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 Nsg119/107p connector 2017-12-21 12:15 GL11800452
Supply PVC Banners 2017-12-19 12:00 GL11800453
Supply and delivery of Emergency Kits 2017-12-21 11:00 278927
Supply Nfg/127/79/p/connector 2017-12-21 12:00 GL11800455
Supply Electrical boxes and pole boxes 2018-01-18 11:00 GH11800325
Supply: Conduits, fuses and contactors 2018-01-18 09:00 GH11800324
Appointment of a construction health and safety agent to act on behalf of the Services SETA to fulfil its duties as stipulated in the construction regulation 5. 2018-01-11 11:00 RFQ.07.12.17-3470
Supply Glass notice boards 2018-01-15 09:00 GL1180423A
Supply Trestle table and chairs 2018-01-15 12:00 GL1180424A
Supply Batteries and air filters 2018-01-18 11:00 GH11800322
Appointment of a panel of service provider for distribution of academic books to bursaries 2018-01-11 11:00 RFQ.07.12.17-3469
Supply and Deliver SMC Reed Switch D-Z73L and BMP1-032 Bracket for reed switch 2018-01-19 11:00 GH1180299A
Expression of interest on management and training of a Day-care centre at Service SETA. 2018-01-11 11:00 RFQ.07.12.17-3468
Supply and Deliver Sika Flow Switch 2018-01-19 11:00 GH1180300A
Appointment of a service provider to supply and install hardware and software to manage and distribute content/information to various display media within the services seta 2018-01-12 11:00 Proc T483
Repairs to security lights and floodlights at Sarepta Sports Complex 2017-12-19 12:00 SB1180345A
Appointment of a security service provider to provide and/or maintain security guards services and armed response at Services SETA North West provincial office. 2018-01-12 11:00 Proc T482
Supply Display stands for artworks 2018-01-15 12:00 GL1800375A
Supply: Electrical - components 2018-01-18 11:00 GH11800323
Supply: 150 cubic meter x compost for large trees 30mm 2018-01-12 16:00 GC11800398

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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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