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.
The provision of NDT (Non Destructive Testing) services for Kusile Power Station for a period of twelve (12) months. 2018-09-25 10:00 MPGXC005264
Overhead crane, hoist and crawler beam maintenance service and spares supply on an “as and when required” basis. 2018-09-25 10:00 MPGXC004978 R
Construction of Moyeni New Police Station. 2018-09-25 11:00 19/1/9/1/20 TB(18)
RE- Advertisement: Three Year Contract for the Supply of Fuel and Fuel Management System to Okhahlamba Local Municipality. 2018-10-05 12:00 8/1/1/4/1 - TEC11/2018
Aerial Fire Fighting for the period of three years. 2018-10-08 12:00 E/07/18-19
Annual Tender for the Repairs, Maintenance and Refurbishment Of Municipal Buildings and Facilities for a period of thirty six months: Air Conditioning. 2018-09-28 12:00 CE: 228
Annual Tender for the Repairs, Maintenance and Refurbishment of Municipal Buildings and Facilities for a period of thirty six months: Welding and Miscellaneous 2018-09-28 12:00 CE: 171
Annual Tender for the Repairs, Maintenance and Refurbishment of Municipal Buildings and Facilities for a period of thirty six months: Floor Coverings 2018-09-28 12:00 CE: 170
Appointment of panel of four (4) Consultants for Electrical Engineering Studies and Componentization of assets for 2018/19; 2019/20 and 2020/21 financial years on an as and when basis 2018-09-26 12:00 BS32/09/2018
Fence and Gates Installation. 2018-10-07 14:00 SR11900022
Renovation of Workshop at Witrand Hospital in Potchefstroom. 2018-09-25 11:00 PWR57 /18
Request for Bid for the Supply of Training School Equipment. 2018-09-25 11:00 SAAT009/17
Re- Supply delivery of conference equipment and accessories, printing equipment and printing consumables 2018-09-28 15:00 AUC/DCMP/G/1-6
Appointment of a service provider at the Independent Communications Authority of South Africa to conduct Market Inquiry in the Electronic Communications Sector for a period of twenty four (24) months. 2018-09-25 10:00 ICASA 02/2018
Supply and delivery of anti-retro-viral medicines to the State for the period 1 April 2019 to 31 March 2022. 2018-09-25 11:00 RT71-2019
Upgrading of Pellsrus Sports Facility. 2018-09-25 12:00 135/2018
Request for Proposals for the acquisition of a service provider to conduct Water Quality Monitoring and Reporting Services, for a period of 3 years at Airports Company South Africa's OR Tambo International Airport. 2018-09-25 12:00 ORT 220/2018
A prequalification enquiry to establish a contract for auditing and capturing of data within the prepaid meter environment (Electrification areas) in the KZN Operating Unit. 2018-09-26 10:00 DD6681/DG
Provision of the Veritas netbackup software licences and maintenance. 2018-09-26 10:00 CORP 4546
Specification for the appointment of service provider to perform upholstery on office chairs. 2018-09-26 11:00 SCMU4-18/19-0009

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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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