Issue Date: 
Thursday, October 31, 2019

Sub-contracting rules to be aware of when responding to tenders

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

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 are 3 sub-contracting rules in the Preferential Procurement Regulations 2017 that Organs of State can/must apply when issuing tenders to the public.

The first Regulation is Regulation 4 which state inter alia: if an Organ of State decides to apply pre-qualification criteria to advance certain designated groups that Organ of State must ADVERTISE the tender with a specific tendering condition that certain bidders can or may respond.

The second Regulation is Regulation 9 which state inter alia: if it is feasible to sub-contract for a contract above R30 million, an Organ of State must apply sub-contracting to advance designated groups.

The designate groups mentioned in both Regulation 4 and 9 are Black Owned Enterprises with 51% or more black ownership and any of female Black owned, youth black owned, black people with disabilities owned or black military veterans owned enterprises.

The third sub-contracting rule has to do with sub-contracting after the award of the tenderRegulation 12 states inter alia: (3) a person awarded a contract may not subcontract more than 25% of the value of the contract to any other enterprise that does not have an equal or higher B-BBEE status level of contributor than the person concerned, unless the contract is subcontracted to an EME that has the capability and ability to execute the subcontract.

The tender document will dictate how you should or should not sub-contract.  Read the tender document carefully; follow the instructions precisely and to the point.  Organs of State are applying these Regulations rigorously and failing to comply will lead to your tender response being disqualified.

Tender trends and Regulations are changing frequently.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Appointment Of Service Providers For The Supply, Delivery and Off-Loading Of Bulk Metering Kiosks (Bmk) and Freestanding Bulk Metering Units (Bmu) On an as-and-When Required Basis From Date Of Award Until 30 June 2024. 2021-07-22 10:00 A-EE 04 - 2021
The Appointment of a Service Provider For The Supply Of Sip Terminals, Sip Trunk Services, Telephony Support Services of a Dedicated Hosted Multi-Tenancy Pbx & Ucc Platform As Well As Direct Internet Access (Centralised Breakout) on an as When Required Basis On From Date Of Award Until 30 June 2024 2021-07-21 10:00 A-ICT 03 - 2021
The Appointment of a Service Provider for The Supply, Installation, Support and Maintenance of The Fleet Tracking Units and Monitoring Data On as and When Required Basis From Date Of Award Until 30 June 2024 2021-07-21 10:00 A-ICT 04 - 2021
The appointment of a service provider for upgrading of ten (10) existing air quality monitoring stations: supply and installation of meteorological sensors and equipment, and particulate matter 2.5 (pm2.5) analysers from date of award until 30 June 2022 2021-07-09 10:00 A-HEA 04-2021
The appointment of Electrical Contractors for the Electrification Projects in City of Ekurhuleni on an as and when required basis from date of award until 30 June 2024 2021-07-19 10:00 A-EE 17-2021
The Appointment of Electrical Contractors For The Supply, Installation and Commissioning Of 25m Counter-Balanced Highmast Lighting Structures on an as-and-When Required Basis From Date of Award Until 30 June 2024. 2021-07-23 10:00 A-EE 05 - 2021
The Appointment Of Service Providers for the Testing, Fault Location, Repair and Maintenance Of Gas Filled and Oil Filled Underground Cable Networks From 33kv To 132kv on an as and When Required Basis From Date Of Award Until 30 June 2024. 2021-07-26 10:00 A-EE 10 - 2020
The Appointment of Electrical Contractors For The Repair and Maintenance Of Paper Insulated And Xlpe Underground Cable Networks From 33kv Up to 132kv and Associated Copper and Optic Fibre Pilot Cables on an and When Required Basis From Date Of Award Until 30 June 2024. 2021-07-26 10:00 A-EE 11 - 2020
Appointment Of Electrical Contractors for the Installation Of New Medium and Low Voltage Cables (Copper And Aluminium) and Equipment as well as Pilot Cables (Optic Fibre) For Planning and Construction Reticulation Projects on an as-And when Required Basis From Date Of Award Until 30 June 2024. 2021-07-23 10:00 A-EE 11 - 2021
Appointment of a Debt Sponsor, Panel of Dealers and Settlement and Paying Agent for the IDC Domestic Medium Term Note (DMTN) Programme 2021-06-28 11:00 T24/06/21
Appointment of CIDB grading 1EB to 3 EB contractors for minor routine electrical maintenance of CoE buildings/facilities, property, plant, and equipment on an as and when required basis from date of award until 30 June 2024 2021-07-22 10:00 A-RE 01-2021
Appointment of electrical contractors with a CIDB grading of 4EB (including 3EB PE) to 9EB for electrical maintenance work in all CoE buildings/facilities, property, plant and equipment on an as and when required basis from date of award until 30 June 2024 2021-07-23 10:00 A-RE 05-2020
Appointment of service providers for distribution, putting-up and removal of printed material for various projects carried out by City of Ekurhuleni on an as and when required basis from date of award until 30 June 2024. 2021-08-12 10:00 A- CM 01-2021
Appointment of a Panel Of Specialist Forensic Investigation For the City Of Johannesburg for the Period Of Thirty Six Months (36 Months). 2021-07-09 10:30 A873
Provision of travel, accommodation and conferencing services 2021-07-09 11:00 CGET 02/2021/22
Provision of cleaning and hygiene services 2021-07-09 11:00 CGET 01/2021/22
Co-sourcing of internal audit activities 2021-07-09 11:00 CGET 03/2021/22
Request For The Provision Of Office Accommodation/Space For The Ugu District Municipality Budget & Treasury And Human Resources Units For A Period Of Thirty-Six (36) Months 2021-07-23 12:00 UGU-05-1565-2020
Service Providers To Form A Panel Of Medical Practitioners For uMgungundlovu District Municipality 2021-07-29 12:00 02/2021
Disposal/Auction Of Council Vehicle 2021-06-29 09:00 ZDMQ: 0122/06/2021

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