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 & delivery quick service application (QSA's) & 3/4" air cock valves - as & when required. 2018-07-18 11:00 DBN/OPS (RTPC) 758
Repairs to blower motor invertors & fans - as & when required. 2018-07-18 12:00 DBN/OPS (RTPC) 770
Repairs to doors (all components) - as & when required. 2018-07-18 13:00 DBN/OPS (RTPC) 779
Repairs & replacement of components in various substations (CIDB Grading 4EP). 2018-07-19 10:00 DBN/CAP (RTPC) 760
For conducting Occupational Hygiene Surveys over a period of three (3) years at all Petroleum and Flow Sciences Laboratories, i.e. Rosherville x 3, Seshego, Witbank, Pietermaritzburg, Port Elizabeth, Brackenfell, Bloemfontein and Klerksdorp on an as and when required basis. 2018-07-17 10:00 ERIC6303
Provision of operating/technical training services. 2018-07-18 10:00 59CON1869
The appointment of consulting engineers for various projects in Hessequa Municipal area for a three (3) year period. 2018-07-20 12:00 HES-TECH 35/1819
Supply and delivery of chemicals for Ash water system scale control, Auxiliary cooling water treatment and main cooling water system scale control at Matla Power Station on an as and when required basis. 2018-07-17 10:00 MPGXC005156
Provision of single phase testing training services. 2018-07-20 10:00 59CON1870
Supply, Delivery and Installation of 75 Litre Galvanised Swivel Street Litter Bins (Coastal,Inland and Midland Regions of BCMM). 2018-07-22 12:00 3175
Provision of Co-Sourced Internal Audit Services to Buffalo City Metropolitan Municipality. 2018-07-22 12:00 3174
Alienation and Development of Erf 21161 Paarl for Housing Development Purposes 2018-07-26 10:00 CORPORATE 07/2018
A Pre-Qualification Process for the provision of Debt Collection Services in Kwa Zulu Natal, Free State and North West Operating Units, for a period of thirty six (36) months. 2018-07-18 10:00 DD6665/CS
Risk assessment specialist for risk assessment analysis at the Afrikaans Language Museum, -Monument And Amphitheatre, Paarl. 2018-07-31 11:00 ATM007-2018/2019
Construction of Sikhulile Circuit Office in Ehlanzeni District. 2018-07-18 10:00 PWRT/2290/18/MP
Lady Frere Magistrate Office: Repairs and Renovations 2018-07-23 12:00 CDC/ 229/ 18
Provision of short term insurance services. 2018-07-19 12:00 06/06/02018
Supply and delivery of aerial ladder/platform 30m with articulated cage boom. 2018-07-21 12:00 B/SM 112/18
Electrical Reticulation Maintenance for Three Years at Bloemfontein Airport. 2018-07-23 10:00 BFN14/2018
Maintenance of Electrical Reticulation Infrastructure at Kimberley Airport. 2018-07-24 10:00 KIM10/2018

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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