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.
Terms of reference to lease parking space for the Gauteng Department of Economic Development. 2018-06-15 11:00 GT/ GDED/ 082/ 2018
Service to fire equipment for the hospital as per specification 2018-06-06 11:00 ZNQ 36/ 18
Terms of Reference for Gauteng Township Stock Exchange Ownership & Governance. 2018-06-15 11:00 GT/ GDED/ 077/ 2018
Terms of Reference for the provision of cleaning services at the Gauteng Department of Economic Development and Gauteng Department of Agriculture & Rural Development including the Alex ICT Centre. 2018-06-15 11:00 GT/ GDED/ 081/ 2018
Supply and install new direction sign board for the following Clinic Under Appelsbosch Hospital. Gcumisa Clinic 2018-06-01 11:00 ZNQ 82/ 2018
Supply and install new direction sign board for the following Clinics Under Appelsbosch Hospital Emtulwa Clinic 2018-06-01 11:00 ZNQ 79/ 2018
Appointment of accredited training service providers to manage the implementation of the food safety programme in the nine (9) provinces for a period of twelve (12) months. 2018-06-15 11:00 NDT0005/ 18
Supply and install new direction sign board for the following Clinics Under Appelsbosch Hospital Emambendwini Clinic 2018-06-01 11:00 ZNQ 81/ 2018
Appointment of a service provider to render hygiene services for the Department of Rural Development and Land Reform Head office at Centre Walk Building for a period of thirty – six 36 months. 2018-06-14 11:00 5/ 2/ 2/ 1- RDLR 0008(2018/ 2019)
Supply and install new direction sign board for the following Clinics Under Appelsbosch Hospital 2018-06-01 11:00 ZNQ 80/ 2018
Appointment of a service provider to upgrade, provide support and maintenance services for telephone management as well as switchboard systems at the Department of Rural Development and Land Reform at the following Deeds Registries Offices: Vryburg, Kimberley, Pietermaritzburg and Pretoria Deeds Registry for a period of 24 months. 2018-06-18 11:00 DRDLR (CRD- 08) 2018/ 19
Supply and Delivery of Frozen Vegetables, to the three (3) Central Hospitals (Groote Schuur-, Tygerberg- and Red Cross War Memorial Children’s Hospitals) on a twelve (12) month contract period with an option to extend the contract for a further twelve months based on performance 2018-06-22 11:00 RCCH02/ 2018
The Appointment of a Service Provider for the purchasing, delivery and commisioning of the Protein/Nitrogen Analyser in the analytical services north laboratory in Pretoria for the Department of Agriculture, Forestry and Fisheries. 2018-06-08 11:00 4.4.12.2/ 7/ 18
Department of Defence: Lenz Military Base: DMRS: Replacement and upgrade of Civil Engineering Services: Procurement of Professional Services: Built Environment: Civil Engineering. 2018-06-19 11:00 JHB.18/ 01
Supply and Delivery of Fresh Fruits and Vegetables, to the three (3) Central Hospitals (Groote Schuur-, Tygerberg- and Red Cross War Memorial Children’s Hospitals) on a twelve (12) month contract period with an option to extend the contract for a further twelve months based on performance 2018-06-22 11:00 RCCH03/ 2018
Terms of Reference: For the appointment of human settlements Programme delivery facilitators for a period of thirty six (36) months. 2018-06-19 11:00 BID VA 49/ 605
Appointment of a Service Provider to Conduct the KZN Private Sector Procurement Analysis. 2018-06-27 11:00 ZNT 05 EDTEA 18/ 19
Hygiene service for Benedictine Hospital (2 year contract) 2018-06-08 11:00 ben02/ 2018- 2019
Appointment of a Service Provider to Conduct B-BBEE Verification for 14 Provincial Departments and 11 EDTEA Public Entities. 2018-06-27 11:00 ZNT 01 EDTEA 18/ 19
Adhesive support bandage 100mm x 4.5m stretched ( to bring sample ) 2018-05-25 11:00 ben04/ 2018- 2019

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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