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.
Provision of training – Project Finance 2019-10-17 12:00 RFQ072/2019
Provision of training – Financial Modelling 2019-10-17 12:00 RFQ071/2019
Appointment of a suitable service provider for the provision of comprehensive pre-employment background screening and verification services including psychometric testing services for employment purposes for a period of three (3) years. 2019-10-22 11:00 RFP/2019-053
Consultancy services for the Enterprise Africa Network (EAN) - preliminary phase - preparation of logical framework 2019-10-25 15:00 AUC/TID/C/021
Western Cape Province: All Regions: All Facilities: Scheduled Maintenance General Building: Three Year Framework Agreement Designated 2019-11-20 11:00 S044/ 19
Repairs and renovations on blinds, air conditioning units, tiling and paint at DARD (Agriculture) King Cetshwayo District office, Umlalazi . 2019-11-12 11:00 KCD 19/ 2066
Repairs to roof, windows, doors, floors and painting in block of 5 classrooms at Threfall P School, Umhlabuyalingana 2019-11-11 11:00 ZNQ UM 256M/ 19- 20
Replacement of damaged and vandalised fence gate at DARD (Agriculture) Nsingweni Training Centre 2019-11-12 11:00 KCD 19/ 2067
GRIEKWASTAD: Rehabilitation of old SAPS canteen into offices for SASSA. 2019-11-01 11:00 KIM1175/ 2019
Department Of Social Development: Hire Of Office Accommodation for a period of 60 months at Ladysmith Ezakheni Township 2019-11-12 11:00 ZNTL008 W
Department Of Health: Hire Of Office Accommodation for a period of 60 months at Umzinyathi Distict Dundee 2019-11-12 11:00 ZNTL 6007 W
Department of Agriculture and Rural Development: Hire Of Office Accommodation for a Period of 60 Months at Utrecht 2019-11-12 11:00 ZNTL 6009 W
Appointment of The Local Installers to Conduct Direct - To - Home (Dth) Satellite, Digital Terrestrial Television (Dtt) Set - Top - Boxes Ad all The Related Accessory Installation to Qualifying Households inthe Free State Province 2019-10-31 11:00 USAF- POIFS/ 01/ 2019
THE LEASING OF LARGE FORMAT PLOTTER E-MULTIFUNCTION PRINTERS: The South African National Roads Agency SOC Limited (SANRAL) is soliciting tenders from an experienced service provider/s that will offer expertise in the leasing of large format plotter e-multifunction printers 2019-11-12 14:00 NRA 58000/ 1013/ 2019/ 04
Appointment of service providers for the Cleaning and Sanitation services at SASSA Eastern Cape for a period of Three (03) years. 2019-11-08 11:00 SASSA: 23/ 19/ CS/ EC
Supply, install, maintain and support an Automated Verifications System to the South African Qualifications Authority (SAQA) for five (5) years 2019-10-31 11:00 SAQA 0014/ 19 VP
Supply and delivery of Mobile Testing Stations and Weigh Bridges 2019-11-05 11:00 RTMC BID 19/ 2019/ 20
Terms of Reference To Request For Bids From Service Providers for BID NO OCJ2019/06: Anti-Virus and Malware Protection Solution for The Office of the Chief Justice 2019-11-08 11:00 OCJ2019/ 06
Appointment of a Service Provider to Render Maintenance Services of the Fire Hydrants, Extinguishers, Sprinkler Systems, Detection System, and Gas Suppression System for the HSRC Pretoria Offices for a period of three (3) years. 2019-11-01 11:00 HSRC/ 05/ 2019/ 20
Invitation to an open tender for the design and construction of an additional 616 M2 storage facility as well as the “design only” of locker rooms at the AIDC incubation centre at Ford Silverton 2019-11-01 11:00 AIDC_T02_2019/ 20

Pages

The 8 steps in the Tender Adjudication process

By W van Rooyen

www.howtotender.co.za

31 January 2019

It is important to understand the Adjudication process when one responds to a Tender or Request for Proposal. If you have these 8 steps under control when responding to tenders, changes are good that you will proceed to the next round.

Here are 8 steps in the adjudication process that Organs of State will most often follow in determining which bidder will win the tender:

  1. Opening... Read More
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