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.
ZNTD 03940W: WIMS 063515: Kwazulu-Natal: Department of Education: Tongaat: Nondabula Primary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03940W
Appointment of a Bidder to Provide Hygiene Care Services in Order to Maintain Hygiene in all of the Restroom Facilities, Watercoolers, and Satellite Kitchens In The Building For Five Years 2019-06-07 11:00 NRF/ RISA B&M/ 001/ 2019- 20
ZNTD 03842W: WIMS 063613: Kwazulu-Natal: Department of Education: Umlazi: Intinyane Primary School: Water and Sanitation: Phase 3 2019-06-21 11:00 ZNTD 03842W
Request for Proposal: Appointment of Suitable Service Provider to Implement The Women Empowerment Programme for a period of two (02) years 2019-06-07 11:00 NHBRC 01/ 2019
ZNTD 04074W: WIMS 065113: Kwazulu-Natal: Department of Education: Stanger: Mvumase Primary School: Water and Sanitation: Phase 3 2019-06-21 11:00 ZNTD 04074W
ZNTD 04019W: WIMS 064695: Kwazulu-Natal: Department of Education: Phoenix: Skylark Primary School: Eradication of woodborer and lice 2019-06-24 11:00 ZNTD 04019W
The appointment of a service provider to provide the National Energy Regulator of South Africa (NERSA) with Online Legal Publications for a period of three (3) years. 2019-06-06 11:00 NERSA/ 1920/ IRM/ OLP/ BID/ 003
Service provider to provide comprehensive travel management service 2019-06-03 11:00 ZNT19/ 20KZNSB01
Appointment of a Panel of Service Providers to Provide Quality Learning for MHSC Employees for a Period of One Year (01) 2019-06-19 11:00 MHSC009/ 2019- 20
ZNTD 03966W: WIMS 064110: Kwazulu-Natal: Department of Education: Hillcrest: Thabela High School: Water and Sanitation: Phase 3. 2019-06-21 11:00 ZNTD 03966W
Provision of Support and Maintenance of the electronic Legal Aid Administration System at Legal Aid South Africa National Office for a period of twelve (12) months. 2019-06-18 11:00 06/ 2019
iSimangaliso Wetland Park Authority invites suitable, qualified and competent legal firms to send requests for proposal to be considered as part of a panel of attorneys to provide legal services to iSimangaliso Wetland Park Authority 2019-06-07 16:00 RFP NUMBER: 03/ 2019
ZNTD 03878W: WIMS 063900: Kwazulu-Natal: Department of Education: Stanger: Tshelabantu Primary School: Water and Sanitation: Phase 3 2019-06-20 11:00 ZNTD 03878W
Re- Advertisement: Appointment of a Professional Service Providers for the Supply, Installation and Connection of Heat Pumps for 112 Units at Delville Ext 9 2019-06-19 11:00 EHCHPD/05/19
Provision of office accommodation for the ECRDA 2019-06-07 11:00 SCMU 02 – 2019/20:
Request for Proposals for the Provision of Ad Hoc Engineering Services for Dube Tradeport Corporation for a Period of 3 years 2019-06-10 11:00 DTP/ RFP/ 32/ IFR/ 11/ 2018
Appointment of a Service Provider for the Provision of Technical Support and Monitoring of Integrated Public Transport Network in 13 Municipalities over a Period of 36 Months 2019-06-07 11:00 DOT/ 01/ 2019/ PT
Conducting research on pharmaceutical pricing policies 2019-06-07 12:00 DPME 09/ 2019- 20
Fly-Trhough / Visual Rendering In Support of the Ndp 5 Year Implementation Plan 2019-05-31 12:00 DPME 08/ 2019- 20
The Department of Local Government (DLG) requires a Service Provider to provide the Municipal Minimum Competency (MMC) Training programme to identified officials. 2019-06-18 11:00 LG 02/ 2019/ 2020

Pages

Must my business be registered in order to tender?

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Once, a very anxious business owner phoned me and asked if I can supply him with a CK number. I was amused by this and first asked why he asked me for such a number and secondly for what did he need a CK number for? He said that because of my Tender Manual that he bought, he thought that maybe I can help him with a CK number. Also, at the briefing session of the tender that he was responding to, the person in... Read More

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