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.
To Appoint a Law Firm to Provide Legal Services in Labour Relations Law And Related Litigation for Emfuleni Local Municipality 2019-03-08 11:00 COGTA 4/ 2/ 2- 2018/ RFP/ 03
Appointment of a Service Provider to be subcontracted by DAFF to conduct the analysis of following drug residue in aquaculture finfish for the period of 12 Month 2019-02-22 11:00 RFQ 000317
Box Files 2019-03-08 11:00 10398710
Document Storage Boxes 2019-03-08 11:00 10398742
Appointment of a Service Provider to be subcontracted by DAFF to provide maintenance plan for Liquid Chlomatography - Mass Spectrometry (LCMS) Matchine that is used for biotoxin testing on shellfish 2019-02-22 11:00 RFQ 000316
SCMU 17 – 2018/19: Supply & delivery of beef breeding animals for Joe Gqabi District Municipality for Livestock Commercialisation Project. 2019-03-08 11:00 SCMU 17 – 2018/19
SCMU 16 – 2018/19: Supply & delivery of beef breeding animals for Chris Hani District Municipality for Livestock Commercialisation Project. 2019-03-08 11:00 SCMU 16 – 2018/19
Appointment of a Preffered List of Suppliers to Conduct Airborne Magnetic Gradiometer and Radiometric Surveys for the Council for Geoscience for a period of three years 2019-03-15 11:00 CGS- 2018- 049A
SCMU 15 – 2018/19: Supply & delivery of beef breeding animals for Sarah Baartman Municipality for Livestock Commercialisation Project. 2019-03-08 11:00 SCMU 15 – 2018/19
Appointment of a Panel of Attorneys 2019-03-11 11:00 CGE18/ 2018/ 19
SCMU 14 – 2018/19: Supply & delivery of beef breeding animals for Amathole District Municipality for Livestock Commercialisation Project. 2019-03-08 11:00 SCMU 14 – 2018/19
Appointment of a Security Service Provider to Provide Gaurding Services at Mitchells Plain Cape Town for a Period of Two (02) years with an Option To Renew 2019-03-11 11:00 33/ FIN/ 2019
Bid Specification: Maintenance of Security & OHS Systems for Cape Town Regional Office for a Five (5) Years Period. 2019-03-20 11:00 RAF/ 2019/ 00004
Procurement of Water stops for the Raising of Clanwilliam Dam. 2019-03-20 11:00 DWS02- 0219WTE
Cleaning and clearing of vacant properties Framework Agreement for a period of three (3) years 2019-03-19 11:00 S115/ 18
Western Cape: Framework Contract for General Cleaning of Office Space over a period of thirty six (36) months 2019-03-20 11:00 S116/ 18
NDPW: Randfontein Magistrate Court, c/o Pollock & Sutherland street: Rendering of cleaning services for a period of 24 months (EPWP) 2019-03-12 11:00 JHB.18/ 54
The Procurement and hire, supply and delivery of Formwork to Clanwilliam for 52 months. 2019-03-20 11:00 DWS01- 0219WTE
Specialist Electrical and Mechanical Contractor to Provide Electrical and Mechanical Infrastructure Support, Critical Repairs and Material for a Period of 36 Months to SITA Pretoria Sites 2019-03-07 11:00 RFB 1886- 2018
SANParks invite prospective bidders to submit offers for the Upgrade of Seer Reticulation at the Veterinary Wild Services in Kimberley, Northern Cape Province Contractors who have a contractor grading designation equal to or higher than 3CE class of construction work and Joint Ventures are eligible to submit tenders. 2019-03-12 11:00 CI- KY- 0005/ 1

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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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