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.
Invitation for the provision of security services at Ngaka Modiri Molema District for the department of social development 2019-01-29 11:00 NW/DSD/04/2018
Invitation for the provision of security services at head office for the department of social development 2019-01-29 14:00 NW/DSD/08/2018
Invitation for the provision of security services at Dr. Kenneth Kaunda District for the Department of Social Development 2019-01-30 11:00 NW/DSD/06/2018
Invitation for the provision of security services at Dr Ruth Segomotsi Mompati District for the Department of Social Development 2019-01-31 11:00 NW/DSD/05/2018
Appointment of a Service Provider to Design, Manufacture and Delivery of Two (02) Fire Trucks for a period of Eighteen months (18) for The North West Province and Maintenance of Three (03) years after delivery. 2019-01-31 11:00 CS&TM 07/18/19
Construction of toilet top structures in Kutlwanong, Kagisho & Phomolong Phase 1 2019-01-28 11:00 INFRA/CE/T2/2018
Repair and resurface of various roads in central business district of Upington 2019-02-01 14:00 TN099/2018
Appointment of consulting engineering firm for the planning, design and project management of water services for Hakskeen Pan 2019-02-01 14:00 TN100/2018
For the supply and installation of HV Surge arresters. 2019-02-05 10:00 KBY/54341
Advertisement for suitable Suppliers and Service Providers to apply and become part of Save the Children South Africa’s Supplier Database 2019-02-15 12:00 No reference number
Demolition of Redundant Structures Citywide 2019-02-08 10:00 196Q/2018/19
First Line Response- Distribution Area East, North and South 2019-02-08 10:00 192S/2018/19
Term Tender for Supply, Installation and Retrofitting of Water Efficient Technologies Citywide 2019-02-11 10:00 197Q/2018/19
Supply and delivery of heavy duty mobile vehicle 55 metre aerial firefighting/rescue turntable ladder for the fire and rescue services 2019-02-11 10:00 204G/2018/19
Supply and delivery of various articles of human protective clothing for use in structural fires by the fire and rescue service 2019-02-11 10:00 202G/2018/19
The supply of aerial support to the fire and rescue service during high fire season 2019-02-12 10:00 207G/2018/19
Supply and delivery of various firefighting foam concentrate for the City of Cape Town 2019-02-12 10:00 205G/2018/19
Supply and delivery of heavy duty mobile 4x4 firefighting/ rescue vehicles 2019-02-12 10:00 206G/2018/19
DCS: Westville Correctional Service: Installation of Facilities for People with Disabilities 2019-02-19 11:00 DBN18/ 11/ 09
South African Police Service: Ladysmith 8 Mill Street: Rehabilitation of Existing Facilities 2019-02-05 11:00 DBN18/ 11/ 05

Pages

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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