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: Tunic, Man’s (Qty 2150 ea), Trousers, Men’s (Qty 2050 pr), Shirts, Man’s; Tropical (Qty 5000 ea). 2018-04-17 11:00 SPSC- B- 052- 2017
Request for proposal to dispose Office Furniture and Equipment for GPAA. 2018-03-16 11:00 GPAA 04/ 2018
Request for proposal to dispose ICT equipment for GPAA. 2018-03-16 11:00 GPAA 03/ 2018
Request for proposal for the appointment of a service provider to project manage the Design@50 skills development programme 2018-03-15 11:00 GGDA/ 17/ 2017- 18/ GIDZ_DESIGN@ 50
Sales of vehicles: Colesberg Management Area: Correctional Centre: Once -off 2018-03-09 11:00 COBQ 01/ 2018
Supply, delivery & installation of palisade fencing at Tshabo RED Hub 2018-03-16 11:00 SCMU 12 – 2017/18
The objective of this bid is to appoint a service provider to conduct research within the wholesale and retail sector to update the current SSP. 2018-03-16 11:00 SSP/ 2018/ 0004
The objective of this bid is to appoint Accredited Training Providers and TVET Colleges to up skill and train 220 18.2 members from 10 Cooperatives within the Northern Cape and 10 within the North West Provinces on W&RSETA Skills Programmes. 2018-03-16 11:00 RDO/ 2018/ 0010
Drivers License Training Programme 2018-03-27 11:00 ZNB 1413/ 18 T
The purpose of this bid is to invite Accredited Training Providers to train and up skill 550 18.2 learners identified within the AmaNdlambe AkuGompo Villages, AmaHleke Villages and Ten Traditional Councils within Nqgushwa Local Municipality. 2018-03-16 11:00 RDO/ 2018/ 0008
The objective of this bid is to appoint and contract Accredited Training Providers and TVET Colleges with Accreditation and/or scope with the W&RSETA to offer W&RSETA Unit Standards. 2018-03-16 11:00 RDO/ 2018/ 0009
Pretoria: Bryntirion Heritage: Construction of gate 1 and 2 as well as the Dog Unit 2018-03-27 11:00 Pt18/ 005
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the appointment of individual entities or groups of service providers consisting of a bank(s) as well as System Operators to enter into an agreement to provide banking services to SANRAL. 2018-03-23 14:00 NRA
Repair and Renovation to existing Community Library in Barkley West 2018-03-26 11:00 DRPW 044/ 2017
Provision of travel management services at SANAS for a period of 36 months 2018-03-09 11:00 SANAS/ TRAVEL/ 2017- 18/ 02
Department of Labour: Procurement of alternative Office accommodation comprising 2 533.64m² and 20 Parking Bays in Germiston CBD for a period of three (3) years 2018-03-16 11:00 JHB.17/ 41
Request for proposals from property management companies or landlords to lease office space in the Midrand area. 2018-03-16 11:00 RFP/ SASSETA/ 1718006
Appointment of a service provider for the infrastructure / refurbishment / construction including consequential general building, electrical, mechanical, civil and engineering works at DHA offices and Ports of Entry for a period of three (3) years 2018-03-16 11:00 DHA05- 2018
Rendering of security service to the Northern Cape Department of Sport, Arts and Culture. 2018-03-16 11:00 NCDSAC- 004- 2017
Re-Advert - Appointment of a CIDB registered contractor for the construction of a technology laboratory building at the University of Venda 2018-03-02 11:00 019- 2017/ 2018

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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