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.

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Title Closing Date Tender No.
Supply, delivery & installation of industrial electric stove with oven. 2018-03-01 10:00 DSC0017428 & DSC0017540
Supply cordless power tools 2018-02-26 12:00 GD11800765
Supply, installation and commissioning of parts and accessories for road marking equipment. 2018-03-13 11:00 52/2017/2018
Invitation to bid: photocopying and printing machine 2018-03-09 12:00 KZN294/00001-BTO/2017/18
Supply and delivery of office furniture 2018-03-13 11:00 53/2017/2018
Supply & delivery of Atlanta memory stick 8mb with full colour branding 2018-03-01 10:00 DCG0010641
Supply & delivery of Air conditioners 2018-03-01 10:00 WEB 18 : 2017/2018
Supply: Megger MIT310A insulation resistance tester 2018-02-26 12:00 GD11800767
Supply Eclipse 150 mm bench vice 2018-02-26 12:00 GD11800768
Re-Advertised: Supply Server Hardware For VIP System 2018-02-28 12:00 RFQ / 355
Supply 12000 BTU heating & cooling mobile aircon 2018-03-01 12:00 GD11800769
Supply: Drill bit set, Multi function tool, Bench grinder, Impact drill. 2018-02-26 12:00 GD11800770
Service Provider to Provide Service for Learner’s and Driver’s License for 39 People 2018-03-01 12:00 RFQ / 357
Conference facility with catering 2018-02-26 12:00 B651/2017/18
Supply: Gauge for spray Gun;1.3 Spray Gun;1.8 Spray Gun 2018-02-28 12:00 GD11800771
Service Provider to Train 50 Smme’s on the tender Document Processes 2018-03-01 12:00 RFQ / 358
Supply: Hardware items 2018-02-28 12:00 GG11800716
Appointment of a service provider to assist with the recruitment and selection process of Section 56 Managers 2018-02-27 12:00 RFQ 293/2017/18
Accredited Firefighter 1 Training (Firefighter 1 course and Hazmat Awareness) 2018-02-27 11:00 296/2017/18
Supply ceramic tiles 2018-02-28 12:00 GG11800710

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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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