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.
Rental of Office Accommodation for a period of five years in the following Western Cape areas, Strand, Somerset West, Blue Downs and Paarl. 2018-04-25 11:00 48/ 2017
Supply and Delivery of Wet Rations, various dairy products to the Department of Defence (Grahamstown area). 2018-08-02 11:00 SPSC- B- 099- 2017
Supply and Delivery of Wet Rations, frozen vegetables to the Department of Defence (Grahamstown area). 2018-08-02 11:00 SPSC- B- 098- 2017
Supply and Delivery of Wet Rations, fresh fruit and vegetables to the Department of Defence (Grahamstown area). 2018-08-02 11:00 SPSC- B- 097- 2017
Supply and Delivery of Wet Rations, bread and rolls to the Department of Defence (Grahamstown area) 2018-08-02 11:00 SPSC- B- 096- 2017
Supply and Delivery of Dry Rations, Soups, Spreads and Preserves to the Department of Defence (Easter Cape region) 2018-08-30 11:00 SPSC- B- 108- 2017
Supply and Delivery of Dry Rations, Coffee, Tea and Cooking Oil to the Department of Defence (Easter Cape region). 2018-08-30 11:00 SPSC- B- 111- 2017
Supply and Delivery of Dry Rations, Condiments, Pickles and Herbs and Spices to the Department of Defence (Easter Cape region) 2018-08-30 11:00 SPSC- B- 110- 2017
Supply and Delivery of Dry Rations, Baking goods, Essence, Pudding, Jelly and Sugar to the Department of Defence (Easter Cape region) 2018-08-30 11:00 SPSC- B- 109- 2017
Supply and Delivery of Wet Rations, various meat (fresh and frozen) to the Department of Defence (Grahamstown area) 2018-08-02 11:00 SPSC- B- 095- 2017
Supply and Delivery of Dry Rations, Pasta, Rusks and Biscuits Porridges and Cereals to the Department of Defence (Easter Cape region) 2018-08-30 11:00 SPSC- B- 107- 2017
Hire of Office Accommodation: A lettable area sufficient to accommodate 154m2 of assignable office space plus to a maximum of 25% of non-assignable office space, plus 20 secure undercover bays and 1 wash bay is required 2018-04-26 11:00 ZNT 2708 W
Supply and Delivery of Wet Rations, various dairy products to the Department of Defence (Mthatha area) 2018-07-19 11:00 SPSC- B- 093-2017
Hire of Office Accommodation: A lettable area sufficient to accommodate 298m2 of assignable office space plus to a maximum of 25% of non-assignable office space, plus 6 secure undercover bays, 16 open bays and 1 wash bay is required 2018-04-26 11:00 ZNT 2761 W
Department of Agriculture: Hire of Office Accommodation: Ixopo: A lettable area sufficient to accommodate 524m² assignable plus to a maximum of 30% of non- assignable space 21 undercover bays, 10 lock-up bays and 10 open bays. 2018-04-26 11:00 ZNT 2750 W
Supply and Delivery of Wet Rations, frozen vegetables to the Department of Defence (Port Elizabeth area) 2018-08-16 11:00 SPSC- B- 104- 2017
Appointment of a Service Provider to design, maintain a mobile office and clinic solution on a three year lease basis for Compensation Fund (CF). 2018-04-26 11:00 TCF 11: 2017/2018.
Invitation to South African Universities to Express Interest in Aquaculture Research Collaboration for a Maximum Period of 5 Years. 2018-04-30 11:00 None provided
Procurement of a property developer for the Better Living Model Exemplar Project in Cape Town 2018-05-21 11:00 RFP 001/18 TPW
Installation and maintenance of meters 150MMØ and larger. 2018-04-26 11:00 SCM/17-111/S

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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