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 and Appointment of a Reputable Landscaping and Garden Terrains (Deforestation / Tree Felling) and Indoor Plants Maintenance Contractor(S) Through an Rfb:- for a 3 Year Period at Various Sita Hq Campuses In Centurion, Erasmuskloof, Beta and Numerus With The Option To Include Future New Sites 2017-11-24 11:00 RFB 1651- 2017
Procurement of services for the establishment and implementation of multispecies aquaculture hatchery, Research And Demonstration Centre in the Eastern Cape for a period of three (3) years 2017-11-24 11:00 4.4.12.4/ MLRF 150/ 18
Supply and delivery of Crime Scene Protective Stepping Plates for a period of two (2) Years: Criminal Record and Crime Scene Management: Division: Forensic Services 2017-11-24 11:00 19/ 1/ 9/ 1/ 65TD (17)
Supply and deliver a replacement part on an Inspex 20i x-ray system: one (1) digital, flat panel x-ray detector 2017-11-24 11:00 NRF/ SAIAB/ 2018- 018
Provision of service provider to evaluate discretionary grants proposal 2017-2018 2017-11-23 11:00 011- 2017/ 2018
Provision of service provider to adjudicate discretionary grants proposal 2017-2018. 2017-11-23 11:00 010- 2017/ 2018
Procurement of a Sub-Zero Variable Black Body Source, Including Delivery, Installation And Commissioning 2017-11-24 11:00 NMISA (17- 18) T0042
Appointment of a service provider to provide comprehensive facilities management services at DPP Kimberley and Thuthuzela Care Centre for a period of three (3) years 2017-12-04 11:00 NPA 16- 17/ 18
Procurement of a High Temperature Variable Black Body Source, Including Delivery, Installation And Commissioning 2017-11-24 11:00 NMISA (17- 18) T0053
Procurement of a Medium Temperature Variable Black Body Source, Including Delivery, Installation And Commissioning. 2017-11-24 11:00 NMISA (17- 18) T0052
Procurement of a Low Temperature Variable Black Body Source, Including Delivery, Installation And Commissioning 2017-11-24 11:00 NMISA (17- 18) T0051
The Mjindi Farming (PTY) LTD seek to appoint a contractor for rendering security services for period of twelve months 2017-12-08 11:00 Tender
Procurement of a Tympanic (Ear) Variable Black Body Source, Including Delivery, Installation and Commissioning 2017-11-24 11:00 NMISA (17- 18) T0050
Appointment of a service provider to develop and implement a consumer education campaign for a period of twelve (12) months on 80/20 PPPFA: preferential procurement regulations, 2017. 2017-12-01 11:00 ICASA 13/ 2017
Appointment of a service provider for cleaning, pest control, hygiene, waste recycling and removal services at ICASA’s head office (Sandton) for a period of one (1) year 2017-12-01 11:00 ICASA 14/ 2017
Appointment of a service provider for the development and implementation of the migration plan, which includes the development of radio frequency spectrum assignment plans and an update to the IMT roadmap for a six (6) months 2017-12-01 11:00 ICASA 11/ 2017
The appointment of a service provider to provide safeguarding and Security services at the Department of Public Works: Head Office Complex, 191 Prince Alfred Street, PMB. 2017-12-01 11:00 ZNT 06/ 17/ 18
Supply and delivery of 300 Safety Kiosks over the period of two years for the Department of Community Safety 2017-11-24 11:00 GT/ GDCS/ 149/ 2017
Rendering of a comprehensive cleaning and hygiene Eco-Friendly service for Bellville Health Park “Green Building” for a three (3) year period. 2017-12-01 11:00 WCGHSC 0135/ 2017
Security Services required at Coastal KZN TVET College for the Central Office and 8 Campuses 2017-12-01 11:00 SS CKZN 02/ 2017

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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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