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 For more information on the tender courses please email Werner at

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.
Trade and investment Kwazulu -Natal requests proposals from service providers to conduct an Organisational Performance Assessment. 2018-10-15 12:00 33
Large Towel Drape Disposable 45cm X 30cm Sterile Latex Free. 2018-10-02 11:00 ZNQ NO.2707/ 08/ 18
Request for procurement of Curriculum and Assessment Policy Statement (CAPS) Compliant Mathematics Software for Grades R to 12 for a period of three (3) years. 2018-10-15 11:00 RFB 1808/ 2018
Appointment of a service provider for the renewal of Infomet GBM licenses for the Government Pension Administration Agency (GPAA). 2018-10-05 11:00 RFB 1801/ 2018
Gastrostomy Feeding Tube (Various Sizes) 2018-10-02 11:00 ZNQ NO.2699/ 08/ 18
Appointment of service provider for the asset valuation of 16 radar sites, 8 lightning detection sites and 6 upper air observational sites. 2018-10-12 11:00 SAWS- 165/ 18
The Safety and Security Sector Education Training Authority (SASSETA) invites all Employers, Accredited Training Providers, public training institutes, unemployed learners applying for bursaries, NGO’s, CBO’s and trade unions operating in the safety and security sector to submit applications for Discretionary Grants for the 3rd funding window for 2018/2019 financial year. 2018-10-15 12:00 RFQ/ SASSETA/ 201819152
Consultancy Service for the Design, Production, Branding and Supply of Publications and Corporate Collateral until March 2020. 2018-10-15 11:00 RFP/ SASSETA/ 201819119/ 1
Appointment of a Corporate Communications Service Provider until 31st March 2020. 2018-10-15 11:00 RFP/ SASSETA/ 201819113/ 1
Appointment of an Event Management Service provider/s that will provide Event Management services to the RTMC for a period of three (years) with an option to extend for one (1) year. 2018-10-15 11:00 RTMC BID 15/ 2018/ 19
Neonatal Intr-Abdominal Pressure Monitoring Device 2018-10-02 11:00 ZNQ NO.22/ 04/ 18
The Road Accident Fund (RAF) invites an experienced and suitable service provider to Architect, Implement, Maintain and Support an Enterprise Management System for a period of five (5) years. 2018-10-23 11:00 RAF/ 2018/ 00045
Request for proposals for appointment of a service provider for supply, installation and maintenance of the online training (examination) accreditation system for security officers for a period of 36 months. 2018-10-24 11:00 RFB/ 2018/ PSiRA/ 08
Disposable, Elasticated and Knee Length Boot Covers, Must be Antistatic, Fluid and Tear Resistant 2018-10-02 11:00 ZNQ NO.942/ 05/ 18
Request for proposals for appointment of a panel of legal service providers for a period of 36 months. 2018-10-25 11:00 RFB/ 2018/ PSiRA/ 09
Appointment of a Recruitment Panel for a period of thirty six (36) months. 2018-10-26 11:00 SCMN007/ 2018
Vaginal Ring Pessary, Various Sizes: Vaginal Ring Pessary Size 60 20 Units 2018-10-02 11:00 ZNQ NO.585/ 05/ 18
Appointment of a service provider to conduct an implementation evaluation of the Foster \Care programme. 2018-10-12 11:00 SD04/ 2018
Blood Glucose Monitor - Accu - Check Active (Proprietory Compatible to Accucheck Active Strips Currently In Use) Quantity:1 2018-10-02 11:00 ZNQ NO.1184/ 05/ 18
Appointment of a panel of service providers to render internal audit services for a period of three (3) years. 2018-10-08 11:00 RFB 073/ 18/ 19


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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