Broad Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Black Economic Empowerment

Code Series 500: Measurement of the Preferential Procurement Element of Broad-Based Black Economic Empowerment

Statement 500 : The General Principles for Measuring Preferential Procurement

3. Key Measurement Principles
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3.1)The Weighting points in the Preferential Procurement scorecard represent the maximum number of points possible for each of the criteria.

 

3.2)All goods and services procured by the Measured Entity, other than any portion specifically excluded in terms of this statement. is measurable in calculating its Total Measured Procurement Spend.

 

3.3)If a Measured Entity procures goods and services from a Supplier that is:

 

3.3.1)a recipient of enterprise development contributions from the Measured Entity under Code series 600, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2; and

 

3.3.2)a Value-Adding Supplier, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.25.

 

3.4)This statement applies to all areas of procurement.