As the largest procurer of goods and services in South Africa, procurement is meant to be Government’s transformation driver. Government wants suppliers to obtain B-BBEE certificates and the transformation requirements of the B-BBEE codes to come into force.
The first Procurement Regulations split procurement into the following:
- 80 points for price, 20 points for B-BBEE contribution
- value between R30 000 and R1 million (including all applicable taxes)
- can also apply if value is less than R30 000 where applicable.
- points scored for price and BEE contribution added together to get score
- 90 points for price and 10 points for B-BBEE contribution
- value in excess of R1 million (including all applicable taxes)
In July 2015 new draft codes were issued for comment giving the following bands for tender purposes.
- 80 points for price, 20 points for B-BBEE contribution
- value between R10 million and R50 million (including all applicable taxes)
- points scored for price and BEE contribution added together to get score
- 90 points for price and 10 points for B-BBEE contribution
- value in excess of R50 million (including all applicable taxes)
- points scored for price and BEE contribution added together to get score
- 50 points for price and 50 points for specific goals
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