Issue Date: 
Monday, May 29, 2017

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

Having a good B-BBEE status level is VERY IMPORTANT in the tender process!

All tender documents will have 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, 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 will earn you a point out of 20, and on the 90/10 system your B-BBEE status level 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 submit an affidavit stating its B-BBEE status level.

Exempt Micro Enterprises (EME's) must acquire an affidavit regarding their B-BBEE status level - 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 levels 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 or B-BBEE affidavit is very important in the Tender Process. 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. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

 

Title Closing Date Tender No.
Multiband Ligater Kit, Single Use 8.5 - 11.5mm Scope Diameter With A Clear Barrel For Bonding Oesophageal Vverices. 2018-10-02 11:00 ZNQ NO.2773/ 08/ 18
Supply, Delivery and Off-loading of Cleaning Material and Toiletries for Klerksdorp, Rustenburg and Rooigrond Management Areas (North -West Province). 2018-11-06 11:00 LMN 10/ 2018 NORTH - WEST
Stoma Adhesive Protective Powder Alcohol Free, 28.3g. 2018-10-02 11:00 ZNQ NO.2591/ 08/ 18
Supply, Delivery and Off-loading of Groceries, for Klerksdorp, Rustenburg and Rooigrond Management Areas (North -West Province). 2018-11-06 11:00 LMN 07/ 2018 NORTH - WEST
Equipment: Heating Pan, Rectangular with Non Stick Heating Surface, Portable Design, Including Aluminium Lid with Handle and a Heavy Aluminium Gauge for Even Heat Distribution 2018-10-02 11:00 ZNQ NO.2619/ 08/ 18
Supply, Delivery and Off-loading of Coal Peas, Thohoyandou Management Area (Limpopo Province ). 2018-11-06 11:00 LMN 15/ 2018 LIMPOPO
Non Adherent Dressing With Soft Silicone Technology Atraumatic Dressing, Dressing With Safetac Dressing 20x30. 2018-10-02 11:00 ZNQ NO.2593/ 08/ 18
Bacteriostatic Gel which Containspropylene Glycol (Box Of 10) 15g Tubes 2018-10-02 11:00 ZNQ NO.2592/ 08/ 18
Supply, Delivery and Off-loading of Groceries for Thohoyandou and Polokwane Management Areas ( Limpopo Province) 2018-11-06 11:00 LMN 09/ 2018 LIMPOPO
Smooth Bore Breathing Circuits With Extra Limb And 2lt Breathing Bag Adult (3 Limb) 1.6mtr Long 2018-10-02 11:00 ZNQ NO.2586/ 08/ 18
Disposable Bed Sheets - 100cm X 200cm, Sample Required With Quote. 2018-10-02 11:00 ZNQ NO.2528/ 08/ 18
Supply, Delivery and Off-loading of Cleaning Material and Toiletries for Thohoyandou and Polokwane Management Areas ( Limpopo Province) 2018-11-06 11:00 LMN 12/ 2018 LIMPOPO
Adaptic Digit Non Adhering Dressing Digit. 2018-10-02 11:00 ZNQ NO.2526/ 08/ 18
Supply: Teledyne Benthos 867 Battery Replacement Kits (3002855) - x 4. 2018-09-28 11:00 RFQ000289
Suture Grasper 14 Gauge 15cm Length 2018-10-02 11:00 ZNQ NO.2479/ 08/ 18
Appointment of a services provider for the supply, delivery, training and maintenance of two waste palletizer. 2018-10-12 11:00 GT/ GDARD/ 131/ 2018
Please Supply Sxm40-40 Hot Water Circulating Pumps as per required specification 2018-10-02 11:00 ZNQ NO.2810/ 08/ 18
Supply and Install the Birds Deter Stand (See Picture Attached) Quantity: 1 Unit 2018-10-02 11:00 ZNQ NO.1523/ 06/ 18
Northern Cape: Upington and De aar Area: Rehabilitation of Bridges in Upington and De aar area. CIDB GRADING: 7 CE or Above. 2018-10-16 11:00 DRPW 001/ 2018
Supply, delivery, installation, training, commissioning, internal validation and support of a Microfluidics Fragment Analyser (MFA) for DNA analysis, for use in the Molecular Forensics Laboratory at UCT Health Sciences Faculty for the Western Cape Forensic Pathology Service. 2018-10-19 11:00 WCGHCC034/ 2018

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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