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.
Maintenance of Air Conditioning, Including the Supply and Installations of new and Replacement Units: 5 Devolved Stations in North West Province for the period of three (3) years 2018-01-16 11:00 19/ 1/ 9/ 1/ 132TB(17)
Maintenance of Air Conditioning, Including the Supply and Installations of new and Replacement Units: 10 Devolved Stations in Northern Cape Province Region Two (02) for the period of three (3) years 2018-01-24 11:00 19/ 1/ 9/ 1/ 130TB(17)
Appointment of a Service Provider to Render Occupational Health and Safety Risk Assessment, to conduct the Health Hazard Assessment in all the GPW Offices including the Regions (East-London, Mmabatho and Polokwane) for a period of three years commencing 01 February 2018 until 31 January 2021 2018-01-22 10:30 GPW- W 2017/ 05
DTPC wishes to appoint a construction of Mount Moreland Road between Dube TradePort 29° South and Mount Moreland – earthworks and surfacing (km0.00 – km0.535). 2018-01-16 11:00 DTP/ RFP/ 29/ IFR/ 10/ 2017
Appointment of a project manager for the procurement of land and or a building, design plans and construction and or renovations of CETA Head Office 2018-01-31 11:00 022- 2017/ 2018
DTPC wishes to appoint a contractor for the construction of a new cantilevered structural steel canopy, construction of security fencing, repairs to sheet metal roof, asphalting and drainage improvements at the Dube Tradeport Cargo Terminal 2018-01-17 11:00 DTP/ RFP/ 35/ IFR/ 10/ 2017
DTPC wishes to appoint a contractor for the construction of Govender access road – earthworks, surfacing and safety improvements (km 0.00 – km 0.632). 2018-01-16 11:00 DTP/ RFP/ 28/ IFR/ 10/ 2017
Appointment of a CIDB registered contractor for the construction of a technology laboratory building at the University of Venda 2018-01-31 11:00 019- 2017/ 2018
A Three Year Term Contract for Mechanical and other related Major Plant and Machinery Installation , Maintenance , Repair , Refurbishment and Upgrade for Northern , Central , Eastern And Southern Operations(Limpopo , Mpumalanga ,North West , Gauteng, Free State , Northern Cape , Kwa-Zulu Natal And Western Cape). 2018-01-18 11:00 DWS04- 1117WTE
Request for expression of interest from qualified entities to be enlisted in the database of the Department of Environmental Affairs for the implementation, operational support, planning and training projects for Expanded Public Works Projects (EPWP) for the Natural Resource Management Programmes. 2018-01-19 11:00 E 1428
PWV 15 Preliminary design Review from the R21 (P157/1) to N3 (approximately 34.6km) and detail design of Phase 1 from R21 (P157/1) across the N12 ending before the K94 including the N12 /K94 system interchange. (approximately 10.9km) 2018-01-25 11:00 DRT 39/ 07/ 2017
Appointment of a software development service provider to review, design, develop and maintain the integrated management information system (MIS) for the CETA. 2018-01-31 11:00 021- 2017/ 2018
Supply and delivery of cleaning material and toiletries to Southern Cape- Karoo- Region (Oudtshoorn, Prince Albert, Ladismith, Beaufort West) 2018-01-26 09:00 ODN 01/ 2017
Construction of new K73 (1.381) between K58 (Allandale Road) and K71 (Woodmead Drive), the upgrading of sections of K58 (2.784 km) and K71 (0.962 km) and Rehabilitation of K58 (0.60 km) between Maple drive and K71 2018-01-29 11:00 DRT 119/ 02/ 2017
Appointment of a service provider to develop CETA occupational qualifications. 2018-01-31 11:00 020- 2017/ 2018
Appointment of a panel of legal firms. 2018-01-31 11:00 017- 2017/ 2018
Provision of insurance services by an insurance underwriter. 2018-01-31 11:00 016- 2017/ 2018
Appointment of a service provider to offer internal audit services 2018-01-31 11:00 012- 2017/ 2018
Provision of CETA branded personal protective equipment (PPE) to learners on CETA - funded projects 2018-01-31 08:45 015- 2017/ 2018
Provision of CETA toolkits to learners on CETA - funded projects 2018-01-31 11:00 014- 2017/ 2018

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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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