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.
Upgrading of Server Infrastructure and Development of Unified communication 2019-03-20 12:00 019/2018/19
The appointment of a contractor to design, upgrade, install and commission the control system at the aquarium of the National Zoological Garden in Pretoria. 2019-03-04 11:00 SANBI NZG: 325/ 2019
The appointment of a contractor for remedial work to various existing structures including roofs, aquatic mammal pools, and aquarium tanks at the National Zoological Gardens in Pretoria. 2019-03-04 11:00 SANBI NZG: 327/ 2019
The appointment of a contractor for the design and upgrade of existing gravel roads at the Mokopane Biodiversity Centre in Mokopane, Limpopo. 2019-03-05 11:00 SANBI NZG: 330/ 2019
Appointment of service provider for the procurement new fleet 4x4 double cabs(03) and (06) x sedans for the South African Diamond and Precious Metals Regulator 2019-03-15 11:00 SADPMR03/ 2018/ 19
Request to procure service providers for the purposes of headhunting for executive and senior management positions for a period of three (03) years 2019-03-08 11:00 RFA 1892/ 2018
Appointment of a suitable service provider to conduct situational analysis of successful skills programmes offered by SETA Quality Assurance Partners (QAPS) 2019-03-08 11:00 PUR 6000/ 8
The appointment of a service provider to provide medical surveillance program for 1225 (one thousand two hundred and twenty five) consisting of 72 landfill employees and 1153 general workers over four (4) months. 2019-03-18 11:00 PU058/ 2018
The appointment of panel of service providers for the removal, cleaning and rehabilitation and/or eradication of illegally dumped non-toxic, non-objectionable solid waste and rubble on as and when required basis for thirty six (36) months period. 2019-03-15 11:00 PU047/ 2017
Appointment of service providers for insurance and administration of the subsidized motor transport scheme and the VIP vehicle fleet of the state for the period 1 April 2019 to 31 March 2024 2019-03-08 11:00 RT58- 2019
Invitation to provide catering and canteen services at national health laboratory service head office and Braamfontein office for the period of three (3) years. 2019-03-08 11:00 RFB 156/ 18/ 19
Installation and servicing of Audio Visual and maintenance of Broadcasting Systems, TV Networks including Microwave Transmission Systems for a period of three (3) years. 2019-03-19 11:00 S114/ 18
Department of Public Works: 5 Garnet Road, Park Rynie, Port Shepstone: Provision of security services for a period on thirty (36) months 2019-03-13 11:00 ZNT 2857W
Department of Public Works: Pietermaritzburg: 1 Prince Alfred Street: Provision of security services for a period on thirty (36) months 2019-03-13 11:00 ZNT 2854W
Department of Public Works: 181 Mayors Walk Road, Pietermaritzburg: Provision of security services for a period on thirty (36) months 2019-03-13 11:00 ZNT 2855W
Department of Public Works: Port Shepstone: 35-37 Ridge Road: Provision of security services for a period on thirty (36) months 2019-03-13 11:00 ZNT 2858W
Department of Public Works: Main Road, New Hanover : Provision of security services for a period on thirty (36) months 2019-03-13 11:00 ZNT 2856W
Property for hiring: Interest parties are hereby invited to submit offers to hire the following property”voetstoots” for a two (2) year period, which is owned by the National Dept of Public Works : 2019-03-20 11:00 UCACT1- 10/ 2019
Appointment of a service provider to render maintenance of the electronic security systems at the Department of Public Service and Administration for a period of two (2) years. 2019-03-08 11:00 DPSA005/ 2018
Appointment of a service provider to store records off-site for the Department of Public Service and Administration for a period of 12 months. 2019-03-08 11:00 SCM002/ 2018

Pages

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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