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Tender Newsflash! Cabinet approved the revised Preferential Procurement Regulations on 2 March 2011

Posted: 9 March 2012

Dear valued client and prospective client,

Cabinet approved the revised Preferential Procurement Regulations on 2 March 2011. The revised Preferential Procurement Regulations will be promulgated in terms of section 5(1) of the Preferential Procurement Procurement Policy Framework Act (PPPFA) as soon as possible on a date to be determined by the Minister of Finance. The content of the revised Regulations will be discussed with the Parliamentary Standing Committee on Finance and Appropriations as well as the National Economic, Development and Labour Council (NEDLAC).

These Regulations apply to organs of state as contemplated in section 1 (iii) of the Act and all public entities listed in schedule 2, 3A, 3B, 3C and 3D to the Public Finance Management Act, 1999, Act No 1 of 1999 (as amended by Act 29 of 1999).

As soon as the Regulations have been promulgated, the Balanced Scorecard measuring Broad-based Black Economic Empowerment shall form part of the evaluation criteria of all bids. The total percentage score for Broad-based Black Economic Empowerment will be converted to a Point out of a maximum of 20 Points in respect of competitive bids / price quotations with a Rand value equal to or above R30 000 and up to a Rand value of R1 000 000; and 10 Points in respect of competitive bids / price quotations with a Rand value of above R1 000 000. The Points scored by a bidder in respect of Broad-Based Black Economic Empowerment will be added to the Points scored for price, and only the bid with the highest number of Points scored may be elected. In the event that two or more bids have scored equal total points, the successful bid must be the one scoring the highest number of preferred Points for B-BBEE.

It is therefore imperative that you obtain your B-BBEE Verification Certificate from a SANAS-accredited Verification Agency if you want to bid on any government tenders, or if you are a supplier to a company that tenders for government business. Without a VALID B-BBEE Verification Certificate your tender will not even be considered. (Since 1 February 2010, only B-BBEE Verification Certificates issued by SANAS-accredited Verification Agencies are considered valid B-BBEE Verification Certificates). Even if you are verified as a non- compliant B-BBEE Contributor, your tender will be considered, as your tender will not be disqualified; you will then just score no points in respect of your B-BBEE Status.

If you do not have a valid B-BBEE Verification Certificate at present or if your B-BBEE Verification Certificate expires within three months or less, please complete the attached Preliminary Information Request Form and email it back to me at to enable us to schedule your company’s verification timeously.

As an existing BEE Empowered client:

  • You will not be subject to any verification fee increases;
  • As we already have all your suppliers on our database, the verification of all your suppliers’ B-BBEE Status will be included in our verification fee;
  • To expedite the rating process and to improve our customer service, we have amended our verification procedures – a verification analyst with the relevant experience pertaining to your company’s particular sector will be appointed as soon as you have received your BEE Compliance Questionnaire and Document Checklist Form from us. The appointed verification analyst will assist you with the completion of your BEE Compliance Questionnaire and/or with the collection of your supporting documentation. In other words, this questionnaire assistance will also be included in our re-rating verification fee;
  • The appointed verification analyst will have access to your documentation pertaining to your previous rating – it will therefore not be necessary for you to submit all your company documentation from scratch. You will only have to submit updated documentation in respect of the elements that need to be updated, for example, updated skills spend. This would expedite your rating tremendously and will mean that the verification process will be much less of a hassle.
  • One delegate per existing client may attend one of our BEE Scorecard or Introduction workshops free of charge!

BEE Empowered is one of the first verification agencies in South Africa to obtain SANAS accreditation. In 2010, our accreditation was extended to include all the Sector Codes promulgated to date; i.e. Tourism, Forestry, Transport and Construction. Please see our Schedule of Accreditation (attached).

If you have any questions regarding our verification services or our workshops, please contact me at

Looking forward to hearing from you.

Kind regards
Lizette Frank
Managing Member

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