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.
Production Equipment Maintenance & Supply 2019-03-25 11:00 No reference number supplied
Product Transport 2019-03-25 11:00 No reference number supplied
Plant Operations Cleaning Services 2019-03-25 11:00 No reference number supplied
Hydro Health Systems 2019-03-25 11:00 No reference number supplied
Fire Equipment Supply and Maintenance 2019-03-25 11:00 No reference number supplied
Supply and delivery of protective clothing 2019-03-22 12:00 MNQ/SCM/29/18-19
Provision of security risk assessment services to the City of Cape Town 2019-04-02 10:00 280S/2018/19
Civil works for the construction of a blower house complex and the demolition of various structures at Athlone Wastewater Treatment Works 2019-04-15 10:00 296Q/2018/19
Manufacture, Testing, Supply and Delivery and/or Installation of Battery Chargers and Battery Cells, and Disposal of Used Nickel-Cadmium 2019-04-15 10:00 269G/2018/19
Supply, installation, commissioning and maintanance of telephone system at Central Tzaneen Campus, Giyani Campus and Maake Campus 2019-04-05 11:00 LET 2019 – 008
Supply, installation and configuration including patch management of antivirus of 765 nodes for student computers 2019-04-05 11:00 LET 2019 - 007
Supply, delivery and installation of 62 desktop computers 2019-04-05 11:00 LET 2019 - 006
Appointment of a Panel of Attorneys to render Legal Services to Ithala Group for a period of 36 months 2019-04-04 14:00 RFP29/18
Appointment of a panel of three actuary firms 2019-03-25 11:00 OPFA/AS032019
VAT review for the West Coast District Municipality for the last five (5) tax years 2019-04-02 12:00 WDM 02/2019
Provision for external audit services 2019-04-04 11:00 RFP/FIN/EAS/2019/26
Medical brokerage services 2019-04-09 11:00 FSCA2018/19-P001
Governance, Risk Management and Compliance Application(s). 2019-04-02 12:00 2019/02
Provision of Banking Services 2019-05-10 12:00 SCM/2019/49/FIN
Provision of ear, nose and throat specialist service to Polokwane Medical Centre 2019-04-09 10:00 59CON1891

Pages

Must my business be registered in order to tender?

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Once, a very anxious business owner phoned me and asked if I can supply him with a CK number. I was amused by this and first asked why he asked me for such a number and secondly for what did he need a CK number for? He said that because of my Tender Manual that he bought, he thought that maybe I can help him with a CK number. Also, at the briefing session of the tender that he was responding to, the person in... Read More

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