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.

New Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, have been finalized and gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. We start off with the official media release from National Treasury:

The regulations were initially promulgated in 2001 and revised in 2011 thus making this the second revision since the initial promulgation.

General Procurement Guidelines

Government issued the General Procurement Guidelines not only as a prescription of standards of behaviour, ethics and accountability which it requires of its public service, but also as a statement of Government's commitment to a procurement system which enables the emergence of sustainable small, medium and micro businesses which will add to the common wealth of South Africa and the achievement of enhanced economic and social well-being of all South Africans.

Tenders in South Africa are measured on three principles, namely Functionality, Price and Broad-Based Black Economic Empowerment (B-BBEE). An Enterprise's ability to execute a contract is measured through the Functionality Principal in the Tender Environment. If an Enterprise's tender response does not pass the Functionality test it can't be measured on Price and B-BBEE. Enterprises that respond to tenders must ensure that they will pass the Functionality test in order to advance.

Functionality in Tenders Part 1

Functionality in Tenders (1)

The Preferential Procurement Policy Framework Act 2017, establish the rules according to how Government Entities must evaluate tenders. The Preferential Procurement Regulations of 2017 takes it a step further and gives guidance on how to specifically award points according to certain criteria such as B-BBEE and Price. 

There appears to be a serious lack of knowledge regarding South African tender procedures. Here, the tender processes are ruled by various Acts, Regulation and Guidelines which are specifically designed to ensure that the tender processes are in line with the Constitution of South Africa - which dictates that the tender process should be fair, equitable, transparent, competitive and cost-effective.

It is important to know that when you respond to a tender there are certain guidelines that Government Officials need to follow in order to evaluate your tender. According to the Implementation Guide - Preferential Procurement Regulations, 2017, pertaining to the Preferential Procurement Policy Framework Act, Accounting Officers and Accounting Authorities of all public entities listed in Schedules 2, 3A, 3B, 3C and 3D to the PFMA and municipal entities must comply with the rules and guidelines stipulated below.

If one looks at the General Procurement Guidelines that National Treasury issued to Government Departments, it is clear that Government wants the tender process to be fair, equitable, transparent, competitive and cost-effective exactly as Section 217 of the Constitution of South Africa requires.

Pages

Title Closing Date Tender No.
RFI Tests At Large Anechoic Chambers 2019-11-08 11:00 NRF SARAO RFI 001 2019
Appointment of a panel of service providers that will provide printing services to NRF|SAASTA for a period of 36 months (3 years) 2019-11-15 11:00 NRF/ SAASTA/ 07/ 2019- 2020
Request For Proposals: Appointment of a Suitable Service Provider to Implement The Women Empowerment Programme for a period of two (02) years 2019-11-08 11:00 NHBRC 20/ 2019
The objective of this tender is to procure an Internal Audit Services for three (3) years 2019-11-07 12:00 RFP008/ 2019
Supply, Delivery, Registration of Fleet and Installation of Vehicle Tracking System for a Period of Three Years 2019-10-31 11:00 LNW 17/ 19/ 20
Provision of Vehicle Tracking Services for a Period of Three Years (Rental Basis) 2019-10-31 11:00 LNW 28/ 18/ 19
The Development of Standard Operating Procedures for Supply Chain Management, Human Resources Management and Policy Development 2019-11-08 11:00 GT/ OoP/ 068/ 2019
Request for proposals for appointment of a service provider to offer Capacity Building Programme on Business Financial Literacy to SMMEs in all nine provinces. 2019-11-11 11:00 NDT0030/ 19
The Department of The Premier Wishes to Invite Suitably Qualified Service Providers to Conduct Comprehensive Lifestyle Audits and Analysis of Business Interests of The 11 Members of The Executive Council (Cabinet) and Their Spouses’/ Life Partners 2019-11-08 11:00 FMA 0009- 2019/ 20
Appointment of a Service Provider for the Feasibility Study, Complete Design and Construction Monitoring for Makhathini Cotton GIN at Jozini Local Municipality within Umkhanyakude District Municipality In KwaZuluNatal 2019-11-08 11:00 SS- KZN 7/ 1/ 6/ 3 (725) 000R
Appointment of a Professional Service Provider in Consortium / Multi-Disciplinary Consisting of Architectural, Civil and Structural, Mechanical, Electrical and Quantity Surveying Services for the Project: Development of Infrastructure and External Services for Carmel Estate Farmer Production Support Unit (FPSU) in Mogale City Local Municipality, West Rand District In Gauteng Province. 2019-11-11 11:00 5/ 2/ 2/ 1 CRDP- 0002 (2019/ 2020)
Appointment of a service provider to undertake impact assessment and awareness drive of the Public Works and Infrastructure green building policy. 2019-11-12 11:00 H19/ 003GS
Professional Services for the detail Assessment,rehabilitation design,contract documentation and site supervision of respective bridges in the Vereeniging and Benoni regions within the Gauteng province. 2019-11-18 11:00 DRT 19/ 02/ 2019
Construction of Road K46 (P79/1) Phase 2 Between Pwv 5 and N14 (P158/2) (Diepsloot) 2019-11-19 11:00 DRT 17/ 12/ 2018
Land Ports of Entry: Oshoek, Nerston, Waverly and Josefsdal: Appointment of a service provider/s for the maintenance and repairs of building, civil, mechanical,electrical infrastructure and installations at the four Ports of Entry for a period of 36 months 2019-11-12 11:00 H19/ 021 AI
Appointment of a Contractor for Land Ports Of Entry: Kopfontein, Swarkopfontein and Derdepoort: Appointment of a service provider for the maintenance and repairs of building, civil, mechanical, electrical infrastructure and installations for a period of 36 months 2019-11-11 11:00 H 19/ 022 AI
Western Cape: Dept of Justice & Constitutional Development: Magistrate’s Offices: Install boreholes, water tanks and pumps: Multi disciplinary Consultant: Civil, Mechanical & Electrical Engineer 2019-11-08 11:00 CPTC007/ 19
Appointment of a service provider to render security service for period of 12 months. 2019-11-18 12:00 SCC 78/ 2019
Appointment of an OEM Accredited Kofax Service Provider (S) for the Implementation, Maintenance and Support of Kofax Scanning Solution for a period of three (3) Years 2019-11-15 11:00 RFB 2019 09
Supply and delivery of 111 units x 8 seater stainless steel top dining room tables with epoxy powder coated mild steel tube fixed chairs: Ekuhlengeni Hospital 2019-11-07 11:00 ZNB 9563/ 2019- H

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Extension of validity period

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Those of you who are familiar with responding to tenders will know that it is common practice for procuring entities to extend the bid price validity period. We received the undermentioned queries regarding the extension of the validity period of the bid price.

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