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.
Extremity Drape - Size 220cm X 320cm, Spunbond Drape With Laminated Spun Bond Under Leg Area To Ensureimpervious Nature, Integrated Velcro Cable Holders, Loose Non-Slip Pad Included, Sterile, Single Packed, With Expiry & Package Date, Latex Free, Water Proof 2018-10-02 11:00 ZNQ NO.2466/ 08/ 18
Sale of Obsolete and Condemned Equipment (Scrap Metal) 2018-10-02 11:00 ZNQ NO.5251/ 02/ 18[[p
Supply & Install a Heavy Duty Aluminium Double Door Frame and Doors In The Icu Passage, Electronically Opening & Closing With an Intercom System, Fitted With a Bullet Camera for Visual Monitoring of Door & Passage Way. 01 Unit 2018-10-02 11:00 ZNQ NO.2227/ 07/ 18/
Single Lumen Picc Line 2.0fr X 25cm With Stylet. 2018-10-02 11:00 ZNQ NO.2326/ 08/ 18
One Year Sevice Contract to Press Machine at Linen Department at Grey’s Hospital. 2018-10-02 11:00 ZNQ NO.2522/ 08/ 18
Picc Needles Bd Introsyte - N Precision Introducer 26g Outer Diameter 1.1mm, Inner Diameter 0.7mm Length 19mm. 2018-10-02 11:00 ZNQ NO.5560/ 03/ 18
Supply & Fit 1xroper Pump Complete With Motor and Piping and Flanges (Type 2a M08 Pump - Delivery Of Hfo For Boiler). Motor Size (380-1.5kw - 50hz) 2018-10-02 11:00 ZNQ NO.2499/ 08/ 18
Reloadable, 4-Row, Linear Cutter, Contains 118 Titanium Staples, Knife In Reloads, Dimensions Before Closure: 4.3mm X 1.5 - 2mm, Thick Tissue, 75mm/80mm Tlc75 2018-10-02 11:00 ZNQ NO.2470/ 08/ 18
A Simple System for Accurate Intra Abdominal Pressure Monitoring In Critically ill Patients 2018-10-02 11:00 ZNQ NO.1863/ 07/ 18
Disposable Unisex(Male/Female) Underwear, Must Be Durable Elasticated Breathable Stretchable Cloth Like Material, One Size Fits all. 2018-10-02 11:00 ZNQ NO.943/ 05/ 18
Bone Marrow Biopsy Needles, Size 8 Gauge X 100mm, Must Be Disposable, Sterile & Have A Manufacture & Expiry Date 2018-10-02 11:00 ZNQ NO.1804/ 07/ 18
Disposable Draw Sheets - 100cm X 150cm, Sample Required With Quote 2018-10-02 11:00 ZNQ NO.2529/ 08/ 18
8f X 24cm Single Lumen Silicone Cv Catheter (Kit) With Surecuff, Tissue Ingrowth Cuff 2018-10-02 11:00 ZNQ NO.343/ 04/ 18
Advanced flowable hemostat matrix with flexi-tip 10ml and flowable hemosttic polysaccharide powder 3grams 2018-10-08 11:00 ZnqLS445/ LS446/ 18gaz
5 boxes of steel wire monofilament non absorbable suture with trocar point 55mm ½ circle 75cm 2018-10-08 11:00 ZnqLS444/ 18gaz
Supply Non Contact Tonometer, Handheld Pt100 Rechargeable 2018-10-11 11:00 217/ 2018 / 2019
Supply and Delivery of Intravenous, Central and Intraosseous Access Lines and Invasive Monitoring Access: 3 Year Contract. 2018-10-16 11:00 ZNB 5325/ 2018- H
Supply and Delivery of Needles and Syringes and Needles used for Regional Anaesthesia and Pain Control:3 Year Contract 2018-10-15 10:30 ZNB 5531/ 2018- H
Appointment of a service provider with 5 years experience to supply, install and maintain an Uninterrupted Power Supply to the RAF Menlyn regional Office 2018-10-19 11:00 RAF/ 2018/ 00043
Supply, Delivery, Installation, Demonstration and Commissioning of a High End Digital Ultrasound Unit With Colour and Pw Doppler with Electronic Image Transfer Capabilities for use by the Obstetrics and Gynaecology Department at Tygerberg Hospital 2018-10-19 11:00 TBH 221/ 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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