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

We have previously asked: How important is a good B-BBEE status level of contributor in the tender process?

The answer is still the same: VERY IMPORTANT!

In all tender documents, you will find 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 of contributor, 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.

Brand new Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, has been finalized and was gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. This is 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.

Draft Procurement Regulations Media Release

 The Draft Procurement Regulations 2016 were released on 14 June 2016. If these regulations are going to be implemented it will change the Tender environment in South Africa. Below is the media release from the Office of the Chief Procurement Officer, explaining the major changes in the Regulations:

“The Office of the Chief Procurement Officer (OCPO) has published the proposed new Preferential Procurement Regulations*, to afford the public an opportunity to comment.

General Procurement Guidelines

Government issued the General Procurement Guidelines not only as a prescription for standards of behaviour, ethics and accountability, which it requires of its public service, but also as a statement of their commitment to a procurement system enabling the emergence of sustainable small, medium and micro businesses. These SME's will add to the common wealth of the country and its objective of enhanced economic and social well-being for all its people.

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

The Preferential Procurement Policy Framework Act 2011, establishes the rules according to how Government Entities must evaluate tenders. The Preferential Procurement Regulations of 2011 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*, Accounting Officers and Accounting Authorities of all public entities** 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.

Draft Procurement Regulations 2015

The Government thought it a good idea to have a look at the Preferential Procurement Regulations of 2011 and to change these Regulations to better fit the South African Tender Environment.

These Regulations were quietly issued end of 2015 for public comment.

As the case with most new Regulations or Acts there is always good and bad that accompanies it.

Some of the good things addressed in these draft regulations are:

Pages

Title Closing Date Tender No.
Supply: Tunic, Man’s (Qty 2150 ea), Trousers, Men’s (Qty 2050 pr), Shirts, Man’s; Tropical (Qty 5000 ea). 2018-04-17 11:00 SPSC- B- 052- 2017
Request for proposal to dispose Office Furniture and Equipment for GPAA. 2018-03-16 11:00 GPAA 04/ 2018
Request for proposal to dispose ICT equipment for GPAA. 2018-03-16 11:00 GPAA 03/ 2018
Request for proposal for the appointment of a service provider to project manage the Design@50 skills development programme 2018-03-15 11:00 GGDA/ 17/ 2017- 18/ GIDZ_DESIGN@ 50
Sales of vehicles: Colesberg Management Area: Correctional Centre: Once -off 2018-03-09 11:00 COBQ 01/ 2018
Supply, delivery & installation of palisade fencing at Tshabo RED Hub 2018-03-16 11:00 SCMU 12 – 2017/18
The objective of this bid is to appoint a service provider to conduct research within the wholesale and retail sector to update the current SSP. 2018-03-16 11:00 SSP/ 2018/ 0004
The objective of this bid is to appoint Accredited Training Providers and TVET Colleges to up skill and train 220 18.2 members from 10 Cooperatives within the Northern Cape and 10 within the North West Provinces on W&RSETA Skills Programmes. 2018-03-16 11:00 RDO/ 2018/ 0010
Drivers License Training Programme 2018-03-27 11:00 ZNB 1413/ 18 T
The purpose of this bid is to invite Accredited Training Providers to train and up skill 550 18.2 learners identified within the AmaNdlambe AkuGompo Villages, AmaHleke Villages and Ten Traditional Councils within Nqgushwa Local Municipality. 2018-03-16 11:00 RDO/ 2018/ 0008
The objective of this bid is to appoint and contract Accredited Training Providers and TVET Colleges with Accreditation and/or scope with the W&RSETA to offer W&RSETA Unit Standards. 2018-03-16 11:00 RDO/ 2018/ 0009
Pretoria: Bryntirion Heritage: Construction of gate 1 and 2 as well as the Dog Unit 2018-03-27 11:00 Pt18/ 005
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the appointment of individual entities or groups of service providers consisting of a bank(s) as well as System Operators to enter into an agreement to provide banking services to SANRAL. 2018-03-23 14:00 NRA
Repair and Renovation to existing Community Library in Barkley West 2018-03-26 11:00 DRPW 044/ 2017
Provision of travel management services at SANAS for a period of 36 months 2018-03-09 11:00 SANAS/ TRAVEL/ 2017- 18/ 02
Department of Labour: Procurement of alternative Office accommodation comprising 2 533.64m² and 20 Parking Bays in Germiston CBD for a period of three (3) years 2018-03-16 11:00 JHB.17/ 41
Request for proposals from property management companies or landlords to lease office space in the Midrand area. 2018-03-16 11:00 RFP/ SASSETA/ 1718006
Appointment of a service provider for the infrastructure / refurbishment / construction including consequential general building, electrical, mechanical, civil and engineering works at DHA offices and Ports of Entry for a period of three (3) years 2018-03-16 11:00 DHA05- 2018
Rendering of security service to the Northern Cape Department of Sport, Arts and Culture. 2018-03-16 11:00 NCDSAC- 004- 2017
Re-Advert - Appointment of a CIDB registered contractor for the construction of a technology laboratory building at the University of Venda 2018-03-02 11:00 019- 2017/ 2018

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... 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.