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.
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
Appointment of a service provider to provide employee wellness services to the Department of Home Affairs officials across all provinces, including Head Office for a period of two (2) years and eight (8) months 2019-06-07 11:00 DHA04- 2019
Terms of Reference for the Appointment of a Suitable Service Provider to Develop Monitoring and Evaluation Framework, and Evaluation Plan and Conduct The Mid-Term and Summative Evaluation for National Open Learning Project (Nols) by the Department of Higher Education and Training 2019-06-21 11:00 DHET124
The Appointment of a Service Provider to Provide an E-Legislation Portal on the Department’s Website for a period of 3 (three) years 2019-06-07 11:00 E 1513
Request To Bid for ANSYS Technical Support (TECS) Contract for ANSYS Commercial Software on Behalf of Department of Defence (Dod) SA Navy Engineering Services (NES) for a period of three (3) years. 2019-06-05 11:00 RFB 1939/ 2019
Request for Proposals for appointment of an service provider for short term insurance for a period of five (5) years 2019-06-10 11:00 CMS/ 022019/ 2020
Request for Proposals for appointment of an Editorial Consultant for a period of three (3) years 2019-06-18 11:00 CMS/ 032019/ 2020
Appointment of a panel of law firms to assist the Council for Geoscience with all its corporate work for a period of three (3) years. 2019-06-14 11:00 CGS- 2019- 006L
Appointment of a Professional Service Provider to Provide Facial Recognition and Queue Management System to the CIDB for a period of 36 months. 2019-06-18 11:00 RFB60058
Re-Advertisement-The Development Of Standards For The Eco Label Scheme At Agrément South Africa: Wool and Wool-Rich Pile Carpets 2019-06-12 16:00 ASA 04/ 2019
Re-Advertisement-The Development of Standards for the Eco Label Scheme at Agrément South Africa: Paints and Coatings 2019-06-12 16:00 ASA 03/ 2019
Provision of Canteen Services 2019-06-14 12:00 MTK 02/ 2019
ZNTD 03855W: WIMS 063751: Kwazulu-Natal: Department of Education: Stanger: Tshutshutshu Secondary School: Water and Sanitation: Phase 3. 2019-06-20 11:00 ZNTD 03855W
Appointment of a Cleaning Company to render cleaning, pest control and hygiene services in Block G which is situated adjacent to the dti campus for a period of 3 years 2019-06-07 11:00 dti 03/ 19- 20
Grahamstown High Court: Provision of Cleaning Services for a Period of twenty four (24) Months 2019-06-11 11:00 PEC02/ 2019
Appointment of a service provider for physical security guarding services in Northern Cape and Free State 2019-06-07 11:00 DH05- 2019
Consulting Engineering Services for Routine Road Maintenance of National Route N10 Section 3 Km 37.62 To Km 81.59 and National Route R61 Section 2 Km 17.25 To Section 3 Km 41.48 and National Route R390 Section 1 Km 0.00 to Section 2 Km 23.56. 2019-06-07 14:00 NRA X.003- 040- 2019/ 1F
Consulting Engineering Services for the Routine Road Maintenance of National Routes R56 Section 1 (Km 58.78) to Section 2 (Km 30.81) and National Routes R58 Section 1 (36.96) to Section 3 (Km 55.73) and National Route R391 Section 2 (Km 0.0) To (Km 37.09) and National Route R390 Section 2 (Km 23.56) To (Km 34.46). 2019-06-07 14:00 NRA X.003- 044- 2019/ 1F
ZNTD 03952W: WIMS 064144: Kwazulu-Natal: Department of Education: Umbumbulu: Umthente High School: Water and Sanitation: Phase 3 2019-06-21 11:00 ZNTD 03952W
Consulting Engineering Services for the Routine Road Maintenance of National Routes R56 Section 1 (Km 58.78) to Section 2 (Km 30.81) and National Routes R58 Section 1 (36.96) to Section 3 (Km 55.73) and National Route R391 Section 2 (Km 0.0) To (Km 37.09) and National Route R390 Section 2 (Km 23.56) To (Km 34.46). 2019-06-07 14:00 NRA X.003- 044- 2019/ 1F

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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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