Issue Date: 
Monday, May 29, 2017

Tenders, B-BBEE and the new Preferential Procurement Regulations 2017

Having a good B-BBEE status level is VERY IMPORTANT in the tender process!

All tender documents will have 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, 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 will earn you a point out of 20, and on the 90/10 system your B-BBEE status level 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 submit an affidavit stating its B-BBEE status level.

Exempt Micro Enterprises (EME's) must acquire an affidavit regarding their B-BBEE status level - 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 levels 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 or B-BBEE affidavit is very important in the Tender Process. 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. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

 

Title Closing Date Tender No.
Supply and deliver professional video camcorder tripod with fluid drag head - BLACK. 2018-08-27 11:00 GQ08181888
Supply and deliver 500mm /1000mm F/8 telephone lens -Eos T 51i or approved equal 2018-08-27 11:00 GQ08181888
Supply and deliver Canon EOS 6D Mark 11 DSLR with 24-70mm f/4L IS USM Lens 2018-08-27 11:00 GQ08181888
Supply and deliver interactive whiteboard and stand 2018-08-27 11:00 GQ08181888
Supply and deliver battery powered portable 12" PA system -JBL or approved equal. 2018-08-27 11:00 GQ08181888
Supply and deliver cordless microphone PGX 24 E - Shure Sm 58 or approved equal 2018-08-27 11:00 GQ08181888
Supply padded jackets 2018-08-30 10:00 GA11900161
Supply Medical supplies 2018-08-27 15:00 GF11900112
Supply and delivery of SO3 catalyst and ceramic balls spares on an “as and when” required basis for a period of 5 years to Kriel Power Station. 2018-09-18 10:00 MPGXC005283
Supply and deliver short back with height adjustable arms office chairs with soft PU top - 5 star black nylon base - seat upholstered in standard black fabric- knee tilt mechanism, Black mesh back with lumbar support, seat upholstered in standard black fabric 2018-08-24 11:00 GQ08181885
Supply and deliver 1250x640mm galvanised double frame (catchpit frames) 2018-08-24 11:00 GQ08181890
Supply of Drinking water in various Eskom sites in ECOU. 2018-09-18 10:00 EMM 5741
Supply, delivery and installation of high performance joint sealing system to the preload reservoir. 2018-08-24 11:00 287476
Supply and deliver 1250x640mm galvanised double hinged gate and frame 2018-08-24 11:00 GQ08181890
Home work home transport for Eskom Kendal Employees on as and when required basis. 2018-09-19 10:00 WE11900937
Supply and Deliver Elbow Green Gloves 2018-08-22 11:00 GQ08181889
Supply and Deliver Size: M16 eyenuts 2018-08-27 11:00 GQ08181882
Supply and delivery of 1800kg forklift; 2000kg forklift and 2500kg forklift. 2018-08-29 12:00 WE11900937
Supply and Deliver Size: 1m x 36 way 100A rating Copper Busbars 2018-08-27 11:00 GQ08181882
Supply and Deliver Size: 25mm x 6.3mm x 275mm Copper Earth Bars 2018-08-27 11:00 GQ08181882

Pages

7 Disadvantages of Competitive Bidding

The bidding process can be very tedious sometimes. Here are some of the disadvantages of the bidding process.

1.    Leading suppliers may not tender

In Australia, for example, government procurement guidelines only allow suppliers who actually tender to be considered for a procurement decision. If the leading supplier or suppliers do not tender, the purchaser can only consider bids from suppliers who do tender. If leading suppliers are not considered, the purchaser may end up buying inferior product or service... Read More

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