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.
Supply and Delivery Of HTH Chlorine To BCMM Stores, Chiselhurst, East London 2019-08-27 12:00 RFQ/SCM/2019-20/61
Preventative Maintenance On Hydraulics Systems For Solid Waste Compactors For Fleet No. 293, Mitsubishi Fuso Fv26-340 Model 2007 2019-08-27 12:00 RFQ/MW/2019-20/60
Preventative Maintenance on Hydraulics Systems for Solid Waste Compactors For Fleet No. 257, Mitsubishi Fuso Fv26-340 Model 2007 2019-08-27 12:00 RFQ/MW/2019-20/59
Preventative Maintenance On Hydraulics Systems for Solid Waste Compactors For Fleet No. 244, Mitsubishi Fuso Fv26-340 Model 2007 2019-08-27 12:00 RFQ/MW/2019-20/58
Supply and Delivery of Sports Kits and Equipment for Youth in Sports Development For Ward 22 2019-08-27 12:00 RFQ/IDP/2019-20/57
Supply and Delivery of Reinforced Panel Fencing – Bunkerhill Field B 2019-08-27 12:00 RFQ/DCOMS/2019-20/56
Low/Medium Voltage Line Training Programme 2019-08-27 12:00 RFQ/DHR/2019-20/55
Plumbing Pre-Trade and Trade Test Training Programme 2019-08-27 12:00 RFQDHR//2019-20/54
Appointment of a Maximum of Five Service Providers on a Rotational Basis for Bush Clearing and Noxious Weeds Control for a Period of Three Years. 2019-09-17 12:00 CE: 283
Appointment of Institutional Social Development Consultant For Infrastructure Programmes /Projects for a period of three years 2019-09-17 12:00 CE: 357
Supply and delivery of a surgical sundries 2019-08-28 10:30 R0017/20
Accredited service provider for the facilitate a accredited Hazard identification & risk assessment course NQF level 2 for 70 people. (Prices valid for a period up to 30 June 2020). 2019-08-29 10:00 DCG0013024
Supply, delivery & installation of two full slide, swing and climbing combo playground system. 2019-08-29 10:00 DSC0022022
Appointment of a reputable outdoor signage service provider to provide expert advice on the installation of digital rooftop signage board(s). 2019-08-26 11:00 4204714-2019/2020
Request for proposal for the appointment of a panel of service providers for the provision of media buying and placement services 2019-08-27 12:00 T37/08/19
Driving licence project for 29 matriculants residing in rural wards of Drakenstein Area. 2019-08-29 10:00 DIP0002237
Appointment of an experience spatial financial analyst to provide a comprehensive modelling tool to inform the municipality to make the right choices to deliver the right spatial transformation outcomes to achieve the desired so-economic impact in Drakenstein. 2019-08-29 10:00 DIP0002236
Safe handling, transportation and disposal of asbestos for the period up to 30 June 2020. 2019-08-29 10:00 DIC0028692
Supply & delivery of structural firefighting boots (NFPA approved) 2019-08-29 10:00 DSP0004157
Supply and delivery of Herbicide 2019-08-27 12:00 48/2019/2020


Ease of opening a business

By Werner van Rooyen


31 January 2019

South Africa is currently rated 88nd when it comes to the ease of doing business according to survey that is done yearly by The World Bank. This is all good and well if you are an overseas investor with a lot of money and looking for new places to invest in. However, if you are a South African with little or no money, doing and / or starting a business in South Africa can be a daunting task!

To begin with, the statistics are... Read More

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