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.
Appointment of an Event Management Service Provider for South African Tourism India 2017-09-11 12:00 SAT INDIA 002/ 17
South African Tourism is inviting proposals from reputable service providers operating in the UK, in a bid to be appointed as a preferred Social Media Marketing Agency agency to South African Tourism. 2017-09-11 12:00 SAT UK 004/ 17
The South African Social Security Agency invites expression of interest from potential service providers for the contracting of medical practitioners (individuals and/or firms) to conduct medical assessments for SASSA Mpumalanga Region for a period of three (3) years 2017-09-12 11:00 SASSA: 07/ 17/ GA/ MP
The South African Social Security Agency hereby invites proposals from Service Providers for the Provision of ICT Support, Maintenance and Service Desk Services for a Period of Three (03) Years. 2017-09-08 11:00 SASSA: 05/ 17/ ICT
The South African Social Security Agency hereby invites proposals from Service Provider to Provide the Hosted Email Filtering Services the South African Social Security Agency for a period of three years. 2017-09-12 11:00 SASSA: 06/ 17/ ICT
Supply, delivery and installation of warning lights and sirens to the South African Police Service nationally for a period of two (02) years 2017-09-15 11:00 19/ 1/ 9/ 1/ 57TV (17)
Rendering provident fund services to Robben Island Museum 2017-09-13 11:00 RIM EXE 02- 2017 / 2018
Supply, delivery, installation, maintenance and servicing of two (2) x-ray scanner machines at Robben Island Museum 2017-09-15 11:00 RIM EST 03- 2017 / 2018
Provision of Security services to RTMC Midrand Offices 2017-09-11 11:00 RTMC BID 11/ 2017/ 18
Appointment of a panel of Road Safety Researchers for period of three years 2017-09-08 11:00 RTMC BID 09/ 2017/ 18
Supply and Delivery of New Vehicles 2017-09-08 11:00 SAMRC/ HPRUVEHICLES/ 2017/ 25
Appointment of a Travel Management Company for the PSETA 2017-09-15 11:00 TRAVEL/ PSETA/ 2017- 08
Field work verification and Heritage impact assessment of the SKA1_mid Radio Telescope and Associated Infrastructure. 2017-09-08 11:00 NRF SKA PEP6 001 2017
1 units - Book shelf tier, wooden mahogany finish - With lockable caster wheels for easy mobility - and other items (see description for details) 2017-08-30 11:00 A 107/ 17- 18
The Appointment of an Independent Research Company to provide Research Services on a study on the state of transformation on behalf of the National Film and Video Foundation. 2017-09-12 14:00 RFT 01/ 2017
14 units - Four drawer Steel Steel Filling cabinet, Color Ivory. 06 units - Steel Stationery cupboard 2doors, Color Ivory. 06 units - Turn A File 4 tier, Color Ivory 2017-08-30 11:00 A 108/ 17- 18
Appointment of a Qualified ICT Service Provider to Develop an Integrated Grant & Learner Management Information System (GLMIS). 2017-09-18 11:00 Corp/ 2017/ 07
192 units - Foldable chair- (ceres folding canteen chairs durable plastic). 2017-08-30 11:00 A 111/ 17- 18
09 Units - Coffee Table - Rio Oval Shape 1400w x 450H: Mahogany Finish 2017-08-30 11:00 A 109/ 17- 18
Provision of managed ICT Services for a period of 3 years. 2017-09-07 11:00 CONHILL/ 01/ FAC/ 2017

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
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