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.
SUPPLY AND DELIVER AUTOREFRACTOR KERATO TONOPHECOMETER 2017-09-04 11:00 18/ 08/ 2017
SUPPLY AND DELIVERY OF A COMPREHENSIVE CHRONIC HAEMODIALYSIS SERVICE FOR GEORGE HOSPITAL FOR A THREE (3) YEAR PERIOD 2017-09-15 11:00 WCGHCC015/ 2017
3 DRAWER DESK (A) DESK 1600X1600MM(B) DESK HEIGHT PEDESTAL (OAK) LOCKABLE 5 YEARS GUARANTE; DESK 1600/1800X900 WITH CONFERENCE END AND 4 DRAWER PEDESTAL. 2017-08-25 11:00 ZNQ 230/ 17/ 18
DRESSING TROLLEY 2017-08-30 11:00 ZNQ: 311 / 2017 / 18
Supply Toxicology Kits (250 kits) Supply Blood Alcohol Kits (350 kits) 2017-08-25 11:00 94/ 17- 18
TRAUMA STRETCHERS. 2017-08-25 11:00 ZNQ 396 OF 2017 / 18
Sound proof audiometry book with extractor fan 2017-08-28 11:00 ZNQ156/ 17/ 17
Establishment of a Panel of Service Providers for Supply and Delivery of Current Gauging Equipment for the Measurement of Velocity and Discharge in Open Channels by Using the Acoustic Doppler and Tracer Methods for a Period of 24 Months 2017-09-19 11:00 W11238
Emergency and Resuscitation trolley x 7. NB// Specification will be available in the document 2017-08-29 11:00 123/ 17/ 18 PCHC
Suction machine x 4 2017-08-29 11:00 121/ 17/ 18 PCHC
Supply and install industrial tumble dryer machine x 1 2017-08-29 11:00 120/ 17/ 18 PCHC
Service tumble dryer for Pholela CHC and three clinics x 4 Service washing machine for Pholela CHC and five clinics x 7 2017-08-29 11:00 124/ 17/ 18 PCHC
Electrocardiograph x 4 2017-08-29 11:00 122/ 17/ 18 PCHC
Supply and deliver Sphygmomanometer -Aneroid - QTY: 30 Units Supply and deliver Mobile Trolley - QTY: 24 Units 2017-09-01 11:00 ZNQ: 60/ 17- 18
Supply and deliver Portable Diagnostic Set Battery Operated 2017-09-01 11:00 ZNQ: 194/ 17- 18
Supply and deliver Electronic Haemoglobin Meter 2017-09-01 11:00 ZNQ: 367/ 17- 18
-40 vaccine fridge as per H.T.S. specification 2017-08-25 11:00 ZNQ 398 OF 2017 / 18
Supply and deliver vaccine refrigerator, freezer upright (see description for details) 2017-08-29 11:00 ZNQ126/ 2017/ 2018NSI
1.mobile examination light x13 2017-09-05 11:00 ZNQ 231/ 17- 18
Supply domestic fridge as per attached list 2017-09-03 11:00 ZNQ 444/ 17- 18

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Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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