3 Sub-contracting rules to be aware of when responding to tenders

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting, due in large part to The Preferential Procurement Regulations, 2017 that has been implemented on the 1st of April 2017. Many entrepreneurs ask us whether they should sub-contract or not, in responding to a tender and how and where do they get onto the sub-contracting lists.

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.

Finding Sub-contractors

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.

After the Preferential Procurement Regulations were gazetted there is a need for businesses to find sub-contractors.

But where are businesses, which respond to tenders, going to find sub-contractors? We have thought about this and one answer is at Briefing Sessions.

Sub-contractors versus Consortiums and Joint Ventures

The Preferential Procurement Regulations, 2017 states that 30% of all Government Contracts above R30 million must be sub-contracted to specific categories of SMME's. These SMME's include, but are not limited to, black female owned and black youth owned businesses.

Tenders and Subcontracting

Tenders and subcontracting go hand in hand. In fact, subcontracting part of a tender is so commonly placed that in South Africa there are specific rules regulating subcontracting in executing tenders. This is especially true for South African Government tenders.

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Title Closing Date Tender No.
Preferred Service Providers for Technical Services (Road Markings) for Coega Development Corporation (Pty) Ltd 2019-04-08 12:00 CDC/ 69/ 19
Procurement of Enterprise Resource Plan (ERP) - Electronic Documents and Records Management System. This agreement will be applicable from date of appointment until 31 March 2020. 2019-03-25 11:00 RFP/ SASSETA/ 201819135
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R521 from Molemole municipal border through Vivo to Louis Trichardt municipal border, R523 from Blouberg municipal border to Masekwaspoort, N1 from Louis Trichardt to Beit Bridge Border Post. 2019-03-29 14:00 NRA X.002- 102- 2019/ 1F & N.001- 129
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R521 from Polokwane to Molemole municipal border and R567 from Mogalakwena municipal border to Seshego 2019-03-29 14:00 NRA X.002- 101- 2019/ 1F
Establishment of a Prequalified List of Service Providers to Render Day To Day Maintenance in the Form of Refurbishment Building , Plumbing, Electrical, Mechanical, Civil, Horticulture And Fencing Works Required at Schools and GDE Offices across Gauteng Province for a Fixed Term Period of 3 (Three) Years 2019-03-23 11:00 GT/ GDE/ 057/ 2018
Appointment of a Service Provider for Conducting an Independent Review on the Implementation of the Western Cape Infrastructure Delivery Management System and (WC IDMS) and the Standard Procurement of Infrastructure and Delivery Management (SIPDM) in the Departments of Education and Health (As Client Departments),The Department of Transport and Public Works (as Implementer) and Provincial Treasury (as an Enforcer and Strategic Partner) for a period of six (6) months 2019-04-15 11:00 WCPT 05/ 2018/ 19
Appointment of a Service Provider for Provision of the Research Services and the Production of Municipal Economic Review and Outlook (Mero) for 2019-2020 With an option to extend for a further period of 1 year 2019-04-04 11:00 WCPT 04/ 2018/ 19
The South African National Roads Agency SOC Limited (SANRAL) is soliciting proposals from Service provider/s that will offer the following communications on media buying 2019-04-12 14:00 NRA 68159/ 1007/ 2019/ 06
Renewal of licenses for SIEM and Rapid 7 including professional services to the Government Pensions Administration Agency for a period of twentyfour (24) months 2019-04-05 11:00 RFB 1914/ 2018
Appointment of a service provider for the renewal of Infomet GBM licenses for the government pension administration agency (GPAA) 2019-04-05 11:00 RFB 1915/ 2018
Appointment of a Service Provider to Render Health Risk Management Services to the South African Police Service for a Period of Five(05) Years: Division: Personnel Management 2019-04-16 11:00 19/ 1/ 9/ 1/ 135 TP (18):
Invitation to tender for the appointment of a Short Term Insurance Broker for a period of three (3) years 2019-04-05 12:00 RFP/ T 15- 2018/ 19
Supply, delivery, installation and configuration of firewall, switches and maintenance thereof until 31 March 2020 with an option to renew for a further 24 Months 2019-04-08 11:00 RFP/ SASSETA/ 201819129/ 2
Appointment of a Service Provider to Conduct a JTG Agri Hub Precent Plan for the Spatial Planning and Land Use Management Unit for the Department of Rural Development and Land Reform Northern Cape 2019-04-05 11:00 5/ 2/ 2/ 1 NC RDLR- 0005 (2018/ 2019)
Appointment of a service Provider To develop a Land Use Management System (LUMS) For Kheislocal Municipality for period of ten months 2019-04-05 11:00 5/ 2/ 2/ 1 NC RDLR- 0006(2018/ 2029)
Developer Workstations 2019-04-05 13:00 10393809
Symantec - SEP, Ghost, Protection Engine 2019-04-05 12:00 10401238
Conversion of seven (7) ton chassis cab trucks into mobile community service centres (CSC’s): Nationally to the South African Police Service for a period of two (2) years 2019-04-15 11:00 19/ 1/ 9/ 1/ 131TV(18)
Supply and delivery of identification jackets to the SAPS for a period of two (2) years 2019-04-05 11:00 19/ 1/ 9/ 1/ 102TD(18)
Catering Services for Kwazulu-Natal Election Results Centre (ROC) 2019-04-05 11:00 IEC/ KZN- 06/ 2019

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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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