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 For more information on the tender courses please email Werner at

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.
Loligo Squid required as Bait for linefish January Cruise and must be delivered end January. 2019-01-25 11:00 RFQ000310
Hiring and delivery of refuse skips 2019-01-24 12:00 264/2018/19
Replacement of Fire Hydrants and Associated works for Brenton-on-Sea and Brenton-on-Lake Areas 2019-01-29 12:00 268/2018/19
Removal of furniture for: Ms Lethabo Koopa from Lebowakgomo to Knysna 2019-01-24 12:00 RFQ 273/2018/19
Presentation of a Skills Programme: Construction Procurement. 2019-01-24 12:00 266/2018/19
Supply, delivery and installation of office furniture 2019-01-24 12:00 269/2018/19
Removal of old and the supply and fitting of new pre-cast walls at the Electrical Engineering offices in George Rex Drive. 2019-01-25 12:00 265/2018/2019
The appointment of a panel of professional electrical service providers for a period of 36 months on as and when required basis 2019-02-15 11:00 RWCLM-3/002/2018/2019
Appointment of supplies to supply and deliver L/V and M/V electrical stock items to the main stores on as and when required basis for a period of 36 months 2019-02-15 11:00 RWCLM-3/004/2018/2019
The supply and delivery of digital two way radios for a 36 months period on as and when required (also included is the supply and installation of a digital repeater) 2019-02-15 11:00 RWCLM-3/005/2018/2019
Appointment of a panel of service providers to supply, install and repair 30m high mast poles on as and when required for a period of 36 months 2019-02-15 11:00 RWCLM-3/003/2018/2019
Appointment of a panel of estate agents for the selling immovable properties for City of Mbombela 2019-02-18 11:00 183/2018
Appointment of a Service Provider to Conduct Mbombela CID By-Law Review 2019-02-18 11:00 196/2018
Appointment of a Transactional Advisor and Developer for Public Works Precinct/Rugby Stadium 2019-02-18 11:00 193/2018
Panel of Consultants to provide Professional Engineering Services for the period of 3 Years 2019-02-18 12:00 IHLM/81/01/2018-19/TS
Building and Site Works including Electrical Works for the Proposed New Self Storage Facility at Doornrandjies, Centurion AH, Gauteng for Messrs. “The Storage Place” a division of Trinity Property Investment 2019-02-20 12:00 STR (GAU) 01/19
Provision of professional Services: Specialist Required For The Integrity Management of Groundwater Monitoring Infrastructure At Solid Waste Disposal Facilities. 2019-02-18 10:00 2016C/2018/19
Supply and delivery of tactical gear and equipment for Safety and Security Directorate 2019-02-18 10:00 222G/2018/19
Supply and delivery of Submerged Scraper Conveyor items for a period of 5 years for stock replenishment 2019-02-18 10:00 MPGXC005435
Appointment of a service provider for Operations and Management of Barberton Waste Disposal Site for The City of Mbombela 2019-02-18 11:00 1/2019


10 Features of a good Joint Venture Agreement

By W van Rooyen

A Joint Ventures is a good business idea to compete for tenders if one does not have all the necessary expertise that are required from a specific tender. The thing to remember though is that you must have a solid Joint Venture Agreement in place for your Joint Venture. A good, rock solid Joint Venture Agreement will protect the participants to the Joint Venture.

 Here are 10 features that any good Joint Venture Agreement... Read More

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