Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000)RegulationsPreferential Procurement Regulations, 20177. 90/10 preference point system for acquisition of goods or services with Rand value above R50 million |
| (1) | The following formula must be used to calculate the points out of 90 for price in respect of a tender with a Rand value above R50 million, inclusive of all applicable taxes: |
Where—
| Ps | = Points scored for price of tender under consideration; |
| Pt | = Price of tender under consideration; and |
| Pmin | = Price of lowest acceptable tender. |
(2) The following table must be used to calculate the points out of 10 for BBBEE:
B-BBEE Status Level of Contributor |
Number of Points |
1 |
10 |
2 |
9 |
3 |
6 |
4 |
5 |
5 |
4 |
6 |
3 |
7 |
2 |
8 |
1 |
Non-compliant contributor |
0 |
| (3) | A tenderer must submit proof of its B-BBEE status level of contributor. |
| (4) | A tenderer failing to submit proof of B-BBEE status level of contribution or is a non-compliant contributor to B-BBEE may not be disqualified, but— |
| (a) | may only score points out of 90 for price; and |
| (b) | scores 0 points out of 10 for B-BBEE. |
| (5) | A tenderer may not be awarded points for B-BBEE status level of contributor if the tender documents indicate that the tenderer intends subcontracting more than 25% of the value of the contract to any other person not qualifying for at least the points that the tenderer qualifies for, unless the intended subcontractor is an EME that has the capability to execute the subcontract. |
| (6) | The points scored by a tenderer for B-BBEE contribution in terms of subregulation (2) must be added to the points scored for price under subregulation (1). |
| (7) | The points scored must be rounded off to the nearest two decimal places. |
| (8) | Subject to subregulation (9) and regulation 11, the contract must be awarded to the tenderer scoring the highest points. |
(9)
| (a) | If the price offered by a tenderer scoring the highest points is not market-related, the organ of state may not award the contract to that tenderer. |
| (b) | The organs of state may— |
| (i) | negotiate a market-related price with the tenderer scoring the highest points or cancel the tender; |
| (ii) | if the tenderer does not agree to a market-related price, negotiate a market-related price with the tenderer scoring the second highest points or cancel the tender; |
| (iii) | if the tenderer scoring the second highest points does not agree to a market-related price, negotiate a market-related price with the tenderer scoring the third highest points or cancel the tender. |
| (c) | If a market-related price is not agreed as envisaged in paragraph (b)(iii), the organ of state must cancel the tender. |