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.
Bethlehem Department of Rural Developement And Land Reform (Drd & Lr): Thabo Mofutsanyane District: Alternative Office Accommodation And Parking Facilities (1994.17m² and 25 Parking Bays) 2018-11-13 11:00 BL18/ 063
For sale of: removal and recycling of cardboard and waste paper 2018-10-26 11:00 ZNQ 64/ 08/ 2018
FICKSBURG: SOUTH AFRICAN SOCIAL SECURITY AGENCY (SASSA): New Office Accommodation and Parking Facilities (561.01m² and 20 Parking Bays) 2018-11-13 11:00 BL18/ 065
Appointment of a service provider at the Independent Communications Authority of South Africa for provision of storage facilities on an 80/20 PPPFA 2000, Preferential Procurement Regulation: 2017 2018-10-26 11:00 ICASA 21/ 2018
Invitation to bidders to submit proposals for the appointment of a group risk insurance/assurance provider for all CIPC employees. 2018-10-22 11:00 CIPC BID NUMBER: 17/ 2018/ 2019
Invitation for an open tender for the Supply of Telephone Management System and Maintenance of Voice Over Internet Protocol (VOIP) At Aidc’s Multiple Sites 2018-11-15 11:00 AIDC T10/ 2018
Staff lockers (ABS Plastic) 3 tier x40 2018-10-30 11:00 ZNQ 744/ 18
Request for proposal for air quality monitoring in The Coega Special Economic Zone (SEZ). 2018-11-12 12:00 CDC/ 446/ 18
Fridge tags 2018-10-31 11:00 ZNQ: 303 / 2018/ 19
Construction of Sidewalks on P483 in the Amajuba District. Tenderers must be registered as 3CE with the CIDB ,Department of Transport’s Vukuzakhe Emerging Contractors Database and also be registered with the National Treasury’s Centralized Supplier Database (CSD).Target designated group: Women. The duration of the project will be stipulated in the tender document. 2018-11-15 11:00 C253/ 1819/ SW/ 561
Construction of Sidewalks on P41 in the Amajuba District. Tenderers must be registered as 3CE with the CIDB ,Department of Transport’s Vukuzakhe Emerging Contractors Database and also be registered with the National Treasury’s Centralized Supplier Database (CSD).Target designated group: Open. The duration of the project will be stipulated in the tender document. 2018-11-15 11:00 C253/ 1819/ SW/ 563
Consultancy Services for Implementation of a Contract Management System 2018-11-16 15:00 AUC/OLC/C/325
The Province of KwaZulu-Natal, Department of Transport, invites tenders from Established Contractors, experienced in Bridges, and earthworks construction, for the construction of the Extension of Kwasitholane River Bridge No. 3527.The duration of the project will be 4 months. 2018-11-15 11:00 ZNT3507/ 18T
Provision of Security Services at RTI Mkondeni DLTC. 2018-11-21 11:00 ZNB1432/ 17T
Require: Tender must be registered as grade 2CE only with the CIDB register of contractors.Tender must be registered as Emerging Contractors in the Vukuzakhe Emerging Contractor Development Programme (as per database of Department of Transport).Tenders must be registered with the National Treasury’s Centralized Supplier Database(CSD).Tenders will be evaluated in terms of the 80:20 Preference Points(as per Preferential Policy Framework Regulations,2017). 2018-11-20 11:00 ZNT373T/ C238/ 1100/ S/ 18
Require: Tender must be registered as grade 2CE only with the CIDB register of contractors.Tender must be registered as Emerging Contractors in the Vukuzakhe Emerging Contractor Development Programme (as per database of Department of Transport).Tenders must be registered with the National Treasury’s Centralized Supplier Database(CSD).Tenders will be evaluated in terms of the 80:20 Preference Points(as per Preferential Policy Framework Regulations,2017) 2018-11-20 11:00 ZNT373T/ C238/ 1100/ S/ 71
National Department of Public Works: Cleaning of carpet, sofas and chairs for a period of 24 months. 2018-11-13 11:00 JHB.18/ 20
Require: Tender must be registered as grade 2CE only with the CIDB register of contractors. Tender must be registered as Emerging Contractors in the Vukuzakhe Emerging Contractor Development Programme (as per database of Department of Transport).Tenders must be registered with the National Treasury’s Centralized Supplier Database(CSD). Tenders will be evaluated in terms of the 80:20 Preference Points (as per Preferential Policy Framework Regulations, 2017) 2018-11-20 11:00 ZNT373T/ C238/ 1100/ S/ 19
Require: Tender must be registered as grade 2CE only with the CIDB register of contractors. Tender must be registered as Emerging Contractors in the Vukuzakhe Emerging Contractor Development Programme (as per database of Department of Transport). Tenders must be registered with the National Treasury’s Centralized Supplier Database(CSD). Tenders will be evaluated in terms of the 80:20 Preference Points(as per Preferential Policy Framework Regulations,2017). 2018-11-20 11:00 ZNT373T/ C238/1100/ S/ 17
Department of Justice & CD: Roodepoort, Kagiso, Westonaria, Brakpan, Heidelberg and Randfontein Magistrate Courts: Rendering of gardening services for a period of 24 months. 2018-11-13 11:00 JHB.18/ 19

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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