Issue Date: 
Thursday, October 31, 2019

Sub-contracting rules to be aware of when responding to tenders

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting, due in large part to The Preferential Procurement Regulations, 2017 that has been implemented on the 1st of April 2017.  Many entrepreneurs ask us whether they should sub-contract or not, in responding to a tender and how and where do they get onto the sub-contracting lists.

There are 3 sub-contracting rules in the Preferential Procurement Regulations 2017 that Organs of State can/must apply when issuing tenders to the public.

The first Regulation is Regulation 4 which state inter alia: if an Organ of State decides to apply pre-qualification criteria to advance certain designated groups that Organ of State must ADVERTISE the tender with a specific tendering condition that certain bidders can or may respond.

The second Regulation is Regulation 9 which state inter alia: if it is feasible to sub-contract for a contract above R30 million, an Organ of State must apply sub-contracting to advance designated groups.

The designate groups mentioned in both Regulation 4 and 9 are Black Owned Enterprises with 51% or more black ownership and any of female Black owned, youth black owned, black people with disabilities owned or black military veterans owned enterprises.

The third sub-contracting rule has to do with sub-contracting after the award of the tenderRegulation 12 states inter alia: (3) a person awarded a contract may not subcontract more than 25% of the value of the contract to any other enterprise that does not have an equal or higher B-BBEE status level of contributor than the person concerned, unless the contract is subcontracted to an EME that has the capability and ability to execute the subcontract.

The tender document will dictate how you should or should not sub-contract.  Read the tender document carefully; follow the instructions precisely and to the point.  Organs of State are applying these Regulations rigorously and failing to comply will lead to your tender response being disqualified.

Tender trends and Regulations are changing frequently.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Department of Health: Dundee Regional: Upgrades and renovations to Dundee regional laundry. Only bidders who are 6GB and above will legible to bid. 2020-08-03 11:00 ZNTL 02400W: WIMS 055041
Goodwood: Correctional Centre: Intergrated Security Systems (ISS) Appointment of Electrical Engineer: 36 Months: Only BBBEE Level 1 & 2 2020-07-31 11:00 CPT1003 / 20
Cape Town: Parliamentary Villages: Appointment of a specialised deep cleaning contractor for a period of 24 mnoths: Only BBBEE Level 1 & 2 2020-07-31 11:00 CPT1004 / 20
Malmesbury : Correctional Centre : Intergrated Security Systems (ISS) Appointment of Electrical Engineer : 36 Months : Only BBBEE Level 1 & 2 2020-07-31 11:00 CPT1002 / 20
RFB 2190-2020: Provision of hygiene services to SITA Erasmuskloof, Centurion, Numerus and Beta buildings for a period of 36 months. 2020-07-31 11:00 RFB 2190- 2020
RFB 2147-2020: Provide Maintenance and Support of Video Conferencing Equipment and related Software to Department of Correctional Services (DCS) for a period of twelve (12) months. 2020-07-31 11:00 RFB 2147- 2020
Appointment of a service provider to deliver cleaning services to SITA Mpumalanga buildings (Nelspruit and Middelburg) for a period of 36 months. 2020-07-31 11:00 RFB 2173/ 2020
Request to place and advertisement of the Bid: RTMC BID 04/2020/21 for appointment of a service provider to provide security services at RTMC Colleges (Boekenhoutkloof and Denel Campus) and Head Office (Eco Park, Centurion) for a period of two (2) years 2020-08-05 11:00 RTMC BID 04/ 2020/ 21
Request to place and advertisement of the Bid: RTMC BID 02/2020/21 for appointment of a panel for Information Technology and related services for a period of five (5) years 2020-08-04 11:00 RTMC BID 02/ 2020/ 21
Appointment of a service provider to intergrate gender based violence (GBV) system and victims empowerment (VEP) system to enable the information exchange between the intergrated justice system (IJS) cluster departments 2020-07-31 11:00 SD04/ 2020
Appointment of a service provider to develop an alternative care management system 2020-07-31 11:00 SD05/ 2020
Department of Public Works: Harry Gwala District Office, 2 Margaret Street: Ixopo: Provision of Security Service for the period of 36 months 2020-08-13 11:00 ZNT 2955W
Appointment of a service provider for facility management services at a detention facility for illegal immigrants pending deportation to their countries of origin by the Department of Home Affairs for a period of sixty (60) months. 2020-08-07 11:00 DHA10- 2020
To supply and fitting of Steel Cabinets for Five (5) Hospitality Kitchens. 2020-08-03 11:00 EEC/ T02/ 2020
The provisioning of optometric services and optometric consumables for a period of three (3) years with an option to extend for an additional two (2) years based on performance for Red Cross War Memorial Children’s Hospital (RCWMCH) 2020-08-07 11:00 RCCH07/ 2020
TBH 504/2020: For the installation of waste compacting unit and rendering of a waste compacting and removal service at Tygerberg Hospital for a period of three (3) years 01 September 2020 until 30 August 2023, thereafter on a month-to-month basis not exceeding four (4) months 2020-08-07 11:00 TBH 504/ 2020
Request for proposal for the appointment of strategic investor for the operationalization of Bhambanana abattoir on “operate, train & transfer” principles prequalification criteria 2020-07-30 11:00 DARD11/ 20A
Supply, deliver and offload new tractors and implements at Ethekwini and Ilembe District Offices 2020-07-30 11:00 DARD10/ 20A
Appointment of service provider to oversee the implementation of four (04) Agri-hubs in KwaZulu Natal Province. 2020-07-30 11:00 DARD09/ 20A
For the supply and delivery of frozen vegetable products for the Food Services Department at Tygerberg Hospital for a twelve (12) month period, effective 1 September 2020 until 31 August 2021 with the option to extend on a month to month basis not exceeding four (4) months 2020-08-07 11:00 TBH 306/ 2020

Pages

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.