Adopt a Sub-Contractor for B-BBEE Points.
The “Adopt a Sub-Contractor” has been designed in alignment with the B-BBEE Construction Sector Code and the latest Tendering Regulations to build the supply capacity of suppliers and sub-contractors respectively.
National Treasury promulgated the revised Preferential Procurement Regulations in January 2017 and it create a total bias “to empower Small Medium and Micro Enterprises (SMMEs), also classified as EMEs or QSEs, Co-operatives, Township and Rural enterprises) through procurement”.
The regulations have introduced a “Pre-qualification Criteria” favouring the award of tenders to these “selected categories” as well as restricting “well established companies” to certain tenders, “unless they meet further requirements of sub-contracting to these groups”.
Treasury also introduced a requirement in tenders of above R30m in value to also leverage the “sub-contracting regulation”, where “feasible” and for big companies to “demonstrate the element of sub-contracting to the categorised groups at a tendering stage”.
The regulations also stipulate that successful bidders will have to select the sub-contractors from a list, which the “organ of state must make available” and that it must be “approved by the National Treasury”.
This instruction creates a challenge for bidders in that they would only want to use sub-contractors that have the desired capacity to successfully fulfil their part of the “sub-contracted portion of the tender”.
It is with this challenge in mind that, South Africa’s leading tendering consultancy, Taranisco Advisory CC, has launched the “Adopt a Sub-Contractor Program” wherein companies could firstly, score points on their B-BBEE Scorecard when allocating resources to build the capacity of the identified “sub-contractors” and secondly, to ensure that their own existing “sub-contractors” are continued to be used where they are successful in winning tenders.
Participating companies in the program will either choose their own “sub-contractors” to become part of the capacity building interventions or it could request TaranisCo Advisory to supply them with “pre-screened sub-contractors” who are verified on treasury’s Central Supplier Database (CSD).
Selected “sub-contractors” will be assessed prior to receiving the required capacity building interventions to ensure that it has a high outcomes-based delivery.
According to Gerrit Davids, Lead Consultant at TaranisCo Advisory, “the program provides all companies tendering for government contracts to prepare their “sub-contractors” for the eventual delivery of contracts. Also, companies must ensure that their “existing sub-contractors” are complying with the definition of the “selected categories of designated groups” as prescribed in the tender.
A tenderer’s current “sub-contractors” may not qualify under these “selected categories” and it could prevent them from tendering for specific contracts”.
The “Adopt a Sub-Contractor Program” is tantamount to a “double whammy” in that construction suppliers to government could use “sub-contractors” in line with the tender requirement and at the same time score points for “Supplier Development” on their B-BBEE Scorecard.
For further details contact: Gerrit Davids on Cell. 082 496 1657 or to E-mail us: Click Here