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: Pens and rulers 2017-11-24 12:00 GL11800414
Facilitation using different Methodologies 2017-11-28 09:00 SM11800306
Office Type Container For Milnerton Lagoon 2017-11-28 12:00 SB11800476
Appointment of a service provider: For the development of the air quality management plan (AQMP) for Ehlanzeni Distirct Municipality 2017-12-08 12:00 EDM/26/2017-18
Facilitation and Administration of the Recruitment for the Municipal Manager Post 2017-11-24 12:00 6/5/2/373
Supply spares for bush cutter 2017-11-23 10:00 WC11801119
Hire of Tyre Mounted Recycler 2017-11-24 12:00 6/5/2/56
Request for information for the development and implementation of a health management system, administrative and technical support 2017-12-12 10:00 TE117-KLP-8DW-10630
For the provision of services: Supply Management Related training courses 2017-12-12 10:00 TE17-KLP-8DW-9286
Professional Services – Corrosive Audit of the Hopefield Besaansklip Iccp System 2017-11-24 12:00 6/5/2/373
Provision of the Supply of Security services at various sites in the Eskom Eastern Cape Operating Unit. 2017-12-12 10:00 ETW5699
Supply of Telemetry Outstation to be Incorporated in Existing System 2017-11-28 12:00 6/5/2/225
Supply and delivery of Acoustic Foam at Withoogte 2017-11-28 12:00 6/5/2/377
For the provision of transportation service of Germiston wheels for a period of three (3) years 2017-12-12 10:00 TE17-KLP-09X-9654
Appointment of a service provider to assist the Community Schemes Ombud Service with Office Space for Lease for Gauteng and Head Office, for a period of five (5) years 2018-01-09 11:00 CSOS001-2017
Supply and Delivery of Medium (11kv) and Low Voltage (420.230V) Electrical Equipment’s, Cables and other Electrical Equipment’s for a period of three (3) years 2018-01-10 12:00 81/2017
Supply Accessories 2017-11-29 10:00 GA11800221
Repairs to pool basin at Langa Pool 2017-11-27 14:00 SB1180202B
Supply training bibs 2017-11-30 10:00 GA11800222
Supply Golfers 2017-11-30 10:00 GA11800223

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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