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 a Public Relations Agency for UK and Ireland 2020-11-16 12:00 SAT UK 001/ 20
CO/063/10/2020 -Establishment of investigation panel for a period of three (3) years 2020-11-27 11:00 CO/063/10/2020
Provision of soft skills training for a period of three (3) years 2020-11-27 11:00 CO/062/10/2020
Provision of management/supervisory staff training for a period of three (3) years 2020-11-27 11:00 CO/061/10/2020
Preferred suppliers of communication and marketing support services for a period of three (3) years 2020-11-27 11:00 CO/060/10/2020
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the improvement of National Road R510 sections 1 and 2 from North West / Limpopo Border (km 72,0) to Bierspruit (km 6,3) 2020-11-20 11:00 SANRAL R.510- 012- 2016/ 1
Request for bid for the Provision of a Wellness Programme for a Period Of Twelve Months Renewable Annually up to a Maximum Period Of Thirty-Six (36) Months 2020-11-13 11:00 SAHPRA/ 2020/ WELLNESS/ RFB003
Appointment of a service provider to host and maintain SASSETA’s website and intranet for a period of three (3) years from date of appointment 2020-11-16 11:00 RFP/ SASSETA/ 20211109
Appointment of an Internal Audit Service provider for a period of three (3) years 2020-11-16 11:00 RFP/ SASSETA/ 20211107
The Road Accident Fund (RAF) requires appoint a service provider to provide Second (2nd) Line IT Support for Customer Service Centres (CSC)s, Hospital Service Centres (HSCs), Walk-In-Centres (WC) at RAF Offices for a period of three (3) years 2020-11-23 11:00 RAF/ 2020/ 00016
Appointment of a service provider to review and develop the Safety Permit Fee Model for a period of two (02) years. 2020-11-13 12:00 RSR/ RFP/ RS/ SPFM/ 20/ 10/ 06
Bid for the supply, delivery, installation, demonstration and commissioning for the furnishing of dental surgeries with dental equipment at various institutions in the Western Cape Department of Health for a three year period. 2020-11-20 11:00 WCGHCC093/ 2020
Appointment of a Pseta Accredited Skills Development Provider to Provide Learnership Programme For Fifty (50) Unemployed Disabled Learners 2020-11-20 11:00 LSHUN02/ PSETA/ 10- 2020
Appointment of PSETA accredited skills development provider (s) to provide RPL assessments and top up training for national diploma: Public Administration NQF 6 (SAQA ID 67460) 2020-11-20 11:00 RPL02/ PSETA/ 10- 2020
Terms of Reference for the Procurement and Implementation of an IT and Security Infrastructure at Hillcrest Office Park, Lynnwood 2020-11-20 11:00 ICT02/ PSETA/ 10- 2020
Appointment of a service provider or independent renewable energy expert for a period of 6 months 2020-10-29 13:00 EWSETA/RFQ/56/2020
Provision of an Employee Assistance Programme (EAP) For Parliament Of South Africa 2020-11-13 12:00 B4/ 2020
Infrastructure Upgrade Tender. The Office of the Pension Funds Adjudicator hereby invite suitable service providers to supply ICT Infrastructure (hardware, software and implementation services) at the Disaster Recovery site as detailed on the Bid document. 2020-11-17 11:00 OPFA/ ICT/ 042020
Appointment of a service provider or independent quality assurance and compliance manager for a period of 6 months 2020-10-29 13:00 EWSETA/RFQ/55/2020
Provision of Technical Advisory Services to the Government Technical Advisory Centre (GTAC) for the Office of The Accountant General (OAG) To Support in the Implementation of the Municipal Finance Improvement Programme (MFIP) Phase IIIX -Municipal Support 2020-11-13 11:00 GTAC 019- 2020- 21

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Who is the bidder or his or her representative?

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

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative... Read More

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