PRICE AND SPECIFIC GOALS

Price Specific Goals

Bids evaluated in terms of Preferential
Procurement Regulations, 2022
 In terms of the revised regulation
prescribes the threshold amounts
and the formula for applying the
90/10 preference point systems for
the supply,delivery and off loading
of nutrional poducts for perishables
and non perishables.
 Responsive bids will be adjudicated
by the Department of Correctional
Services on the 90/10 preference
point system in terms of which
points are awarded to bidders on
the basis of the following:
1) Bid price (maximum 80/90
points)
2) Specific Goals of contributor
(maximum 20/10 points)
POINTS AWARDED FOR SPECIFIC
GOALS
 In terms of Regulation 4(2); 5(2);
6(2) and 7(2) of the
Preferential Procurement
Regulations, preference points must
be awarded for specific goals stated
Price & in the tender.
Goals
 For the purposes of this tender the
tenderer will be allocated points
based on the goals stated in table 1
in SBD 6.1 to be supported by
proof/ documentation stated in the
conditions of this tender:
 Then the Department shall indicate
the points allocated for specific
goals for both the 90/10 and 80/20
preference point system.

1. General Conditions

 Under the amended codes, the annual total revenue threshold for Exempt Micro
Enterprises (EMEs) has increased from R5 million to R10 million, and a Qualifying
Small Enterprise (QSE) qualifies within the R10-R50 million bracket.

 EMEs (including start-ups) and QSEs could qualify for higher B-BBEE Status Levels,
depending on their black ownership:

1) An EME or QSE with 100% black ownership qualifies at a Level One.

2) An EME or QSE with more than 51% black ownership qualifies at a Level Two.
3) If black ownership of an EME is below 51%, it qualifies at a Level Four.
4) If black ownership of a QSE is below 51%, it is required to be measured in
terms of the QSE scorecard to confirm its B-BBEE Status Level.

 It should be noted that an entity tendering for work which will take them into the next
size measurement category will require a B-BBEE certificate rated on that size entity.
For example, if an EME were to tender for a contract worth R12million, it would be
required to submit a QSE scorecard.
2. SwornAffidavit

A meaningful change for EMEs is the removal of the requirement to obtain a B-BBEE
verification certificate to confirm its B-BBEE status level (as well as for QSEs in
certaincircumstances). The amended codes make provision for confirmation of an
EME’s B-BBEE status level via a sworn affidavit confirming the entity’s annual total
revenue and black ownership (Par. 4.5 of the mended Code Series 000 Gazette No
36928 as amended by Gazette No 38765).

 The application of the amended codes and the basis for measurement are provided
in Statement 000 of the Amended Code Series 000 Gazette No 36928 as amended
by Gazette No 38765, and can be summarised as follows:

3. POINTS AWARDED FOR PRICE ( TABLE B – GENERIC (LARGE) ENTERPRISE)

 90/10 PREFERENCE POINT SYSTEMS

A maximum of 90 points is allocated for price on the following basis:

90/10

(
Ps=90 1−
Pt −P min❑
P min❑ )
Where
Ps = Points scored for price of tender under consideration
Pt = Price of tender under consideration
Pmin = Price of lowest acceptable tender

4. POINTS AWARDED FOR SPECIFIC GOALS

 In terms of Regulation 4(2); 5(2); 6(2) and 7(2) of the Preferential Procurement
Regulations, preference points must be awarded for specific goals stated in the
tender. For the purposes of this tender the tenderer will be allocated points based on
the goals stated in table 1 in SBD 6.1 ( to be supported by proof/ documentation
stated in the conditions of this tender:

 Then the Department shall indicate the points allocated for specific goals for both the
90/10 and 80/20 preference point system.

5. SPECIFIC GOALS: 90/10 – TABLE ( GENERIC (LARGE) ENTERPRISES)

5.1.2 Preference Points For Acquisition Of Perishables And Non-Perishables

Nutritional Products for Rand Value Above R50 Million. A maximum score of
ninety (90) points must be allocated for price quoted by the bidder as per
formula indicated on PPR 2022. Ten (10) points for procurement development
 goals must be allocated based on historically disadvantaged individuals,
gender, youth and disability.

5.1.3 For a bidder to qualify for preference points, ownership of 51% or more per
HDP must be obtained.
5.1.4 Bidders must submit certified documentary proof to claim for preference
points. The preference points for 80/20 must be allocated as follows:

Procurement Goals Points

Women 4 points
Youth 2 points
Black 2 points
Disability 2 points
Total 10 Points
5.1.5 The points scored for the specific goal must be added to the points scored for
price and the total must be rounded off to the nearest two decimal places.

5.1.6 The contract must be awarded to the tenderer scoring the highest points.

5.1.7 If two or more tenders score an equal total number of points, the contract must
be awarded to the tenderer that scored the highest points for specific goals,
and if two or more tenderers score equal total points in all respects, the award
must be decided by the drawing of lots.

