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 service provider(s) for a period of eighteen (18) months to develop a Regional Spatial Development Policy for the mining belt in Gauteng province which will be known as the mining belt Regional Spatial Development Policy. 2018-03-09 11:00 GT/ OOP/ 051/ 2017
Invitation to an open tender for an experienced service provider to provide in-house consulting services: Management of operations division for a 24 months period. 2018-03-16 11:00 AIDC _T09/ 2017
Appointment of a Service Provider to Supply and Deliver Shade Nets Materials for 20 Farmers in Dreamland Under Emfuleni Local Municipality in Sedibeng District in Gauteng Province 2018-03-09 09:00 DRDLR- GP- 0007(2017/ 2018)
Terms of Reference to appoint a service provider to provide accredited project management training to 30 employees of research organisations 2018-03-19 11:00 SCMU: 15 - 2017/ 18
Appointment of a preferred list of suppliers to conduct Marine Geophysical Surveys for council for Geoscience for a period of three (3) years. 2018-03-27 11:00 CGS- 2017- 055
Appointment of a service provider to Redesign The National Land Transport Information System (NLTIS) in terms of the National Land Transport ACT NO.5 OF 2009. 2018-03-16 10:00 DOT/ 13/ 2017/ PT
Re-Advert - Provision of CETA toolkits to learners on CETA - funded projects 2018-03-02 11:00 014- 2017/ 2018
Highly experienced service providers for New website design, hosting and support, content management system implementation, social intranet design and development and digital services. 2018-03-26 14:00 NRA 58000/ 03/ 07/ 2018R
Appointment of a Service Provider to Supply and Deliver 90litres of Water Rollers in Sedibeng District Municipality, Tshwane Metro , West Rand District Municipality Within Gauteng Province 2018-03-09 11:00 DRDLR- GP- 0005(2017/ 2018)
Re-Advert - Provision of CETA branded personal protective equipment (PPE) to learners on CETA - funded projects 2018-03-02 11:00 015- 2017/ 2018
Appointment of a service provider to provide maintenance services for telephone management and switchboard systems at the Bloemfontein Deeds Registry for a period of 24 months 2018-03-19 11:00 DRDLR (CRD- 11) 2017/ 18
Appointment of a service provider to render garden maintenance services for a period of twenty four (24) months: Bloemfontein Deeds Registry 2018-03-19 11:00 DRDLR (CRD- 10) 2017/ 18
Request for Secure Care Services 2018-03-16 11:00 GT/ GDSD/ 053/ 2018
Erp Implementation Resouces on an ‘as and when Required’basis for a period of 36 months. 2018-03-19 11:00 H17/ 050
The appointment of a service provider for 3 regions to assist the Department of Rural Development and Land Reform with design, layout and printing on a 24 month term contract. 2018-03-15 11:00 5/ 2/ 2/ 1- RDLR 0146(2017/ 2018)
A Bid in order to appoint a service provider to conduct a research on the reduction of silicosis in the non-mining sector for the Department of Labour. 2018-03-23 11:00 LAB 01/ 2018
Rendering of a Cleaning Service to Vredenburg Hospital, Department of Health, Western Cape Government for a three (3) year period 2018-03-26 11:00 WCGHSC0132/ 2018
Procurement of accommodation to support the April 2018 Grade 12 camps 2018-03-05 12:00 CS/SCM/COO/SSIP/R17-18/67
Appointment of a service provider for VAT administration for the National Department of Health for Global Funds grant. 2018-03-09 11:00 NDOH 27/ 2017- 2018
Testing of Oysters for the presence of microorganisms & heavy metals 2018-03-02 11:00 RFQ 000223

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
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.