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.
Development of a training programme and to train 100 TVET College Lecturers in 9 provinces to offer INSETA qualifications and also lead to certification for College of Insurance 2019-03-12 11:00 ETQA/ 2018/ 11
Appointment of a centralized Marking Centre Services for final external examination scripts (FISA) 2019-03-12 11:00 ETQA/ 2018/ 12
Request to Procure an Integrated Business & IT Service Continuity Solution With Fully Integrated Offsite Data Backup & Protection for a Period of five (5) years. 2019-03-18 11:00 ICASA 01/ 2019
Supply and delivery of Gelport Laparoscopic System and woundprotector/retractor to theatre for laparoscopic surgery for Groote Schuur Hospital over a one (1) year period. 2019-03-15 11:00 GSH: PT95/ 2018
Provision for a service provider to Design, Edit and Print GMA’s Integrated Annual Reports for the 2018/19, 2019/20 and 2020/21 Financial Years 2019-03-08 11:00 GMA/ 008/ 18
Automation of Annual Financial Statements (AFS) For GPG Departments 2019-03-08 11:00 GT/ GPT/ 016/ 2019
Appointment of a service provider to develop, implement and maintain an automated price data collection system for the Gauteng Provincial Government. 2019-03-08 11:00 GT/ GPT/ 015/ 2019
Supply and delivery of disposable prefilled humidifier sterile water bottles for Groote Schuur Hospital over a one (1) year period. 2019-03-15 11:00 GSH: PT52/ 2018
Specification for Automated Supplier Statement Reconciliation System for a Period of Thirty Six (36) Months 2019-03-08 11:00 GT/ GPT/ 013/ 201
Development of Office layout and design, supply and installation of office furniture for the Finance and Accounting Services Sector Education and Training Authority (Fasset) office. 2019-03-08 11:00 FAS/ LT/ SCM/ OFFI_FURNIT/ CON1091
Appointment of the Team of Technical advisors (legal, Financial and Eco-Tourism) to assist with the evaluation of expression of interest proposals 2019-03-15 11:00 EKZNW 14/ 2019
Provisioning of Hosted Digital Voice Communication system ( Voip) 2019-03-18 12:00 KZNLA 09/ 2018/ 19
Terms of Reference to appoint a service provider to conduct research in research organizations as an ETD subsector for the purpose of 2020/21 Sector Skills Plan (SSP) update 2019-03-12 11:00 SCMU: 31 - 2018/ 19
Terms of Reference to appoint a service provider to conduct research in early childhood development as an ETD subsector for the purpose of 2020/21 Sector Skills Plan (SSP) update 2019-03-12 11:00 SCMU: 30 - 2018/ 19
Terms of Reference to appoint a service provider to conduct research in libraries and archives as an ETD subsector for the purpose of 2020/21 Sector Skills Plan (SSP) update 2019-03-12 11:00 SCMU: 32 - 2018/ 19
Terms of Reference for the appointment of a service provider to supply ETDP SETA with servers for its provincial offices 2019-03-11 11:00 SCMU: 28 - 2018/ 19
Appointment of Panel of Legal services providers for a period of three (03) years. 2019-03-18 12:00 KZNLA 08/ 2018/ 19
DTPC hereby invites proposals from suitably experienced and competent service providers to provide leased managed printing services for a period of three (3) years. 2019-03-11 11:00 DTP/ RFP/ 27/ CEO/ 10/ 2018
Bids for manufacturing, branding, supply and delivery of groundBREAKER[Gb] Gear for New LoveLife Trust 2019-03-06 12:00 LL2019/006
DTPC requires the services of a suitably qualified service provider to provide the design, supply, maintenance and support for a period of three (3) years 2019-03-11 11:00 DTP/ RFP/ 33/ CEO/ 11/ 2018

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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