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.
Establishment of a list of Registered and experienced service providers for Prequalification to be included in the Department’s Database for provision of Travel Management Services for North West Read for a period of one (1) year. 2018-02-28 11:00 13 READ 0028/2017
Appointment of a service provider to assist with the purchase and delivery of production inputs and poultry for Dr R.S Mompati Poultry Value Chain Project, in Ward 01, 06 and 13 Kagisano Molopo Local Municipality, Dr R.S. Mompati District Municipality in the North West Province. 2018-01-26 11:00 NW-TEN02 (005)17/18
Training: Brush Cutter – Level 2 2018-01-30 12:00 Q28/2017/2018
Appointment of a service provider to supply and deliver production inputs (ground nuts) for Tshidiso Irrigation Primary Cooperative Limited at Greater Taung Local Municipality within Dr. Ruth Segomotsi Mompati in North West Province 2018-01-26 11:00 NW-TEN02 (004)17/18
Supply of Fuel for a period of one year 2018-02-13 12:00 BTO/FOO1/MLM2017
Training: Switch Board Operator 2018-01-30 12:00 Q29/2017/2018
Appointment of a service provider to supply and deliver brick making machine for Kraaipan Bricks & Building Aggregates Primary Cooperative in ward 11 Kraaipan Village, Ratlou Local Municipality within Ngaka Modiri Molema District Municipality in North West Province 2018-01-26 11:00 NW-TEN02 (002)17/18
Revenue Enhancement Strategy 2018-02-13 12:00 MLM/RES/02/2017
Supply and delivery of lifting equipment 2018-02-13 14:00 Rec 58526
Repairs and Maintenance at Monwabesi 2018-02-02 11:00 SB11800536
Supply & Delivery of New Electrical Infrastructure and Construction Equipment for the College 2018-02-16 11:00 C09/2017
Training: computer training level 3 2018-01-30 12:00 Q30/2017/2018
ATM & SSD Acquiring Project 2018-02-16 11:00 RFP -27-2017/18
Appointment of a service provider to supply and deliver sewing machine, leather materials and equipment for Banareng Manufacturing Cooperative in Tlhabane Village within Rustenburg Local Municipality 2018-01-26 11:00 NW-TEN02 (001)17/18
A panel of legal service providers for three year period 2018-02-16 12:00 MTK14/2017
Tender for the supply, delivery and offloading of single -phase and three -phase bidirectional meters, as and when required: three year period 2018-02-19 10:00 USD EE 32-2017/18
Appointment of a suitably qualified Electrical service provider to perform electrical maintenance on PRASA infrastructure on an ‘AS & When’ required basis for Free State and Northern Cape Provinces for a period of 36 months. 2018-02-19 12:00 HO/CRES/SGR/03/01/2018
Supply and installation of eight (8) x tap connected wall mounted deionizers 2018-01-29 12:00 T/ING/001/2018
Supply, installation and commissioning of a pre-reduction furnace. 2018-02-19 12:00 MTK18/2017
Appointment of a service provider to perform a full sans 241:2015 water analysis and sludge classification analysis 2018-01-29 12:00 T/ING/002/2018

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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
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