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 suitably qualified Service Provider for the Development, Implementation and Management of forty (40) Business Accelerator Programme for National Gazelles for a period of twenty four (24) months 2019-01-18 12:00 RFP/ T 10- 2018/ 19
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R33 from Mpumalanga/Kwazulu-Natal Provincial Boundary to Mkhondo Municipal Boundary and the N2 from Mpumalanga/Kwazulu-Natal Provincial Boundary to Mkhondo Municipal Boundary 2019-01-30 14:00 NRA X.002- 091- 2019/ 1F
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Road R35 from Lekwa municipality border through Bethal to Steve Tshwete municipal border, R38 from Bethal to Msukaligwa municipality border, N17 from Gauteng / Mpumalanga border through Bethal to Msukaligwa municipality border. 2019-01-30 14:00 NRA X.002- 096- 2019/ 1F
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route 1 sections 1 to 4 from Joostenbergvlakte to Constable. 2019-01-28 14:00 N.001- 014- 2019/ 1F
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route 10 sections 11 to 12 from from Boegoeberg to Nakop Border and National Route 14 Sections 4 to 5 from Olyvenhoutsdrift to Zonderhuis. 2019-01-28 14:00 X.005- 028- 2018/ 1F
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route 2 sections 7 to 8 from from Rondeheuwel to Natures Valley. 2019-01-28 14:00 N.002- 078- 2019/ 1F
Independent Panel of Researchers 2019-01-21 12:00 FFC/ 01/ 08/ 2018q
Establishment of a panel of Oracle Specialized Partners for the implementation of the Integrated Financial Management System (IFMS) for National Treasury for Period of three (3) years 2019-01-30 11:00 RFB 1859- 2018
The acquisition, maintenance, support and related services for security administration and reporting solution supporting Z/OS security server (RACF) for a period of thirty six (36) months 2019-01-25 11:00 RFP 53/ 2018
Appointment of a service provider to provide Board Secretariat services to the National Arts Council for a period of three (3) years on the 80/20 PPPFA. 2019-01-29 11:00 NAC- 04- 2018- 19
Travel Management Services 2018-12-14 11:00 CRL005/ 2018
Appointment of a service provider to offer lease space to the Municipal Demarcation Board (MDB) in the area surrounding Pretoria for a period of five (5) years, commencing 01 July 2019. 2019-01-25 11:00 MDB007- 2018/ 2019
Appointment of a service provider to render professional services (sponsorship sourcing management) for GovTech 2019 2019-01-15 11:00 RFB 1870- 2018
Supply of vulnerability assessment tool including maintenance and support for Office of the Premier 2019-01-15 11:00 RFB1821/ 2018
Appointment of service provider for provision of internal audit services for a period of three (3) years. 2018-12-21 11:00 HSRC/ 11/ 2018/ 19
Physical verification of all spaza shops in the Gauteng Region 2019-01-18 11:00 GEP003/ SPAZASHOPSPROJECT/ 18
Procurement of Checkpoint Firewall including maintenance and support for three years for the Office of the Premier 2019-01-15 11:00 RFB 1823 2018
Child and Youth Care training for Gauteng Department of Social Development for a period of twelve months 2019-01-18 11:00 GT/ GDSD/ 166/ 2018
Maintenance of Kinross landfill site for a period of 24 months 2019-01-30 12:00 8/3/1-9/2018
Supply, install, configure and commission audio visual and video conferencing system for the Municipal Infrastructure Support Agent (MISA) including maintenance and support for a period of thirty six (36) months 2019-01-18 11:00 RFB 1865/ 2018

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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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