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.
Appointment of a panel of debt collectors for PSiRA for a period of 3 years. 2018-09-19 11:00 RFB/ 2018/ PSiRA/ 06
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-14 11:00 ZNT373T/ C235/ 1100/ S/ 3
Appointment of a technical assistant to undertake an economist/education planner role on The Eastern Cape Department of Education (ECDoE) Schools Rationalisation Project. 2018-09-07 11:00 GTAC 022- 2018
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-14 11:00 ZNT373T/ C235/ 1100/ S/
Purchase of a Lowbed Trailer 2018-09-07 11:00 ZNB0003/ 18
The appointment of service provider for rendering of general cleaning services for surveyor-general: Cape Town for a period of thirty six (36) months for number 90 Plein Street, Part 8th floor, 9th & 10th floors. 2018-09-07 11:00 SSC WC 09 (2018 / 2019) DRDLR
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-19 11:00 ZNT373T/ C237/ 1200/ S/ 9
Appointment of a suitable service provider for the management of SAP hosting service for a period of two (02) years. 2018-09-17 11:00 NHBRC 03/ 2018
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-19 11:00 ZNT373T/ C237/ 1200/ S/ 5
Request for proposals for the appointment of a suitable service provider on a panel to conduct consulting service in the built environment for a period of three (03) years 2018-09-19 11:00 NHBRC 01/ 2018
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-19 11:00 ZNT373T/ C237/ 1200/ S/ 10
Appointment of a service provider for technical and functional support for the implemented SAP solution for a period of three (03) Years. 2018-09-17 11:00 NHBRC 02/ 2018
Appointment of Service provider to Develop and Implement an Enterprise Resource Planning System for the MQA. 2018-09-19 11:00 MQA/ 05/ 18- 19
Minor Structure Repairs on P272 2018-09-17 11:00 C252/ 1718/ MS/ 592
Upgrade of Main Road P16-3 from KM28+200 to KM33+800 - CIDB Grading 8CE 2018-09-13 11:00 ZNT3656/ 15
Appointment of service providers for the supply and delivery of branded promotional material/items to INSETA. 2018-09-11 11:00 Proj/ 2018/ 07
Pretoria: Bryntirion, Construction of Roads, Stormwater, Water Reticulation and Sewer on Western side and Central area of the Bryntirion Estate 2018-09-18 11:00 PT18/ 025
Servicing of heat pumps 2018-08-24 11:00 ZNQ58/ 18/ 19
Appointment of a service provider to provide job profiling, grading and remuneration survey/bench marking services. 2018-08-27 11:00 RFQ/ 2018/ 63
Servicing of sewer pump 2018-08-24 11:00 ZNQ68/ 18/ 19

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7 Disadvantages of Competitive Bidding

The bidding process can be very tedious sometimes. Here are some of the disadvantages of the bidding process.

1.    Leading suppliers may not tender

In Australia, for example, government procurement guidelines only allow suppliers who actually tender to be considered for a procurement decision. If the leading supplier or suppliers do not tender, the purchaser can only consider bids from suppliers who do tender. If leading suppliers are not considered, the purchaser may end up buying inferior product or service... Read More

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