Issue Date: 
Tuesday, November 1, 2016

When to sub-contract?

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 which came into effect on 1 April 2017. Many entrepreneurs ask us whether they should sub-contract or not, when responding to a tender.

Regulation 9 of The Preferential Procurement Regulations 2017, stipulates the following:

1: 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.

2: The Organ of State must advertise this specific tender condition that the successful bidder must sub-contract at a minimum of 30% (of the value of the contract) to (one or more) to an EME or QSE which is at least 51% owned by:

a.    black people;

b.    black people who are youth;

c.    black people who are women;

d.    black people with disabilities;

e.    black people living in rural or under develop areas or townships;

f.    black people who are military veterans;

g.    A cooperative which is at least 51% owned by black people;

3: In paragraph 3 of Regulation 9 it also states that the Organ of State must make available the list of all suppliers registered on a database approved by the National Treasury to provide the required goods or services in respect of the applicable designated groups mentioned above from which the bidder must select a supplier.

Regulation 9 is very clear because its states "the tenderer MUST sub-contract…..". Thus, according to the Regulations all contracts with a value of R30 million and above will have to comply with this Regulation. Read the tender document carefully because somewhere in the tender document it will stipulate whether or not the bidder will have to sub-contract. Follow those rules. If the tender document doesn't contain any sub-contracting instructions then it is not necessary to sub-contract.

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

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.
The supply and delivery various sizes of Ferrules. 2018-09-21 10:00 PTB1360
Provision for power transformer testing services at various sites for a period of 36 months as and when required basis. 2018-09-21 10:00 ERI/2018/TSS/01
Provision for power transformer testing services at various sites for a period of 36 months as and when required basis. 2018-09-21 10:00 ERI/2018/TSS/01
Maintenance to service roads, fencing and surfaces on an as & when required basis within a period of 24 months. 2018-10-02 10:00 KBY/54318
Supply and delivery of 2 (Two) 2.5 Litre Double Cab Ldvs With Canopy From an accredited Motor Vehicle Dealer 2018-09-04 12:00 BS22/07/2018
The University of South Africa invites tenders from suitably qualified service providers to provide the University with international courier services for a period of three years. 2018-09-03 12:00 PT2018/12
Re-design the existing human capital function in support of the DBSA Growth & Transformation agenda. 2018-09-10 11:00 RFP124/2018
Supply and delivery of 1(one) x TLB with Minimum Engine Gross Power (SAE) Of 29.1 Kw from an accredited Motor Dealer 2018-09-04 12:00 BS19/07/2018
Evaluation of the Global Fund Community Systems Strengthening Programme. 2018-09-10 08:30 None provided
Reconstruction of Stage Floor at Eric Jiyane Community Hall, Mhluzi 2018-09-05 12:00 BS23/07/2018
Request for proposals for total replacement of 22 lifts in the University. 2018-09-14 10:00 RFPSMU/008/2018
Request for proposals for upgrading of electrical substation and electrical cabling. 2018-09-14 10:00 RFP SMU/006/2018
Appointment of a Suitable Service Provider to Conduct Research on Tracking and Tracing of Learners who Completed TETA- supported Workplace-based Learning - WBL Programmes (Learner ships, Internships and apprenticeships) in the financial year 2016/2017. 2018-09-07 11:00 TETA18/RESEARCH/0005/WBL
Construction of Storage for Hazardous Material at Electrical Department Store, Service Centre (Magasyn), Middelburg 2018-09-05 12:00 BS24/07/2018
Request for Proposals for the Appointment of a Suitable Service Provider to Conduct a Tracer Study on ‘Teta-funded Pilots within Aviation for the Period of NSDS III (2011-2017) 2018-09-07 10:00 TETA18/RESEARCH/0004/TRACER
BBBEE Verification Agency 2018-08-28 12:00 030/2019
Supply Calcium hypochlorite 2018-08-23 16:00 GC11900071
Supply: Medical supplies 2018-08-28 15:00 GF11900120
Hiring of Water Tanker for Regravelling of Gravel Roads at Bethal and Emzinoni for 30 days 2018-08-27 12:00 RFQ NO: 8/3/2- 62/2018
Hire of a 20 Ton Excavator for Bellville South Landfill. 2018-08-28 09:00 WJ11900109

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Each year, Organs of State invite the Private Sector to submit competitive bids for the supply of goods and services. Organs of State bid requests attract SMME's and large businesses across a wide range of sectors - from office supplies to major construction projects.

Here is an overview of 10 steps you should take to prepare a competitive bid.

1.    Register your interest

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