5.1.8 The following documentary proof must be submitted with the bid to claim for
preference points:

a) Women: Affidavit (signed off by SAPS) confirming 51% or more women ownership
or BBBEE certificate or Sworn Affidavit as per DTI prescribed template.
b) Disability: Medical certificate signed off by the doctor. The medical certificate must
be accompanied by an affidavit signed off by SAPS confirming 51% or more
directorship for disabled persons.
c) Black: Affidavit (signed off by SAPS) confirming 51% or more black ownership or
BBBEE certificate or Sworn Affidavit as per DTI prescribed template.
d) Youth: Affidavit (signed off by SAPS) confirming 51% or more youth ownership or
BBBEE certificate or Sworn Affidavit as per DTI prescribed template.
* NB Bidders are required to complete the Preference Claim Form (SBD 6.1)

6. Phase 4: Recommendation and award

 The Bid Evaluation Committee will recommend a preferred responsive bidder based
on phase 1, phase 2 and phase 3 to Bid Adjudication Committee for award and
approval.

 The Department reserves the right to award contracts to more than one contractor
for the same item.

7. Multiple Award

 The Department reserves the right to award the bid items to more than one
contractor for the same line item per Management Area. The Department will use its
discretion to determine the multiple or split award on the bid, whereby the awarding
of the bid to more than one contractor will be based on the following factors:

 Risk Management for continuity of supply

 Volume of items

 Value of items

 Cost effectiveness

 Stimulation of market competition due to the nature of the commodity

 The maximum number of items to be awarded per line item per Management Area
will be at the discretion of the Bid Adjudication Committee.

 The Department reserves the right to limit the multiple or split award within a
reasonable price difference percentage that will be deemed reasonable and cost
effective for the Department.

 Where necessary, the Department reserves the right to rotate orders within the pool
of suppliers awarded the same line item. The details will be outlined and applied
during the signing of the Service Level Agreement.

 The Department reserves the right not to award the same brand to more than one
bidder per line item.
  The Department reserves the right not to award items from the same source of
supply (e.g.) from one supplier who is the third party to the bidders/ who has provided
the BD 27-forms to the bidders.

 The Department reserves the right to limit the award to the bidder in one or more
Management Area(s) as they may deem adequate during the evaluation and
adjudication process.

8. Local Production

The Department reserves the right to give preference to locally manufactured products.
Bidders must indicate on the pricing schedule the country of manufacturing/ production of
the product(s).

In order to promote export orientated production, creation of new jobs and the intensification
of labour absorption, the department may allocate preferential points for categories of goods
designated for local production and content.

The department may use one or more of the following RDP goals to promote local
production and content and must specify evidence required from prospective bidders to
claim points:
 The promotion of South African owned enterprises
 The promotion of SMMEs
 The promotion of enterprises located where goods or services are
required
 The promotion of export orientated production to create jobs
 The creation of new jobs or the intensification of labour absorption
 Any other applicable RDP goals

9. Supplier Due Diligence

 The Department reserves the right to conduct due diligence prior to final award or at
any time during the contract period and this may include pre-announced/ non-
announced site visits. The due diligence process may be conducted to also
determine the capability of the bidder to service this magnitude contract.

 It is the responsibility of the bidder to grant access to their premises, provide all the
required information and answer all the questions during the due diligence process.
Non-compliance with the requirement may disqualify the bid in whole or parts thereof.

 During the due diligence process the information submitted by the bidder will be
verified and any misrepresentation thereof will disqualify the bid in whole or parts
thereof.

 The Department reserves the right to also conduct due diligence on the bidders’
supplier(s) to confirm their capacity to serve as a service provider(s) to the bidder. It
is the responsibility of the bidder to inform their supplier(s) of this requirement. Non-
compliance with the requirement may disqualify the bid in whole or parts thereof.

 The premises/factory of the bidder and or his supplier(s) should be open at all
reasonable hours for the inspection by a representative of the Department as part of
 the due diligence process. Non-compliance with the requirement may disqualify the
bid in whole or parts thereof.

 Due diligence may also be applied to ensure that pricing is affordable, market related
and aligned to end-user requirements.

 Bidders must note that the outcomes of the due diligence process will form part of the
bid recommendation and where necessary be applied to determine the multiple or
split award application on the bid or not award the bid in whole or parts thereof.

10. Vendor Assessment

 The Department will have the right to confirm the ability of bidders to execute this
contract successfully. This includes an investigation by the Department or its
appointee of the following:

a. The bidder’s financial position to execute the contracts.

b. Letter confirming going concern status from the Accountant/Auditor which is

not older than six months by closing date and time of the bid.

c. Bidder’s operational plan on how to execute the supply of items bidding for.

d. Previous contracts executed and current contracts (SBD 4 and SBD 8 must
be completed).

e. Delivery periods, quality and quantity of products.

 The premises/factory of the bidder or contractor should not open at all reasonable
hour for inspection by a representative of the Department and/or its approved
institution.
 Should the contractor not cooperate in any of these matters and/or do not have the
capability to execute the contract his/her offer will be regarded as not acceptable.

11. COUNTER CONDITIONS

 Bidders’ attention is drawn to the fact that amendments to any of the Bid Conditions
or setting of counter conditions by bidders may result in the invalidation of such bids.