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.
40 units per month- 06 months contract for PD temp RCT- 248k (adult) peritoneal dialysis catheter stylet 2018-05-02 11:00 A 307/ 17- 18
Appointment of suitably qualified service provider, for the service and maintenance of chemical toilets within the Stellenbosch jurisdiction for a contract period ending 30 June 2020. 2018-05-25 12:00 B/SM 92/18
01 unit- 600W powered with 500W heat coil frame heater/warmer euro 1832 frame warmer/heater 2018-05-02 11:00 A 555/ 17- 18
04 units- universal DVT machine (intermittent pneumatic compression system) with Cald thigh and foot garments 2018-05-02 11:00 A 233/ 17- 18
Slipway and Marine Infrastructure Repairs in Hout Bay, Kalk Bay, Gordons Bay, Hermanus and Pepper Bay Harbours – Phase 1 2018-05-22 12:00 CDC/ 18/ 18A
01 unit- potential acuity meter 2018-05-02 11:00 A 276/ 17- 18
Supply, installation, maintenance and support of an IP based PABX with a switchboard solution for a period of 3 years. 2018-05-25 12:00 B/SM 96/18
Slipway and Marine Infrastructure Repairs in St Helena Bay, Laaiplek And Lambert’s Bay Harbours – Phase 1 2018-05-22 12:00 CDC/ 18/ 18B
Construction of Infrastructure works under cluster 6 water backlog project (Gubenxa village reticulation scheme). 2018-05-25 12:00 13/2018/MD(TN)
Cluster 6 Water Backlog Project- Construction of Lixeni, Ncityana & Kumbeke. 2018-05-25 12:00 14/2018/MD(TN)
60 units per month- 06 months contract for y-type peritoneal dialysis set with drainage tubing 2018-05-02 11:00 A 306/ 17- 18
Tenders are hereby invited from recognised tabloid size or bigger newspapers for the rendering of advertising services for the Mossel Bay Municipality for a period of 1 July 2018 until 30 June 2021. 2018-05-25 12:00 TENDER 89-17/18
Appointment of a service provider for provision of USAASA Polokwane Office Space for a period of five(5) years 2018-05-16 11:00 USAASA- OFSP/ 03/ 2018
Supply and deliver Bandage pop 75mm,100mm 150mm and 200mm (09 months contract)-Samples to be requested 2018-05-01 11:00 ZNQ 03/ 04/ 2018
Installation of electrical pre-paid meters/smart meters and the installation of electricity meters with Automatic Meter Reading Function (AMR). 2018-05-25 12:00 TENDER 95-17/18
Supply and deliver swab gauze 100x100mm x 8ply (09 months contract)- Samples to be requested 2018-05-01 11:00 ZNQ 02/ 04/ 2018
Supply and installation of electrical equipment. 2018-04-25 12:00 TENDER 101-17/18
Appointment of SARAO Website Maintenance and Support Service Provider 2018-05-04 14:00 NRF SARAO RFQ SRES 001 2018
Major service to generator set as per attached specification 2018-04-27 11:00 ZNQ 02/ 18 / 19
Maintenance, testing and inspection of electrical equipment. 2018-05-25 12:00 TENDER 102-17/18

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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