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.
Procurement of Marketing and Promotional Material Contract for a period of three years for Lephalale TVET College 2017-12-14 11:00 LEPTVETCOL2017/ 004
Acquisition of land for construction of RTMC office premises 2017-12-13 11:00 RTMC BID 14/ 2017/ 18
Supply gauze swabs 8 ply sterile 100x100, 500 pouches per case. (250 boxes) 2017-11-28 11:00 389/ 17- 18
Supply and install fridge tags x 45 units. 2017-11-24 11:00 ZNQ 216/ 17
Service provider to replace all class 0 to class 2 copper pipe and give a detail report about water quality and recommended service provider must be CIDB grade 1GB & 1SO grades 2017-11-28 11:00 200/ 2017/ 2018 NSI
Supply and installation of wall mounted handrails and accessories as per specification 2017-12-04 11:00 ZNQ 894/ 17- 18
Supply and deliver Office Furniture for Ems uMgundundlovu 2017-11-24 11:00 278/ 17/ 18
Panel of legal service and other related services to the RTMC for a period of three years 2017-12-12 11:00 RTMC BID 15/ 2017/ 18
The Road Accident Fund (RAF) invites an experienced and suitable service provider to Edit, Design Layout, and Print the RAF Annual Reports for a period of three (3) years. 2017-12-15 11:00 RAF/ 2017/ 00065
Repairs to extractor fan hood x 2 units 2017-12-01 11:00 ZNQ 218 / 17 - 18
Re-advertised: vaccine refrigerators - single door (06) 2017-11-24 11:00 62/ 05/ 2016
Implementation Evaluation of the South African Police Service Detective Service: Crime Investigation Service 2017-12-11 12:00 DPME11/ 2017- 18
Procurement of OHSC Server infrastructure and services for a period of five (5) years 2017-12-11 11:00 OHSC/ 02/ NOV/ 2017
Supply: 01 Set, Lounge suit with, genuine leather, black in colour 2017-11-27 11:00 ZNQ 479/ 17/ 18
Provision of a Training Provider to Provide an Engaging Leadership Development Fiveday Short-Course Programme for Health Managers in Western Cape Government Health for a three (3) year period 2017-12-15 11:00 WCGHSC 0126/ 2017
Appointment of a service provider to render communications and media production agency services for The National Consumer Commission for a period of thirty six (36) months 2017-12-15 11:00 NCC/ 02/ 2017/ 18
Appointment of a service provider to conduct research project regarding the issuing of self contained rescuers (SCSR) to mining employees. 2017-12-15 11:00 MHSC016/ 2017- 18
Service eto gas sterilizers 2017-12-03 11:00 ZNQDN263/ 17GAZ
LGSETA hereby invites interested parties to submit their proposals for the implementation of a business Workflow Management Solution. 2017-12-08 12:00 LGSETA/ ICT/ 17/ 18/ 01
Provision of a National Brand Perception Survey for Legal Aid South Africa for a period of 2 months. 2018-01-11 11:00 41/ 2017

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
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.