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 Wound dressing (100% soduim carboxymethylcellulose NACMC fibrous hydrocolloid dressing containing ionic silver with nylon stitching 17 x 15cm) - 3000 boxes 2018-03-06 10:00 225/ 17- 18
Request to render Security Services at Mary Moodley Child and Youth Care Centre for a period of 24 Months 2018-03-16 11:00 GT/ GDSD/ 055/ 2018
Supply: Elastic bandage 50mm x 4.5m(stretched) (12 rolls per pkt); Elastic bandage 100mm x 4.5m(stretched) (12 rolls per pkt) 2018-03-02 11:00 ZNQ 132/ 2017
Request for proposal for the appointment of a contractor for construction of electrical works, access road and water supply system 2018-03-27 11:00 GGDA/ 19/ 2017- 18/ GIDZ_INFRASTRUC
Rendering of a Security Service for period of two years (24 months) at CNR Leta & Moropotsane Street ,Phuthaditjhaba ,Qwa-qwa, 9866 2018-03-15 11:00 FSDOL07/ 2018
Appointment of a service provider for the supply, installation and maintenance of backup generators, uninterrupted power supply (UPS) unit, air-conditioners including consequential general building, electrical, mechanical, civil and engineering works in various DHA offices and Port of Entry for a period of three (3) years. 2018-03-16 11:00 DHA04- 2018
Re-Advert - Provision of alarm with armed response services and security guards at the CETA head office in Midrand. 2018-03-02 11:00 018- 2017/ 2018
Provision of ICT desktop support services for a period of 3 years. 2018-03-16 11:00 CONHILL/ 02/ FAC/ 2018
Request for proposal for the appointment of a service provider to project manage the GIDZ marketing campaign 2018-03-26 11:00 GGDA/ 18/ 2017- 18/ GIDZ_MARKETING
Faulty Find and Repair Calorifier Since Has No Hot Water in Nurses Home Building 2018-03-02 11:00 ZNQ 133/ 2017
Provision of internet connectivity services for a period of 3 years. 2018-03-15 11:00 CONHILL/ 04/ FAC/ 2018
Supply of maintenance, support and a minor upgrade for the Department of Trade and Industries (the dti) Checkpoint infrastructure. 2018-03-16 11:00 RFB 1704/ 2017
Invitation to service providers to supply MPLS connectivity between The Commission’s Main Data Center located at The DTI Campus, 77 Meintjies Street, Sunnyside, Pretoria and the Remote Sites. 2018-03-16 11:00 CIPC BID NUMBER: 31/ 2017/ 2018
Repair and Maintenance of Accessible Lifts, for a period of 3 years, including Lift Replacement Project 2018-03-16 11:00 CONHILL/ 01/ FAC/ 2018
Identification of premises for office space for the NDA to be occupied over a period of three years with an option to renew at NDA’s sole discretion for an additional twenty-four months at intervals of twelve months each 2018-03-22 14:00 NDA26/ FIN15/ 18
Manufacturing, supply and delivery of poncho, HRD trainee for a period of three (3) years in accordance with specification SAPS 3231/17 Version 01.0/June 2017: Division: Supply Chain Management. 2018-03-27 11:00 19/ 1/ 9/ 1/ 95TC (17)
Appointment of Suitable Service Provider to Provide Office Accommodation to the MICT Seta Cape Town Offices for a period 36 months Subject to Renewal Of MICT Seta License 2018-03-16 11:00 MICT- SETA/ OACPT/ 2018
Manufacturing, supply and delivery of jersey HRD trainee unisex for a period of three (3) years in accordance with specification SAPS 3206/17 Version 01.0/ April 2017 2018-03-27 11:00 19/ 1/ 9/ 1/ 94TC (17):
Appointment of Suitable Service Provider to Provide Office Accommodation to the Mict Seta Durban Offices for a period 36 months subject to Renewal of MICT Seta License 2018-03-16 11:00 MICT- SETA/ OADBN/ 2018
The supply and delivery of protective clothing and uniform for mortuaries 2018-03-02 11:00 339, 340, 347, 335/ 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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