Tenders, B-BBEE and the new Preferential Procurement Regulations 2017

Having a good B-BBEE status level is VERY IMPORTANT in the tender process!

All tender documents will have 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, 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.

New Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, have been finalized and gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. We start off with the official media release from National Treasury:

The regulations were initially promulgated in 2001 and revised in 2011 thus making this the second revision since the initial promulgation.

General Procurement Guidelines

Government issued the General Procurement Guidelines not only as a prescription of standards of behaviour, ethics and accountability which it requires of its public service, but also as a statement of Government's commitment to a procurement system which enables the emergence of sustainable small, medium and micro businesses which will add to the common wealth of South Africa and the achievement of enhanced economic and social well-being of all South Africans.

Tenders in South Africa are measured on three principles, namely Functionality, Price and Broad-Based Black Economic Empowerment (B-BBEE). An Enterprise's ability to execute a contract is measured through the Functionality Principal in the Tender Environment. If an Enterprise's tender response does not pass the Functionality test it can't be measured on Price and B-BBEE. Enterprises that respond to tenders must ensure that they will pass the Functionality test in order to advance.

Functionality in Tenders Part 1

Functionality in Tenders (1)

The Preferential Procurement Policy Framework Act 2017, establish the rules according to how Government Entities must evaluate tenders. The Preferential Procurement Regulations of 2017 takes it a step further and gives guidance on how to specifically award points according to certain criteria such as B-BBEE and Price. 

There appears to be a serious lack of knowledge regarding South African tender procedures. Here, the tender processes are ruled by various Acts, Regulation and Guidelines which are specifically designed to ensure that the tender processes are in line with the Constitution of South Africa - which dictates that the tender process should be fair, equitable, transparent, competitive and cost-effective.

It is important to know that when you respond to a tender there are certain guidelines that Government Officials need to follow in order to evaluate your tender. According to the Implementation Guide - Preferential Procurement Regulations, 2017, pertaining to the Preferential Procurement Policy Framework Act, Accounting Officers and Accounting Authorities of all public entities listed in Schedules 2, 3A, 3B, 3C and 3D to the PFMA and municipal entities must comply with the rules and guidelines stipulated below.

If one looks at the General Procurement Guidelines that National Treasury issued to Government Departments, it is clear that Government wants the tender process to be fair, equitable, transparent, competitive and cost-effective exactly as Section 217 of the Constitution of South Africa requires.

Pages

Title Closing Date Tender No.
The supply and delivery various sizes of Ferrules. 2018-09-21 10:00 PTB1360
Provision for power transformer testing services at various sites for a period of 36 months as and when required basis. 2018-09-21 10:00 ERI/2018/TSS/01
Provision for power transformer testing services at various sites for a period of 36 months as and when required basis. 2018-09-21 10:00 ERI/2018/TSS/01
Maintenance to service roads, fencing and surfaces on an as & when required basis within a period of 24 months. 2018-10-02 10:00 KBY/54318
Supply and delivery of 2 (Two) 2.5 Litre Double Cab Ldvs With Canopy From an accredited Motor Vehicle Dealer 2018-09-04 12:00 BS22/07/2018
The University of South Africa invites tenders from suitably qualified service providers to provide the University with international courier services for a period of three years. 2018-09-03 12:00 PT2018/12
Re-design the existing human capital function in support of the DBSA Growth & Transformation agenda. 2018-09-10 11:00 RFP124/2018
Supply and delivery of 1(one) x TLB with Minimum Engine Gross Power (SAE) Of 29.1 Kw from an accredited Motor Dealer 2018-09-04 12:00 BS19/07/2018
Evaluation of the Global Fund Community Systems Strengthening Programme. 2018-09-10 08:30 None provided
Reconstruction of Stage Floor at Eric Jiyane Community Hall, Mhluzi 2018-09-05 12:00 BS23/07/2018
Request for proposals for total replacement of 22 lifts in the University. 2018-09-14 10:00 RFPSMU/008/2018
Request for proposals for upgrading of electrical substation and electrical cabling. 2018-09-14 10:00 RFP SMU/006/2018
Appointment of a Suitable Service Provider to Conduct Research on Tracking and Tracing of Learners who Completed TETA- supported Workplace-based Learning - WBL Programmes (Learner ships, Internships and apprenticeships) in the financial year 2016/2017. 2018-09-07 11:00 TETA18/RESEARCH/0005/WBL
Construction of Storage for Hazardous Material at Electrical Department Store, Service Centre (Magasyn), Middelburg 2018-09-05 12:00 BS24/07/2018
Request for Proposals for the Appointment of a Suitable Service Provider to Conduct a Tracer Study on ‘Teta-funded Pilots within Aviation for the Period of NSDS III (2011-2017) 2018-09-07 10:00 TETA18/RESEARCH/0004/TRACER
BBBEE Verification Agency 2018-08-28 12:00 030/2019
Supply Calcium hypochlorite 2018-08-23 16:00 GC11900071
Supply: Medical supplies 2018-08-28 15:00 GF11900120
Hiring of Water Tanker for Regravelling of Gravel Roads at Bethal and Emzinoni for 30 days 2018-08-27 12:00 RFQ NO: 8/3/2- 62/2018
Hire of a 20 Ton Excavator for Bellville South Landfill. 2018-08-28 09:00 WJ11900109

Pages

10 steps in the bid process

Each year, Organs of State invite the Private Sector to submit competitive bids for the supply of goods and services. Organs of State bid requests attract SMME's and large businesses across a wide range of sectors - from office supplies to major construction projects.

Here is an overview of 10 steps you should take to prepare a competitive bid.

1.    Register your interest

Follow the instructions in the bid document to register your interest with the purchasing agency. This important step will help keep you up to... Read More

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