 11:00 A 301/ 17- 18
02 units- Lumiview 3.5V halogen portable binocular microscope with headband portable battery pack and charger, reusable ear speculum set (#22100) battery and locally compatible plug 2018-05-02 11:00 A 556/ 17- 18
Provisioning of cash in transit services for 2 years 2018-05-02 11:00 A 221/ 17- 18

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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