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.
The Breede Valley Municipalities invites tenders for the: Upgrading of basket rooms at the swimming pool in Greystreet, Worcester. 2017-12-14 11:00 BV 667
Invitation too Bidder/s for the provisioning of Endpoint Protection Solution which entails design, implementation, maintenance and support services for a period of three (3) years 2017-12-19 11:00 DIRCO 07/2017/18
Municipal Finance Management Programme 2017-12-18 12:00 2/2/4/2017-18
Expressions of interest are invited for investment in the Development and Management of the Fresh Produce Market in Rustenburg 2018-01-10 13:00 Not Supplied
Water and wastewater projects-Vondo RWS:Upgrading of vondo water treatment works (Electrical) 2018-01-19 12:00 VDM/TECH/10/11/2017/01
Expressions of interest are invited for investment in the Development of an Education Precinct in Rustenburg 2018-01-10 08:00 Not Supplied
350 mm DIA pipeline from R2 to RD2 & A 355 mm DIA pump main from vondo WTW to R2 2018-01-19 12:00 VDM/TECH/10/11/2017/03
Water and Wastewater Projects: Vondo RWS:Upgrading of Vondo Water Treatment Works 2018-01-19 12:00 VDM/TECH/10/11/2017/04
Expressions of interest are invited for investment in the Development of a Precinct or portions thereof in Lethabong, Rustenburg 2018-01-10 09:00 Not Supplied
Two 10ml Command existing R2 Reservoir site in Phiphidi 2018-01-19 12:00 VDM/TECH/10/11/2017/05
Expressions of interest are invited for investment in the Development of a Precinct or portions thereof in Monnakato, Rustenburg 2018-01-10 11:00 Not Supplied
Expressions of interest are invited for investment in the Development of a Precinct or portions thereof in Phatsima, Rustenburg 2018-01-10 14:00 Not Supplied
Request for expression of interest (installation of smart water metering) 2017-12-15 12:00 MLM/SCM 05/17/18
Expressions of interest are invited for investment in the Development of a Precinct or portions thereof in Tlhabane Rustenburg 2018-01-10 12:00 Not Supplied
Expressions of Interest for Investment in the Development of a precinct or portions thereof in Boitekong, Rustenburg. 2018-01-10 10:00 Not Supplied
Appointment of a Service Provider to Perform Insurance Replacement Cost Valuations 2017-12-15 12:00 PICPROP007 /2017
Expression of Interest for the Transportation of Heavy Fuel Oil By Road Tankers 2017-12-15 11:00 Not Supplied
Supply and deliver One new Diesel Bus with a 22 seating capacity to Majuba TVET College 2018-01-08 12:00 CO 17/03 C Rev 01
Supply and deliver Two new 1.6 Sedan Motor Vehicles to Majuba TVET College 2018-01-08 12:00 C017/02 C Rev 01
Database for supply of mobile classrooms 2018-01-12 12:00 ECDC/021 /MOB/11 /2017

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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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