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

Learn to earn.

Title Closing Date Tender No.
Cleaning of reservoirs and towers. 2018-03-27 10:30 JW OPS 015/17
Appointment of a Travel Agent for the period of 3 years 2018-03-27 11:00 MHSC015/2017-18
Supply & Delivery of Borehole Maintainance Spares to Mopani District Municipality for 36mothns Multi-framework contract. 2018-03-27 12:00 MDM 2017-055/1
Requests for proposals are hereby invited from relevant services providers for the lease of Desktops and Laptops for a period of 36 months 2018-03-29 12:00 UGU-05-1466-2018
Repairs to roads including pothole patching using environmentally friendly technology within the Msunduzi Municipality’s area of Jurisdiction. 2018-03-27 12:00 SUPPLY AND SERVICES CONTRACT No. 80 OF 2018
Appointment of a Panel of a Maximum Ten (10) Service Providers for the Supply and Delivery of Additional Emergency Relief Stock for a period of 36 months 2018-03-29 12:00 UGU-05-1467-2018
Appointment of Three (3) Service Providers for Supply and Delivery of Free Basic Alternative Energy for Polokwane Municipality for a Period of Two (2) Years (Re-Advert). 2018-03-27 10:00 291/2016
Supply and Delivery of water purification chemicals to Mopani District Municipality for 36Months Multi-Framework Contract. 2018-03-27 11:00 MDM 2017-054
Appointment of service provider to provide courier services for a period of 3 years (Re-Advert) 2018-03-28 10:00 222/2016
Appointment of accredited service providers to service, repair and replacement of the following fire equipment, fire extinguishers, fire hoses reels, fire hydrants, fire hydrant boosters, symbolic signs of the municipality for the period of three (3) year. 2018-03-28 10:00 PM92/2017
Supply and delivery of Sanitary Hygiene Services for the period 01 July 2018 to 30 June 2021 2018-03-23 12:00 WDM 03/2018
Request For Information (RFI) for the Automation Identification Data Capture. 2018-03-29 10:00 CORP 4359
Supply delivery and installation of Outdoor Gym Equipment for a contract period of 24 months 2018-03-29 12:00 BSM 69/18
Supply and delivery of Artificial Grass for a contract period of 24 months. 2018-03-29 12:00 BSM 70/18
Construction of Idas Valley Merriman outfall sewer and associated works. 2018-03-29 12:00 BSM 65/18
Supply and delivery of chemicals for use in the purification of water. 2018-03-29 12:00 TENDER 72-17/18
Refuse removal in Brandwag and Ruiterbos. 2018-03-29 12:00 TENDER 73-17/18
Statutory inspection and testing of lifting equipment 2018-04-03 10:00 246S/2017/18
Invitation to service providers: Appointment for facilities management and cleaning services in the Bojanala, Dr Kenneth Kaunda and Ngaka Modiri Molema Areas. 2018-04-11 11:00 NWDC/BOJANG/2018
Request for information - Precinct development 2018-04-10 11:00 RFI-001-2017/2018


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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