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 SA Air Force Bib Woman White Evening Wear for Black Satin Bow Tie, Quantity 2500. Main Contractor or Sub-Contractor must have a valid SABS Capability Report (not older that 12 Months). 2018-07-16 11:00 SPU/ B/ DSS/ 026/ 18
Notice of proposed disposal of 66 Greatmore Street, Woodstock. 2018-07-24 11:00 PM002/ 18
Provision of Stationery for NHLS for a period of 3 years 2018-07-24 11:00 RFB 044/ 18/ 19
Live and on-line auctioneering services for the disposal of technical equipment, movable and immovable assets for 36 months. 2018-07-13 11:00 DID 19/ 06/ 2018
Provision of A3 and A4 Paper for NHLS for a period of 3 years 2018-07-23 11:00 RFB 043/ 18/ 19
The objective of this bid is to appoint a suitable independent service provider that can provide internal audit services on a co-sourced basis to the W&RSETA. 2018-07-13 11:00 NCR/ 2018/ 0003
The Government Printing Works (GPW) is seeking to establish a panel of printers within South Africa 2018-07-13 11:00 GPW- C 68
The objective of this bid is to appoint a suitable service provider to provide the W&RSETA an Integrated IT Management System. 2018-07-13 11:00 ITD/ 2018/ 0005
Appointing a service provider to provide expertise to SANBI and Statistics South Africa in the development of ecosystem accounts and recommendations for advancing the System of Environmental-Economic Accounting (SEEA) Experimental Ecosystem Accounting (EEA) in South Africa. 2018-07-20 11:00 SANBI: BIPA299/ 2018
The appointment of a service provider to render employee health and wellness programme for Public Protector South Africa (PPSA ) Nationally for a period of three (3) years. 2018-07-13 11:00 PPSA 003/ 2018
Printing and Delivery of NPE2019 Voters’ Roll 2018-07-20 11:00 IEC/ LG- 04/ 2018
500 Units X Shelf Strips 2018-07-04 11:00 ZNQ 183/ 18
Request for Proposals for Appointment of A service Provider to Render Events Management Services for the OR Tambo 2018 Inter-Municipal Games including Sponsorship Procurement. 2018-07-20 11:00 SALGA/ 68/ 2018
Supply A4 Photocopy Paper White 80gms 500sheets per Ream 5 Reams Per Box Sabs/Ce/Isoapproved as per Specification 2018-07-09 11:00 ZNQ 310/ 18- 19
Supply Lexmark Toner X651 H31e High Yield Original only as per specification 2018-07-09 11:00 ZNQ 309/ 18- 19
Request for Information: Insurance Management Systems 2018-07-16 12:00 RFI 2018/ 01
Supply *Paper Photocopy White Bond 80gsm A3 (40 Boxes) 2018-06-29 11:00 25/ 18- 19
Appointment of a service provider for the collection, dispatch and delivering freight (courier services) between PSiRA Head Office and all PSiRA regional offices for a period of three (3) years. 2018-07-26 11:00 RFB/ 2018/ PSiRA/ 03
Supply and Install Dental System Complete Package (Hand Piece 2018-06-29 11:00 ZNQ 320 / 18- 19
Nelson Mandela Museum seeks the services of a qualified and experienced company to render internal audit services for a period of three years (thirty six months). 2018-07-13 12:00 NMM 2018- 06

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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