Issue Date: 
Tuesday, November 1, 2016

When to sub-contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting, due in large part, to The Preferential Procurement Regulations, 2017 which came into effect on 1 April 2017. Many entrepreneurs ask us whether they should sub-contract or not, when responding to a tender.

Regulation 9 of The Preferential Procurement Regulations 2017, stipulates the following:

1: If it is feasible to sub-contract for a contract above R30 million, an Organ of State must apply sub-contracting to advance designated groups.

2: The Organ of State must advertise this specific tender condition that the successful bidder must sub-contract at a minimum of 30% (of the value of the contract) to (one or more) to an EME or QSE which is at least 51% owned by:

a.    black people;

b.    black people who are youth;

c.    black people who are women;

d.    black people with disabilities;

e.    black people living in rural or under develop areas or townships;

f.    black people who are military veterans;

g.    A cooperative which is at least 51% owned by black people;

3: In paragraph 3 of Regulation 9 it also states that the Organ of State must make available the list of all suppliers registered on a database approved by the National Treasury to provide the required goods or services in respect of the applicable designated groups mentioned above from which the bidder must select a supplier.

Regulation 9 is very clear because its states "the tenderer MUST sub-contract…..". Thus, according to the Regulations all contracts with a value of R30 million and above will have to comply with this Regulation. Read the tender document carefully because somewhere in the tender document it will stipulate whether or not the bidder will have to sub-contract. Follow those rules. If the tender document doesn't contain any sub-contracting instructions then it is not necessary to sub-contract.

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

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. For more information on the tender courses please email Werner at werner@how2tender.com.
 
This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

Title Closing Date Tender No.
Thabamoopo Magistrate Office: Repairs and renovations 2019-06-18 11:00 PLK19/ 04
Pretoria: Silverton SAPS: Yankee Base: Phase II: Replacement of 20 Containers and Construction of Roof and Stairs 2019-06-25 11:00 Pt19/ 004
Supply, deliver, install and commissioning of laundry equipment: Benedicitine Hospital 2019-06-24 11:00 ZNB 9654/ 2018- H
Preventative and corrective maintenance contract of steam tube bundles calorifiers: 3 year contract: various institutions 2019-06-25 11:00 ZNB 5118/ 2019- H
Refurbishment of Tennant Road Kenilworth. CIDB Grading GB Level 4. 2019-07-31 11:00 SPSC- B- 007- 2019
Refurbishment of Porterville Crescent, Monte Vista. CIDB Grading GB Level 3. 2019-07-30 11:00 SPSC- B- 006- 2019
Repair of the Burned Building at Northern Military Headquarters. 2019-06-27 11:00 CPSC- B- G- 266- 2018
NDPW: Repairs, Maintenance, Service and Replacement of Refrigeration to various areas within the Johannesburg Regional Office’s jurisdiction for 24 months period. 2019-06-18 11:00 JHB.19/ 15
RFP 0014/2019: Provision of integrated pest management program for all SARS offices, countrywide 2019-06-25 11:00 RFP0014/ 2019
Request for provision of exhibition management services for Govtech 2019 2019-06-13 11:00 RFB 1945/ 2019
Bloemfontein: South African Social Security Agency (SASSA): Mangaung Metro District Local Office: New office accommodation: and parking facilities: 1287.73m² and 40 parking bays 2019-06-18 11:00 BL19- 008
Bethlehem Department of Rural Development and Land Reform (DRD & LR): Thabo Mofutsanenyane District: Alternative office accommodation and parking facilities: 1994.17m² and 25 parking bays for 5 years 2019-06-18 11:00 BL19- 007
Welkom Department of Rural Development and Land Reform (DRD & LR): Thabo Mofutsanyane District: Alternative office accommodation and parking facilities: 2019-06-11 11:00 BL19/ 004
The iSimangaliso Wetland Park Authority invites suitable, qualified and competent Suppliers for the supply and delivery of Uniforms to iSimangaliso Wetland Park Authority 2019-06-07 16:00 RFP NUMBER: 02/ MAY/ 2019
Supply of Corporate Gifts, Clothing & Branding - This is an all inclusive National tender that will be urtilised by all our 64 members across South Africa on an as and when required. 2019-06-13 12:00 PUR 3600/ 2
Three year contract for the Disposal of Aluminium Lithographic Plates from Naval Publication Unit, Simon’s Town as per Statement of Work. 2019-06-26 11:00 SPSC- B- 004- 2019
Request For Proposals for the Appointment of a Professional Service Provider to Provide Facilities Management for the Playhouse Company for a preiod of 3 years 2019-06-24 11:00 PHC 59/ 2019
Appointment of a service provider to print barcoded Quarterly Labour Force Survey (QLFS) questionnaires for the third quarter, July-September 2019 and Survey of Activities of Young People (SAYP) questionnaires for the third quarter, July-September 2019 for Statistics South Africa 2019-06-07 11:00 Stats SA 001/ 19
Design and construction of world-class international exhibitions stands for South African Tourism 2019-06-14 12:00 SAT 142/ 19
Provision of Leadership Development and Coaching Services at Sanas for a period of twelve (12) months 2019-06-14 11:00 SANAS/ LDCS/ 2019- 20/ 01

Pages

Tender Knowledge

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Sometimes I am surprised at how little business people in South Africa know about Tenders and the Tender Process. Simple things like terminology and general tender information are difficult for people to comprehend not to mention the Standard Bidding Documents and Tender Pricing.

Unbelievably there are still Entrepreneurs that thinks to respond to tenders are an actual business? You will find that these Entrepreneurs would... 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.