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.
The CDC is inviting capable and competent contractors with a valid CIDB grading of 7GB or higher to submit bids for building, civil, and security infrastructure repairs and upgrade, including providing new facilities and or refurbishment of infrastructure at the three (3) harbour sites 2019-08-12 12:00 CDC/ 174/ 19
The CDC is inviting capable and competent contractors with a valid CIDB grading of 6GB or higher to submit bids for security and civil upgrade of the existing services, including providing new facilities at the Gansbaai, Struisbaai, Arniston and Stillbaai Harbours. . 2019-08-12 12:00 CDC/ 176/ 19
Manufacturing, Supply and Delivery of Waist Belts Saps Men (Members),Pps and Security Guards in Accordance With Specification Saps 3181/16 Version 01.0/February 2017, Saps 2076 Version 04.0/February And Saps 2855/12 Version 02.0/February 2017 for a Period of Three Years (3): Division: Supply Chain Management 2019-08-20 11:00 19/ 1/ 9/ 1/ 12TC(18)
Manufacturing, Supply and Delivery of Waist Belts Saps Men (Members),Pps And Security Guards in Accordance with Specification Saps 3181/16 Version 01.0/February 2017, Saps 2076 Version 04.0/February And Saps 2855/12 Version 02.0/February 2017 for a period of three years (3): Division: Supply Chain Management 2019-08-20 11:00 19/ 1/ 9/ 1/ 12TC(18)
Manufacturing Supply and Delivery of Shirt Dress Grey, Shirt Field Dress Chambray, Shirt Field Dress, Shirt Field Dress Camouflage Stf Pps, Shirt Saps Guards, Shirt Long Sleeve and Blouse Field Dess Grey,Bouse Field Dress Chambray and Blouse Long Sleeve for a Period of Three (3) Years 2019-08-14 11:00 19/ 1/ 9/ 1/ 94TC (18)
Appointment of a service provider for provision of Biometric Access Control Management (BACM) systems licenses, support and management for the Department of Home Affairs for a period of thirty-six (36) months. 2019-08-02 11:00 DHA07- 2019
Appointment of a Service Provider Who Is MICT SETA Accredited to Deliver and Facilitate an Accredited Skills Programe in Film and Television Post Production Programme For 20 Kwazulu-Natal Filmmakers, Which Will Capacitate Them With The Relevant Film And TV Skills for a Period of Three Months. 2019-08-02 11:00 KZNFC- T05/ 2019/ 20
Bidders are invited to bid for installation of Security Access Control System at Provincial Offices 2019-08-20 11:00 FSDOL 09/ 2019
Ysterplaat: AFB: Installation of fire detection system 2019-08-14 11:00 CPT1004A/ 19
Mthatha Magistrate Office: repairs and upgrades. 2019-08-12 12:00 CDC/ 326/ 19
Event management services for the Gauteng Accelerator Programme (GAP) innovation competition awards ceremony 2019 2019-08-12 11:00 TIHMC/ 2019/ 02
Department of Justice: Vanderbijl Park Magistrate Court: Rendering of Cleaning Services for 24 months period 2019-08-13 11:00 JHB.19/ 21
Maintenance and administration of the SAQA Oracle, MS SQL- and MySQL databases (DBA Services) for a period of three (3) years 2019-08-08 11:00 SAQA 0009/ 19 IT
Provision of Legal Services to the South African Qualifications Authority (SAQA) for a period of three (3) years 2019-08-08 11:00 SAQA 0008/ 19 EO
Provision of Security Services at Regional and MLB Offices, Cost Centre 22 and District Office, Camperdown Depot, New Hanover Depot, Area Office Merrivale, Taylor’s Halt Depot and Nottingham Road Depot. 2019-07-26 11:00 ZNB0010/ 18 T
Maintenance of the existing National Learners’ Records Database (NLRD) and related databases to the South African Qualifications Authority (SAQA) for a period of three (3) years 2019-08-08 11:00 SAQA 0007/ 19 NLRD
Provision of National and International courier services to the South African Qualifications Authority (SAQA) for a period of five (5) years 2019-08-08 11:00 SAQA 0006/ 19 DFA
Invitation to an Open Tender for the Supply, and Delivery of a 500kva Miniature Substation (Mss) Required at Chamdor Automotive Hub, Mogale City 2019-07-26 11:00 AIDC T01/ 2019
Maintenance, repairs and new installations of the electrical infrastructure for the South African Qualifications Authority for a period of five (5) years 2019-08-08 11:00 SAQA 0010/ 19 DFA
Provision of conference stationery and apparel for GOVTECH 2019 2019-08-12 11:00 RFB 1972/ 2019

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Tender Training

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

People often ask me how I know so much about tenders and the completing of tender documents. The answer is easy; training. I believe that we must always try to train as much as possible. The more training you will do the better you will get at responding to a tender. Gary Player, one of South Africa’s best golfers of all time, used to say: “The more I practice, the luckier I get.”

That is the whole point of training. The... Read More

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