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.
Training of 50 beneficiaries in Further Education + Training certificate, Automotive Repair and Maintenance NQF LEVEL 4; SAQA ID 78525 2018-09-28 11:00 T/ 20/ 18 Learn AMR
Training of 50 beneficiaries in Vehicle Maintenance & Repair Assistant Skills Programme NQF L2 2018-09-28 11:00 T/ 27/ 18 Skill VMRA
Training of 50 beneficiaries in Further Education + Training certificate: Information Technology Technical Support NQF L4; SAQA ID 78964 2018-09-28 11:00 T/ 19/ 18 Learn TS
The appointment of a consultant to undertake specialist studies to inform the developable area for the proposed subdivision on ER84603, Retreat, Cape Town. 2018-09-20 11:00 SSC WC Q12 (2018 / 2019) DRDLR
Training of 50 beneficiaries in National Certificate, Information Technology, End User Computing, NQF Level 3; SAQA ID 49077 2018-09-28 11:00 T/ 21/ 18 Learn EUC
Training of 50 beneficiaries in Further Education + Training certificate: Information Technology Systems Development NQF L4; SAQA ID 78965 2018-09-28 11:00 T/ 18/ 18 Learn SD
Training of 50 beneficiaries in National Certificate, Animal Production, NQF Level 4, SAQA ID 48979 2018-09-28 11:00 T/ 24/ 18 Learn Animal
Internal Audit services 2018-09-28 11:00 T/ 14/ 18 IA
Appointment of the Service Provider to Undertake an Assessment of the Socio-Economic Impacts of the Implementation of the Waste Classification and Management Regulations and the Associated Waste Norms and Standards. 2018-09-21 11:00 Q- 119- 18- 19
Appointment of Auditors to Do Value for Money (VFM) and Performance Audits for Selected Projects within the Department’s Expanded Public Works Programmes 2018-09-21 11:00 Q- 113- 18- 19
Appointment of a Service Provider to Undertake the Hazard Identification and Risk Assessments (HIRA) and the Review of Existing as well as Development of Appropriate Risk - Responsive Control Measures at the Branch: Oceans & Coasts 2018-09-21 11:00 E 1468
Appointment of service for the manufacturing and delivery of 1000LT complete fire truck units for firefighting in the Eastern Cape Province for the Department of Agriculture Forestry and fisheries at regional office King Williams Town. 2018-09-21 11:00 4.4.12.4/ 17/ 18
Cleaning services for inner city hostels in Johannesburg for a period not exceeding 36 months (Denver, George Goch, Jeppe, LTA, MBA and Murray and Roberts). 2018-09-21 11:00 HLA 4/ 2/ 4- 2018/ 04
Appointment of a security contractor to render security services at Modimolle, Polokwane and Makhado for the Department of Agriculture, Forestry and Fisheries for a period of three (3) years. 2018-09-21 11:00 4.4.12.4/ 10/ 18
Provision and service of chemical toilets. 2018-09-25 11:00 HLA 4/ 2/ 4- 2018/ 05
The appointment of a security company to render security services in the Mpumalanga province at mbombela to the department of agriculture, forestry and fisheries for a period of three (3) years. 2018-09-21 11:00 4.4.12.4/ 11/ 18
The Western Cape Department of Agriculture (WCDoA) requires the service of a radio presenter. 2018-09-24 11:00 BID 848 - 2018/ 2019
Printing and binding of maternity case records for the Eastern Cape Department of Health Institutions for a period of 12 months . 2018-09-21 11:00 SCMU3- 18/ 19- 0135- HO
Request for Proposals to develop remuneration policy and philosophy for Council for Medical Schemes 2018-09-25 11:00 CMS022018/ 19
Appointment of a Service Provider to Provide Cleaning Services at the South African State Theatre for a period of three years 2018-09-21 14:00 SAST2018/ CLEANING

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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