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.


Title Closing Date Tender No.
Construction of a new security entrance building: Elsenburg College; Stellenbosch. CIDB Grading: 5GB or higher. 2018-09-04 11:00 S077/ 18
Supply and deliver toolkits and equipment for Civil Technology, Mechanical Technology, Electrical Technology, Engineering Graphics & Design and Agricultural Technology to Technical High Schools of the WCED 2018-08-24 11:00 B/ WCED 2452/ 18
Construction of replacement school: Harmony Primary School; Retreat 2018-09-04 11:00 S075/ 18
SANParks invite prospective bidders to submit offers for a Three (3) Year Road maintenance contract in the Tankwa karoo and Bontebok National Parks, Western Cape Province. 2018-08-31 11:00 CI- TN- 0052 & CIBB- 0022
SANParks invite prospective bidders to submit offers for the Repair of storm damaged infrastructure in Augrabies Falls National Park, Northern Cape Province. 2018-09-03 11:00 IC- AU- 0008/ 2903
SANParks invite prospective bidders to submit offers for the Construction of new staff accommodation units, new entrance gate, shaded parking and sewer upgrade at Lilydale and Mosu Lodges in Mokala National Park, Northern Cape Province. 2018-09-05 11:00 SP- MK- 0072
Appointment of a multidisciplinary professional team with an architect as the principal agent for the assessment, design and project management of required new buildings and repairs, renovations and upgrades to various infrastructure assets in the Thohoyandou Botanical Garden, Thohoyandou, and National Zoological Garden Campuses based in Pretoria and Mokopane. 2018-09-03 11:00 SANBI: G306/ 2018
The appointment of a service provider for the civil works, refurbishments and implementation of sustainable interventions to the existing administration building, ablution facilities and Education Centre at the Thohoyandou Botanical Garden, Limpopo. 2018-08-31 11:00 SANBI: G304/ 2018
The appointment of a service provider for the civil and mechanical works for borehole water supply, storage and reticulation with water saving interventions on various infrastructure at the Harold Porter, Karoo Desert, Hantam and Kirstenbosch National Botanical Gardens. 2018-09-03 11:00 SANBI: G305/ 2018
Appointment of a service provider to Host the Annual Trailblazer Camps Project (Youth Camps) for the Western Cape Department of Cultural Affairs and Sport 2018-08-24 11:00 5/ 1/ 3 CAS 03/ 2018
Appointment of Service Provider to Supply a Centralised Telephone Management System for Realitise ISDX PABX and Aastra Bp250 Pabx’s 2018-08-24 11:00 15/ 18
Request for bid for renovation services for the National Health Laboratory Service at Bongani Provincial Hospital, Welkom. 2018-08-27 11:00 RFB 022/ 18/ 19
Macadamia Military Base water purification plant and oxidation ponds: 12 months operation and scheduled maintenance. 2018-08-24 11:00 NST18/ 025
Barberton Prison Wastewater Treatment Works: 12 months operation and scheduled maintenance. 2018-08-24 11:00 NST18/ 024
Supply and delivery of Solid Dosage Forms to the State for the Period 1 April 2019 to 31 March 2021 2018-09-03 11:00 RT289- 2019
24 Months cleaning Service: Engcobo Magistrate Office 2018-08-27 11:00 MTH 42/ 2018
5 months service contract: Operation and Maintenance of Water & Wastewater facilities (Qunu Museum) 2018-08-24 11:00 MTH 36/ 2018
Mothibistad Magistrate Office: Upgrading of R&R including of water tanks with electrical pump & gensets: Architect Services. 2018-08-24 11:00 COK14/ 18
The appointment of a multi-disciplinary entity to provide professional services at EThekwini Region- Conversion of existing workshop to an office building. 2018-09-04 11:00 WIMS 068369
Kimberely Area B: Service and repairs of cold and freezer rooms 24 months. 2018-08-24 11:00 KIM- 0618- 106917


10 steps in the bid process

Each year, Organs of State invite the Private Sector to submit competitive bids for the supply of goods and services. Organs of State bid requests attract SMME's and large businesses across a wide range of sectors - from office supplies to major construction projects.

Here is an overview of 10 steps you should take to prepare a competitive bid.

1.    Register your interest

Follow the instructions in the bid document to register your interest with the purchasing agency. This important step will help keep you up to... Read More

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