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: door - type: tongue and groove 2017-11-24 12:00 GG11800186
Supply: padlock - material: brass 2017-11-24 12:00 GG11800226
Supply Hardware items 2017-11-24 12:00 GG11800231
Supply Hardware items 2017-11-24 12:00 GG11800221
Supply: timber - type: solid sa pine 2017-11-24 12:00 GG11800227
Supply: Prepacked breakfast 2017-11-24 15:00 GF11800444
Provision of Catering 2017-11-23 10:00 REQ02409
Supply: Refreshments 2017-11-24 15:00 GF11800445
Supply 150 each x party pack ward 50 - capacity building 2017-11-27 15:00 GF11800449
Supply and delivery of Studio Lights Items for Small Business Support Programme 2017-11-27 12:00 REQ01885-6
Supply Sunblock;cream;tube;150ml;spf 30+ 2017-11-27 15:00 GF11800446
Supply: First aid kit; elect; branded sling bag 2017-11-27 15:00 GF11800450
Supply: Stock stationery - assorted 2017-11-24 11:00 GM11800464
Horticultural Maintenance at various facilities in Area 4.2 2017-11-29 14:00 SN11800463
Consulting engineering services for the design and contract administration for the upgrades in the De Doorns fire station 2017-11-27 11:00 277968
Service provider for Training of Municipal Officials (Supply Chain Management) Readvertisement 2017-11-27 12:00 08/2/15/25
Upgrading of Montana Community Hall, Angelier Street Wolseley 2017-12-01 12:00 08/2/15/59
Eradication of runner and dune moles at Rooikrans SF 2017-11-29 14:00 SN11800464
Supply social development: roller banners; feathers & banner walls 2017-11-27 12:00 GL1180290A
Clearing of alien plants at Stettynskloof (as attached per WFW conditions) 2017-11-27 11:00 277576/8/9/80/81/82

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
Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.