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.
IT Services 2019-08-09 11:00 NAMCA033/ 07/ 2019
The purpose of Practice Note ETD02/2019 is to regulate the position of persons who were previously registered as estate agents by the EAAB, and who were issued with valid fidelity fund certificates accordingly, but who subsequently left the sector and now wish to re-enter the sector despite the fact that such persons may not have complied with the educational requirements prescribed by the Standard of Training of Estate Agents Regulations, 2008 2019-08-31 12:00 PRACTICE NOTE: ETD02/ 2019
The Appointment of a Service Provider to Develop an Urban Upgrading Precinct Plan For Piketberg Gateway and Central Integration Zone, Bergrivier Municipality, within a period of 10 (ten) months 2019-08-12 11:00 SSC WC Q07 (2019/ 2020) DRDLR
Request for demolishing of old animal house at NIOH 2019-08-06 11:00 RFP001/ 19/ 20
Birge-Ekman GRAB Sampler-Standard size, Sample area: 23 x 23 cm, Cutting height: 23 cm; Sample volume: 13 300 cm3; Weight: empty about 13kg.Weight with the sediment: 40 kg( Shipping and insurance/customs included (x1) 2019-07-26 11:00 RFQ 000341
pH/ISE/mV meter or other suitable ion or pH/mV meter(1). Silver/sulfide ionplus Sure-Flow combination electrode with reference electrode and waterproof BNC connector (1). Redox electrode that has a built in temperature sensor, with shaft-15 cm long, with Platinum ring indicator. Double junction silver/silver chloride reference electrode. Palmer stand or equivalent to ensure controlled profiling (1). Silver/sulphide electrode filling solution, 60 mL (2). Sulphide SAOB II Reagent, 60mL (2). Sulphide titration solution, 60 mL (2). Sulphide calibration standards, 60 mL (2). ORP standard solutions, 60 mL (2). ORP electrode filling solution, 60 mL(2). 2019-07-26 11:00 RFQ 000340
Installation of Lift at Central Office 2019-08-15 12:00 CO 17/19 C
Stereo / dissecting Microscope. x 1; Compound microscope with phase contrast x 1; Compound microscope for field observations with battery pack x 1 2019-07-26 11:00 RFQ 000339
Supply and delivery of nuclear medicine radiopharmaceutical consumables for Groote Schuur Hospital; Tygerberg Hospital and Red Cross Hospital for a three (3) year period (with the option to extend for a further period of two (2) years) (multiple item award). 2019-08-30 11:00 GSH: PT16/ 2019
Geochemical analysis for six (6) benthic soil samples for copper, aluminium and zinc using the ICP optical spectrometer after strong acid extraction and microwave digestion (total fraction) 2019-07-26 11:00 RFQ 000338
Supply and delivery of solid dosage forms to the Department of Health for the period ending 30 April 2021 2019-08-19 08:00 HP09- 2019SD/ 01
Supply and delivery of small biological preparations to the Department of Health for the period ending 31 December 2020 2019-08-19 11:00 HP10- 2019BIO/ 01
An Evaluation of the Design and Implementation of the Programme: Sustainable Resource Management, in the Western Cape Department Of Agriculture 2019-08-19 11:00 BID 860 - 2019/ 2020
Supply and delivery of small volume parenterals and insulin devices to the Department of Health for the period ending 30 April 2021 2019-08-19 11:00 HP06- 2019SVP/ 01
Supply and delivery of contraceptives and hormone modulating agents to the Department of Health for the period ending 30 September 2020 2019-08-19 11:00 HP03- 2017CHM/ 01
Invitation to Service Providers to Submit Proposals for Off-Site ICT Disaster Recovery Services for a Period of Five (5) Years Effective From Date of Commencement of Services 2019-08-21 11:00 CIPC BID NUMBER: 03/ 2019/ 2020
Supply and delivery of vaccines used in the expanded programme on immunisation to the Department of Health for the period from 1 July 2020 to 31 December 2023 2019-08-19 11:00 HP16- 2020EPI
Appointment of a Security Service Provider to Provide Guarding Services at East end Factories, Harvey Road and Kraalstreet, Bloemfontein and Kimberley-Long Street for a Period of two (02) Years with an Option to Renew 2019-08-13 11:00 39/ FIN/ 2019
Supply and delivery of anti-tuberculosis medicines to the Department of Health for the period ending 30 September 2021 2019-08-19 11:00 HP01- 2019TB/ 01
Supply and delivery of anti-infective medicines (antibiotics, antifungal, antiprotozoal and antiviral agents) to the Department of Health for the period ending 30 September 2021 2019-08-19 11:00 HP02- 2019AI/ 01

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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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