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.

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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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