Issue Date: 
Tuesday, November 1, 2016

When Must I Sub-Contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

The Draft Preferential Procurement Regulations stipulates the following: 

  1. For contracts above R30 million, the tenderer MUST sub-contract a minimum of 30% of the value of the contract to –
    • One or more of the categories:
      • EME’s (Exempt Micro Enterprises) or QSE’s (Qualifying Small Enterprises) owned by black people who are female;
      • EME’s or QSE’s owned by black people from the ages 14 to 35;
      • EME’s or QSE’s owned by black people;
      • EME’s or QSE’s owned by black people with disabilities)
    • One or more Exempt Micro Enterprises (EME’s) or Qualifying Small Enterprises (QSE’s); or
    • One or more small businesses, as defined in the National Small Business Act.
  2. If a successful tenderer sub-contracts to another person without disclosing it in its tender documents, the organ of state must penalise the tenderer 10% of the value of the contract, unless the tenderer submits a satisfactory reason for failing to make the disclosure.

The Regulations are very clear because its states “the tenderer MUST sub-contract…..”. Thus, once the Regulations are finally gazetted then all contracts with a value of R30 million and above will have to comply with this Regulation. Remember that currently (as of 31 Oct. 16) the Regulations are not finalized yet.

Until such time that the Regulations are finalized the answer is easy whether or not to sub-contract – look at the scope of the tender or the special conditions. Somewhere in the tender document it will stipulated whether or not the tenderer will have to sub-contract.  Follow those rules. If the tender document doesn’t contain any sub-contracting instructions (at this stage) then it is not necessary to do so.

The fact is that the tender document will dictate what you should or should not do. Read the tender document carefully and follow the instructions to the point.

To learn more about this and all the other new developments regarding tenders, attend one of the How-to-Tender workshops.

Learn to earn

www.how2tender.com

 
 
Title Closing Date Tender No.
Supply Wound dressing (100% soduim carboxymethylcellulose NACMC fibrous hydrocolloid dressing containing ionic silver with nylon stitching 17 x 15cm) - 3000 boxes 2018-03-06 10:00 225/ 17- 18
Request to render Security Services at Mary Moodley Child and Youth Care Centre for a period of 24 Months 2018-03-16 11:00 GT/ GDSD/ 055/ 2018
Supply: Elastic bandage 50mm x 4.5m(stretched) (12 rolls per pkt); Elastic bandage 100mm x 4.5m(stretched) (12 rolls per pkt) 2018-03-02 11:00 ZNQ 132/ 2017
Request for proposal for the appointment of a contractor for construction of electrical works, access road and water supply system 2018-03-27 11:00 GGDA/ 19/ 2017- 18/ GIDZ_INFRASTRUC
Rendering of a Security Service for period of two years (24 months) at CNR Leta & Moropotsane Street ,Phuthaditjhaba ,Qwa-qwa, 9866 2018-03-15 11:00 FSDOL07/ 2018
Appointment of a service provider for the supply, installation and maintenance of backup generators, uninterrupted power supply (UPS) unit, air-conditioners including consequential general building, electrical, mechanical, civil and engineering works in various DHA offices and Port of Entry for a period of three (3) years. 2018-03-16 11:00 DHA04- 2018
Re-Advert - Provision of alarm with armed response services and security guards at the CETA head office in Midrand. 2018-03-02 11:00 018- 2017/ 2018
Provision of ICT desktop support services for a period of 3 years. 2018-03-16 11:00 CONHILL/ 02/ FAC/ 2018
Request for proposal for the appointment of a service provider to project manage the GIDZ marketing campaign 2018-03-26 11:00 GGDA/ 18/ 2017- 18/ GIDZ_MARKETING
Faulty Find and Repair Calorifier Since Has No Hot Water in Nurses Home Building 2018-03-02 11:00 ZNQ 133/ 2017
Provision of internet connectivity services for a period of 3 years. 2018-03-15 11:00 CONHILL/ 04/ FAC/ 2018
Supply of maintenance, support and a minor upgrade for the Department of Trade and Industries (the dti) Checkpoint infrastructure. 2018-03-16 11:00 RFB 1704/ 2017
Invitation to service providers to supply MPLS connectivity between The Commission’s Main Data Center located at The DTI Campus, 77 Meintjies Street, Sunnyside, Pretoria and the Remote Sites. 2018-03-16 11:00 CIPC BID NUMBER: 31/ 2017/ 2018
Repair and Maintenance of Accessible Lifts, for a period of 3 years, including Lift Replacement Project 2018-03-16 11:00 CONHILL/ 01/ FAC/ 2018
Identification of premises for office space for the NDA to be occupied over a period of three years with an option to renew at NDA’s sole discretion for an additional twenty-four months at intervals of twelve months each 2018-03-22 14:00 NDA26/ FIN15/ 18
Manufacturing, supply and delivery of poncho, HRD trainee for a period of three (3) years in accordance with specification SAPS 3231/17 Version 01.0/June 2017: Division: Supply Chain Management. 2018-03-27 11:00 19/ 1/ 9/ 1/ 95TC (17)
Appointment of Suitable Service Provider to Provide Office Accommodation to the MICT Seta Cape Town Offices for a period 36 months Subject to Renewal Of MICT Seta License 2018-03-16 11:00 MICT- SETA/ OACPT/ 2018
Manufacturing, supply and delivery of jersey HRD trainee unisex for a period of three (3) years in accordance with specification SAPS 3206/17 Version 01.0/ April 2017 2018-03-27 11:00 19/ 1/ 9/ 1/ 94TC (17):
Appointment of Suitable Service Provider to Provide Office Accommodation to the Mict Seta Durban Offices for a period 36 months subject to Renewal of MICT Seta License 2018-03-16 11:00 MICT- SETA/ OADBN/ 2018
The supply and delivery of protective clothing and uniform for mortuaries 2018-03-02 11:00 339, 340, 347, 335/ 17/ 18

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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