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 and delivery of corporate laptops to the South African Weather Service 2017-09-08 11:00 SAWS- 118 / 17
Supply and delivery of corporate desktop computers and high-end computer workstations to the South African Weather Service. 2017-09-08 11:00 SAWS- 120 / 17
SANSA invites bidders to tender for for Provision of CISCO maintenance and support for a period of three (3) years. 2017-09-19 11:00 SO/ 034/ 08/ 2017
Request for service provider to maintain and support the group campus and regional offices (Port Elizabeth, Durban and Cape Town) including the dti’s Parliamentary office(s), converged ICT network environment, telecommunications and network management instruments for a period of three (3) years 2017-09-08 11:00 RFB- 1609- 2017
The RAF hereby invites experienced, suitably service providers to provide Splunk, hardware and licences, including support and maintenance for a period of five (5) years. 2017-09-20 11:00 RAF/ 2017/ 00041
The RAF hereby invites experienced, suitably service providers to provide McAfee software, licensing, maintenance and support for a period of five (5) years. 2017-09-20 11:00 RAF/ 2017/ 00042
Advertising Agency Services 2017-09-15 11:00 IEC/ COM- 01/ 2017
Supply IT equipment to the College 2017-09-12 11:00 T11/ 17 IT
False Bay TVET College invites tender bids for the Supply and Delivery of 123 Complete Desktop Devices to our Khayelitsha Campus. 2017-09-11 11:00 FBC T1/ 2017
Supply pastoe chairs set of 5 (maroon in colour x 28 sets 2017-08-28 11:00 ZNQ 261/ 17/ 18
Supply voile curtains for five (5) houses as per specification x 05 each 2017-09-04 11:00 ZNQ 260/ 17/ 18
Supply curtains for chapel for 6 windows and stage 100% cotton x06 each 2017-09-04 11:00 ZNQ 258/ 17/ 18
Supply: 1. 10 Sets X 2 Peace (navy blue) small; 2. 20 Sets X 2 Peace (navy blue) medium; 3. 50 Sets X 2 Peace (navy blue) Large; 4. 45 Sets X 2 Peace (navy blue) X Large; 5. 25 Sets X 2 Peace (navy blue) XX Large 2017-08-25 11:00 ZNQ. NO: 180/ 07/ 17- 18
Supply: Piece Scrub Suits Doctors (See description for more details) 2017-08-25 11:00 ZNQ. NO: 156/ 07/ 17- 18
Request for ACCREDITATION to provide hardware maintenance and support of Wide Area network (WAN) and Local Area Networks (LAN) devices for SITA for a period of five (5) years. 2017-09-13 11:00 RFA 1605/ 2017
Request for ACCREDITATION for the design, supply, installation and maintenance for network cabling and related infrastructure goods for SITA for a period of five (05) years. 2017-09-11 11:00 RFA 1611/ 2017
The CCMA National Office invites prospective bidders for the supply, installation and support of a Data Analysis Software Tool required by Internal Audit. 2017-09-08 11:00 CCMA/ 2017/ 05 – IA
The supply, delivery and commissioning of fuel tanks and pumping equipment to the Department of Defence Units. 2017-09-18 11:00 CPSC- B- PC- 021- 2017
To collect, crush and dispose used florescent tubes in a permitted hazardous site (once off). 2017-09-01 11:00 ZNQ 397 OF 2017 / 18
Appointment of a Social Media Agency for South African Tourism India. 2017-09-11 12:00 SAT INDIA 001/ 17

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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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