Issue Date: 
Tuesday, September 13, 2016

New Functionality Scoring Rules

The new Preferential Procurement Regulations 2017 makes provision for new Functionality Scoring rules.

It is stipulated in the new Preferential Procurement Regulations 2017, that the evaluation criteria should be objective, giving enterprises a fair shot at being able to advance to the next phase of evaluation, namely Price and B-BBEE.

Most tenders are evaluated on Functionality, but an Organ of State will indicate in the tender documents how the tender will be evaluated.

The tender document will normally specify the evaluation standards 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. Usually the threshold is between 65% and 85% out of 100%;

All tenders achieving less than the minimum qualifying score will be declared non-responsive, and will not qualify to be evaluated on Price and B-BBEE.

When an Organ of State sets the minimum qualifying scores for Functionality, the scores should:

  • Not be generic;
  • Be determined separately for each tender;
  • Not be so low that it jeopardises the quality of the required goods/services;
  • Not be so high that they are impossible to attain.

All tenders that score the minimum qualifying score for functionality must be evaluated further, in terms of Price and B-BBEE as stated by the preference point systems in accordance with the Preferential Procurement Regulations 2017.

To learn more about this and many other tender conditions please attend one of our How-to-Tender workshops. Tender Workshop dates are published on our website at www.how2tender.com. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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