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.
The Construction of a Triple Celled 1.8MX1.8M Box Culvert at KM0+124, Earthworks, Layerworks, Surfacing and Ancillary Works on District Road 1252 (D1252) Between KM0+000 to KM3+920 in the Ladysmith Region 2019-04-26 11:00 ZNT3442/ 18T
Office partitioning to newly refurbished Building on 1st floor; Supply and installation of dry wall petition, Supply and install steel frames and wood doors with all accessories as specified on the tender document 2019-04-05 11:00 NEMISA/ 2019/ Office refurbishment
Presidential Inauguration 2019: The rendering of a service in respect of the supply, erection, maintanance and removal of horticultural decoration and related requirements for the Department of Public Works. 2019-04-09 11:00 HP18/ 020GS
Kuruman Statistics SA: Alternative office accommodation: 461.36m² and 15 parking bays for a period of 5 years 2019-04-05 11:00 LS02/ 2019
Kuruman Public Protector SA: Alternative office accommodation: 215.91m² and 6 parking bays for a period of 5 years 2019-04-05 11:00 LS01/ 2019
Supply, Delivery and Installation of Security Fencing and Gates at South African Air Force Headquarters. 2019-04-18 11:00 CPSC- B- G- 262- 2018
Supply, Delivery and Installation of Security Cameras, Turnstile, Swinging Gates, Biometrics System and Development of Smart Phone Application Software for Meal Bookings at the Mess and Stock Management. 2019-04-17 11:00 CPSC- B- G- 261- 2018
Supply, Delivery and Installation of Transmission Dyno Machine for Regional Workshop Gauteng. 2019-04-17 11:00 CPSC- B- G- 267- 2018
Supply, Delivery and Installation of Truck Spray Booth for Regional Workshop Gauteng. 2019-04-16 11:00 CPSC- B- G- 112- 2018
Procurement of Three (03) x Three Ton Rough Terrain Forklifts for Defence Works Formation. 2019-04-16 11:00 CPSC- B- G- 020- 2018
Procurement of One (01) x Front End Loader for Defence Works Formation. 2019-04-17 11:00 CPSC- B- G- 022- 2018
Provision for Warehouse Storage Facilities in Western Cape Province 2019-04-08 11:00 IEC/ LG- 02/ 2019
Middleburg Prison: Boiler Operators for Twelve (12) Months 2019-04-08 11:00 NST19/ 002
Procurement of a Welding-free Palisade Fencing for the SAFI Warehouse. 2019-04-18 11:00 CPSC- B- G- 170- 2018
Witbank Prison: Boiler Operators for Twelve (12) Months 2019-04-08 11:00 NST19/ 004
Appointment of a service provider for procurement of Forcepoint software renewal or equivalent mail security gateway solution for a period of five years. 2019-04-04 11:00 4.4.12.4/ 3518
Nelspruit Prison: Boiler Operators for Twelve (12) Months 2019-04-08 11:00 NST19/ 005
Barberton Prison: Boiler Operators for Twelve (12) Months 2019-04-08 11:00 NST19/ 001
NDPW: Repairs, service and replacement of kitchen equipment within the jurisdiction of JHB Regional Office for the period of 24 months 2019-04-09 11:00 JHB.18/ 58
Department of Health: Ngwelezane Hospital: Construction of New Orthotics and Prosthetics Centre With Parking Area 2019-04-15 11:00 WIMS 070638

Pages

The 8 steps in the Tender Adjudication process

By W van Rooyen

www.howtotender.co.za

31 January 2019

It is important to understand the Adjudication process when one responds to a Tender or Request for Proposal. If you have these 8 steps under control when responding to tenders, changes are good that you will proceed to the next round.

Here are 8 steps in the adjudication process that Organs of State will most often follow in determining which bidder will win the tender:

  1. Opening... Read More
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