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.
Supply and delivery of oil 2019-01-25 12:00 TENDER 47-18/19
Provision of Managed Printing Services 2019-01-25 14:00 RFP/ICT/MFP/2018/05
WESGRO Stakeholder Relationships Project. Quotations are awaited for suppliers to participate in providing insights, perceptions and expectations from key stakeholders to assist in Wesgro’s strategic business planning process and funding model. 2019-01-31 12:00 2019-001
Appointment of a service provider for the electrification of households in Uitval Ward 35 2019-01-25 11:00 EES 08/2018
Panel of service providers for the provision of waste collection and street cleansing within the Alfred Duma Local Municipality municipality areas to the Ladysmith landfill site for a period of three (3) years on an as and when required basis 2019-01-30 11:00 PS 18/2018
Hiring of plant and equipment as and when required for period of three years 2019-01-31 11:00 ES 23/2018
Impoundment of stray animals for a period of three years 2019-02-01 11:00 PS 19/2018
Kyocera Printers Supply and Maintanance 2019-01-22 11:00 1920
Services of an audit / finance firm to support supply chain management unit with provision of governance and compliance review support function for a period of 12 months with an option to extend for another 12 months subject to satisfactory performance 2019-01-28 11:00 RFP344/2018
Appointment of a panel of service providers for the supply and delivery of personal protective equipment on an as and when required basis for 36 months 2019-02-07 11:00 SHE-OP-009-2018/2019
Appointment of a panel of service providers for the supply and delivery of Corporate Clothing on an as and when required basis for 36 months 2019-02-08 11:00 MKT-OP-010-2018/2019
Appointment of a service provider to provide support of Microsoft active directory and exchange environment for a period of 36 months 2019-02-13 11:00 IT-OP-020-2017/2018 -Readvert
Appointment of a Panel of Service Providers for the Provision of Mechanical Repairs Through a Fitment Centre for a Period of Three (3) Years 2019-01-31 12:00 CSS(FLEET) 13/12/1819
Review of 2017 – 2022 Ratlou Local Economic Development Strategy 2019-02-15 11:00 NW381/PAD01/2018/2019
Development of Ratlou Local Municipality’s Integrated Waste Management Plan 2019-02-15 11:00 NW381/COMMSERV01/2018/2019
Appointment of a service provider for repair and maintenance of municipal yellow fleet as and when required for a period of 24 months 2019-02-15 11:00 NW381/TECH07/2018/2019
Rental of high volume photocopier machines for a period of 24 months 2019-02-15 11:00 NW381/CORPS03/2018/2019
Provision of VAT recovery services for a period of 24 months 2019-02-15 11:00 NW381/BTO01/2018/2019
Manufacture, supply and delivery of pole mounting power transformers for a period of twelve (12) months 2019-01-28 11:00 CD27/2018
Short term insurance 2019-01-21 12:00 226/2018


10 Features of a good Joint Venture Agreement

By W van Rooyen


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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