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.
Supply and Deliver of Custon Rescue Paddle Board 2018-12-14 11:00 GQ12182004
Tenders are invited for the maintenance of ABB SCADA SYSTEM 2018-12-14 11:00 CSQ12181503
Rental of landfill compactor for December 2018 and January 2019 2018-12-18 11:00 345678
Advertisement for suitable Suppliers and Service Providers to apply and become part of Save the Children South Africa’s Supplier Database 2019-02-15 12:00 No reference number
Supply & deliver Decalit Chokes Oglis 0.5,100watt,B80 230volt for 1000watt High Pressure Fittings 2018-12-14 11:00 SQ11181321
Demolition of Redundant Structures Citywide 2019-02-08 10:00 196Q/2018/19
Supply & deliver Liquefied Petroleum Gas in 9kg cylinders,to S.A.B.S 690 specifications 2018-12-14 11:00 SQ11181321
Supply & deliver Boxes With Lids 455 L X 340 W X 290mm H Doubled Walled on sides with handles 2018-12-14 11:00 SQ11181321
Supply & deliver Envelopes Manilla With Window Face 220mm x 110mm. Straight flap cut type KE.80/100gm. 2018-12-14 11:00 SQ11181321
First Line Response- Distribution Area East, North and South 2019-02-08 10:00 192S/2018/19
Term Tender for Supply, Installation and Retrofitting of Water Efficient Technologies Citywide 2019-02-11 10:00 197Q/2018/19
Supply & deliver Truck Tyres 12R22.5 2018-12-13 11:00 SQ12181325
Supply & deliver Couplings Rubber DISC F-60 tyre 2018-12-13 11:00 SQ12181325
Supply & deliver Pipe,Coil Safe 15mm X 50mtr 2018-12-13 11:00 SQ11181312
Supply & deliver Electrical Spring Connectors Part no. 200665 Blue & Grey connectors.Scotc hlok 3M or approved equal 2018-12-13 11:00 SQ11181312
Tenders are Invited for the Servicing and Issue of Safe Lift Certificate for 19 Vehicle Lift Hoist 2018-12-14 11:00 CSQ12181507
Supply and delivery of heavy duty mobile vehicle 55 metre aerial firefighting/rescue turntable ladder for the fire and rescue services 2019-02-11 10:00 204G/2018/19
Supply and delivery of various articles of human protective clothing for use in structural fires by the fire and rescue service 2019-02-11 10:00 202G/2018/19
The supply of aerial support to the fire and rescue service during high fire season 2019-02-12 10:00 207G/2018/19
Supply and delivery of various firefighting foam concentrate for the City of Cape Town 2019-02-12 10:00 205G/2018/19

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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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