Issue Date: 
Monday, May 29, 2017

Tenders, B-BBEE and the new Preferential Procurement Regulations 2017

We have previously asked: How important is a good B-BBEE status level of contributor in the tender process?

The answer is still the same: VERY IMPORTANT!

In all tender documents, you will find the NEW Standard Bidding Document 6.2 which is used to claim your Preference Points for B-BBEE. The higher your B-BBEE status level of contributor, the more points you will score on the Preference Points System. Ultimately the bidder or bidders scoring the highest points will be awarded the tender.

One of the major changes in the Preferential Procurement Regulations 2017, is the increase in the threshold value on the 80/20 and 90/10 Preference Point Systems. The following Preference Point Systems are applicable from 1 April 2017 to all Organ of State bids:

  • the 80/20 Preference Point System for bids with a Rand value of more than R30,000-00 but not exceeding R50,000,000-00 (all applicable taxes included); and
  • the 90/10 Preference Point System for bids with a Rand value above R50,000,000-00 (all applicable taxes included).

This means that on the 80/20 system your B-BBEE status level of contributor will earn you a point out of 20 and on the 90/10 system your B-BBEE status level of contributor will earn you a point out of 10.

To earn these points a potential bidder must have a B-BBEE certificate that has been issued by a verification agency accredited by the South African Accreditation System (SANAS) or the bidder must issue an affidavit stating its B-BBEE status level of contributor. Exempt Micro Enterprises (EME’s) must complete an affidavit regarding their B-BBEE status level of contributor – no verification is required. This is also applicable to Qualifying Small Enterprises (QSE’s) with 51% or more black ownership.

The various B-BBEE status level of contributor that an EME can achieve through an affidavit are:

  • EME’s that are not Black-owned automatically qualifies as a Level 4 contributor to B-BBEE,
  • EME’s that have 51% or more (but not 100%) black ownership qualifies as a Level 2 contributor to B-BBEE and
  • EME’s that have 100% black ownership qualifies as a Level 1 contributor to B-BBEE.

A 100% Black-owned EME will therefor earn maximum points (either 20 or 10, depending on the value of the tender) on the Preference Point System.

A valid B-BBEE certificate of B-BBEE afidavit is very important in the Tender Process. The higher your B-BBEE status level of contributor, the more points on the Preference Point System you are going to score. Ensure your business scores the highest possible score on its B-BBEE certificate or B-BBEE affidavit.

To learn more about this and all the other new developments regarding tenders, please attend one of our How-to-Tender workshops. Tender Workshop dates are published on our website at www.how2tender.com.

Learn to earn.

Title Closing Date Tender No.
Appointment of Service Providers for Emergency Accomodation as and when needed until 30 June 2019. 2018-07-25 11:00 6/19
GIZ SAGEN wishes to appoint a consultant to develop an automated Statistical Measurement and Verification Tool (MVT), to 'electronify' the South African National Accreditation System (SANAS) Technical Guide (TG) 50-02 document and with specific reference to the South African National Standard for Measurement and Verification, i.e. SANS 50010:2018, (Edition 2). 2018-07-20 12:00 #83294869
Supply Front hub seal 2018-07-19 14:00 WE11900212
Supply Alternator belt 2018-07-19 14:00 WE11900211
Supply 3 each x beta bait stations boxes 2018-07-19 14:00 GC11900021
Supply Durable sentinel mat with city logo 2018-07-23 12:00 GL11900027
Tenders are invited for the Hiring of 1.8 Ton Diesel Forklift Truck for a period of one month. 2018-07-24 11:00 CSQ07181343
Tenders are invited for the Hiring of 1.8 Ton Diesel Forklift Truck for a period of one month. 2018-07-24 11:00 CSQ07181343
Bookbinding of agendas. 2018-07-19 12:00 SD119O0035
Supply A5 leather folders 2018-07-23 12:00 GL11900032
Provision of Internet Services 2018-08-17 15:00 ADB/RFP/RDGS/2018/0090
Appointment of an Experienced Service Provider to Conduct Locality Analysis for the Tshwane Clothing and Textile Hub Project 2018-07-31 11:00 TEDA/PPM 01/07/18
Shuttle service (hire of 14 seater) 2018-07-24 09:00 WJ11900030
Supply and delivery of voice recorder. 2018-07-20 11:00 GK11900023
Request for proposals from service providers to deliver international executives development programme (NQF level 8) aimed at senior managers and executives in the transport sector (all transport sub-sectors) 2018-08-03 11:00 TETA18/CS/0003/IEDP
Appointment of a service provider to lease commercial office accommodation to SASSETA for a period until 31st March 2020 with an option to re-new 2018-08-13 11:00 RFP/SASSETA/1718006/01
Supply Clear carpet protectors Subcouncil 18, Lotus River. 2018-07-20 12:00 GL11900031
Supply unit packaging carbon asphalt 2018-07-20 14:00 GE11900144
Supply Clean filling sand 2018-07-25 14:00 GE11900143
Macro-Economic Impact Assessment of the Contribution of the EPWP on the South African Economy. 2018-08-06 12:00 IDTDPW29NATN

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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