Issue Date: 
Tuesday, September 13, 2016

New Functionality Scoring Rules

The new Draft Preferential Procurement Regulations 2016 make provision for new Functionality Scoring rules. An Organ of State will indicate in the tender documents if the tender will be evaluated on Functionality, however, most of the tenders will be. It is stipulated in the new Draft Preferential Procurement Regulations 2016, that the evaluation criteria should be objective, giving enterprises/companies a fair chance in being able to advance to the next phase of evaluation, namely Price and B-BBEE.

The tender document will usually specify the evaluation criteria for measuring functionality. It will also state the following:

  • The points available for each criteria and, if any, each sub-criteria;
  • The minimum qualifying score needed to advance. Normally the threshold will be between 65% and 85% out of 100%;

An Organ of State will declare all tenders achieving less than the set threshold non-responsive and those tender responses will not qualify for evaluation on Price and B-BBEE.

It must be stated that when an Organ of State set the minimum qualifying scores for Functionality it:

  • Must not be generic;
  • Must be determined separately for each tender;
  • May not be so low that it jeopardise the quality of the required goods or services; and
  • May not be so high that is unreasonable to achieve.

All tenders that score the minimum qualifying score for functionality must be evaluated further in terms of Price and B-BBEE in accordance with the Preferential Procurement Regulations 2016.

To learn more about this and many other tender conditions please attend one of our How-to-Tender workshops. Dates and details can be found here: www.how2tender.com

Learn to earn

Brand new Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, has been finalized and was gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. This is the official media release from National Treasury:

The regulations were initially promulgated in 2001 and revised in 2011 thus making this the second revision since the initial promulgation.

The revision of the Preferential Procurement Regulations of 2011 was largely influenced by the need... Read More

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