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.
Request for proposal from professional service providers to conduct a feasibility study for supply of bulk water in the Tzaneen Dam area on behalf of Lepelle Northern Water. 2017-11-27 11:00 LNW 06/ 17/ 18
Betterment & Re-gravelling of P279 (KM 18+300 TO KM 23+300). 2017-11-28 11:00 C252/ 1718/ BR/ 817
Betterment & Re-gravelling of L1428 (KM 8+450 TO KM 16+450). 2017-11-28 11:00 C252/ 1718/ BR/ 820
Betterment & Re-gravelling of D1339 (KM 0+000 TO KM 6+500). 2017-11-28 11:00 C252/ 1718/ BR/ 553
Betterment & Re-gravelling of D2443 (KM 6+840 TO KM12+840) 2017-11-28 11:00 C252/ 1718/ BR/ 555
Betterment & Re-gravelling of D114 (KM6+000 TO KM 12+900). 2017-11-28 11:00 C252/ 1718/ BR/ 554
Betterment & Re-gravelling of D98 (KM0+000 TO KM 7+000). 2017-11-28 11:00 C252/ 1718/ BR/ 568
Supply and deliver Sports Equipment to 108 Mass Opportunity and Development (Mod) Centres in the Western Cape Education Department (Wced). 2017-11-24 11:00 B/ WCED 2419/ 17
Request For Information (RFI) For Welding Information Management System 2017-11-23 10:00 CORP4268
Supply and Delivery of Touch Screens 2017-11-23 10:00 CORP NO 4269
Construction of Outfall Sewers to the Polokwane Regional Wastewater Treatment Works- Phase 1a-Seshego to East of Pipe Bridge 2017-11-23 10:00 PM129/2017
Construction of Outfall Sewers to the Polokwane Regional Wastewater Treatment Works- Contract 1b-Polokwane East and Polokwane West 2017-11-23 10:00 PM130/2017
Construction of Outfall Sewers to the Polokwane Regional Wastewater Treatment Works- Phase 1c-Main Outfall East of the Sand River 2017-11-23 10:00 PM131/2017
Supply and delivery of Multi Stands Striped Or Blue Cables 2017-11-23 10:00 MPGXC004903
Provision of new Electrical Multiple Unit (Emu) Coach Cleaning Services ror Northern Gauteng Region (Ngr) 2017-11-23 12:00 CRES/CNGR/37/10/2017
Provision of Legal Services 2017-11-23 12:00 392/05/10/2017
Construction of Slieve Donald Farm Combo Sport Facility in Ward 7 2017-11-23 12:00 20/10/2017
Construction of Water and Sewer Reticulation in Polokwane Extension 78 2017-11-24 10:00 PM15/2017
Construction of Vaalkop Transfer Station 2017-11-24 10:00 PM135/2017
Request for Proposal for the Provision of Reputation and Stakeholder Perception Survey 2017-11-24 12:00 SRS/10/2017

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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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