Issue Date: 
Tuesday, August 7, 2018

Local content calculation in tenders

The National Government has introduced "designated sectors" which are sectors, sub-sectors or industries that have been designated by the Department of Trade and Industry in line with national development and industrial policies for local production, where only locally produced services, works or goods or locally manufactured goods meet the stipulated minimum threshold for local production and content1.

What is Local Content and how must we apply it in our tender responses?

Local Content is Local Value Added in South Africa by South African recourses. Where a tender response contains a combination of local and imported goods and/or services, the tender price must be separated into its local and imported components as per the Standard Bidding Document 6.2

Where it becomes tricky is Annexure C, D and E that needs to be completed before Standard Bidding Document 6.2 can be completed. Because little of tender responders read the tender document very carefully this requirement is overlooked. This makes it very difficult to complete Standard Bidding Document 6.2.

It is important to know the sequence in which these annexures must be completed. Completing it in the wrong sequence is going to lead to much frustration on the side of the bidder.

Please remember that you as bidder will be contractually required to maintain records to certify imported content, for example, invoice of materials, expenditure records and income statements.

It must be emphasized that when you respond to a tender you must ensure you know which goods and/or services you can claim as Local Content. Be aware that certain tenders will exclude cost such as the following from Local Content:

  • finance charges;
  • property; and
  • deployment fees of the operations contractor.

The designated sectors together with its minimum thresholds can be found at: http://www.thedti.gov.za/industrial_development/ip.jsp.

There is an increase in the drive from National as well as Provincial Government to promote Local Content. This drive is not a South African initiative but a world wide trend. In a South African context it is good because it stimulates internal growth of the economy.

Local Content is a difficult item in any tender. Many bidders don't know whether or not it is applicable to them. We understand the Local Content criteria and documents.

If you want to know more about Local Content contact us to find out when our next Local Content workshop is taking place in your area.
werner@how2tender.com

This article was written by Werner van Rooyen, Director of HowToTender which specializes in tender consulting and tender training. (04/05/2018)

1.  Definition of "designated Sectors" as per SBD document 6.2.

Title Closing Date Tender No.
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R40 from Maruleng Border to R71, R71 from Greater Tzaneen Border to Phalaborwa Kruger Park Gate and R526 from Maruleng Border to Gravelotte 2019-03-19 14:00 NRA X.002- 121- 2019/ 1F
Replace and install new alluminium silver windows for “A” ward 2019-03-05 11:00 ZNQ 945/ 18
Urgent remove sewer cast iron pipes and replace with pvc sewer pipes at G.J. Crookes Hospital under base labour ward and a ward 2019-03-05 11:00 ZNQ 940/ 18
Paint interior and exterior of all building at Dududu Clinic 2019-03-05 11:00 ZNQ 941/ 18
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R36 from Greater Tubatse Border to Greater Tzaneen Border, R40 from Mpumalanga Border to Ba-Phalaborwa Border, R526 from Mica to Ba-Phalaborwa Border and R531 from R40 to Orpen Kruger Gate 2019-03-19 14:00 NRA X.002- 120- 2019/ 1F
Bid No -RE/02/2019. Minimum CIDB 4GB. Closing on March 2019 @ 12h00 2019-03-18 12:00 RE/ 02/ 2019
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R101 from Mogalakwena Municipal Border to Polokwane, R37 from Polokwane to Lepelle-Nkumpi Municipal Border, R71 from Polokwane to Greater Tzaneen Municipal Border, R81 from Polokwane to Molemole Municipal Border and N1 from Mogalakwena Municipal Border to Molemole Municipal Border 2019-03-19 14:00 NRA X.002- 087- 2019/ 1F (NONTOLL),
Procurement of Licence Renewal of Mimecast for KZN Department of Treasury 2019-03-15 11:00 RFB 1874/ 2018
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R510 from Lephalale to Monte Christo, R572 from Monte Christo to Tom Burke, R518 from Lephalale to Mogalakwena Municipal Boundary and N11 From Blouberg Municipal Boundary to Groblersbrug Border Post 2019-03-19 14:00 NRA X.002- 085- 2019/ 1F
Port Elizabeth & surrounding areas: Term contract for maintenance, repairs & servicing of airconditioning equipment. 2019-03-19 11:00 PET03/ 2019
Appointment of a service provider for the evaluation, due diligence and monitoring of Discretionary Grants until 31st March 2019 2019-03-08 11:00 RFP/ SASSETA/ 201819127/ 2
Port Elizabeth & surrounding areas: Term contract for maintenance, repairs & servicing of refrigeration equipment. 2019-03-19 11:00 PET02/ 2019
Appointment of a Service Provider to undertake Business Process Analysis, Development and Improvement for SASSETA 2019-03-08 11:45 RFP/ SASSETA/ 201819126/ 1
East London & surrounding areas: follow- on contract for maintenance of mechanical equipment for state owned buildings. (mechanical engineering services) 2019-03-19 11:00 PET05/ 2019
Supply, Delivery, Installation, Configuration maintenance of PABX and Call Centre Management Solution for a period of 12 months with an option to renew 2019-03-15 11:00 RFP/ SASSETA/ 201819129/ 1
Appointment of a service provider for the provision of provident fund for PSETA 2019-03-25 11:00 PROVIDENT/ PSETA/ 2019- 02
Port Elizabeth Regional Office: Follow-on contract for maintenance of passenger and goods lifts. (electrical engineering services & machanical engineering services) 2019-03-19 11:00 PET04/ 2019
Kakamas: Construction of New School at Cillie Primary School. CIDB GRADING: 8GB or Higher. 2019-03-25 11:00 DRPW 019/ 2018
Pretoria: Procurement of Office Accommodation of 2275 square meters and 85 parking bays usage by the Department of Trade and Industry for a period of 5 years in Centurion CBD or the outskirts of the CBD 2019-03-19 11:00 Pt18/ 082
Pretoria: Leasing of Office Accommodation of 4295.45 square meters and 216 parking bays for period of 9 years and 11 months in Arcadia, Brooklyn and Hatfield 2019-03-19 11:00 PT18/ 080

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5 ways to find available tenders

By W van Rooyen

www.howtotender.co.za

31 January 2019

We often get asked by business owners where can they find tenders that are currently available. Although we are not in the business of finding available tenders, our Tender Manual does have a chapter that deals with finding available tenders.

Due to the high demand for this I have decided to advise you on five different ways to find available tenders.

1. News Papers

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