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: Valve 2017-10-25 14:00 GE11800590
Supply, deliver and install 42 INCH UV INK TUBE for HP5500 DESIGNJET(AO) PLOTTER 2017-10-27 11:00 CSQ10171147
Supply: Valve 2017-10-25 14:00 GE11800589
Provide monthly Media Monitoring Services for a period of 12 months 2017-10-27 11:00 CSQ10171152
Supply: 5 off 1730 x 1600 x 10mm bennox plates 2017-10-26 14:00 GE11800583
Supply and Delivery of Type 2 - PRE - CAST SUPPORT KERB 2017-10-27 11:00 GQ10171614
Supply and Delivery of Type 1 - PRE - CAST SUPPORT KERB 2017-10-27 11:00 GQ10171614
Supply and Delivery of PRE -CAST CANTILEVER BEAM 2017-10-27 11:00 GQ10171614
Mowing of Halls Recreation ans Parks, Area 3.5. 2017-10-27 14:00 SN11800372
Supply and Delivery of PRE -CAST FRAME BEAMS 2017-10-27 11:00 GQ10171614
Horticultural Maintenance Mowing at Manenberg Community Centre, Manenberg Bathhouse, The Downs Community Centre, Druiwevlei Comm & Sherwood Park Multi Purpose Centre. 2017-10-27 14:00 SN11800371
Request for proposals for sourcing of funding 2017-11-06 11:00 SCM 01/10/2017
Supply and deliver Electrical Cable - STRAL 25m2 x 3c + 54,6 N XLPE,insulated 600/1000v insulated NEUTRAL 2017-10-26 11:00 GQ10171613
Tenders are invited to service and maintain a Toc Analyser 2017-10-27 11:00 CSQ10171146
Horticultural Maintenance for Clarke Estate 2017-10-30 09:00 SN11800366
Tenders are invited to provide a five day Air Quality Management Training 2017-10-30 11:00 CSQ10171148
Erf clearing and removal of illegal dumping and nuisance on overgrown properties, within City of Cape Town - (Cape Town - AREA 1) 2017-10-30 12:00 SC11800023
Supply and Delivery of Panel Build Material 2017-10-30 11:00 GQ10171611
Service and Maintenance of Spares of Inductively Coupled Plasma - Mass Spectrometer (ICP - MS ) 2017-10-30 11:00 CSQ10171149
Erf clearing and removal of illegal dumping and nuisance on overgrown properties, within City of Cape Town - (Tygerberg - area 3) 2017-10-30 12:00 SC11800021

Pages

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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