Issue Date: 
Tuesday, November 1, 2016

When Must I Sub-Contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

The Draft Preferential Procurement Regulations stipulates the following: 

  1. For contracts above R30 million, the tenderer MUST sub-contract a minimum of 30% of the value of the contract to –
    • One or more of the categories:
      • EME’s (Exempt Micro Enterprises) or QSE’s (Qualifying Small Enterprises) owned by black people who are female;
      • EME’s or QSE’s owned by black people from the ages 14 to 35;
      • EME’s or QSE’s owned by black people;
      • EME’s or QSE’s owned by black people with disabilities)
    • One or more Exempt Micro Enterprises (EME’s) or Qualifying Small Enterprises (QSE’s); or
    • One or more small businesses, as defined in the National Small Business Act.
  2. If a successful tenderer sub-contracts to another person without disclosing it in its tender documents, the organ of state must penalise the tenderer 10% of the value of the contract, unless the tenderer submits a satisfactory reason for failing to make the disclosure.

The Regulations are very clear because its states “the tenderer MUST sub-contract…..”. Thus, once the Regulations are finally gazetted then all contracts with a value of R30 million and above will have to comply with this Regulation. Remember that currently (as of 31 Oct. 16) the Regulations are not finalized yet.

Until such time that the Regulations are finalized the answer is easy whether or not to sub-contract – look at the scope of the tender or the special conditions. Somewhere in the tender document it will stipulated whether or not the tenderer will have to sub-contract.  Follow those rules. If the tender document doesn’t contain any sub-contracting instructions (at this stage) then it is not necessary to do so.

The fact is that the tender document will dictate what you should or should not do. Read the tender document carefully and follow the instructions to the point.

To learn more about this and all the other new developments regarding tenders, attend one of the How-to-Tender workshops.

Learn to earn

www.how2tender.com

Title Closing Date Tender No.
Unometer intra abdominal pressure device Ref 158100110190 x 100 units 2017-08-30 11:00 134/ 08/ 17
Double oxygen flow meters x 95 (specification attached) 2017-08-30 11:00 136/ 08/ 17
Spiral Extension set for anaesthetic use, micobore +-3 m, manufactured from medical grade Plastic & kink resistant micro-bore tubing x 1000 units. 2017-08-30 11:00 132/ 08/ 17
Disposable cuscos Large x 5000 Medium x 3000 Small x 2000 2017-08-30 11:00 95/ 07/ 17
Surgical gowns disposable reinforced X -Large x 8000 units. (Periodic Contract for 04 months). 2000 units to be delivered per month. 2017-08-30 11:00 119/ 08/ 17
Gowns surgical sterile reinforced - Large x 8000 units. (Periodic Contract for 04 months). 2000 units to be delivered per month. 2017-08-30 11:00 108/ 07/ 17
Half day infusor 5ml/h portable elastometric infusion system sterile x 120 units 2017-08-30 11:00 99/ 06/ 16
Skin graft carriers 3:1 dermacarriers (box of 20) x 60 boxes 2017-08-30 11:00 07/ 04/ 17
6-0 Prolene (0.7 metric) 30” (75cm) polypropylene suture blue monofilament sterile non absorbable surgical suture -4 strands per packet x 40 units. (This item is used in arterial surgery to repair tiny structures). 2017-08-30 11:00 131/ 08/ 17
Percutaneous endoscopic gastrostomy standard P.E.G.Kit 20F (67mm) for single use - sterile with contents x 20 units (This item is used in endoscopic surgery for gastrostomies). 2017-08-30 11:00 133/ 08/ 17
Skin graft carriers 1,5 : 1 dermacarriers (box of 20) x 60 boxes 2017-08-30 11:00 06/ 04/ 17
Dressing transparent adhesive film 56cm x 84m (box of 10) x 480 boxes. (Periodic Contract for 12 months) 40 boxes to be delivered per month 2017-08-30 11:00 40/ 05/ 17
2 Boxes, Advance DSP tip curved scissors 23Ga, 2 Boxes, Advance DSP tip ILM forceps 23Ga, 2 Boxes, Advance DSP tip endgrasping forceps 23Ga, 2 Boxes, Advance DSP tip MPC vertical scissors 23GG 2017-08-28 11:00 ZNQ: 492/ 17/ 18
Each box, Hydrofiber dressing with silver size 20 x30cm (Box/5) 2017-08-28 11:00 ZNQ: 490/ 17/ 18
Each, Magnetic resonance conditional superalloy coil with with spaced synthetic fibers 0.035” compatible various sizes 2cm- 2mm, 2cm- 3mm, 3cm- 2mm, 3cm-3mm. 2017-08-28 11:00 ZNQ: 498/ 17/ 18
Each, Magnetic resonance conditional superalloy coil with with spaced synthetic fibers 0.035” compatible various sizes 1cm- 2mm, 1cm- 3mm, 5cm-5mm, 20cm- 10mm, 20cm- 20mm 2017-08-28 11:00 ZNQ: 496/ 17/ 18
Each, Magnetic resonance conditional superalloy coil with with spaced synthetic fibers 0.035” compatible various sizes 10cm- -10mm, 10cm-12mm, 10cm-15mm, 10cm- 5mm, 10cm-8mm 2017-08-28 11:00 ZNQ: 495/ 17/ 18
Each, Temporary hymodialisis double lumen catheter kit size 11.5F 19.5cm 2017-08-28 11:00 ZNQ: 484/ 17/ 18
Each, Clear suction liner, 2L, Blue/White/ LIGHT Green with shutoff valve 2017-08-28 11:00 ZNQ: 480/ 17/ 18
10 Pack, Adult cardiopulmonary by pass tubing pack 2017-08-28 11:00 ZNQ: 382/ 17/ 18

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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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