When Must I Sub-Contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

The Draft Preferential Procurement Regulations stipulates the following: 

Finding Sub-contractors

According to the Draft Preferential Procurement Regulations, 30% of all Government Contracts above R30 million must be sub-contracted to specific categories of SMME’s. These categories are:

  • Black female owned EME’s or QSE’s;
  • Black youth owned EME’s or QSE’s;
  • Black owned EME’s or QSE’s.

Once the new Regulations are gazetted there businesses will need to find sub-contractors to fill this requirement.

Sub-contractors versus Consortiums and Joint Ventures

Tenders and subcontracting

Did you know tenders and subcontracting go hand in hand. In fact, subcontracting part of a tender is so common in South Africa that there are specific rules regulating subcontracting in executing tenders especially Government tenders.

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Title Closing Date Tender No.
Supply and Delivery of 3 Dual Mixer Time Difference (DMTD) Phase Noise and Allan Variance Measurement apparatus’ for clock monitoring purposes 2017-08-15 11:00 NRF / SKA SA STFR 003 2017
Supply, Delivery, Installation, Demonstration, Training and Commissioning of a Large Radiotherapy 3d Water Scanning System and all associated Controlling Devices, Radiation Detectors and Software to allow for Regulatory Linear accelerator annual Dosimetry Scanning as Well as Periodic Quality assurance on Vmat Enabled Linear accelerators in the radiotherapy department, Groote Schuur Hospital 2017-08-18 11:00 GSH: 5/ 2017
Supply, Delivery, Installation, Commissioning and Maintenance of Heart Lung Machine at Charllotte Maxeke Academic Hospital and Steve Biko Academic Hospital 2017-08-11 11:00 GT/ GDH/ 101/ 2017
Sterile Gauze Swabs 100 X 100mm 8ply (500 Pouches in a box) 2017-08-04 11:00 ZNQ 092 2017/ 18
Dressing Transparent Polyurethane Adhesive Dressing Frame Style 10 cm x 12 cm (box of 50) x 1500 boxes. 2017-08-02 11:00 42/ 05/ 17
Dressing hypafix, low allergy dressing retention sheet (10 cm x 10m) x 1200 rolls 2017-08-02 11:00 35/ 05/ 17
Analyser blood gas (cassette type) x 1 -(specification attached ) 2017-08-02 11:00 78/ 05/ 17
Suture Ethilon/Nylon black monofilament reverse cutting double (RC2),0,2 Metric ,30cm USP 10/0 u7000 /A2516 (box of 12) x 80 boxes 2017-08-02 11:00 97/ 07/ 17
Warming unit, patient forced air x 10 2017-08-02 11:00 82/ 05/ 17
Warming unit fluid x 4 - (specification attached) 2017-08-02 11:00 83/ 05/ 17
Supply and delivery of Prosthetic Consumables 2017-08-11 11:00 GT/ GDH/ 103/ 2017
Supply and delivery of Urology Consumables for Charlotte Maxeke Johannesburg Academic Hospital 2017-08-11 11:00 GT/ GDH/ 102/ 2017
Supply: 06 boxes suture vicryl 3/0 v497 box/12 2017-07-31 11:00 ZNQ 115/ 17/ 18
Supply: 36 units tube e/t plain 2.0mm 2017-07-31 11:00 ZNQ 424/ 17/ 18
Supply: 07 boxes opthalmic sponcals including stick box/180 2017-07-31 11:00 ZNQ 415/ 17/ 18
Supply: 102 boxes suture monocryl gauge 3/0 w3202 box/12 2017-07-31 11:00 ZNQ 399/ 17/ 18
Supply: 100 units tube e/t plain 6.5mm. 2017-07-31 11:00 ZNQ 428/ 17/ 18
Supply: 100 units tube e/t plain 7.5mm 2017-07-31 11:00 ZNQ 430/ 17/ 18
Supply: 33 units tube e/t plain 3.0mm 2017-07-31 11:00 ZNQ 425/ 17/ 18
Supply: 974 units splints i.v neonatal 2017-07-31 11:00 ZNQ 416/ 17/ 18

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Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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