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.
Supply and delivery of vertical water tanks for the harvesting of rainwater 2018-03-09 12:00 HES-COM 04/1718
Policy Development for the Business Development Division 2018-03-09 10:00 COR174/2018
Construction of an emergency overflow pipeline, river outlet and associated works at Zuikerbosch Pumping Station 2018-03-13 12:00 RW01056/14A
Contract for the design, manufacture, supply, delivery, installation, commissioning and putting into service of a chlorine plant at system 4 at Zuikerbosch Pumping Station 2018-03-15 12:00 RW01240/15A
Supply and delivery of construction materials (water pressure pipes, bends, joints, fittings, water meters, valves etc.), for a period of three (3) years 2018-03-02 12:00 CE: 21
Supply and delivery of Male and Female Condoms and Lubrications to the state for the Period 1 July 2018 to 30 June 2021 2018-03-19 11:00 RT75-2018
Design, manufacture, supply, delivery, installation, commissioning and putting into service of an upgrade milk of lime dosing plant for system 3 at Zuikerbosch Pumping Station 2018-03-20 12:00 RW00984/13
Tender for the upgrade by designing, manufacturing, supplying, delivering, installing, commissioning and putting into service of electrical infrastructure of phase 1 of the raw water engine room 4 at Zuikerbosch Pumping Station (minimum CIDB grading required is 7EP/6EP PE) 2018-03-28 12:00 RW01309/16
Supply and configure a next generation Firewall solution for four year period 2018-02-23 12:00 MTK20/2017
Rehabilitation for Asbestos mine: Steel Poort in Limpopo Province 2018-02-27 12:00 MTK12/2018
Appointment of a qualified service provider (supplier) for the provision of protection and indemnity (P&l) insurance as well as hull and machinery (H&M) insurance for samsa maritime special projects’ 7 (seven) vessels as well as 6 (six) 7.3m gemini waveriders (rigid hulled inflatable boats) for a period of thirty six (36) months. 2018-03-02 11:00 SAMSAMSP/05/2017
Appointment of a panel of service providers (suppliers) to support samsa maritime special projects with the port and dock services for a period of three (3) years. 2018-02-27 11:00 SAMSAMSP/04/2017
Appointment of a panel of ship chandlers/service providers (suppliers) to support samsa maritime special projects with the supply of victuals, bed linen, cutlery, crockery and other consumables for a period of three (3) years. 2018-02-26 11:00 SAMSAMSP/03/2017
Appointment of a panel of service providers (suppliers) to supply samsa maritime special projects with the supply of fuel diesel and lubricants services for its vessels for a period of three (3) years 2018-03-01 11:00 SAMSA MSP/02/2017
Appointment of a panel of service providers (suppliers) to support SAMSA maritime special projects with repairs & maintenance, supply of spare parts and other related services for its vessels for a period of three (3) years. 2018-02-28 11:00 SAMSA MSP/01/2017
Rental of Multi-Functional Office Machines (Inclusive of Related Services) for a period not more than 3 years (36 Months) 2018-02-23 11:00 BV683
Rehabilitation for Asbestos mine: Msauli in Mpumalanga Province 2018-02-26 12:00 MTK11/2017
Call for proposals the GIJIMA KwaZulu-Natal Local Economic Development Support Programme Local Competitiveness Fund (LCF) programme (Phase 8) 2018-04-20 16:00 No reference number
As and When Maintenance, Repairs and Services of Alarms Systems, CCTV Systems and Access Control Systems 2018-02-22 12:00 45/2017/CTN/INFRA
Upgrading of Natures Valley Bulk Water Supply - Phase 1 2018-02-23 12:00 SCM/2018/79/ENG

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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