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.
Invitation to bidders to submit proposals for the appointment of a group risk insurance/assurance provider for all CIPC employees. 2018-10-22 11:00 CIPC BID NUMBER: 17/ 2018/ 2019
Invitation for an open tender for the Supply of Telephone Management System and Maintenance of Voice Over Internet Protocol (VOIP) At Aidc’s Multiple Sites 2018-11-15 11:00 AIDC T10/ 2018
Staff lockers (ABS Plastic) 3 tier x40 2018-10-30 11:00 ZNQ 744/ 18
Request for proposal for air quality monitoring in The Coega Special Economic Zone (SEZ). 2018-11-12 12:00 CDC/ 446/ 18
Fridge tags 2018-10-31 11:00 ZNQ: 303 / 2018/ 19
Construction of Sidewalks on P483 in the Amajuba District. Tenderers must be registered as 3CE with the CIDB ,Department of Transport’s Vukuzakhe Emerging Contractors Database and also be registered with the National Treasury’s Centralized Supplier Database (CSD).Target designated group: Women. The duration of the project will be stipulated in the tender document. 2018-11-15 11:00 C253/ 1819/ SW/ 561
Construction of Sidewalks on P41 in the Amajuba District. Tenderers must be registered as 3CE with the CIDB ,Department of Transport’s Vukuzakhe Emerging Contractors Database and also be registered with the National Treasury’s Centralized Supplier Database (CSD).Target designated group: Open. The duration of the project will be stipulated in the tender document. 2018-11-15 11:00 C253/ 1819/ SW/ 563
Consultancy Services for Implementation of a Contract Management System 2018-11-16 15:00 AUC/OLC/C/325
The Province of KwaZulu-Natal, Department of Transport, invites tenders from Established Contractors, experienced in Bridges, and earthworks construction, for the construction of the Extension of Kwasitholane River Bridge No. 3527.The duration of the project will be 4 months. 2018-11-15 11:00 ZNT3507/ 18T
Provision of Security Services at RTI Mkondeni DLTC. 2018-11-21 11:00 ZNB1432/ 17T
Require: Tender must be registered as grade 2CE only with the CIDB register of contractors.Tender must be registered as Emerging Contractors in the Vukuzakhe Emerging Contractor Development Programme (as per database of Department of Transport).Tenders must be registered with the National Treasury’s Centralized Supplier Database(CSD).Tenders will be evaluated in terms of the 80:20 Preference Points(as per Preferential Policy Framework Regulations,2017). 2018-11-20 11:00 ZNT373T/ C238/ 1100/ S/ 18
Require: Tender must be registered as grade 2CE only with the CIDB register of contractors.Tender must be registered as Emerging Contractors in the Vukuzakhe Emerging Contractor Development Programme (as per database of Department of Transport).Tenders must be registered with the National Treasury’s Centralized Supplier Database(CSD).Tenders will be evaluated in terms of the 80:20 Preference Points(as per Preferential Policy Framework Regulations,2017) 2018-11-20 11:00 ZNT373T/ C238/ 1100/ S/ 71
National Department of Public Works: Cleaning of carpet, sofas and chairs for a period of 24 months. 2018-11-13 11:00 JHB.18/ 20
Require: Tender must be registered as grade 2CE only with the CIDB register of contractors. Tender must be registered as Emerging Contractors in the Vukuzakhe Emerging Contractor Development Programme (as per database of Department of Transport).Tenders must be registered with the National Treasury’s Centralized Supplier Database(CSD). Tenders will be evaluated in terms of the 80:20 Preference Points (as per Preferential Policy Framework Regulations, 2017) 2018-11-20 11:00 ZNT373T/ C238/ 1100/ S/ 19
Require: Tender must be registered as grade 2CE only with the CIDB register of contractors. Tender must be registered as Emerging Contractors in the Vukuzakhe Emerging Contractor Development Programme (as per database of Department of Transport). Tenders must be registered with the National Treasury’s Centralized Supplier Database(CSD). Tenders will be evaluated in terms of the 80:20 Preference Points(as per Preferential Policy Framework Regulations,2017). 2018-11-20 11:00 ZNT373T/ C238/1100/ S/ 17
Department of Justice & CD: Roodepoort, Kagiso, Westonaria, Brakpan, Heidelberg and Randfontein Magistrate Courts: Rendering of gardening services for a period of 24 months. 2018-11-13 11:00 JHB.18/ 19
Appointment of a Service Provider to Render a Standard Cleaning and Hygiene Service for the Period Of 24 Months for the Office Of Regional Land Claims Commissioner KZN Restitution Durban Office in the Kwazulu – Natal. 2018-11-08 11:00 SS- KZN 7/ 1/ 6/ 3 (681) 2L
Appointment of a Service Provider for the Supply,Delivery and Installation of High Density Steel Lockable Bulk Filling Bays for the Registry Rooms in the Regional Land Claims Commission(RLCC) At Cape Town 14 Long Street and Mowbray 19 Van Der Ster Building 2018-11-09 11:00 SSC WC Q19 (2018/ 2019) DRDLR
Request For Proposals for the Appointment of a Compliance Officer for the Office of the Accounting Officer. 2018-11-19 11:00 RFP 07/ 18/ 19
Supply and deliver sterile gauge swabs 100mmx100mm 8ply 500 pouches per box. x300Boxes 2018-10-29 11:00 ZNQ203/ 2018/ 2019

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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