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 deliver 30 First Aid Kits 2017-12-19 11:00 GQ12171660
Atlantis Swimming Pool: Repair & service of pumps, motors & gauges. 2017-12-20 09:00 SB11800514
Supply and deliver Wire Aluminium binding wire 4mm 2017-12-19 11:00 SQ12171150
Supply Polymer grids, covers and frames 2017-12-19 15:00 GE11800873
Supply and deliver VALVES 100MM SPIGOT ENDED left hand closing with non rising spindle fitted,CAST IRON wedge gate EPOXY coated,to SPECS CLASS 16(S.A.B.S. 664) 2017-12-19 11:00 SQ12171150
Supply Civil materials 2017-12-14 14:00 GE11800874
Supply: Polymer covers and frames 2017-12-19 14:00 GE11800872
Supply and deliver Tinned Wire Copper 2.0mm,fusewire in 500gram rolls 2017-12-19 11:00 SQ12171150
Supply Sheet metal 2017-12-14 14:00 GE11800871
Supply and deliver Ball Markers Type 1401 (MOQ24).Colour RED only 2017-12-19 11:00 SQ12171150
Supply Clamps 2017-12-19 14:00 GE11800869
Supply Water distribution materials 2017-12-19 14:00 GE11800870
Supply and deliver Joint Troughs c/w Fibre Lid cement flame resistant 2017-12-19 11:00 SQ12171151
Supply: Water distribution materials 2017-12-18 14:00 GE11800868
Supply: Water distribution materials 2017-12-18 14:00 GE11800867
Supply Sand 2017-12-14 14:00 GE11800866
Supply and installation of sluice gates with solid ACME thread spindles to be manufactured usind 316 s/steel plates 6mm thick spindles and guides to be of the same 316 s/steel material 2017-12-19 11:00 CSQ12171197
Printing of Municipal Tabloid 2017-12-19 11:00 CSQ12171197
Supply manhole lock 2017-12-18 14:00 GE11800865
Supply Building material 2017-12-14 14:00 GE11800864

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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