Procurement Regulations | Page 7 |

Tenders, B-BBEE and the new Preferential Procurement Regulations 2017

We have previously asked: How important is a good B-BBEE status level of contributor in the tender process?

The answer is still the same: VERY IMPORTANT!

In all tender documents, you will find 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 of contributor, 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.

Brand new Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, has been finalized and was gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. This is 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.

Draft Procurement Regulations Media Release

 The Draft Procurement Regulations 2016 were released on 14 June 2016. If these regulations are going to be implemented it will change the Tender environment in South Africa. Below is the media release from the Office of the Chief Procurement Officer, explaining the major changes in the Regulations:

“The Office of the Chief Procurement Officer (OCPO) has published the proposed new Preferential Procurement Regulations*, to afford the public an opportunity to comment.

General Procurement Guidelines

Government issued the General Procurement Guidelines not only as a prescription for standards of behaviour, ethics and accountability, which it requires of its public service, but also as a statement of their commitment to a procurement system enabling the emergence of sustainable small, medium and micro businesses. These SME's will add to the common wealth of the country and its objective of enhanced economic and social well-being for all its people.

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

The Preferential Procurement Policy Framework Act 2011, establishes the rules according to how Government Entities must evaluate tenders. The Preferential Procurement Regulations of 2011 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*, Accounting Officers and Accounting Authorities of all public entities** 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.

Draft Procurement Regulations 2015

The Government thought it a good idea to have a look at the Preferential Procurement Regulations of 2011 and to change these Regulations to better fit the South African Tender Environment.

These Regulations were quietly issued end of 2015 for public comment.

As the case with most new Regulations or Acts there is always good and bad that accompanies it.

Some of the good things addressed in these draft regulations are:


Title Closing Date Tender No.
Appointment of an accredited service provider to provide technical support and maintenance to the EPMLive system in the Department of Rural Development and Land Reform for a period of 36 months 2018-06-07 11:00 5/ 2/ 2/ 1- RDLR 0007(2018/ 2019)
Annual service to Air handling units for Hospital as per specification 2018-05-25 11:00 ZNQ 18 / 18 / 19
Appointment of a Service Provider to render a toll free hotline operation services for reporting fraud and corruption allegations for 36 months. 2018-06-01 11:00 RFQ 01: 2018/ 2019
The appointment of a service provider to provide legal electronic resources for the Civilian Secretariat for Police Service. 2018-06-15 11:00 CSPS01/ 2018- 2019
Transportation of Corps From Refferal Hospital and From Sattelite Clinics 2018-05-25 11:00 ZNQ 58/ 18 / 19
Appointment of a service provider for the rendering of cleaning services at the HSRC Building and Harlequins Office Park for a period of 24 months. 2018-06-08 11:00 SD01/ 2018
Major Service to Chiller Plant as per specification 2018-05-25 11:00 ZNQ 21 / 18 / 19
Appointment of a service provider to render cleaning and hygiene services for the Department of Rural Development and Land Reform: Pietermaritzburg Deeds Registry and Surveyor General: Kwazulu-Natal for a period of 24 months. 2018-06-11 11:00 DRDLR (CRD- 06) 2018/ 19
Port Elizabeth: Nerina One Stop Justice Centre: Provision of horticultural maintenance services for a period of twenty four (24) months. 2018-06-12 11:00 PEH 01/ 2018
Provision of a comprehensive cleaning service including equipment and consumables to George Hospital for a three (3) year period. 2018-06-15 11:00 WCGH SC 0101/ 1/ 2018
Supply and deliver sputum collection booth as per specification 2018-05-29 11:00 ZNQ 26/ 04/ 2018
Service air conditioning - split units X5. 2018-06-08 11:00 ZNQ 09/ 18- 19
Rendering of a Specialised Hospital Laundry Service at 2 Military Hospital, Wynberg for a period of 27 months. 2018-06-14 11:00 SPSC- B- 025- 2018
Service sewer pumps. 2018-06-08 11:00 ZNQ 18/ 18- 19
Supply and delivery of cleaning material and toiletries at Overberg Management Area (Helderstroom Correctional Centre; Caledon Correctional Centre and Buffeljagsrivier Correctional Centre) 2018-06-18 09:45 HLS1/ 2018
Service extractor fan. 2018-06-08 11:00 ZNQ 08/ 18- 19
Supply and deliver plastic bag polythene clear 90L (760x960x 60Micron) x 300pkt of 100 units per pkt 2018-05-29 11:00 ZNQ 13/ 05/ 2018
Appointment of a service provider for the supply of charter service for government officials from different construction sites to various destinations in the Republic of South Africa on a monthly basis over a period of two (2) years for the Department of Agriculture, Forestry and Fisheries. 2018-06-08 11:00 2/ 18
Servicing of cold room and freezer. 2018-06-08 11:00 ZNQ 19/ 18- 19
Service Coldroom /Freezer 2018-06-08 10:00 ZNQ 10/ 18- 19


Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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