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.
Supply: Boots 2017-08-28 10:00 R011800132
Provision of Waste Management Service (Waste minimisation, Recycling and safe Disposal of General & Hazardous Waste for Koedoespoort Region and Kilner Park Corporate Office for a period of 3 years. 2017-09-26 10:00 TE17-KDS-8GH-6010
Supply Metro Police Vehicle Decals 2017-08-24 12:00 W051800053
Advanced Criminal Enforcement on Environmental Crimes 2017-08-29 10:00 A071800121
To provide the following Yellow Plant Equipment at or to Kendal Power Station: Tipper Trucks C10 or 12 cube; Dozer (D8); Front End Loader; Water Tanker, Grader, TLB, Excavator and Roller 2017-09-26 10:00 MPGXC004781
Plant operator training 2017-08-25 12:00 W051800052
Solid Waste Management – Bellville Wallpaper & Signage 2017-08-22 12:00 A091800058
Hire 30 Cub M Binlifter, 30Cub M Bins X6 With Roller Wheels for Two Months 2017-08-25 12:00 A091800059
Supply and delivery of Make-up resins Amberlite IRA405CL Anion Bed Vessel Resin (50 000 Litres) at Hendrina Power Station 2017-09-26 10:00 MPGXC004460R
Re-arrangement of desks/furniture as per the approved floor plan : 6TH Floor 2 Bayside , Tower Block, Civic Centre, Cape Town. 2017-08-22 12:00 R031800104
Supply: Medals and trophies 2017-08-22 12:00 R051800140
Supply: Hardware items 2017-08-21 12:00 R051800141
Supply: Hardware items 2017-08-21 12:00 R051800136
Supply: Spanner 32mm 2017-08-21 12:00 W041800150
Supply: Hardware items 2017-08-21 12:00 R051800137
Integrated Waste Management 2017-10-10 13:00 COR57/2017
Supply: Blade hacksaw 2017-08-21 15:00 W041800148
Supply and Delivery of Paraffin for Cluster 6 in Centane at Mnquma Local Municipality. 2017-08-25 12:00 SCM/MLM/15/17-18
Supply: Hardware items 2017-08-21 12:00 R051800138
Supply: Hardware items 2017-08-24 12:00 R051800139

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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