SA Tendering Glossary

The points allocation system used for tenders with an estimated value up to R50 million. Under this system, 80 points are allocated for price and 20 points for B-BBEE status and specific goals as defined by the procuring entity.

The points allocation system used for tenders with an estimated value above R50 million. Under this system, 90 points are allocated for price and 10 points for B-BBEE status and specific goals.

South Africa's legislative framework for promoting economic transformation by increasing black participation in the economy. B-BBEE status is measured across elements including ownership, management control, skills development, and enterprise development, resulting in a level from 1 (highest) to 8 (lowest).

The statutory body that regulates and develops the construction industry in South Africa. CIDB maintains the Register of Contractors, which categorizes and grades contractors based on their capability to undertake construction work of various classes and values.

The classification system used by CIDB to categorize construction contractors. Grades range from 1 (up to R200,000) to 9 (unlimited value). Contractors are graded in categories such as CE (Civil Engineering), GB (General Building), ME (Mechanical Engineering), and EP (Electrical Engineering).

The government agency responsible for company and intellectual property registration in South Africa. CIPC registration documents are required for all tender submissions to verify the legal status of the bidding entity.

Legislation requiring employers to register with the Compensation Fund and pay assessments for workplace injury and disease compensation. A Letter of Good Standing from the Compensation Commissioner is often required for tenders.

The National Treasury's centralized online database where all suppliers must register to do business with government. The CSD provides a single source of supplier information and automates verification of tax compliance, B-BBEE status, and banking details.

A business with an annual total revenue of R10 million or less. EMEs are automatically granted a Level 4 B-BBEE status but can improve to Level 1 or 2 if they are 100% or 51%+ black-owned respectively. EMEs can self-declare their B-BBEE status via a sworn affidavit.

A pre-qualification process where potential bidders indicate their interest and capability in a project. EOIs are used to shortlist qualified suppliers before issuing the full tender documentation.

A business with an annual total revenue exceeding R50 million. Generic enterprises are measured against the full B-BBEE scorecard with all elements including ownership, management control, skills development, enterprise and supplier development, and socio-economic development.

The National Treasury division responsible for modernizing and overseeing public sector procurement in South Africa. The OCPO issues procurement policies, practice notes, and manages transversal contracts.

The statutory body regulating the private security industry in South Africa. All security service providers must be registered with PSIRA to operate legally and bid on security-related government tenders.

A business with an annual total revenue between R10 million and R50 million. QSEs are measured against a simplified B-BBEE scorecard and can improve their status based on ownership, management, and skills development.

A preliminary document used by procuring entities to gather information about potential suppliers and market conditions before issuing a formal tender. RFIs help shape tender specifications and are not binding.

A formal solicitation document inviting suppliers to submit detailed proposals for complex goods or services. Unlike RFQs, RFPs evaluate proposals on multiple criteria including technical capability, methodology, experience, and price.

An invitation issued by a procuring entity to potential suppliers to submit price quotations for specific goods or services. RFQs are typically used for lower-value procurement where specifications are clear and price is the main differentiator.

The national standards body of South Africa. SABS certification is often required for products and services procured by government, particularly for manufactured goods and quality management systems.

The standardized set of forms prescribed by National Treasury for use in public procurement. Key SBD forms include SBD 1 (Invitation to Bid), SBD 3.1 (Pricing Schedule), SBD 4 (Declaration of Interest), SBD 6.1 (Preference Points Claim), and SBD 9 (Certificate of Independent Bid Determination).

The integrated management of all activities involved in sourcing, procurement, and logistics within government entities. SCM encompasses demand management, acquisition management, logistics management, disposal management, and risk management.

A document issued by the South African Revenue Service (SARS) confirming that a taxpayer's tax affairs are in order. A valid TCC is a mandatory requirement for all government tenders.

The fund that provides short-term relief to workers who become unemployed or unable to work. UIF compliance is verified through a Letter of Good Standing from the Department of Employment and Labour.