3 Sub-contracting rules to be aware of when responding to tenders

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting, due in large part to The Preferential Procurement Regulations, 2017 that has been implemented on the 1st of April 2017. Many entrepreneurs ask us whether they should sub-contract or not, in responding to a tender and how and where do they get onto the sub-contracting lists.

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

Finding Sub-contractors

These categories are:

  • Black female owned EME's or QSE's;
  • Black youth owned EME's or QSE's;
  • Black owned EME's or QSE's.

After the Preferential Procurement Regulations were gazetted there is a need for businesses to find sub-contractors.

But where are businesses, which respond to tenders, going to find sub-contractors? We have thought about this and one answer is at Briefing Sessions.

Sub-contractors versus Consortiums and Joint Ventures

The Preferential Procurement Regulations, 2017 states that 30% of all Government Contracts above R30 million must be sub-contracted to specific categories of SMME's. These SMME's include, but are not limited to, black female owned and black youth owned businesses.

Tenders and Subcontracting

Tenders and subcontracting go hand in hand. In fact, subcontracting part of a tender is so commonly placed that in South Africa there are specific rules regulating subcontracting in executing tenders. This is especially true for South African Government tenders.

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Title Closing Date Tender No.
Harding: St Andrews Hospital: Department of Health: Hire of Residential Accommodation to Accommodate 14 X Community Service Officers for a period of 12 months 2019-04-25 11:00 ZNT 2846W
Kokstad: E.G. Usher Memorial Hospital: Department of Health: Hire of Residential Accommodation to Accommodate 21 X Community Service Officers for a period of 12 months 2019-04-25 11:00 ZNT 2848W
Provision of Security Services at Frontier regional Hospital site, in the Eastern Cape Department of Health for a period of 36 months. 2019-05-02 11:00 SCMU3- 18/ 19- 0527- FRH
Rendering of a Cleaning Contract at the Military Acadamy, Saldanha for the period of one (1) year as per User Requirement Specification MILACAD/01/18. 2019-04-24 11:00 SPSC- B- 069- 2018
Placement of a dedicated cardioplegia - delivery pump using microplegia method of administration and supply of sole - property associated consumables including a fully comprehensive maintenance contract for Groote Schuur Hospital for a three (3) year period (optional to extend for an additional two (2) years) 2019-04-23 11:00 GSH: PT48/ 2018
Supply and delivery of two (2) crawler tractors to the South African Police Service: Division: Human Resource Development. 2019-04-23 11:00 19/ 1/ 9/ 1/ 107 TV(18)
Supply and delivery of twenty seven (27) cattle trailers to the South African Police Service: Division: Detective Services. 2019-04-23 11:00 19/ 1/ 9/ 1/ 128 TV(18)
Supply and delivery of twenty (20) luggage trailers to the South African Police Service: Division: ORS. 2019-04-23 11:00 19/ 1/ 9/ 1/ 129 TV(18)
Supply and delivery of hydraulic loading crane to the South African Police Service: Division Operational Response Services 2019-04-23 11:00 19/ 1/ 9/ 1/ 130TV(18)
Appointment of a service provider for leasing, support and maintenance of 112 scanners and 6 book scanners for the Deeds Registries: Pretoria, Johannesburg, Cape Town, Pietermaritzburg, Bloemfontein, Mpumalanga, King Williams Town, Kimberley, Vryburg, Limpopo and Mthatha for a period of thirty six (36) months. 2019-04-12 11:00 DRDLR (CRD- 21) 2018/ 19
Maintenance and repair of SAPS helicopters and aircrafts for a period of two (02) years for the South African Police Service 2019-04-23 11:00 19/ 1/ 9/ 1/ 114TA (18)
The supply and delivery of labels, ribbons and boxes used by Clinicom, Jac and primary healthcare systems for all Western Cape Health facilities for a three (3) year period. 2019-04-19 11:00 WCGHSC0195/ 2019
Appointment of a suitable service provider to conduct a skills audit for the KwaZulu-Natal Department of Education for a period of three years from date of award 2019-04-11 11:00 ZNB 0005 E/ 2018/ 2019
Appointment of a panel of eight (8) service providers to render car hire and related services to Statistics South Africa (Stats SA) for a period of thirty-six (36) months. 2019-04-22 11:00 Stats SA 011/ 18
Appointment of a Service Provider’s for the Rendering of Vehicles Auctioneering Services to the South African Police Service Nationally (Per Province) for a period of two(02) years 2019-04-24 11:00 19/ 1/ 9/ 1/ 119 TP (18):
Supply and Delivery of Daily Newspapers for Navy Headquarters for a Period of One (01) Year. 2019-04-25 11:00 CPSC- B- PC- 058- 2018
Provision of NIMS-Support and Maintenance tender for the three RSR Regional Offices( Gauteng,Kwa-Zulu Natal and Western Cape Province) 2019-04-23 12:00 RSR/ NIMS/ 001/ 03/ 2019
For the Provision of Long Term Advisor Services to the Government Technical Advisory Centre (GTAC) for the Office of the Accountant General (OAG) to Support in the Implementation of the Municipal Finance Improvement Programme (MFIP) Phase III - Provincial Treasury Revenue Management Specialists 2019-04-12 11:00 GTAC 028- 1- 2018
For the Provision Of Long Term Advisor Services to the Government Technical Advisory Centre (Gtac) for the Office of the Accountant General (OAG) to Support in the Implementation of the Municipal Finance Improvement Programme (MFIP) Phase III - Asset Management Specialists 2019-04-12 11:00 GTAC 026- 1- 2018
For The Provision of Long Term Advisor Services to The Government Technical Advisory Centre (GTAC) for the Office of the Accountant General (OAG) to Support in the Implementation of the Municipal Finance Improvement Programme (Mfip) Phase III - Provincial Treasury Advisors 2019-04-12 11:00 GTAC 023- 1- 2018

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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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