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.
Appointment of a service provider for the off-site storage of the National Department of Public Works record’s in terms of the national archives and record services of South Africa Act 43 of 1996 for a period of 3 years at head office and Johannesburg Regional Office. 2019-07-09 11:00 HP19/ 005GS
Pretoria: Procurement of alternative office accommodation for South African Police Service: Auction Storage and Compacting Area comprising of 3 385.91 square meters and 204 parking bays in the outskirts of Pretoria, Silverton Industrial and Watloo area for period of 5 years 2019-07-16 11:00 Pt19/ 006
Pretoria: SAPS: Pretoria West Mobilization Support Services: Automated wash bay 2019-07-16 11:00 Pt19/ 005
Limpopo Province: Polokwane: Procurement of office accommodation (existing building or building to be constructed) at a total guideline gross area of 3339.85 sqm and a lettable area of 3036.23 sqm with 47 parking bays and standby generator on behalf of Department of Rural Development and Land Reform (Deeds Registry) for a period of 5 years. 2019-07-09 11:00 PLK19/ 08
Appointment of a service provider to supply, set-up and to install Office Furniture, on a lease basis to the South African Weather Service for a period of four (4) years 2019-07-05 11:00 SAWS- 197/ 19
Appointment of a service provider to conduct a 2-D seismic survey for the Karoo Deep Drilling Project in Beaufort West, Western Cape 2019-07-18 11:00 CGS- 2019- 013K
Appointment of a panel of Legal Experts for the South African Weather Service, for a period of three (3) years 2019-07-05 11:00 SAWS- 199/ 19
Appointment of a service provider to render Psychometric Assessment Services, to the South African Weather Services for a period of three (3) years. 2019-07-05 11:00 SAWS- 196/ 19
Request for Appointment of a list of preferred suppliers to supply TLB hire for Geotechnical Site investigations across the Free State Province for a period of three (03) years for the Council for Geoscience. 2019-07-17 11:00 CGS- 2019- 018K
Appointment of a service provider to provide printing services for a period of three (3) years for the CCMA as and when required. 2019-07-05 11:00 CCMA/ 2018/ 011- COPS
Appointment of a service provider to render Employee Health and Wellness Programme Services, to the South African Weather Services for a period of three (3) years 2019-07-05 11:00 SAWS- 193/ 19
Appointment of a service provider for the provision of a cloud based Information Technology Service Management (ITSM) (Service Desk) solution for the CCMA for a period of Three (3) Years. 2019-07-05 11:00 CCMA/ 2018/ 43AICT
Appointment of a panel of Recruitment Agencies for the South African Weather Services for a period of three (3) years 2019-07-05 11:00 SAWS- 195/ 19
Appointment of a professional service provider to render a 24 hour security service for College of Cape Town for the period of three (3) years 2019-07-05 11:00 CCT- 03/ 2019
Provisioning of Microsoft Open Value Subscription for educational Solution for the NSG for a period of three years. 2019-07-05 11:00 NSG/ BID/ 02/ 2019/ 20
Renovations to the Nelson Mandela Academic Laboratory at the National Health Laboratory Services (NHLS) 2019-07-11 11:00 RFB017- 19- 20
Appointment of a Service Provider to Manage the Monthly Maintenance of Chainsaws, Supply and Deliver Two-Stroke Fuel and Chainsaw Oil to the Three Debushing Projects Sites Namely: Portion 7 Leeuwkraal 184jr, Portion 9 Leeuwkraal 184jr and Portion 12 Leeuwkraal 184jr City of Tshwane Metropolitan Municipality for a period of 6 months 2019-07-05 11:00 DRDLR- PSSC GP- 0005(2019/ 2020)
Port Elizabeth: Motherwell Magistrates Court: Provision of Horticultural/Gardening Maintenance Services for a Period of Twenty Four (24) Months. 2019-07-09 11:00 PEH04/ 2019
Supply and delivery of a portable screening/diagnostic audiometer: for various institutions: once-off 2019-07-04 11:00 ZNB 9661/ 2019- H
The provision and installation of electrical points in the new Cape Town Weather Office, in consultation with the Municipal approved building plans. 2019-07-05 11:00 SAWS- 184/ 19

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2 items that determine tender pricing

Article by Werner van Rooyen

www.howtotender.co.za

31 January 2019

Many bidders that respond to tenders struggle when it comes to calculating a price for a specific tender. One of the reasons for this is that a large number of Small Business Owners are usually new to the tender process and therefore they lack the necessary experience to price their bids correctly.

Without getting into the fundamentals of accounting there are two basic items that determine your... Read More

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