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.
Request for Proposal for Airport Economic, Social and Environmental Impact Study for five (5) years 2019-02-15 11:00 COR5649/2018/R
Tenders are invited from an international rating agency who is a registered CRA to perform Annual Credit Rating 2018-12-21 11:00 CSQ12181512
Ballcock 25 Mm Rough Brass 1090 Fi Sabs, Jaswic Approved. 2018-12-21 11:00 SQ12181329
Ballcock 20mm Rough Brass Cobra 1090 Fi Sabs . Jaswic Approved. 2018-12-21 11:00 SQ12181329
Ballcock 15 Mm Rough Brass 1090 Cobra S.A.B.S. (Jaswic Approved) 2018-12-21 11:00 SQ12181329
Supply & Delivery of Poles Steel Heavy Duty Galvanised Type H Straight No Bow Single Spigot 2018-12-21 11:00 SQ12181330
Tenders are invited to provide Stack Emissions Testing Training 2018-12-19 11:00 CSQ12181509
Tenders are invited to provide Electromagnetic Radiation Training 2018-12-19 11:00 CSQ12181509
Rental Of Photocopier Machines for a period of 36 months 2019-01-11 12:00 104/2018
Invitation for the provision of security services at Ngaka Modiri Molema District for the department of social development 2019-01-29 11:00 NW/DSD/04/2018
Dragon Naturally Speaking Professional v.15 Software 2018-12-19 11:00 RFQ 1660216
Invitation for the provision of security services at head office for the department of social development 2019-01-29 14:00 NW/DSD/08/2018
Videography and Photography Services for Cross Over 2018-12-20 12:00 Q07.12.18
Supply and Delivery of Traffic Uniforms for Traffic and Law Enforcement Officers 2019-01-15 12:00 08/2/16/41
Supply and Delivery of Traffic Signal Materials (Until June 2020) 2018-12-20 10:00 CES 34/2018
Supply and Delivery of Road Traffic Signs (Until 30 June 2020) 2018-12-20 10:00 CES 33/2018
Invitation for the provision of security services at Dr. Kenneth Kaunda District for the Department of Social Development 2019-01-30 11:00 NW/DSD/06/2018
Invitation for the provision of security services at Dr Ruth Segomotsi Mompati District for the Department of Social Development 2019-01-31 11:00 NW/DSD/05/2018
Supply & delivery of toolboxes. 2018-12-20 10:00 DIE0015186
Supply & delivery of fluke clamp 375. 2018-12-20 10:00 DIE0015182

Pages

Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... 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.