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.
Hermanus: New office accommodation & 4 secured parking bays for SAPS: FCS Unit: Area of 284.94m2 - 5 years lease period: Category - B & D 2019-03-15 11:00 CPTL50 / 19
The Western Cape Department of Agriculture requires a service provider to conduct a Census in West Coast, Central Karoo and Overberg areas 2019-03-25 11:00 BID 855 - 2018/ 2019
Supply, install, commission tv sets, cages, wall brackets and dish x 11 2019-03-06 11:00 ZNQ 1003/ 18
Supply bags garbage clear 910x760mm x300 pkts per month for 6 months 2019-03-06 11:00 ZNQ 948/ 18
Appointment of a Panel of Recruitment Agencies for a period of three (3) years 2019-03-25 11:00 BRAND SOUTH AFRICA/ 008/ 2018
Contracting of a panel of programme management service providers for the implementation of training and skills development programmes in the KwaZulu Natal province for the period of thirty six (36) months 2019-03-15 11:00 ADA- E 12/ 2018
Appointment of a service provider for the purchasing, delivery and commissioning of the compound microscopes in the Stellenbosch Laboratory for the Department of Agriculture, Forestry and Fisheries. 2019-03-08 11:00 4.4.12.2/ 44/ 18
Appointment of a Security Service Provider to Provide Guarding Services at Atlantis Cape Town for a Period of Two (02) years with an Option to Renew 2019-03-18 11:00 34/ FIN/ 2019
Appointment of a service provider for the purchasing, delivery and commissioning of the stereo microscopes in the Stellenbosch Laboratory for the Department of Agriculture, Forestry and Fisheries. 2019-03-08 11:00 4.4.12.2/ 45/ 18
Pretoria: Rendering of daily cleaning and deep services at Union Building for period of 24 months 2019-03-26 11:00 PT18/ 081
Request for Proposal (RFP) for the appointment of a service provider to supply and deliver heavy duty oil spill response inflatable curtains booms at OPC 2019-03-25 12:00 SFF/ 2019/ 041
Invitation to Bidders to Submit Proposals for the Appointment of a Service Provider to Provide (3) Three Security Officers to Safeguard The CIPC Cape Town Customer Service Centre 2019-03-22 11:00 CIPC BID NUMBER: 19/ 2018/ 2019
Security Services required at Coastal KZN TVET College for the Central Office and 8 Campuses 2019-03-22 11:00 SS CKZN 01/ 2019
Betterment and Regravelling on Provincial Road P102 between Chainage 10.00km to 14.00km in the Ndwedwe Local Municipality for Grade 3CE Vukuzakhe Contractors 2019-03-27 11:00 ZNT373T/ 3/ C2930/ 014/ S/ 1/ 2018- 2019
Request for Proposal (RFP) for the appointment of a service provider to perform Tank Top Removal at Milnerton Tank Farm facility 2019-03-25 12:00 SFF/ 2019/ 043
Appointment of service providers to design, supply, deliver, install, commission and calibrate a crude oil sampling unit at the Saldanha Oil Jetty 2019-03-25 12:00 SFF/ 2019/ 042
Betterment and Regravelling on District Road D1574 between Chainage 0.00km to 3.20km in the Ndwedwe Local Municipality for Grade 3CE Vukuzakhe Contractors 2019-03-27 11:00 ZNT373T/ 3/ C2930/ 016/ S/ 1/ 2018- 2019
Betterment and Regravelling on District Road D868 between Chainage 1.00km to 4.90km in the Ndwedwe Local Municipality for Grade 3CE Vukuzakhe Contractors 2019-03-27 11:00 ZNT373T/ 3/ C2930/ 011/ S/ 1/ 2018- 2019
Invitation to tender for all Grade 3 CE contractors registered with KZN Department of Transport database, Vukuzakhe Contractors Association and CIDB to tender for The Blading on Roads L1258, L1729, L1993, L1199, D1905, D856, D855, D242, D466, D2469, D1907, P450, P735, P470 and P475 2019-04-05 11:00 ZNT 373/ C274/ 2604/ P/ 1/ 2018- 2019T
Request for Proposal (RFP) for the appointment of a service provider to perform Cleaning and Tank Integrity Inspections of two tanks at Milnerton Tank Farm. 2019-03-25 12:00 SFF/ 2019/ 044

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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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