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.

New Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, have been finalized and gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. We start off with the official media release from National Treasury:

The regulations were initially promulgated in 2001 and revised in 2011 thus making this the second revision since the initial promulgation.

General Procurement Guidelines

Government issued the General Procurement Guidelines not only as a prescription of standards of behaviour, ethics and accountability which it requires of its public service, but also as a statement of Government's commitment to a procurement system which enables the emergence of sustainable small, medium and micro businesses which will add to the common wealth of South Africa and the achievement of enhanced economic and social well-being of all South Africans.

Tenders in South Africa are measured on three principles, namely Functionality, Price and Broad-Based Black Economic Empowerment (B-BBEE). An Enterprise's ability to execute a contract is measured through the Functionality Principal in the Tender Environment. If an Enterprise's tender response does not pass the Functionality test it can't be measured on Price and B-BBEE. Enterprises that respond to tenders must ensure that they will pass the Functionality test in order to advance.

Functionality in Tenders Part 1

Functionality in Tenders (1)

The Preferential Procurement Policy Framework Act 2017, establish the rules according to how Government Entities must evaluate tenders. The Preferential Procurement Regulations of 2017 takes it a step further and gives guidance on how to specifically award points according to certain criteria such as B-BBEE and Price. 

There appears to be a serious lack of knowledge regarding South African tender procedures. Here, the tender processes are ruled by various Acts, Regulation and Guidelines which are specifically designed to ensure that the tender processes are in line with the Constitution of South Africa - which dictates that the tender process should be fair, equitable, transparent, competitive and cost-effective.

It is important to know that when you respond to a tender there are certain guidelines that Government Officials need to follow in order to evaluate your tender. According to the Implementation Guide - Preferential Procurement Regulations, 2017, pertaining to the Preferential Procurement Policy Framework Act, Accounting Officers and Accounting Authorities of all public entities listed in Schedules 2, 3A, 3B, 3C and 3D to the PFMA and municipal entities must comply with the rules and guidelines stipulated below.

If one looks at the General Procurement Guidelines that National Treasury issued to Government Departments, it is clear that Government wants the tender process to be fair, equitable, transparent, competitive and cost-effective exactly as Section 217 of the Constitution of South Africa requires.

Pages

Title Closing Date Tender No.
Appointment of Seven (07) Service Providers for Routine Road Maintenance per Cluster in Polokwane Municipal Area Plus Two (02) Backup Service Providers for all clusters (Multi Year)(3 YEARS) 2019-04-24 10:00 PM118/2018
Appointment of Seven (07) Service Providers for Regravelling of Roads per Cluster in Polokwane Municipal Area Plus Two (02) Backup Service Providers for all clusters (Multi Year)(3 YEARS) 2019-04-24 10:00 PM119/2018
Transport of Green Waste from Sedgefield to Old Place Garden Refuse Site 2019-03-26 12:00 371/2018/19
Provision of accredited contract administration and management training for the municipal environment 2019-03-26 12:00 369/2018/2019
Preferred service providers for technical services (specialised bulk water systems) for COEGA Development Corporation (PTY) Ltd 2019-04-08 12:00 CDC/ 70/ 19
Preferred service providers for technical services (electrical low voltage reticulations) for COEGA Development Corporation (PTY) Ltd 2019-04-08 12:00 CDC/ 115/ 19
Preferred service providers for technical services (emergency power (generators and UPS’s)) for COEGA Development Corporation (PTY) Ltd 2019-04-08 12:00 CDC/ 122/ 19
Preferred service providers for technical services (plumbing) for COEGA Development Corporation (PTY) Ltd. 2019-04-08 12:00 CDC/ 113/ 19
Preferred service providers for technical services (electrical medium voltage reticulations) for COEGA Development Corporation (PTY) Ltd (CDC) 2019-04-08 12:00 CDC/ 67/ 19
Call for expression of interest: Supply and delivery of perishable provisions and groceries, pest control services and disposal of waste food at seven (7) management areas 2019-03-29 11:00 REFERENCE NUMBER 1/ 2019
Outright purchase or placement for cassette printers with 2D barcode scanners for the anatomical pathology laboratory, Charlotte Maxeke Hospital for a period of five (5) years. 2019-04-04 11:00 RFB 165/ 18/ 19
Placement and maintenance of fully automated fluorescent slide processor and fluorescent microscope for a period of five(5) years at Tswane Hospital 2019-04-05 11:00 RFB 166/ 18/ 19
Placement and maintenance of Luminex immune based system of tissue typing and antibody screen for a period of five(5) years at Tswane hospital 2019-04-05 11:00 RFB 167/ 18/ 19
Procure a pathogen identification system for public health laboratory, infection services laboratory for a period of five (5) years at Charlotte Maxeke Hospital 2019-04-04 11:00 RFB 160/ 18/ 19
Bid for the supply and delivery of theatre consumables to all hospitals/institutions under the control of the Department of Health, Western Cape Government for a three year period 2019-04-12 11:00 WCGHCC041/ 2018
Supply and delivery of one optical fibre reflectometer to characterise optical fibre networks and photonic subsystems used for radio astronomy applications including all test peripherals required by the reflectometer, calibration, and routine servicing support. The contract is for a period of five years 2019-04-05 11:00 NRF SARAO SKRF 001 2019
(Re-advertisement) Supply, delivery and commissioning of electrical equipment and panels for NQF level 3, 4 & trade test 2019-04-12 11:00 LEPTVETCOL2019/ 001
Supply, delivery, installation, commissioning and training of a variable energy 70MEV H- cyclotron and associated beam lines for isotope production and the provision of spare parts at iThemba Labs, Cape Town, South Africa. 2019-05-10 11:00 NRF/ iThemba LABS/ 2019 - 20: 01
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the appointment of a Service Provider for the provision of Consulting Engineering Services for the Special Maintenance of Structures and Drainage on an ad-hoc basis on the National Route network in the Western and Northern Cape. 2019-04-12 14:00 X005- 021- 2018/ 1F
Panel of service providers to provide an electronic / web based or application solution access to credit and background information of individuals, companies , fixed properties etc. and ability to conduct searches on such information to the NPA for a period of three (3) years 2019-04-15 11:00 NPA 14- 18/ 19

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The 8 steps in the Tender Adjudication process

By W van Rooyen

www.howtotender.co.za

31 January 2019

It is important to understand the Adjudication process when one responds to a Tender or Request for Proposal. If you have these 8 steps under control when responding to tenders, changes are good that you will proceed to the next round.

Here are 8 steps in the adjudication process that Organs of State will most often follow in determining which bidder will win the tender:

  1. Opening... Read More
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