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.
Appointment of a panel of debt collectors for PSiRA for a period of 3 years. 2018-09-19 11:00 RFB/ 2018/ PSiRA/ 06
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-14 11:00 ZNT373T/ C235/ 1100/ S/ 3
Appointment of a technical assistant to undertake an economist/education planner role on The Eastern Cape Department of Education (ECDoE) Schools Rationalisation Project. 2018-09-07 11:00 GTAC 022- 2018
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-14 11:00 ZNT373T/ C235/ 1100/ S/
Purchase of a Lowbed Trailer 2018-09-07 11:00 ZNB0003/ 18
The appointment of service provider for rendering of general cleaning services for surveyor-general: Cape Town for a period of thirty six (36) months for number 90 Plein Street, Part 8th floor, 9th & 10th floors. 2018-09-07 11:00 SSC WC 09 (2018 / 2019) DRDLR
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-19 11:00 ZNT373T/ C237/ 1200/ S/ 9
Appointment of a suitable service provider for the management of SAP hosting service for a period of two (02) years. 2018-09-17 11:00 NHBRC 03/ 2018
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-19 11:00 ZNT373T/ C237/ 1200/ S/ 5
Request for proposals for the appointment of a suitable service provider on a panel to conduct consulting service in the built environment for a period of three (03) years 2018-09-19 11:00 NHBRC 01/ 2018
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-19 11:00 ZNT373T/ C237/ 1200/ S/ 10
Appointment of a service provider for technical and functional support for the implemented SAP solution for a period of three (03) Years. 2018-09-17 11:00 NHBRC 02/ 2018
Appointment of Service provider to Develop and Implement an Enterprise Resource Planning System for the MQA. 2018-09-19 11:00 MQA/ 05/ 18- 19
Minor Structure Repairs on P272 2018-09-17 11:00 C252/ 1718/ MS/ 592
Upgrade of Main Road P16-3 from KM28+200 to KM33+800 - CIDB Grading 8CE 2018-09-13 11:00 ZNT3656/ 15
Appointment of service providers for the supply and delivery of branded promotional material/items to INSETA. 2018-09-11 11:00 Proj/ 2018/ 07
Pretoria: Bryntirion, Construction of Roads, Stormwater, Water Reticulation and Sewer on Western side and Central area of the Bryntirion Estate 2018-09-18 11:00 PT18/ 025
Servicing of heat pumps 2018-08-24 11:00 ZNQ58/ 18/ 19
Appointment of a service provider to provide job profiling, grading and remuneration survey/bench marking services. 2018-08-27 11:00 RFQ/ 2018/ 63
Servicing of sewer pump 2018-08-24 11:00 ZNQ68/ 18/ 19

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