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Tenders and
B-BBEE
Article by Werner
van Rooyen
How important is a B-BBEE rating in the
tender process?
The answer is quite simple: VERY IMPORTANT!
In any tender document you will find the
Standard Bidding Document 6.2 which deals with Preference Points. In this
document you claim your Preference Points according to your B-BBEE status
level. The higher your B-BBEE status level the more points you will earn.
Ultimately these points will determine the bidders that will be awarded the
tender.
The following preference point systems are
applicable to all bids:
Ø the 80/20 system for requirements
with a Rand value of up to R1 000 000 (all applicable taxes included); and
Ø the 90/10 system for requirements
with a Rand value above R1 000 000 (all applicable taxes included).
This means that on the 80/20 system your
B-BBEE status level will earn you a point out of 20 and on the 90/10 system
your B-BBEE status level will earn you a point out of 10.
The way these calculations work is
discussed in detail in our Tender
Manual which is available at www.how2tender.com.
To earn these points a potential bidder
must have a B-BBEE certificate that has been issued either by:
Ø A verification agency accredited
by the South African Accreditation System (SANAS); or
Ø A registered auditor;
Ø An accounting officer as
contemplated in the Close Corporation Act (CCA); or
Ø A member of the South African
Institute for Professional Accountants (SAIPA).
A point to remember is that the B-BBEE
Codes of Good Practice has changed. The new Codes will be implemented on 11
October 2014. This is good news for Exempt Micro Enterprises (EME ’s)
– their turnover threshold has gone up from R5 million to R10 million. This
means that EME’s can easily acquire a B-BBEE certificate from their Auditors or
Accountants. They do not need to go through the verification process. The
different levels that an EME can be under the new codes are:
Ø EME’s that is not Black-owned
automatically qualifies as a Level 4 contributor to B-BBEE,
Ø EME’s that has 51% or more (but
not 100%) black ownership qualifies as a Level 2 contributor to B-BBEE and
Ø EME’s that has 100% black
ownership qualifies as a Level 1 contributor to B-BBEE.
A 100% Black-owned EME will therefor earn
maximum points (either 20 or 10, depending on the value of the tender) on the
Preference point system. Furthermore a Black-owned (51% and more) EME only
needs to give an affidavit as proof of its B-BBEE status. This is also
applicable on Qualifying Small Enterprises (QSE’s) with 51% or more black
ownership.
The turnover threshold for Qualifying
Small Enterprises has also increased from R35 million to R50 million.
As one can see, a valid B-BBEE certificate
is very important in the Tender Process. The higher your B-BBEE status level,
the more points you are going to earn. So make sure you get the highest
possible score on your B-BBEE certificate.
If you want to learn more about the New
B-BBEE Codes, we have a summarized booklet available. For more information
email us at info@how2tender.com with B-BBEE in the subject line.
For all other questions regarding the
tender process and how to learn to complete a tender correctly and hopefully
successfully, please visit our website at www.how2tender.com to find out more.
Until the next time – happy tendering.
Don’t delay, get educated today!
Email:
aneequah.moerat@sap.com or visit our website for more information :) -
http://www.tradeworld.net/local.asp
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