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.
Appointment of a security service provider to provide and/or maintain security guards services and Armed response at Services SETA (Durban Provincial Office). 2018-01-12 11:00 Proc T481
Supply and delivery of Building Material for 36x beneficiaries 2017-12-27 12:00 RFQ / 348
Supply 3 each x varnish; floor, polyurethane 2018-01-15 12:00 GG11800413
Supply: Hardware items 2017-12-15 12:00 GG11800415
Provision, disposal, servicing and removal,cleaning & return of exisitng sanitary bins in area 2 which comprises of all corporate facilities in the Khayelitsha, Kuilsriver & Strand area (See pricing schedule for the building list) 2017-12-20 12:00 SC11800082
Appointment of a service provider to develop Services SETA Website. 2018-01-12 11:00 Proc T480
Supply: hasp and staple 2018-01-15 12:00 GG11800407
Supply: glass sheet 2018-01-15 12:00 GG11800408
Supply 30 role x strapping 2018-01-15 12:00 GG11800410
Supply, Deliver, Offload and the Installation of Office Furniture and Appliances For Group Finance Directorate and Environment and Infrastructure Services Department 2018-01-26 10:30 534/17
Hire of Front End Loader with operator 2017-12-20 09:00 WJ11800290
Appointment of a Services SETA to develop stakeholder database system. 2018-01-12 11:00 Proc T479
Supply glass sheet 2018-01-15 12:00 GG11800409
Supply: Irrigation equipment 2018-01-15 12:00 GG11800412
Supply: Hardware items 2018-01-15 12:00 GG11800411
Supply: Hardware items 2018-01-15 12:00 GG11800414
Provision of Student Printing Services 2018-01-19 10:00 UFS TENDER 2017-03
Request for Proposals for the Provision of 20 00Qm2 Existing, Premium Grade Office accommodation with Turnkey fit-out for Transnet Corporate Centre in Johannesburg for a period of 3-years with an option to extend. 2018-01-12 14:00 TPCP/JHB/760 (T)
The appointment of consultants to configure SAP Investigative Case Management (ICM) for a period of six (06) months 2019-01-19 11:00 GT/GPT/182/2017
Provision of Computer Equipment (Laptops) as per the Terms of Reference. 2018-01-11 15:00 ECIC 016/017

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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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