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

Codes of Good Practice on Black Economic Empowerment

Code Series 800 : Codes of Good Practice for Qualifying Small Enterprises (QSE’s)

6. Statement 805: Preferential Procurement for QSE's

6.2 Key Measurement Principles

6.2.1)

All procurement of goods and services by the Measured Entity, other than such portion specifically excluded in this statement, is measurable in calculating Total Measured Procurement Spend of the Measured Entity.

6.2.2)

Where a Measured Entity can show that it procures goods and services from a Supplier that is also:

6.2.2.1)

a recipient of enterprise development contributions from the Measured Entity under Code series 600, the BEE Procurement Spend attributable to that Supplier multiplied by a factor of 1.2 is recognisable; and

6.2.2.2)

a Value-Adding Supplier, the BEE Procurement Spend attributable to that Supplier multiplied by a factor of 1.25 is recognisable.

6.2.3)

Measured Entities are expected to pursue compliance with this statement in respect of all areas of procurement.

6.2.4)

Total Measured Procurement Spend of a Measured Entity and the Exclusions from Total Measured Procurement Spend must be determined in accordance with Statement 500.