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.

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Title Closing Date Tender No.
Excavate (2m width x 2m length x 1,5m deep) construct pit lining and erection of ventilated improvement pit (vip) toilets in wards 9,10,11,12&13 2019-05-02 12:00 RFQ/809
Supply 3000 good quality SABS approved building blocks and 150 bags of cement (50kg) for the construction of vip latrines pit in Wards 1,2,3,4,5,6,7,8,9,10,11,12&13 2019-05-06 12:00 RFQ/810
Supply, delivery and installation of tiles, toilet and door 2019-05-03 11:00 295425
Supply, delivery and fit of tyres for plate compactor – CW46560 2019-05-02 11:00 293932
Supply, delivery and fit of tyres for truck Nissan diesel – CW21923 2019-05-02 11:00 296230
Supply delivery and installation of 2 x 24 000BTU air conditioner 2019-05-02 11:00 295892
Occupational health and safety services for resurfacing of municipal roads (Rawsonville, Worcester, De Doorns, Touwsrivier). 2019-04-30 11:00 296861
Terms of Reference for Consultancy Services to Undertake Gender Mainstreaming Study in the Energy Sector in Africa 2019-05-07 15:00 AUC/IED/C/014
Construction of Speed-Humps 2019-05-03 12:00 SCM/2019/114/ENG
For the supply and delivery of safety boots for delivery to Kimberley, Supply Chain Services Warehouse. 2019-04-30 10:00 WRAC/KBC/29581
Supply and delivery of various PPE material on an “as and when” required basis to Bellville 2019-05-14 10:00 BLE RME 2202/2019
SHEQ Dept - Collection and Disposal of Medical Waste on a month-to-month basis not exceeding 12 months 2019-05-07 12:00 PEHR 007/19-20
Construction of Ward 4 Elityeni Internals Streets 2019-05-17 11:00 TECH/MIG 01/2019/20
Construction of Chintsa East Internal Streets 2019-05-17 11:00 TECH/MIG 02/2019/20
Construction of Icwili Sports Field 2019-05-17 11:00 TECH/MIG 03/2019/20
Construction of Ward 6 Youth Centre 2019-05-17 11:00 TECH/MIG 04/2019/20
Provision of Website Management services at KHTVETC for a period of 36 months ( 3 years) 2019-05-23 11:00 KHC Bid 01/2019
Appointment of a service provider for the design and construction of houses with basic services infrastructure for evicted farm dwellers from Vaalpoort Farm in Pixley Ka Seme Local Municipality 2019-05-15 11:00 CONMP 0001 (2019/ 2020)
Procurement of Support and Maintenance of VMware Enterprise Licences, the reconfiguration of Enterprise Licenses at Head Office and the Procurement of 12 Additional Enterprise Licences wit x1 VMware vCentre standard including installation and configuration for 36 months 2019-05-10 11:00 RFB 1918- 2018
Request for proposals from reputable and suitably qualified research houses to submit proposals to conduct a Domestic and Departure Tourism Survey for the South African Tourism. 2019-05-10 12:00 SAT 148/ 19

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Tender Site Visits

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

If you are so fortunate to have reached the stage where Organs of State or Private Sector Companies want to do a site visit, you must know that you are in the final stage in winning that tender that you have responded to.

But what must you do to prepare for a site visit?

The first thing is to ensure that your place of business is in excellent order. Be sure everything is clean and neat. A clean workshop or office is a pre-... Read More

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