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.
Appointment of a service provider to supply and deliver Cleaning material in Saldanha, Parow and Milnerton 2017-10-24 12:00 SFF/ 2017/ 027
Request for proposals to assist the ARC with developing and providing an electronic recruitment system 2017-10-23 11:00 ARC/ 12/ 08/ 17
Request for proposals to assist the ARC with the renovation of central office on the ground floor 2017-10-24 11:00 ARC/ 11/ 08/ 17
Request for proposals to assist the ARC with the improvement of security measures at the central office 2017-10-24 11:00 ARC/ 10/ 08/ 17
Request for proposals to assist the ARC with the design and placing of advertisement in the print media. 2017-10-23 11:00 ARC/ 07/ 08/ 17
Request for proposals to assist the ARC with the Annual Organizational and 360 degree assessments 2017-10-25 11:00 ARC/ 13/ 09/ 17
Appointment of a service provider to supply and deliver stationery in Saldanha, Parow and Milnerton 2017-10-24 12:00 SFF/ 2017/ 026
Supply: Insulated Peripheral Nerve Block Needle 2017-10-26 11:00 ZNB 69- 17/ 18
Service medium voltage switchgear 2017-10-26 11:00 ZNB 67- 17/ 18
Service to Diesel Generator (Stanford,type UC 1274C 380V, 0.8PF rating 100KVA/80KW, 1500RPM, 151.9A Serial number E7747/W) 2017-10-24 11:00 ZNQ113/ 17/ 18
The Improvement on National route 2 section 5 between Heidelberg (km 54.00) and Riversdale (km 81.97). 2017-10-20 14:00 NRA N.002- 050- 2016/ 1D- SS
Geotechnical drilling services for the Ring Road on National Route N8 West of Bloemfontein 2017-10-25 14:00 NRA N008- 110- 2016/ D- SS
Appointment of a contractor for construction of a Stormwater Management System in Robinson deep landfill site for Pikitup Johannesburg SOC Limited. 2017-10-24 11:00 PU034/ 2017
Replacing old valves with new installation of water network valves and pipe work in Makhathini Irrigation Scheme 2017-11-03 11:00 TTB/ MF2017- 06
Sedgefield: Goukamma Nature Reserve: Repair water supply damage. Designated Grading: 4CE or higher 2017-10-25 11:00 G008/ 17
The Western Cape Government Department of Human Settlements invites tenders for the Forest Village: Upgrading of Nooiensfontein sewage pumpstation and rising main 2017-10-20 11:00 HSC 06/ 2017/ 2018
Provision of Office Accommodation: Elliot Satellite Office for a period of 5 years. (Leases ranging from seven to ten years will also be considered). Office space between 102m² and 157m² and 4 parking bays are required 2017-10-24 11:00 25/ 2017
Purchase of building: Port Elizabeth Justice Centre Office space between 1187m² and 1262.40m² and 12 parking bays are required. 2017-10-24 11:00 23/ 2017
Provision of Office Accommodation: Secunda Satellite Office for a period of 5 years. (Leases ranging from seven to ten years will also be considered). Office space between 138.90m² and 142.80m² and 3 parking bays are required. 2017-10-24 11:00 24/ 2017
Pietermaritzburg: Department of Office of the Premier: Terry Street Parking and fencing project: CIDB grading 4 CE 2017-10-25 11:00 ZNTM00956W

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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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