| 3.1 | The Preferential Procurement and Supplier Development scorecard consists of: |
| 3.1.1 | Preferential Procurement; and |
| 3.1.2 | Supplier Development Programmes; and |
| 3.1.3 | Supplier Development Contributions. |
| 3.2 | Qualifying Supplier Development Contributions will be recognised as a percentage of the annual Net Profit After Tax (NPAT) of the Measured Entity as determined in accordance with paragraph 11. |
| 3.3 | Sub-Minimum and Discounting Principle: |
| 3.3.1 | The sub-minimum for Preferential Procurement and Supplier Development is 40% of the total weighting points (excluding bonus points) of each of the three broad categories, within the Preferential Procurement and Supplier Development element, namely ‘Preferential Procurement’, ‘Supplier Development Programmes’ and ‘Supplier Development Contributions. For the avoidance of doubt this means that a Measured Entity measureable in terms of the Large Enterprise Scorecard must achieve at least: |
| (i) | 7.6 points for Contractors and 7.2 points for BEPs under the Preferential Procurement category; |
| (ii) | 2 points for Contractors and 1.6 points for BEPs under the Supplier Development Programmes category; |
| (iii) | 4 points for Contractors and 2 points for BEPs under the Supplier Development Contributions category; |
The same principles apply to the determination of the threshold points for the QSE Scorecard.
| 3.3.2 | Non-compliance to the threshold targets will result in the overall achieved B-BBEE status level being discounted in accordance with paragraph 3.6.3 of statement CSC000. |
| 3.4 | to the extent that the definition is amended and published by the DTI, the Exempted Micro Enterprises (EMEs) and Start-ups are automatically recognised as Empowering Suppliers. |
| 3.5 | The Weighting points in the ‘Supplier Development Programmes’ and ‘Supplier Development Contributions’ categories of the scorecard represent the maximum number of points possible for each of the criteria. |
| 3.6 | If a Measured Entity procures goods and services from a Supplier that is: |
| 3.6.1 | A recipient of Qualifying Supplier Development Contributions from a Measured Entity under Code series CSC 400 that has a minimum 3 year contract with the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2; |
| 3.6.2 | An at least 51% Black Owned QSE or EME which is not a supplier development beneficiary but that has a minimum 3 year contract with the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2; |
| 3.6.3 | A first time Supplier to the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2; |
| 3.7 | Individual beneficiaries of Qualifying Supplier Development Contributions are Entities: |
| 3.7.1 | That are at least 51% Black Owned; and |
| 3.7.2 | Whose total annual Revenue, for its latest completed financial period, did not exceed 30% of the Measured Entities total annual Revenue for the Measurement Period. |
