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.
Provision of Internal Services and the construction of top structures-Potsdam/ Ikhwezi Block 1 housing 656 units. 2017-11-28 12:00 BCMM/COO/HM/1384/2017
Contract for stabilization of BCMM access roads using polymer products and associated services for a period of three years 2017-11-24 12:00 CE:263
Upgrade and Refurbishment of Coastal Nature Reserves in BCMM until June 2020 2017-11-24 12:00 BCMM/DCOMMS/NR/12/2017/18
Provision of Professional Services: Development, Upgrade and refurbishment of Sport Fields and Stadiums in BCMM until June 2020 2017-11-24 12:00 BCMM/DCOMMS/SF/11/2017/18
Supply & delivery of Disinfection Chemicals, for a contract period ending 30 June 2020 2017-11-28 12:00 B/SM 26/18
Construction of Wisani Primary School 2017-11-29 10:00 MPGXC004909
Supply and delivery of Relays to various Eskom Power Stations on an as and when required basis for a period of 3 years 2017-11-29 10:00 MPGXC004910
Supply and delivery of Tubes and Pipes to Eskom Power Stations as and when required for a 3 year period 2017-11-29 10:00 MPGXC004911
Supply and Delivery of Herbicides and Insecticides for a Period of Three Years 2017-11-29 10:00 PM99/2017
Appointment of a Service Provider to Supply and Deliver Irrigation Materials for Period of Three (3) Years 2017-11-29 10:00 PM100/2017
Supply and Delivery of 30 M3 Skip Containers for a Period of three years 2017-11-29 10:00 PM115/2017
Website Migration, Hosting, Enhancement and Maintenance 2017-11-28 11:00 CATHS/WMHEM/011/2017
Two Bidding Stage: Proposal for Rural Domestic Waste Collection for a period of three (3) years 2017-11-29 11:00 SCM/MLM09/10/2016
Proposal- Cost of Supply and Engineering Contribution Study 2017-11-29 09:00 RLM/DTIS/0056/2017/18
Re-Advert: Appointment of a Panel of Experience Attorney to Render Various Specialised Legal Services for Rustenburg Local Municipality for a period of three years 2017-11-29 11:00 RLM/MM/0083/2017/18
Appointment of a Qualified Contractor for National Stations Improvement Programme (NSIP) at Akasiaboom Station for the Construction of Security Brick wall and Upgrade of Storm Water Drainage and Ticket Offices (6GB) 2017-11-29 12:00 CRES/NGR/38/10/2017
Appointment of a Qualified Contractor For National Stations Improvement Programme (NSIP) at Hercules Bus Staging Yard for the Upgrade of Storm Water Drainage and Electrical Works and the Construction of A Guardhouse, Ablutions and Carports 2017-11-29 12:00 CRES/NGR/39/10/2017
Appointment of Contractors for the Design,Supply, Install,Delivery, Offloading, Test, Commissioning and Retrofit of Existing Streetlighting and Floodlighting Luminaires Conventional Types High Intensity Discharge (Hid) with Light Emitting Diodes (Led) From The Date Of Award Until 30 June 2020 2017-11-30 10:00 A-EE 01-2018
Appointment of Electrical Contractors for the Design, Manufacture, Supply, Delivery, Offloading, Installation, Testing and Commissioning of Integrated Solar Photovoltaic Led Street Lighting on An As-And-When Required Basis From Date of Award Until 30 June 2020 2017-11-30 10:00 A-EE 02-2018
Supply and delivery of Actuators to various Eskom Power Stations on an as and when required basis for a period of 3 years. 2017-11-30 10:00 MPGXC004912

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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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