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

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.

Pages

Title Closing Date Tender No.
The appointment of service provider to implement the Animal and Veld Management Programme (AVMP) Soil Rehabilitation Project in Tot Hier Toe Land Reform Farm in The Heilbron Area in Ngwathe Local Municipality within Fezile Dabi District Municipality in the Free State Province. 2018-08-10 11:00 PSSC- RID- FS 0001 (2018/ 2019)
Appointment of the Service Provider to Render Travel Management Services for a period of 36 months 2018-08-14 11:00 IPID 03 - 18/ 19
Appointment of service providers to implement the Animal and Veld Management Programme (AVMP) Soil Rehabilitation Project in driekoppen & Seymour Land Reform farm in the Senekal area in Setsoto Local Municipality within Thabo Mofutsanyana District Municipality in the Free State Province. 2018-08-10 11:00 PSSC- RID- FS 0002 (2018/ 2019)
Polycarbonate soup bowls x 550 2018-07-30 11:00 ZNQ 136/ 2018/ 19
Appointment of a service provider to test and benchmark the performance and quality of services (QoS) for voice and data services for a period of six (06) months in four (04) provinces on an 80/20 PPPFA 2000, Preferential Procurement Regulation: 2017 2018-08-22 11:00 ICASA 03/ 2018
Appointment of a Service Provider for Comprehensive Hygiene Services for a period of three (3) years 2018-08-10 10:00 HSRC/ 12/ 2018/ 19
Consulting services for legal expert services to redraft the dispute settlement mechanism and establishment of its institutions – enhancing the single African Air Transport Efficiency 2018-08-03 15:00 AUC/IED/C/277
Appointment of service providers to implement the Animal and Veld Management Programme (AVMP) Soil Rehabilitation Project in Rietfontein Land Reform Farm in the Soutpan Area in Masilonyana Local Municipality within Lejweleputswa District Municipality in the Free State Province. 2018-08-10 10:00 PSSC- RID- FS 0004 (2018/ 2019)
Appointment of a panel of training providers 2018-08-13 11:00 GPAA 09/ 2018
Appointment of service providers to implement the Animal and Veld Management Programme (AVMP) Soil Rehabilitation project in Rietfontein Land Reform Farm in the Soutpan area in Masilonyana Local Municipality within Lejweleputswa District Municipality in the Free State province. 2018-08-10 11:00 PSSC- RID- FS 0003 (2018/ 2019)
Appointment of a Service Provider for the Provision of Traffic Contravention Management and Collection System, Back Office Support, Supply and Deployment of Traffic Law Enforcement Equipment in the Gauteng Province for a period of 60 months (05 years). 2018-08-10 11:00 GT/ GDCS/ 084/ 2018
Queenstown Magistrates Court: Provision of cleaning services for a period of twenty four (24) months. 2018-08-14 11:00 PEC11/ 2018
Double bed base set x7; 363l Combi fridge with water dispenser x14 2018-07-27 11:00 169/ 018/ 019
Panel of Service Providers for the Provision of Transportation Services to Gauteng Department of Community Safety for a Period of Twenty Four Months (2 Years). 2018-08-10 11:00 GT/ GDCS/ 085/ 2018
Service oil pots including change off oil x2 (see description for more items) 2018-07-30 11:00 ZNQ 258/ 18
Dimbaza Magistrates Court: Provision of cleaning services for a period of twenty four (24) months. 2018-08-14 11:00 PEC10/ 2018
Provision of Courier/Delivery Services to the Driving License Card Account (DLCA) for a period of twenty four (24) Months, at 459B Tsitsa Street, Erasmuskloof, 0105. 2018-08-10 11:00 DLCA/ 2018/ 02
Port Elizabeth: Gelvandale Magistrates Court: Provision of cleaning services for a period of twenty four (24) months. 2018-08-14 11:00 PEC09/ 2018
Department of Rural Development and Land Reform invites suitable service provider to supply, deliver and offload three (3) recycling Bailing Machines for Joe Gqabi recyclers at Senqu, Elundini and Water Sisulu Local Municipalities under Joe Gqabi District in the Eastern Cape Province 2018-08-13 11:00 DRDLR: EC 001(2018/ 2019)
Service threatre lights and repair if needed 2018-07-30 11:00 ZNQ 254/ 18

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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