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.
Berths 203 to 205 Reconstruction, Deepening and Lengthening: Construction of Northern Substation and Associated Works 2018-08-07 12:00 2122830-649
Upgrade to the Facade of the Existing Life Sciences Building located at the University of KwaZulu-Natal (UKZN), Westville Campus 2018-07-16 12:00 RFB UKZN 32/18
Dismantling and Construction of 33 and 132 KV Overhead Power Lines and optical ground wire within the Msunduzi Municipal Electrical Network for a period of three years 2018-07-27 12:00 SCM 1R OF 17/18
Internal and External Restoration of MTB Building, Howard Campus 2018-07-16 12:00 RFB UKZN 31/18
Appointment of a Service Provider to Develop Seventeen New Policies and Review and update of Four Existing Policies for the Free State, North West and Northern Cape Regions 2018-07-16 11:00 RFP/DNP/201781
Supply, delivery and installation of photocopiers for the Free State, North West and Northern Cape regions for a period of 36 months 2018-07-20 11:00 SW/SDIP/201780
Appointment of a reputable service provider to render travel and accommodation services in the department for a period of 3 years. 2018-07-23 11:00 SCMU14-18/19-0011
Appointment of a panel of event management companies to organize and manage the commemoration of national days and hosting of related departmental events for a period of 3 years. 2018-07-17 11:00 SCMU14-18/19-0008
Panel of Supply & Delivery of Road Kerbs, Paving Slabs, Catch Pits & Erosion Protection Blocks, Crusher Run & Aggregate for Concrete and Road Surfacing, Stormwater Pipes and Culverts for a period of Three years. 2018-07-16 12:00 3/2/17/2017-18
Terms of references to offer conferencing and accommodation facilities for 160 delegates in Gauteng. 2018-07-16 11:00 BID NO: SCMU: 03 - 2018/19
Appointment of a service provider to conduct impact assessments on INSETA Funded programmes. 2018-07-17 11:00 Lear/2018/04
USAASA HO Office Space Tender. 2018-07-17 11:00 USAASA-OFS/01/2018
Procurement of a travel management services to co-ordinate and manage all air travel, accommodation, car rentals, venue for conferences/meetings and workshops for a period of three years. 2018-07-17 12:00 CE 324
Supply, installation, management and maintenance of a Fully Integrated Voice Response (IVR) solution for Buffalo City Metropolitan Municipality for a period of three years. 2018-07-17 12:00 CE 326
Pre-qualification for Electrical & Civil works for Substations. 2018-07-17 10:00 MdB18/14
Supply and delivery of Kit Armature. 2018-07-17 10:00 TE18-KDS-6FA-04183
Design, Manufacture, Supply and Installation of a Coil Stacking System for Transnet SOC LTD operating at Transnet Port Terminals (hereinafter referred to as "TPT") at the Port of Saldanha Multi-Purpose Terminals. 2018-07-17 10:00 iCLM HQ 220/TPT
Service provider to support the strategic planning process for the 2019/20 planning cycle. 2018-07-17 11:00 RFP109/2018
To Supply and Manage Reception Personnel for Facilities. 2018-07-25 10:00 MPGXC004907 (Re-issue)
Consultancy Services for the Development of e-Governance Framework and an e-Government Implementation Guidelines (Toolkit) for the African Union Member States 2018-07-30 15:00 AUC/IED/C/309

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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