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.
Procurement of Enterprise Resource Plan (ERP) - Electronic Documents and Records Management System. This agreement will be applicable from date of appointment until 31 March 2020. 2019-03-25 11:00 RFP/ SASSETA/ 201819135
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R521 from Molemole municipal border through Vivo to Louis Trichardt municipal border, R523 from Blouberg municipal border to Masekwaspoort, N1 from Louis Trichardt to Beit Bridge Border Post. 2019-03-29 14:00 NRA X.002- 102- 2019/ 1F & N.001- 129
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of Consulting Engineering Services for the Routine Road Maintenance of National Route R521 from Polokwane to Molemole municipal border and R567 from Mogalakwena municipal border to Seshego 2019-03-29 14:00 NRA X.002- 101- 2019/ 1F
Appointment of a Service Provider for Conducting an Independent Review on the Implementation of the Western Cape Infrastructure Delivery Management System and (WC IDMS) and the Standard Procurement of Infrastructure and Delivery Management (SIPDM) in the Departments of Education and Health (As Client Departments),The Department of Transport and Public Works (as Implementer) and Provincial Treasury (as an Enforcer and Strategic Partner) for a period of six (6) months 2019-04-15 11:00 WCPT 05/ 2018/ 19
Appointment of a Service Provider for Provision of the Research Services and the Production of Municipal Economic Review and Outlook (Mero) for 2019-2020 With an option to extend for a further period of 1 year 2019-04-04 11:00 WCPT 04/ 2018/ 19
The South African National Roads Agency SOC Limited (SANRAL) is soliciting proposals from Service provider/s that will offer the following communications on media buying 2019-04-12 14:00 NRA 68159/ 1007/ 2019/ 06
Renewal of licenses for SIEM and Rapid 7 including professional services to the Government Pensions Administration Agency for a period of twentyfour (24) months 2019-04-05 11:00 RFB 1914/ 2018
Appointment of a service provider for the renewal of Infomet GBM licenses for the government pension administration agency (GPAA) 2019-04-05 11:00 RFB 1915/ 2018
Appointment of a Service Provider to Render Health Risk Management Services to the South African Police Service for a Period of Five(05) Years: Division: Personnel Management 2019-04-16 11:00 19/ 1/ 9/ 1/ 135 TP (18):
Invitation to tender for the appointment of a Short Term Insurance Broker for a period of three (3) years 2019-04-05 12:00 RFP/ T 15- 2018/ 19
Supply, delivery, installation and configuration of firewall, switches and maintenance thereof until 31 March 2020 with an option to renew for a further 24 Months 2019-04-08 11:00 RFP/ SASSETA/ 201819129/ 2
Appointment of a Service Provider to Conduct a JTG Agri Hub Precent Plan for the Spatial Planning and Land Use Management Unit for the Department of Rural Development and Land Reform Northern Cape 2019-04-05 11:00 5/ 2/ 2/ 1 NC RDLR- 0005 (2018/ 2019)
Appointment of a service Provider To develop a Land Use Management System (LUMS) For Kheislocal Municipality for period of ten months 2019-04-05 11:00 5/ 2/ 2/ 1 NC RDLR- 0006(2018/ 2029)
Developer Workstations 2019-04-05 13:00 10393809
Symantec - SEP, Ghost, Protection Engine 2019-04-05 12:00 10401238
Conversion of seven (7) ton chassis cab trucks into mobile community service centres (CSC’s): Nationally to the South African Police Service for a period of two (2) years 2019-04-15 11:00 19/ 1/ 9/ 1/ 131TV(18)
Supply and delivery of identification jackets to the SAPS for a period of two (2) years 2019-04-05 11:00 19/ 1/ 9/ 1/ 102TD(18)
Catering Services for Kwazulu-Natal Election Results Centre (ROC) 2019-04-05 11:00 IEC/ KZN- 06/ 2019
Catering Services for National Election Results Centre (ROC) 2019-04-05 11:00 IEC/ SS- 01/ 2019
Catering Services for Mpumalanga Election Results Centre (ROC) 2019-04-05 11:00 IEC/ MP- 01/ 2019


Extension of validity period

By Werner van Rooyen


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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