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.
Replacement of passenger lifts at the University of KwaZulu-Natal, Howard College 2018-07-04 12:00 UKZN RFB 08/18
For supply, delivery and installation of fall protection equipment (Lifelines) Germiston Region. 2018-06-26 10:00 TE18-GMX-08K-03847
Radiographic examination of Thermite welds utilising TFR Xray equipment for a period of two years on an “as and when required” basis. 2018-06-26 10:00 RFP HOAC-HO-26224.
Provision of routine testing of substation protection at the TPL Pumpstations for 2 year period. 2018-06-26 10:00 PYP/W1/6/21/1789
Operator to operate and manage Belvedere Guest House, Groendack and Rangers House 2018-07-04 11:00 MTPA/1718/CEO02
Supply of electrical material to Hantam Municipality for a period of 1 year (01 July 2018 - 30 June 2019). 2018-06-26 12:00 NC065/T05/2018
Solar Photo Voltaic Generation Project. 2018-06-26 12:00 PEH 139/VB
Appointment of a service provider for supply and delivery of harnesses. 2018-07-03 11:00 DVS010- 2018/19
Appointment of a service provider for supply delivery of vehicle bins. 2018-07-03 11:00 DVS009- 2018/19
Meter Reading Services. 2018-07-03 12:00 02/2018
Construction of Rhombus Lethabong 88kV (25km) Chickadee line. 2018-07-03 14:00 PTA TEN 2411
Panel of Subcontracting Laboratory for Mechanical Testing and Chemical Analysis for 3 year contract. 2018-07-04 11:00 RFQ 1846
PF sampling and particles size analysis on unit 1 -6 at Duvha Power Station. 2018-07-05 10:00 MPGXC005176
Emalahleni Local Municipality Mpumalanga invites tenders for the electrification of 1100 residential units in wards 12 and 15 Siyanqoba Township. 2018-07-06 11:00 ELM 12/2018
Supply and install bulk electrical supply including transformers, switchgear, MCC and sub-station buildings. 2018-07-17 12:00 1924701 – E004
Design, Print and delivery of African Union Commission 2019 Diaries and Calendars for DIC Directorate. 2018-07-06 15:00 AUC/DIC/G/241
Bid to supply the complete range of equipment for a radio pharmacy in support of the state-of-the-art PET/CT system at the Node for Infection Imaging on Tygerberg Hospital premises. The equipment will include two hot cells, a laminar air flow cabinet, radionuclide dose calibrator, refrigerator and freezer, as well as several other items listed in the specifications. 2018-07-20 11:00 FBD-SCM-2018-TEN-0050
Collection; Transportation and disposal of solid waste in Lenyenye. 2018-07-13 12:00 SCMU 07/2018
Supply: Gully grate - material: polymer; grating. 2018-07-12 14:00 GE11802060
Supply, Deliver and Installation of a Capped Geographic Information System (GIS) Enterprise License Agreement and Support/Maintenance for a period ending 30 June 2021 2018-07-06 12:00 B/SM 107/ 18

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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