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.
Catering Services for National Election Results Centre (ROC) 2019-04-05 11:00 IEC/ SS- 01/ 2019
Catering Services for Mpumalanga Election Results Centre (ROC) 2019-04-05 11:00 IEC/ MP- 01/ 2019
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 Todevelop 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)
Appointment of a Service Provider To develop a Land Use Management System ( LUMS) For Kai Garib Local Municipality for period of ten months 2019-04-05 11:00 5/ 2/ 2/ 1 NC RDLR- 0007(2018/ 2029)
Appointment of a Service Provider to Conduct Costing of the Implementation Plan for Recruitment and Retention Strategy for Social Service Practioners 2019-04-05 11:00 SD08/ 2018
Appointment of Service Providers as Implementing Partners for the Provision of Financial Assistance to Non-Profit Organisations Which Render Services to Victims of Crime and Violence 2019-04-05 11:00 SD10/ 2018
Appointment of a service provider to render a service of the short term Insurance for the period of one year 2019-04-26 11:00 TTB/ MF2018/ 02
LGSETA want to appoint a service provider to develop Recognition of Prior Learning (RPL) Toolkit for Municipal Property Assessor qualification (SAQA id 99700) 2019-03-29 12:00 LGSETA/ PROPERTYRPL/ 18/ 19/ 17
Appointment of Two (2) Service Providers for the Supply and Delivery of Branded Promotional Material/Items to INSETA 2019-04-11 11:00 Proj/ 2019/ 01
Appointment of a suitable panel of twenty (20) institutions of higher learning, further education and training colleges and accredited training providers to conduct training colleges and accredited training providers to conduct training for all employees including councilors for a period of three (03) years for the Independent Communication Authority of South Africa on an 80/20 PPPFA 2000, Preferential Procurement Regulation: 201 2019-04-05 11:00 ICASA 03/ 2019
Appointment of a Full Service Digital Agency Work for a Period of 36 Months for Gauteng Tourism Digital Communications Platforms Inclusive of: Website Design Enhancements, Website Management & Maintenance, Digital Campaigns, Digital Advertising, Content Development and Social Media Management, E-Commercialization Strategy and Implementation, Gauteng Travel Guide App, Production and Management and Content Liaison, Coordination and Sharing With Like Sister Agencies Across The Different Spheres of Government 2019-04-05 11:00 GTA/ DIGITAL/ 01
Review of Organisational Structure and Staff Capacity for Ekurhuleni Housing Company 2019-04-16 11:00 EHCSPAO/ 03/ 2019
The Eastern Cape Rural Development Agency (ECRDA) hereby invites experienced and reputable parties to submit concept proposals for possible new flagship projects in support of Rural Development in the Eastern Cape towards the development of Strategy 2020 to 2025 2019-04-08 11:00 EOI 02 – 2018/19
Appointment of a Professional Service Provider on a 12 Months Term Contract to Train Community Members on first Aid Level 1 to 3 and Fire Fighting Level 1 to 3 In Eastern Cape, Limpopo, Gauteng, Free State, Mpumalanga, North West and Norther Cape 2019-03-29 11:00 5/ 2/ 2/ 1- RDLR 0060 2018/ 2019)
Terms of reference for an appointment of a service provider to provide learnership programme on further education and training certificate: film and television productions L4 SAQA ID 6140:32 participants 2019-04-05 11:00 CONLP- 03- 0011 18/ 19
Pretoria: Department of Science and Technology: Head Office CSIR Campus 53, Repairs, Maintenance and service contracts: Appointment of multi-disciplinary professional services consisting of Architect, Quantity Survey, Civil Engineer, Electrical Engineer, Mechanical Engineer and Structural Engineer. 2019-04-16 11:00 Pt18/ 085
Chartered Accounting Service Providers In Criminal Investigation: Division: Directorate for Priority Crime Investigation for a period of two (2) years 2019-04-15 11:00 19/ 1/ 9/ 1/ 108 TP (18)
The Appointment of Services of an Audit Firm to Support Supply Chain Management Unit with the Provision of Accounting, Capturing, Quality Assurance and Governance Support on all SCM Bids for a Period of 12 Months with an Option to Renew for a Further 12 Months Subject to Satisfactory Performance 2019-04-05 11:00 E1504
Appointment of a Service Provider to Provide an Effective High Tech Media Monitoring and Analysis Service for a period of twenty four (24) months 2019-04-04 11:00 DOE/ 010/ 2018/ 19

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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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