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.

Pages

Title Closing Date Tender No.
The Supply and Delivery of Wet Rations, frozen vegetables to the Department of Defence (Cape Metropole Area). 2018-11-08 11:00 SPSC- B- 017- 2018
The Supply and Delivery of Wet Rations, fresh fruit and vegetables to the Department of Defence (Cape Metropole Area). 2018-11-08 11:00 SPSC- B- 016- 2018
The Supply and Delivery of Wet Rations, various meat (fresh and frozen) to the Department of Defence (Cape Metropole Area). 2018-11-08 11:00 SPSC- B- 014- 2018
The Supply and Delivery of Dry Rations, Baking goods, Essence, Pudding, Jelly and Sugar to the Department of Defence (West Coast area). 2018-10-25 11:00 SPSC- B- 010- 2018
The Supply and Delivery of Dry Rations, Soups, Spreads and Preserves to the Department of Defence (West Coast area). 2018-10-25 11:00 SPSC- B- 009- 2018
The Supply and Delivery of Dry Rations, Pasta, Rusks and Biscuits and Porridges and Cereals to the Department of Defence (West Coast area). 2018-11-25 11:00 SPSC- B- 008- 2018
The Supply and Delivery of Dry Rations, Juices Dried Fruit & Veg, Canned Fruit & Veg, Canned meat etc to the Department of Defence (West Coast area). 2018-10-25 11:00 SPSC- B- 007- 2018
The Supply and Delivery of Wet Rations, various dairy products to the Department of Defence (West Coast area). 2018-10-11 11:00 SPSC- B- 006- 2018
Supply and Delivery of Wet Rations, various fish (fresh and frozen) to the Department of Defence (Cape Metropole Area) 2018-11-08 11:00 SPSC- B- 013- 2018
Supply and Delivery of Wet Rations, bread and rolls to the Department of Defence (Cape Metropole Area). 2018-11-08 11:00 SPSC- B- 015- 2018
Supply and Delivery of Dry Rations, Coffee, Tea and Cooking Oil to the Department of Defence (Cape Metropole Area). 2018-11-22 11:00 SPSC- B- 024- 2018
Supply and Delivery of Dry Rations, Condiments, Pickles and Herbs and Spices to the Department of Defence (Cape Metropole Area) 2018-11-22 11:00 SPSC- B- 023- 2018
Supply and Delivery of Dry Rations, Baking goods, Essence, Pudding, Jelly and Sugar to the Department of Defence (Cape Metropole Area). 2018-11-22 11:00 SPSC- B- 022- 2018
Supply and Delivery of Dry Rations, Soups, Spreads and Preserves to the Department of Defence (Cape Metropole Area) 2018-11-22 11:00 SPSC- B- 021- 2018
Supply and Delivery of Dry Rations, Pasta, Rusks and Biscuits and Porridges and Cereals to the Department of Defence (Cape Metropole Area) 2018-11-22 11:00 SPSC- B- 020- 2018
Request for Proposal for a terminal Operator to Finance, Re-Commission, Operate and Maintenance of the Hfo Tank and the, Financing Design, Development, Construction, Operation, Maintenance and the Transfer of the Liquid Bulk Terminal for the Handling of Liquid Bulk Cargo at the Port of East London and Project Site for a period of 25 (Twenty Five) Years. 2018-11-01 10:00 TNPA 2017/01/013/CM
Supply and Delivery of Dry Rations, Juices Dried Fruit & Veg, Canned Fruit & Veg, Canned meat etc to the Department of Defence (Easter Cape region). 2018-08-30 11:00 SPSC- B- 106- 2017
The Supply and Delivery of Wet Rations, dairy products to the Department of Defence (Oudshoorn area). 2018-09-13 11:00 SPSC- B- 117- 2017
The Supply and Delivery of Wet Rations, bread and rolls to the Department of Defence (Oudshoorn area). 2018-09-13 11:00 SPSC- B- 114- 2017
The Supply and Delivery of Wet Rations, fresh fruit and vegetables to the Department of Defence (Oudshoorn area). 2018-09-13 11:00 SPSC- B- 115- 201

Pages

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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