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.
Printing and distribution of monthly service accounts and newsletters. 2018-05-25 12:00 TENDER 108-17/18
Security services for Majuba Power Station. 2018-05-28 10:00 MPGXC005139
Appointment of a multi-disciplinary team for the design and build for the following NSIP Project: Project A (Thembalihle & Lindokuhle Stations). 2018-05-29 12:00 KZN/CRES/10/2017/031/T
Supply and Delivery of 5 x Dual Ventilators for the Aviation Medical Evacuation Teams. 2018-05-22 11:00 CPSC- B- M- 001- 2018
Appointment of a multi-disciplinary team for the design and build for the NSIP Project: Project E (Mosley & Compensation Stations). 2018-05-28 12:00 KZN/CRES/10/2017/033/T
Provision of a Web Based Subscription Service Delivering Access to a Digital up-to-date Legal Information Sources to the Department of Defence for a period of thirty six (36) months. 2018-05-14 11:00 RFB 1728/ 2018
Appointment of a service provider for the establishment of a South African Association of Grant Professionals for the National Lotteries Commission (NLC) 2018-05-25 11:00 NLC/ 2018 - 3
Appointment of a service provider for provision of USAASA Head Office Space for a period of five(5) years 2018-05-14 11:00 USAASA- OFS/ 02/ 2018
Placement of chemistry analyser for the NHLS Free State and North West Region for a period of three years 2018-05-11 11:00 RFB070/ 17- 18
Provision for maintenance, service and repairs for lifts and goods hoists for a period of three (3) years 2018-05-10 11:00 RFB081/ 17- 18
Design, Supply, Upgrade and Refurbishment of lifts and escalators in Bellville Building, Western Cape. 2018-06-12 10:00 PSCED0117
Purchase of Portion 5 of the Farm Kildare No 14654 - FT. 2018-05-24 14:00 N003- 004- E- P- 1360
Rental of Office Space For the National Health Laboratory Service (NHLS) Eastern Cape Regional Management and Administration Office For a period of Five (5) years 2018-05-18 11:00 RFP002/ 18- 19
Placement or Outright purchase of fully automated Microbiology system for PMMH for a period of five (5) years. 2018-05-11 11:00 RFB 066- 17- 18
Mdutjana Magistrate Court: Cleaning Services for the period of twelve months with an option to renew for another twelve months, measuring 2172.23 Square Meters 2018-05-11 11:00 NST18/ 015
Provision for maintenance, service and repairs for lifts and goods hoists for a period of three (3) years 2018-05-10 11:00 RFB 010/ 18- 19
Placement of chemistry analyser for the NHLS Free State and North West Region for a period of three years 2018-05-11 11:00 RFB 009/ 18- 19
Request for proposals from service providers to develop an integrated trade and investment strategy for the province of Kwazulu-Natal. 2018-05-25 12:00 3210/ 2018/ 01
Evander Magistrate Court: Gardening Services for the period of twelve months with an option to renew for another twelve months, measuring 4041 Square Meters. 2018-05-11 11:00 NST18/ 016
Ermelo Magistrate Court: Cleaning Services for the period of twelve months with an option to renew for another twelve months, measuring 3034.11 Square Meters 2018-05-11 11:00 NST18/ 013

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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