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.
Harding: St Andrews Hospital: Department of Health: Hire of Residential Accommodation to Accommodate 14 X Community Service Officers for a period of 12 months 2019-04-25 11:00 ZNT 2846W
Kokstad: E.G. Usher Memorial Hospital: Department of Health: Hire of Residential Accommodation to Accommodate 21 X Community Service Officers for a period of 12 months 2019-04-25 11:00 ZNT 2848W
Provision of Security Services at Frontier regional Hospital site, in the Eastern Cape Department of Health for a period of 36 months. 2019-05-02 11:00 SCMU3- 18/ 19- 0527- FRH
Rendering of a Cleaning Contract at the Military Acadamy, Saldanha for the period of one (1) year as per User Requirement Specification MILACAD/01/18. 2019-04-24 11:00 SPSC- B- 069- 2018
Placement of a dedicated cardioplegia - delivery pump using microplegia method of administration and supply of sole - property associated consumables including a fully comprehensive maintenance contract for Groote Schuur Hospital for a three (3) year period (optional to extend for an additional two (2) years) 2019-04-23 11:00 GSH: PT48/ 2018
Supply and delivery of two (2) crawler tractors to the South African Police Service: Division: Human Resource Development. 2019-04-23 11:00 19/ 1/ 9/ 1/ 107 TV(18)
Supply and delivery of twenty seven (27) cattle trailers to the South African Police Service: Division: Detective Services. 2019-04-23 11:00 19/ 1/ 9/ 1/ 128 TV(18)
Supply and delivery of twenty (20) luggage trailers to the South African Police Service: Division: ORS. 2019-04-23 11:00 19/ 1/ 9/ 1/ 129 TV(18)
Supply and delivery of hydraulic loading crane to the South African Police Service: Division Operational Response Services 2019-04-23 11:00 19/ 1/ 9/ 1/ 130TV(18)
Appointment of a service provider for leasing, support and maintenance of 112 scanners and 6 book scanners for the Deeds Registries: Pretoria, Johannesburg, Cape Town, Pietermaritzburg, Bloemfontein, Mpumalanga, King Williams Town, Kimberley, Vryburg, Limpopo and Mthatha for a period of thirty six (36) months. 2019-04-12 11:00 DRDLR (CRD- 21) 2018/ 19
Maintenance and repair of SAPS helicopters and aircrafts for a period of two (02) years for the South African Police Service 2019-04-23 11:00 19/ 1/ 9/ 1/ 114TA (18)
The supply and delivery of labels, ribbons and boxes used by Clinicom, Jac and primary healthcare systems for all Western Cape Health facilities for a three (3) year period. 2019-04-19 11:00 WCGHSC0195/ 2019
Appointment of a suitable service provider to conduct a skills audit for the KwaZulu-Natal Department of Education for a period of three years from date of award 2019-04-11 11:00 ZNB 0005 E/ 2018/ 2019
Appointment of a panel of eight (8) service providers to render car hire and related services to Statistics South Africa (Stats SA) for a period of thirty-six (36) months. 2019-04-22 11:00 Stats SA 011/ 18
Appointment of a Service Provider’s for the Rendering of Vehicles Auctioneering Services to the South African Police Service Nationally (Per Province) for a period of two(02) years 2019-04-24 11:00 19/ 1/ 9/ 1/ 119 TP (18):
Supply and Delivery of Daily Newspapers for Navy Headquarters for a Period of One (01) Year. 2019-04-25 11:00 CPSC- B- PC- 058- 2018
Provision of NIMS-Support and Maintenance tender for the three RSR Regional Offices( Gauteng,Kwa-Zulu Natal and Western Cape Province) 2019-04-23 12:00 RSR/ NIMS/ 001/ 03/ 2019
For the Provision of Long Term Advisor Services to the Government Technical Advisory Centre (GTAC) for the Office of the Accountant General (OAG) to Support in the Implementation of the Municipal Finance Improvement Programme (MFIP) Phase III - Provincial Treasury Revenue Management Specialists 2019-04-12 11:00 GTAC 028- 1- 2018
For the Provision Of Long Term Advisor Services to the Government Technical Advisory Centre (Gtac) for the Office of the Accountant General (OAG) to Support in the Implementation of the Municipal Finance Improvement Programme (MFIP) Phase III - Asset Management Specialists 2019-04-12 11:00 GTAC 026- 1- 2018
For The Provision of Long Term Advisor Services to The Government Technical Advisory Centre (GTAC) for the Office of the Accountant General (OAG) to Support in the Implementation of the Municipal Finance Improvement Programme (Mfip) Phase III - Provincial Treasury Advisors 2019-04-12 11:00 GTAC 023- 1- 2018

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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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