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.
Manufacture, supply and delivery of dipping warning sign boards for Limpopo, Department of Agriculture and Rural Development 2018-03-20 11:00 ACDP 17/55
Supply and Fit 600 x 600 non-slip porcelain tiles at Albow Gardens Clini 2018-03-08 09:00 SM11800386
Tenders are invited for the Provision of Consulting Services Sanas Accreditation 2018-02-28 11:00 CSQ02181224
Supply & Delivery of 150mm X 3c 11kv Fibre Glass Joint Boxes Complete with all accessories 2018-03-02 11:00 SQ02181172
Installation of Odour Control System at Foxtrot Sewerage Grinding Facility 2018-03-16 12:00 RFQ 57725
Supply and delivery of Kitchen appliances 2018-02-28 11:00 GQ02181694
Upgrading of Mshenguville wetland park 2018-03-16 12:00 JCPZ/CID01/2017
Innercity Parks Upgrade 2018-03-16 12:00 JCPZ/CID04/2017
Bosmont Stream Rehabilitation 2018-03-16 12:00 JCPZ/CID05/2017
Diepsloot Rehabilitation 2018-03-16 12:00 JCPZ/CID06/2017
Construction of Stretford Park Ablution Facilities 2018-03-16 12:00 JCPZ/CID07/2017
Trenching and installation of cables as and when required 2018-03-26 08:30 ENG012/2018
Leasing of Takkieskloof Holiday Resort 2018-04-06 12:00 HES-CORP 05/1718
Supply and delivery of protective clothing and equipment 2018-04-06 12:00 HES-GEN 05/1718
Supply Heavy duty earth clamps for welding cables 2018-02-23 11:00 GH11800431
Supply: ABB CM15 indicator 2 analogues in, 2 analogues out 2 dagital I/O and MODBUS RS 485 ABB-AIS-CM 15/2.S.M.S.0.E.0./STD 2018-02-28 11:00 GH11800429
Supply: Water distribution material 2018-02-28 14:00 GE11801131
Supply: Electrical accessories 2018-02-23 15:00 GJ11800685
Supply: Jeans 2018-02-28 10:00 GA11800450
Service for the movement of the data line from one office to the other office. 2018-02-27 14:00 SN11800564

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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