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 a service provider to render standard cleaning services and provision of cleaning material to the Department Of Correctional Service: Gauteng Regional Office for a period of 3 years 2017-11-20 11:00 GTC 8/ 2017
Appointment of a cidb registered contractor to close mine openings in Musina (Limpopo Province) and Gauteng Province 2017-11-13 11:00 CGS- 2017- 038
Dube TradePort Corporation wishes to appoint a panel of construction risk and claims management professionals with the relevant technical, contractual and legal experience to provide support in management of claims by DTPC 2017-11-16 11:00 DTP/ RFP/ 23/ IFR/ 08/ 2017
Supply and deliver Computer Consumable Toners TN3290&TN3185 2017-10-27 11:00 159/ 2017/ 18
DTPC invites interested and qualifying service providers that meet the requirements of this bid to submit proposals for the provision of the service desk management system and related service offerings. 2017-11-17 11:00 DTP/ RFP/ 17/ CEO/ 07/ 2017
Supply and deliver A4 photocopy paper white bond 80gsm - box of 5 reams x 252 2017-10-31 11:00 ZNQ212/ 17/ 18
DTPC invites proposals from suitably qualified and experienced bidders to renew the warranty, maintenance and support for the EMC VNX and VNXe storage environment. 2017-11-17 11:00 DTP/ RFP/ 24/ ICT/ 09/ 2017
Supply and deliver Paper Typewriter A4 210 X 297mm 2017-11-10 11:00 ZNQ 652 OF 2017/ 18
Ditsong museums of South Africa (DMSA) is inviting prospective bidders to submit proposals to provide payroll outsourcing services to Ditsong Museum of South Africa (DMSA) for a period of three (3) years 2017-11-24 11:00 DMSA 2017/ 3A
Appointment of the cleaning services company to render cleaning services to the Free State Provincial Office-Bloemfontein from 01 April 2018 TO 31 March 2021 2017-11-16 11:00 W11250
Supply and Deliver Water Trailers 600 Litres Tank Capacity X 02 Units 2017-11-08 11:00 ZNQ 049/ 17/ 18 - MCP
Appointment of a service provider to provide an Employee Assistance Programme for the Department of Trade and Industry (the dti) for a period of three (3) years. 2017-11-10 11:00 dti 17/ 17- 18
Supply floor polishing machine x 3 - once off 2017-10-31 11:00 ZNQ469/ 17
Supply and Deliver Water Tanks 5000 Litres, Green (Anti-Sun) X 11 Units 2017-11-08 11:00 ZNQ 048/ 17/ 18 - MCP
Centralisation of records for The Department of science and Technology for a period of three years 2017-11-13 11:00 DST11/ 2017- 18
Supply and deliver boardroom chairs 2017-10-27 11:00 268/ 2017/ 18
Request for proposals: development of Erven 257, 258, 259, 260, 264, 265, 266, 268, 269, 270, 273, 275, 276, 283, 285 & 286 measuring 30.7959 HA in extent and the remainder of farm 287 measuring 733.0000 ha in extent for the Covie communal property association, Covie, Bitou municipality, Eden district Municipality,Western Cape. 2017-11-03 11:00 SSC WC Q18 (2017/ 2018)
Hip spica table 2017-11-01 11:00 ZNQ: 406/ 2017/ 18
Appointment of a service provider to develop a model land use scheme for a period of eight (08) months 2017-11-13 11:00 5/ 2/ 2/ 1- RDLR 0123(2017/ 2018)
Appointment of a Professional Service Provider for repair of damaged Planar 17’’ 3D Stereoscopic monitor for the office of CD NGI 2017-10-30 11:00 SSC WC Q19 (2017/ 2018) DRDLR

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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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