When Must I Sub-Contract?

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.

The Draft Preferential Procurement Regulations stipulates the following: 

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.

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Title Closing Date Tender No.
Service Maintenance and Repair of Aeronautical/Navigation Aids to ensure compliance to Icao recommendations Ulundi Airport 2017-09-21 12:00 ZDMQ0251/09/2017
Supply and delivery of 15” Active Portable Speaker Inc 2 Wireless Mics and Heavy duty Asdjustable Speaker Stands 2017-09-20 11:00 W061800173
Training of four (4) employees in Basic Computer Literacy competencies for the Zululand District Municipality. 2017-09-27 12:00 ZDMQ: 0252/09/2017
Training on MS EXCEL 2010 (Re advt) 2017-09-27 12:00 ZDMQ 0253/09/2017
Disability awareness and stimulation kit training programme 2017-09-26 09:00 SM11800145
Training of eighteen (18) employees in Microsoft PowerPoint 2010 core competencies for the Zululand District Municipality 2017-09-27 12:00 ZDMQ: 0254/09/2017
Provision of support, maintenance and development on the Genesys Contact Centre Solution 2017-10-06 12:00 1l-33472
Horticultural Maintenance: Rusthof Cemetery & Surrounding Area 2017-09-26 12:00 W101800300
Catering for 200 VIPS SALGA Games 2017 2017-09-22 12:00 ZDMQ 0255/09/2017
Catering for 200 VIPS SALGA Games 2017 2017-09-22 12:00 ZDMQ 0256/09/2017
Supply: Valve 2017-09-20 14:00 A021800400
Supply: Road marking signs 2017-09-22 14:00 A021800381
UShaka Marine World hereby invites all prospective suppliers to tender for the provision of lifeguard services. 2017-10-06 11:00 UMW.162
Catering for 200 VIPS SALGA Games 2017 2017-09-22 12:00 ZDMQ 0257/09/2017
Supply: Microstar photocell;2000sa 60/40 lux 2017-09-20 11:00 R091800158
Hiring of Marquee, chairs and tables for SALGA Games 2017 2017-09-22 12:00 ZDMQ: 0258/09/2017
Supply: Pole mounting box;with bracket;spb1 2017-09-26 11:00 R091800157
Supply: Multimeter test leads with screw on crocodile clips 2017-09-29 11:00 R091800160
Supply and delivery of Refreshments and hiring of cold room SALGA Games 2017 2017-09-22 12:00 ZDMQ 0259/09/2017
Supply and Delivery of Golf shirt and Navy and white tog bag SALGA Games 2017 2017-09-22 12:00 ZDMQ: 0260/09/2017

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Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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