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

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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: 

  1. For contracts above R30 million, the tenderer MUST sub-contract a minimum of 30% of the value of the... Read More
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