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.


Title Closing Date Tender No.
Appointment of a panel of engineers for the National Lotteries Commission 2019-06-25 11:00 NLC/ 2019 - 9
Consulting Engineering Services for the Routine Road Maintenance of National Route N9 Section 3 Km 37.08 to Section 4 Km 116.74 and R61 Section 1 Km 74.02 To Km 147.08 2019-06-14 14:00 NRA X.003- 036- 2019/ 1F
Cape Town: SAPS: IPID: New office accommodation area - 110.91m² 2 parking bays: Category B & D: 5 year period 2019-06-14 11:00 CPTL65 / 19
Consulting Engineering Services for the Routine Road Maintenance of National Routes N9 Section 6 (Km 62.97) to (Km 103.29), Section 7 (Km 0.0) To (Km 28.82) And National Route N10 Section 4 (Km 0.0) to (Km 95.26), Section 5 (Km 0.0) To (Km 6.34) And National Route R56 Section 1 (Km 1.11) To (Km 58.78). 2019-06-14 14:00 NRA X.003- 038- 2019/ 1F
Cape Town: SAPS: IPID Parliamentary office: New office accommodation area - 160.91m² 2 parking bays: Category B & D: 5 year period 2019-06-14 11:00 CPTL64 / 19
Consulting Engineering Services for the Routine Road Maintenance of National Route R63 Section 8 Km 20.2 to Km 23.03, R63 Section 9 Km 0 to Section 11 Km 23.97 and National Route R75 Section 4 Km 0 to Km 59.08. 2019-06-14 14:00 NRA X.003- 048- 2019/ 1F
Consulting Engineering Services for the Routine Road Maintenance Of National Route R63 Section 14 Km 0 To Km 58.56, R63 Section 15 Km 0.47 to Km 28.51 and N2 Section 14 Km 0 To Km 65.76 and N6 Section 1 Km 50.38 to Section 3 Km 8.04 2019-06-14 14:00 X.003- 049- 2019/ 1F
Materials for the upgrading of Security Fencing for Regional Works Unit, Western Cape. 2019-06-25 11:00 SPSC- B- 008- 2019
Supply and Delivery of Construction Material for Rapid Deployment Accommodation for Joint Operational Headquarters. 2019-06-26 11:00 CPSC- B- G- 041- 2019
Construction of a Perimeter wall (Phase3) at eZakheni A Campus 2019-06-20 11:00 EZK/ 01/ 2019
Supply, Delivery and Installation of Fence Surrounding the Memorial Wall at DOD Mobilisation Centre for Joint Operations Headquarters. 2019-06-27 11:00 CPSC- B- G- 005- 2019
Construction of a Perimeter wall and Fence at Ladysmith Campus 2019-06-20 11:00 LAD/ 02/ 2019
Construction of a Perimeter wall (Phase2) at Estcourt Campus 2019-06-20 11:00 EST/ 03/ 2019
Supply, Delivery, Installation and Demonstration of Gym Equipment for Human Resource Division. 2019-06-26 11:00 CPSC- B- G- 039- 2019
Request for proposal for design, development and commissioning of a customs management system for the Coega Special Economic Zone (SEZ) 2019-06-18 12:00 CDC/ 124/ 19
Provision of On-Site Maintenance and Repair of Communication Radios at RTI station including installation and de-installation of Radios 2019-06-25 11:00 ZNB0018/ 19T
Parkstation main concourse waterproofing 2019-06-07 10:30 RFQ05-0613/05/2019
Consultant to Study the impact of the mining sector on children and their rights in South Africa 2019-06-07 16:00 No reference number
Denel Group internal audit services 2019-06-20 12:00 DG418/05/13/2019
Tender for the supply, commissioning, service and maintenance of the high volume monochrome digital printer at Printing Department Rietvlei 2019-06-28 12:00 Rand Water


10 things to remember when you tender

By Werner van Rooyen

31 January 2019

There are many things that you as a small business owner must remember when you respond to a tender and sometimes responding to a tender can be overwhelming. Experience has taught me that there are some important things to remember when responding to a Tender and there are some less important things to remember when responding to a Tender.

Here are ten of the important things to remember when responding to a Tender. Please remember that all ten of these items mention here are equal... Read More

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