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.
Supply of Legal Brief Today Subscription 2018-01-31 12:00 SD11800331
Training of chainsaw operators - NQF2 in Graafwater 2018-01-30 12:00 Q27/2017/2018
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

Pages

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
Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.