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 and delivery of corporate laptops to the South African Weather Service 2017-09-08 11:00 SAWS- 118 / 17
Supply and delivery of corporate desktop computers and high-end computer workstations to the South African Weather Service. 2017-09-08 11:00 SAWS- 120 / 17
SANSA invites bidders to tender for for Provision of CISCO maintenance and support for a period of three (3) years. 2017-09-19 11:00 SO/ 034/ 08/ 2017
Request for service provider to maintain and support the group campus and regional offices (Port Elizabeth, Durban and Cape Town) including the dti’s Parliamentary office(s), converged ICT network environment, telecommunications and network management instruments for a period of three (3) years 2017-09-08 11:00 RFB- 1609- 2017
The RAF hereby invites experienced, suitably service providers to provide Splunk, hardware and licences, including support and maintenance for a period of five (5) years. 2017-09-20 11:00 RAF/ 2017/ 00041
The RAF hereby invites experienced, suitably service providers to provide McAfee software, licensing, maintenance and support for a period of five (5) years. 2017-09-20 11:00 RAF/ 2017/ 00042
Advertising Agency Services 2017-09-15 11:00 IEC/ COM- 01/ 2017
Supply IT equipment to the College 2017-09-12 11:00 T11/ 17 IT
False Bay TVET College invites tender bids for the Supply and Delivery of 123 Complete Desktop Devices to our Khayelitsha Campus. 2017-09-11 11:00 FBC T1/ 2017
Supply pastoe chairs set of 5 (maroon in colour x 28 sets 2017-08-28 11:00 ZNQ 261/ 17/ 18
Supply voile curtains for five (5) houses as per specification x 05 each 2017-09-04 11:00 ZNQ 260/ 17/ 18
Supply curtains for chapel for 6 windows and stage 100% cotton x06 each 2017-09-04 11:00 ZNQ 258/ 17/ 18
Supply: 1. 10 Sets X 2 Peace (navy blue) small; 2. 20 Sets X 2 Peace (navy blue) medium; 3. 50 Sets X 2 Peace (navy blue) Large; 4. 45 Sets X 2 Peace (navy blue) X Large; 5. 25 Sets X 2 Peace (navy blue) XX Large 2017-08-25 11:00 ZNQ. NO: 180/ 07/ 17- 18
Supply: Piece Scrub Suits Doctors (See description for more details) 2017-08-25 11:00 ZNQ. NO: 156/ 07/ 17- 18
Request for ACCREDITATION to provide hardware maintenance and support of Wide Area network (WAN) and Local Area Networks (LAN) devices for SITA for a period of five (5) years. 2017-09-13 11:00 RFA 1605/ 2017
Request for ACCREDITATION for the design, supply, installation and maintenance for network cabling and related infrastructure goods for SITA for a period of five (05) years. 2017-09-11 11:00 RFA 1611/ 2017
The CCMA National Office invites prospective bidders for the supply, installation and support of a Data Analysis Software Tool required by Internal Audit. 2017-09-08 11:00 CCMA/ 2017/ 05 – IA
The supply, delivery and commissioning of fuel tanks and pumping equipment to the Department of Defence Units. 2017-09-18 11:00 CPSC- B- PC- 021- 2017
To collect, crush and dispose used florescent tubes in a permitted hazardous site (once off). 2017-09-01 11:00 ZNQ 397 OF 2017 / 18
Appointment of a Social Media Agency for South African Tourism India. 2017-09-11 12:00 SAT INDIA 001/ 17

Pages

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
Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.