Issue Date: 
Monday, May 29, 2017

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.

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 will earn you a point out of 20, and on the 90/10 system your B-BBEE status level 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 submit an affidavit stating its B-BBEE status level.

Exempt Micro Enterprises (EME's) must acquire an affidavit regarding their B-BBEE status level - 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 levels 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 or B-BBEE affidavit is very important in the Tender Process. 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. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

 

Title Closing Date Tender No.
Implementation evaluation of corporate governance in South Africa’s State Owned Enterprises (SOE’s) 2018-12-07 12:00 DPME 11/ 2018- 2019
Repairs to ceiling boards, gutters, floors, fascia boards, wall, tiles and paintwork at DOT cost centre office, Eshowe 2018-12-14 11:00 ZNTU 03429 W3
Supply and delivery of ten (10) laptops equivalent to lenovo thinkpad T580 2018-12-14 11:00 ZNQ 18/ 19/ 0017/ NCR
Dundee Regional Laundry: Refurbishment, Service Equipment and Procurement of New Equipment. 2018-12-14 11:00 WIMS 068237- ZNTL 03894W
Supply and delivery of twenty (20) of all-in-one desktops equivalent to Lenovo think centre M910z. Contract period: 01 month. 2018-12-14 11:00 ZNQ 18/ 19/ 0016/ NCR
Appointment of a Mult-Disciplinary Entity to Provide Professional Services to Undertake the Assessment and Upgrading of the Central Air Conditioning System at St. Aidans Hospital 2018-12-14 11:00 WIMS 063141
The Department of Local Government (DLG) requires a Service Provider to provide the Municipal Minimum Competency (MMC) Training programme to identified officials. 2018-12-14 11:00 LG 01/ 2018/ 2019
Training of 100 beneficiaries in Vehicle Maintenance & Repair Assistant Skills Programme NQF L2. 2018-11-23 11:00 T/ 37/ 18 Skill VMRA
The appointment of the service provider to develop an Environmental Management Framework (EMF) for the Cape Floral Region Protected Areas World Heritage Site (CFRPA WHS) for the period of eighteen months. 2018-12-07 11:00 E 1489
False Bay College: All Campuses: Supply & Delivery of IT Workstations and Peripheral Devices 2018-12-07 11:00 FBC T12/ 2018
Sibasa SAPS Training Centre: Repairs to Training Centre 2018-12-11 11:00 PLK18/ 43
SAPS: Grassy Park Police Station: Upgrading of Stormwater Drainage 2018-12-07 11:00 CPT 1014/ 18
The appointment of the service provider to assist the Waste Bureau with the identification and securing of site, development of a business plan, and management of the setting-up; equipping; operating; training of beneficiaries and handover of the Pilot Construction and Demolition Waste Crushing and Block Manufacturing Facility. 2018-12-07 12:00 E 1490
Service and maintenance of standby and base load generators for 24 months. 2018-12-07 11:00 KIM- 1018/ 107452
Invitation of service providers for monitoring and evaluation of Gauteng City Region Academy (GCRA) Training and Development Intervention Programmes for a period of three (3) years 2018-12-07 11:00 GT/ GDE/ 160/ 2018
Outsource for the Service Providers for a Forensic Investigation of the Repair and Maintenance Project at 11 Military Hospital for Defence Inspectorate Division (DACAF). 2018-12-14 11:00 CPSC- B- G- 161- 2018
Midlands Region: Department Of Basic Education: Umzinyathi District ( Msinga) Umbonje High School: Sanitation Programme Phase II 2018-12-18 11:00 ZNTL 02899 W
Midlands Region: Department Of Basic Education: Umzinyathi District ( Msinga) Mhlangezulu Secondary School: Sanitation Programme Phase II 2018-12-18 11:00 ZNTL 03804 W
Midlands Region: Department of Basic Education: Umzinyathi District ( Msinga) Asibambisane Primary School: Sanitation Programme Phase II 2018-12-18 11:00 ZNTL 03089 W
Appointment of Professional Services Providers for development of 5-year reliable water and sanitation services delivery plan (Phase1) – Situational Assessment Review and Phase 2 – Development) for Ilembe DM. 2018-12-07 11:00 MISA/ DWSS/ IDM/ 043/ 2018

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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