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.
Provision of a whisteblower services for a period of 36 months. 2018-05-18 11:00 1A-36415
Provision of annual report design, layout and printing services for a period of 36 months. 2018-05-18 11:00 1A-36038
Supply and deliver of Carrot (Cape market) Seeds in 500 gram packs 2018-05-04 11:00 GQ04181748
Supply and deliver of Onion (Texas grana and red creole) Seeds in 500 gram packs 2018-05-04 11:00 GQ04181748
Securing company for the campaign shoot for The DFF 2018. 2018-05-02 11:00 7G‐38176
Supply and deliver of Squash (Rollet and Green hubbard) Seeds in 500 gram packs 2018-05-04 11:00 GQ04181748
Supply and deliver of Spinach (Fordhook giant) Seeds in 500 gram packs 2018-05-04 11:00 GQ04181748
Supply and deliver of Greenpepper (Carlifonia wonder) Seeds in 500 gram packs 2018-05-04 11:00 GQ04181748
Supply and deliver of Beetroot (Rimson globe) Seeds in 500 gram packs 2018-05-04 11:00 GQ04181748
Supply and deliver of Cabbage Seeds (Glory of Erkhuizen) in 500 gram packs 2018-05-04 11:00 GQ04181748
Supply and Install 2 x Vehicle PA System 2 x horn 2 loudspeakers with succion cups, amplifier, usb audio, microphone and workbench assessment 2018-05-02 11:00 CSQ04181266
Supply, Deliver and Install a conveyor belt at the Check in counter at the Airport. 2018-05-08 12:00 Specialised quotation no.Q12/279 of 17/18
Panel of Professional Land Surveyors For a Period of 36 Months. 2018-05-11 12:00 A027-2017/18
Supply and delivery of Brake Beam Components. 2018-05-22 10:00 TE18-BFX-050-02553
Die dienste van spesialis vir die benodig vir ‘n ontleding, behoeftebepaling en installering van ‘n brandalarmstelsel en noodontruimingsplan. 2018-05-26 11:00 ATM/002-2018/2019
Cove and emergency escape routes lighting project. 2018-05-29 12:00 ORT132/2017
The provision of reclamation dam electrical panel works for an estimated period of 6 months at Camden Power Station. 2018-05-31 10:00 MPGXC005144
The provision of reclamation dam electrical panel works for an estimated period of 6 months at Camden Power Station. 2018-05-31 10:00 MPGXC005144
Installation and replacement of water meters up to & including 150MMØ. 2018-05-31 11:00 SCM/17-110/S
Supply, Delivery, Installation and commissioning of new energy efficient air conditioning units at Neptune, Pembroke, Buffalo, Grassridge and Poseidon substations. 2018-06-01 10:00 PSCED0093R

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
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