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.
Storage (SAN) Capacity Upgrade 2019-03-11 11:00 IEC/ ICT- 01/ 2019
Appointment of a Service Provider to Supply and Deliver 4 Diesel Containers for Stellenbosch Farmers Production Support Unit (Fpsu) in the Cape Winelands District Municipality, Western Cape Province. 2019-02-22 11:00 SSC WC Q23 (2018/ 2019) DRDLR
Request to supply, install and configure firewalls solution for the Limpopo Department of Health with maintenance and support for period of twelve (12) months. 2019-03-08 11:00 RFB 1887/ 2017
Appointment of a capable service provider to deliver and install outdoor gym equipment and advertising boards on behalf of the Department of Sport and Recreation South Africa to 10 municipalities in all 9 provinces for a period of three years. 2019-03-15 11:00 SRSA 004/ 2018- 19
The appointment of a service provider (s) to supply medication and medical consumables on an as and when required basis over a period of three years. 2019-03-19 11:00 PU059/ 2018
Appointment of a Service Provider to Implement The Greenhouse Project Through Construction of 4 X 3m X 30 M Greenhouses for the Atlantis Agricultural Project Situated in the City of Cape Town Local Municipality, Cape Metropolitan District in the Western Cape Province 2019-03-01 11:00 SSC WC 31 (2018/ 2019) DRDLR
Procurement of Class II B2 biological safety cabinets and fume hoods including delivery, installation, commissioning, testing, and training. 2019-03-08 11:00 NMISA (18- 19) T0023
Professional Services to Conduct and Document a Feasibility Study on Truck Stops and their Location in Gauteng 2019-03-15 11:15 DRT 10/ 06/ 2018
Professional Services: Beitbridge: Land Ports Of Entry: Appointment of a Service Provider for the Maintenance and Repairs of Building, Civil, Mechanical, Electrical Infrastructure and Installations for a Period Of 36 Months 2019-03-15 11:00 H 18/ 048 AI
Procurement of a high accuracy manual lathe. 2019-03-08 11:00 NMISA (18- 19) T0026
Appointment of a service provider for a study to determine foods and drinks consumed by various LSM groups in South Africans and to understand factors influencing their intake 2019-03-08 11:00 NDOH 45/ 2018- 2019
Procurement of three-dimensional powder bed fusion metal printer including delivery, commissioning and training. 2019-03-08 11:00 NMISA (18- 19) T0024
Appointment of a service provider for the supply,installation and maintenance of X-Ray machines for a period of 36 Months at Civitas Building NDOH 2019-03-08 11:00 NDOH 44/ 2018- 2019
Procurement of Electrical Grinder Machine to Macerate Shark Carcasses. 2019-02-28 11:00 ZNT18/ 19KZNSB03
Appointment of a service provider for the upgrading of network infrastructure for security system at Civitas Building in the National Department of Health 2019-03-08 11:00 NDOH 43/ 2018- 2019
Envelopes Disputed Ballots B5 (Marked); Envelopes Disputed Ballots C5 (Unmarked) 2019-03-08 11:00 0010399217
Appointment of a service provider for medical screening and surveillance program for the National Department of Health for a period of three (3) years 2019-03-08 11:00 NDOH 42/ 2018- 2019
Ballot boxes 2019-03-08 11:00 10398761
Appointment of a Service Provider to Assist the Department of Environmental Affairs (Dea) With Conducting a Critical Evaluation of Air Quality Management Capacity Development and Suport Programmes for a period of 12 months 2019-03-08 11:00 E1499
To Appoint A Law Firm To Provide Legal Services In Corporate Commercial Law And Related Litigation For Emfuleni Local Municipality 2019-03-08 11:00 COGTA 4/ 2/ 2- 2018/ RFP/ 01

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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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