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.

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Title Closing Date Tender No.
Luminaire 100w High Pressure Sodium Bekaway Classic Post top Area Lightning Or Approved Equivelant With Hot Dip Poles with top Dia. Range of 140 to 180mm and Daylight Switch. 2019-08-27 11:00 SQ08191459
Shackles Tower Vc 10 Forged Steel H/D Galvanised To Sabs 763-1966. 16mm Clevis Pin With Stainless Steel Splitpin. 2019-08-27 11:00 SQ08191459
Invitation to pig breeding stock 2019-09-02 17:00 TEND 19-02
Clamps Centre Phase Pole For 22kv Single Pole Construction As Per Drawing A2/539. 2019-08-27 11:00 SQ08191459
Dead Ends Aluminium A.D.E 276 for Almond Wire Plp Only. 2019-08-27 11:00 SQ08191459
Twin Ties Aluminium Alloy Att 276 Almond A.A.A Conductor Plp Only 2019-08-27 11:00 SQ08191459
Provision of Services for the Operation and Management of Carletonville Landfill Site for a period of Thirty-six (36) Months 2019-09-20 11:00 CS (WASTE) 10/08/1920
Appointment of a Service Provider for the provision of Credit Control Services for a period of Three (3) Years 2019-09-19 11:00 F(REV) 08/08/1920
Appointment of a Panel of Service Providers for Collection of Outstanding Debt in excess of 90 Days for a period of Three (3) Years 2019-09-17 11:00 F(REV) 07/08/1920
Provision for the supply of branded promotional material 2019-08-26 13:00 EWSETA/RFQ/36/2019
Construction of Irrigation Laboratory Building at University of Mpumalanga 2019-09-25 12:00 NIT0071
Request for Proposals: Procurement of a Bank to Render Banking Services to the Municipality for a period of five years. 2019-11-11 12:00 TMDM/FIN/BANK/01/08/2019
Appointment of a Service Provider for the supply and delivery of fuel and lubricants for a period of thirty-six (36) months on as and when required basis including the installation of new pumping equipment and the replacement, installation and maintenance of tanks with a fuel management system 2019-09-20 10:00 11/2020/08N08/2020
Request for Bids to provide land for the purpose of Cemetery establishment within Emfuleni Local Municipality Jurisdiction 2019-09-20 10:00 11/2020/07N07/2020
Appointment of two service providers to provide Money Market Asset Management Services for the Government Employees Medical Scheme for a period of one (1) year commencing 01 February 2020, which contract may be annually renewable for a maximum of 4 more years 2019-09-17 11:00 GEMS/MMAssetManagers/20 19/CON015
Appointment of a Service Provider for the Development & Customisation,Support & Maintenance Of OHSC Existing Information Systems for a period of (3) three years. 2019-09-06 11:00 OHSC/ 03/ AUG/ 2019
Request to Procure a Dry, Tinned Goods and Grocery Supplier for a period of (3) three years 2019-09-09 11:00 RFB 1993/ 2019
CapeNature seeks a contractor for the installation of a Water and Waste Water Treatment Solution at the Vrolijkheid Nature Reserve, CIDB and Local content conditions apply 2019-09-13 11:00 WCNCB 01/ 08/ 2019
Plant Pathogen Quarantine Facility Upgrade 2019-09-09 11:00 ARC/ 03/ 07/ 19
The Appointment of a Contractor for The Supply and Installation of Outdoor Gym Equipment, Playground Equipment as well as Outdoor Furniture and Landscape Material for the Rehabilitation of Four ILLegal Dump Sites Within Gauteng Province for a Period of 3-Months -3CE/3GB Or Higher 2019-09-06 11:00 GT/ GDARD/ 051/ 2019

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Extension of validity period

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Those of you who are familiar with responding to tenders will know that it is common practice for procuring entities to extend the bid price validity period. We received the undermentioned queries regarding the extension of the validity period of the bid price.

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