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.
Completion Of Coega Vulindlela Vilage Phase 1C 2019-09-09 12:00 CDC/ 107/ 19A
Supply, deliver, install and commissioning of generators : Illembe District 2019-09-25 11:00 ZNB 9709/ 2019- H
Supply, deliver, install and commissioning of generators : King Cetswayo District 2019-09-27 11:00 ZNB 9704/ 2019- H
Replacement, service and maintenance of lifts (16 units) 2019-09-19 11:00 ZNB 5702/ 2019- H
Supply, deliver, install and commissioning of generators : Zululand District 2019-09-30 11:00 ZNB 9685/ 2019- H
Supply, deliver, install and commissioning of generators : Amajuba District 2019-09-25 11:00 ZNB 9707/ 2019- H
Supply, deliver, install and commissioning of generators : Ethekwini District 2019-09-25 11:00 ZNB 9710/ 2019- H
Supply, deliver, install and commissioning of generators : Umgungundlovu District 2019-09-27 11:00 ZNB 9705/ 2019- H
Supply, deliver, install and commissioning of generators : Ugu District 2019-09-27 11:00 ZNB 9703/ 2019- H
Supply, deliver, install and commissioning of generators : Umkhanyakude District 2019-09-30 11:00 ZNB 9706/ 2019- H
Supply, deliver, install and commissioning of generators : Umzinyathi District 2019-09-30 11:00 ZNB 9708/ 2019- H
Supply, deliver, install and commissioning of generators : Harry Gwala District 2019-09-25 11:00 ZNB 9702/ 2019- H
Supply, deliver, install and commissioning of generators : Uthukela District 2019-09-30 11:00 ZNB 9711/ 2019- H
Term Contract For Turnkey Services for Ground Source Develop (Planning, Design, Geo-Hydriological Studies, Sitting, Drilling, Testing And Equipping) Preventative and Corrective Maintenance Of Bore Holes Together With Water Reticulation : to uMkhanyakude District Health Facilities : KZN Health 2019-09-13 11:00 ZNB 5753/ 2019- H
Supply and Installation of Clear VU Fence 2019-09-18 11:00 SCSC 001/ 2019
Appointment of a Panel of Service Providers To Provide Temporary Residential Accommodation During Disasters / Emergencies, to The KZN Department of Human Settlements’ for a Period not Exceeding 36 Months 2019-08-30 11:00 ZNB52/ 2019/ 20HSE
Tourism Kwazulu-Natal (TKZN) invites tenders for construction of access road, new gatehouse, storm water infrastructure and landscaping at Mandela capture site. The works comprise of a guardhouse, access road, pedestrian walkway, attenuation ponds, and fencing. The works to be executed in 6 months. 2019-09-13 12:00 TKZN NO: 08/ 2019
Bertha Gxowa HVCA 2019-09-09 11:00 DID15/ 08/ 2019
Pretoria: Thaba Tshwane: A mess: Upgrading of remainder of the facilities not included in WCS 047936 2019-09-20 11:00 H19/ 007AI
eLearning Content Development Services 2019-09-06 11:00 IEC/ HR- 02/ 2019

Pages

The 8 steps in the Tender Adjudication process

By W van Rooyen

www.howtotender.co.za

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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