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.
Appointment of a Service Provider to Render a Standard Cleaning and Hygiene Service for the Period Of 24 Months for the Office Of Regional Land Claims Commissioner KZN Restitution Durban Office in the Kwazulu – Natal. 2018-11-08 11:00 SS- KZN 7/ 1/ 6/ 3 (681) 2L
Appointment of a Service Provider for the Supply,Delivery and Installation of High Density Steel Lockable Bulk Filling Bays for the Registry Rooms in the Regional Land Claims Commission(RLCC) At Cape Town 14 Long Street and Mowbray 19 Van Der Ster Building 2018-11-09 11:00 SSC WC Q19 (2018/ 2019) DRDLR
Request For Proposals for the Appointment of a Compliance Officer for the Office of the Accounting Officer. 2018-11-19 11:00 RFP 07/ 18/ 19
Supply and deliver sterile gauge swabs 100mmx100mm 8ply 500 pouches per box. x300Boxes 2018-10-29 11:00 ZNQ203/ 2018/ 2019
Supply and deliver red bag garbage 90litres 40micron packed in packet of 100. x1000 pkts 2018-10-29 11:00 280/ 2018/ 2019
Rendering of a gardening services to Stikland hospital for a period of three (3) years; Department of Health; Western Cape. 2018-11-16 11:00 WCGH SC 0181/ 2018
Re-Advertisement of an Appointment of a Legal Firm of Conveyancers to do the Transfer of Immovable Properties From Nkandla ,Big Five Hlabisa and Endumeni Local Municipalities to KZN Provincial Government 2018-11-16 11:00 ZNT04/ 18/ 19
Kakamas: Construction of a New Full Service School at Cillie Primary School. 2018-11-20 11:00 DRPW 019/ 2018
Kuruman/Gamopedi: Construction of Double ECD Classroom at Gamopedi Primary School. 2018-11-20 11:00 DRPW 017/ 2018
Mothibistad: Construction of Double ECD Classroom at Kudumane Primary School 2018-11-20 11:00 DRPW 018/ 2018
Mothibistad: Construction of a Ten Classroom Block (Replace Mobile Classrooms) at Baitiredi Secondary School 2018-11-20 11:00 DRPW 016/ 2018
Prieska: Construction of a New Technical Workshop at Prieska High School 2018-11-20 11:00 DRPW 020/ 2018
The removal and disposal of general waste, ash and garden waste, from Groote Schuur Hospital over a three (3) year period, with the option of extending the contract for an additional year. 2018-11-16 11:00 GSHPT25/ 2018
Ntabankulu CHC in Ntabankulu - Alfred Nzo District municipality: Refurbishments 2018-11-21 11:00 SCMU3- 18/ 19- 0369- HO
Calvinia: Construction of a Large Admin Block at Hantam Primary School 2018-11-20 11:00 DRPW 015/ 2018
The appointment of a private security contractor to render a security service at the aquarium building, Lower Beach Road, Sea Point, Western Cape province for a period of two (2) years. 2018-11-09 11:00 4.4.12.4/ MLRF 155/ 19
Ronderbosch: Groote Schuur House/ Museum: Appointment of a Curator for a two year period. 2018-11-09 11:00 CPTSC 18/ 18
Provision of security services for a period of three years. 2018-11-16 12:00 DAC005/ 1819
Alternate office accommodation: 461.36m² and 15 parking bays for a period of 3 or 5yrs 2018-11-09 11:00 LS14/ 2018
Replace septic tank at Philani Clinic 2018-10-30 11:00 ZNQ 773/ 18

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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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