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.
Supply and delivery of beef forequarter to Ncome Management area 2019-02-18 11:00 KZN 10/ 2018
Supply and delivery of Poultry and beef forequarter to Pietermaritzburg Management area 2019-02-18 11:00 KZN 12/ 2018
Supply and delivery of pork, chicken, beef forequater to Port Shepstone Correctional Centre 2019-02-18 11:00 KZN 14/ 2018
Supply, delivery, demonstration and commissioning of various manikins for use in hospitals, clinics and all Western Cape College of Nursing campuses in the Western Cape Health Department for a three year period. 2019-02-15 11:00 WCGHCC046/ 2018
The supply, delivery, installation, commissioning and maintenance of medical linear accelerators for Charlotte Maxeke and Steve Biko Academic Hospital for a period of two years. 2019-02-15 11:00 GT/ GDH/ 001/ 2019
Supply and delivery of medical equipment for King Edward VIII hHospital S-Block: Once off. Which includes: see description for details 2019-02-11 11:00 ZNB 9648/ 2018- H
Supply, delivery, end user training, demonstration, commission and installation of a dor theatre integration solution to manage and control various video and audio signal inputs and outputs between theatre and a conferencing facility for King Edward VIII Hospital: once off 2019-02-11 11:00 ZNB 9650/ 2018- H
X- Ray Baggage Scanner 2019-01-25 11:00 CRL007/ 2018
Procurement of Two (2) 300KVA Standby Generators with Service and Maintenance Plan for a Period of Three (3) Years in Golden Gate Highlands National Park, Clarens, Free State 2019-02-08 11:00 GNP- 055- 18
The SAAO is looking to procure a dual spindle workstation for its mechanical workshop based in Observatory Cape Town. 2019-02-08 11:00 NRF/ SAAO/ 2018/ 020
The SAAO is looking to appoint a service provider for the design, engineering, procurement, installation, commissioning, training of staff and maintenance for the first 2 years for the installation of a 40 kWp PV plant (subject to technology proposed), on site at the SAAO Site, Sutherland. 2019-02-08 11:00 NRF/ SAAO/ 2018/ 004
Supply, delivery, installation and commissioning of one 200kva diesel generator at the Hartrao Site in Krugersdorp 2019-02-12 11:00 NRF/ SARAO HART 03/ 2018- 19
Supply, delivery, installation and training of Multi-mode Reader 2019-02-19 11:00 ARC/ 27/ 12/ 18
SANSA invites bidders to tender for supply and delivery of (x2) RF fiber converters chassis for 70MHz & (x2) chassis for 9GHz 2019-02-19 11:00 SO/ 042/ 01/ 2019
Appointment of a service provider to supply a digital zoom microscope to the South African National Biodiversity Institute (SANBI). 2019-02-15 11:00 SANBI G319/ 2019
The South African Social Security Agency hereby invites independent medical Doctors to submit an expression of interest to be included on SASSA’s database of suppliers to conduct quality assurance and be accredited for a period of 24 months. 2019-02-15 11:00 SASSA: 21/ 18/ GA/ EC
Delivery of one dining/kitchen unit and eight(8) sleeper units of new park-homes at the Hartrao Site in Krugersdorp over a one year contract 2019-02-14 11:00 NRF/ SARAO HART 02/ 2018- 19
Procurement of a service provider for the South African Platinum Group Metals Industry Roadmap (SAPGMIR) 2019-02-15 12:00 MTK 18/ 2018
Supply and delivery of Amenities [As and when required] to various EKZNW resorts for a period of 3 years. 2019-02-15 11:00 EKZNW 03/ 2019
Supply and delivery of Cutlery [As and when required] to various EKZNW resorts for a period of 3 years. 2019-02-15 11:00 EKZNW 02/ 2019

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10 Features of a good Joint Venture Agreement

By W van Rooyen

www.howtotender.co.za

A Joint Ventures is a good business idea to compete for tenders if one does not have all the necessary expertise that are required from a specific tender. The thing to remember though is that you must have a solid Joint Venture Agreement in place for your Joint Venture. A good, rock solid Joint Venture Agreement will protect the participants to the Joint Venture.

 Here are 10 features that any good Joint Venture Agreement... Read More

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