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 Deliver of Sport Equipment 2019-08-27 12:00 49/2019/2020
Supply & delivery of 2 compartment steel lockers 2019-08-29 10:00 DIC0028749
Professional Services for the Master Plan of the Feeder Roads and Bridges 2019-11-04 14:00 6019
Request for proposals to run Molokwane Lodge 2019-09-13 12:00 No reference number
Provision of rehabilitation of concrete and sheeted roof portion 2019-09-10 11:00 GPL007/2019
Provision of roofing remedial to tiled portion 2019-09-10 11:00 GPL006/2019
Provision of vehicle insurance to the North West Provincial Legislature pool cars for a period of three years. 2019-09-23 11:00 NWPL 01/2019/20
Provision of short-term insurance services for 3 years 2019-09-05 12:00 PLMT 19-20/07
Panel of legal advisors for provision of legal services for 3 years on an as and when required basis 2019-09-04 12:00 PLMT 19-20/06
Supply, delivery and installation of a modular library at Migdol in Mamusa Local Municipality 2019-09-09 11:00 ACSR 113/2019
Provision of Event Management services for the annual Mahika Mahikeng Cultural Festival for a period of three (3) years 2019-09-09 11:00 ACSR 112/2019
Books Requisition Self Carbonised Cc 61 Pem 602 4/87 - 4 Copies Per Set White, Blue, Green, White Pages. 100 Sets Per Book 2019-08-27 11:00 SQ08191458
Lamp Aura Long Life Plt 57w 2019-08-27 11:00 SQ08191458
Gas Liquefied Petroleum Sabs 690. 9kg Cylinder (Refill Only -Empty To Be Supplied.) Deliver On Storekeepers Request Please 2019-08-27 11:00 SQ08191458
Luminaire 250w H.P.S. Son E Se-Sel Code 52147201 - Bekasun Without Nema Base 2019-08-27 11:00 SQ08191458
Lamps 100 Watt High Pressure Sodium Son E Eco Arc. -Osram Or Approved Quivalent 2019-08-27 11:00 SQ08191458
Provision of Design and Training Services 2019-09-16 15:00 AUC/MIS/NC/010
Lamps Sodium H/P Son-T 400 Watt Ges* 2019-08-27 11:00 SQ08191458
Photoelectric Cell Relay For 230 Volt 10 Amp Street Lighting Daylight Switches Dynamic Nema Base Electronic (Suitable For Nema Bases Supertronix Model Ls10 Refer 2019-08-27 11:00 SQ08191459
Metal Halide Tubular 150 Watt E.S. Osram Type 2019-08-27 11:00 SQ08191459


The 8 steps in the Tender Adjudication process

By W van Rooyen


31 January 2019

It is important to understand the Adjudication process when one responds to a Tender or Request for Proposal. If you have these 8 steps under control when responding to tenders, changes are good that you will proceed to the next round.

Here are 8 steps in the adjudication process that Organs of State will most often follow in determining which bidder will win the tender:

  1. Opening... Read More
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