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.
Upgrading and Rehabilitation of Winburg Water Treatment Plant: Civil, Mechanical and Electrical engineering Works. 2018-09-18 12:00 2018/08/009
Supply, delivery & installation of chlorine dioxide generator system & supply of precursor chemicals for Vaalkop WTW for a period of five (5) years. 2018-09-18 12:00 RFB/MW/148/2018-19
Appointment of a panel of debt collectors for PSiRA for a period of 3 years. 2018-09-19 11:00 RFB/2018/PSiRA/06
Review of Annual Financial Statements and Annual Performance Report 2018-08-23 15:00 SCM/RFQ/2019/007/MM
Tender for S24G and expansion of existing cemetery in Oudtshoorn and identification of new cemetery in De Rust. 2018-09-21 11:00 TD-02/07/2018
Supply, delivery and off-loading of toilet paper and hand towel rolls for a contract period ending 30 June 2021. 2018-09-21 12:00 BSM 12/19
Mossel Bay: Upgrading of Stormwater: phase 3 in Mossel-, Kiewiet-, Cupido-, Sinkfontein-, Eiland- and Bakke Streets. 2018-09-21 12:00 TENDER 2-18/19
Panel of legal practitioners to serve for Magalies Water for a period of three (3) years. 2018-09-21 12:00 RFB/MW/145/2017-18
Refurbishment Kuruman STW and Sewerage pump Station. 2018-09-25 12:00 Bid No: 07/2018-19
Supply and Delivery of Pig Iron. 2018-10-02 10:00 TE18-BFX-050-03998
Design, Manufacture, Supply, Delivery, Install, Commission and Testing of Passenger Lift. 2018-09-26 10:00 ELS 23/2018
For the supply and delivery of sixteen (16) physiologic monitoring systems for the acute care surgery (CIDEAST/FI) at Tygerberg Hospital. 2018-09-14 11:00 TBH 213/ 2018
Lease of Euvrard Park, Montagu as a Village Market” 2018-09-14 12:00 21/2018
Lease of available space to be utilized as a Kiosk at the Langeberg Thusong Centre, Paddy Street, Robertson 2018-09-14 12:00 50/2018
Refresh RFB1489-2016 for Original Equipment Manufacturers (OEM) for the design, supply, installation and maintenance of network equipment for SITA. 2018-09-07 11:00 RFB 1489- 1/ 2018
Lease of Keurkloof (4.2ha) Dassieshoek, Robertson 2018-09-14 12:00 47/2018
The Procurement of a Level Two Field Hospital as per African Union (AU) and United Nations (UN) Standards for the South African Military Health Services. (Procurement Plan Number: DOD PROC PLAN 17-18/ SAMHS/883). 2018-09-17 11:00 CPSC- B- M- 086- 2017RR
Refresh of RFB1482-2016 for the ACCREDITATION for the design, supply, installation and maintenance of network equipment for SITA. 2018-09-07 11:00 RFB 1482- 1/ 2018
Lease of Keurkloof (1.6ha) Dassieshoek, Robertson 2018-09-14 12:00 46/2018
Supply 1 X electric tow tractor. NB: refer to specification attached to quotation. 2018-08-29 11:00 ZNQ 325/ 18

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7 Disadvantages of Competitive Bidding

The bidding process can be very tedious sometimes. Here are some of the disadvantages of the bidding process.

1.    Leading suppliers may not tender

In Australia, for example, government procurement guidelines only allow suppliers who actually tender to be considered for a procurement decision. If the leading supplier or suppliers do not tender, the purchaser can only consider bids from suppliers who do tender. If leading suppliers are not considered, the purchaser may end up buying inferior product or service... Read More

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