Preferential procurement 2 (2)

Challenges and constraints

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Lack of trainingLack of skillLack of informationLack of networkingLack of resources

Proposed interventions

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Practical hands-on trainingWeekly sessionsFormation of consortia by SMMEsFormation of joint venturesFormation of partnershipsMonitoring and evaluation of submitted

tenders

The Process

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Identification of tendersRequest for tender documentsIdentification of suppliersRequest for quotationsCompliance –Tax clearance certificatesPricing of documentCalculation of preference pointsCompletion of documentSubmission of tender

BID PRICE POINTS

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90/1090 points based on lowest responsive bid

prices in excess of R1m80/2080 points based on lowest responsive bid

prices up to R1m

BID PRICE POINTS

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90/10 90 points R1m 0 80 points 80/20 Formula Ps = 80/90 1- Pt – Pmin Pmin

BBBEE ADJUSTED PIONTS

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BBBEE Status level of Contributor

Number of Points 80/20

Number of Points 90/10

1 20 10 2 18 9 3 16

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4 12 5 5 8 4 6 6 3 7 4 2 8 2 1Non Compliant contributor

0 0

POINTS ALLOCATION

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BIDDER

PRICE PRICE POINTS

BBBEE CONTRIBUTOR LEVEL

BBBEE POINTS

TOTAL POINTS

A B C D E F

BBBEE LEVELS POINTS

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CONTRIBUTION LEVEL QUALIFICATIONLevel One Contributor ≥ 100 pointsLevel Two Contributor ≥ 85 points but < 100

pointsLevel Three Contributor ≥ 75 points but < 85

pointsLevel Four Contributor ≥ 65 points but < 75

pointsLevel Five Contributor ≥ 55 points but < 65

pointsLevel Six Contributor ≥ 45 points but < 55

points Level Seven Contributor

≥ 40 points but < 45 points

Level Eight Contributor ≥ 30 points but < 40 points

Non Compliant Contributor

< 30 points

SITES FOR TENDERS

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www.treasury.gov.za –freewww.tenderscan.co.za – subscriptionwww.tradeworld.net – subscriptionwww.dailytenders.co.za – subscriptionwww.onlinetenders.co.za – subscriptionwww.info.gov.za/documents/tenders/

index.htm - free

http://www.treasury.gov.za/

http://www.tenderscan.co.za/

http://www.tradeworld.net/

http://www.dailytenders.co.za/

SITES FOR SUPPLIERS

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www.safindit.co.zawww.findsa.co.zawww.sayellow.co.zawww.easyinfo.co.zawww.sabs.co.zawww.specifile.co.zawww.kellysearch.comwww.africatrade.co.zawww.infomine-africa.com

EXERCISE 1

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Company A responds to a tender to supply hospital equipment and receives a quotation of R750 000 excluding value added tax. Calculate the price if the company adds mark up of 10% and value added tax of 14%

EXERCISE 1

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Cost price =R750 000,00

EXERCISE 1

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Cost price =R750 000,00 Mark up 10% = R 75 000,00

EXERCISE 1

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Cost price = R750 000,00 Mark up 10% = R 75 000,00 Total price (exc) = R825 000,00

EXERCISE 1

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Cost price =R750 000,00 Mark up 10% = R 75 000,00 Total price (exc)= R825 000,00 VAT = R115 500,00

EXERCISE 1

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Cost price =R750 000,00 Mark up 10% = R 75 000,00 Total price (exc)= R825 000,00 VAT = R115 500,00 Total price (incl) = R940 500,00

EXERCISE 2

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Company B responds to a tender to supply farming equipment and receives a quotation for R969 000 including value added tax. Calculate the price if the company adds mark up of 15% and value added tax of 14%.

EXERCISE 2

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Cost Price = R969 000,00

EXERCISE 2

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Cost Price = R969 000,00 Less Vat (Input) = R 119 000,00

EXERCISE 2

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Cost Price = R969 000,00 Less Vat (Input) = R 119 000,00 = R850

000,00

EXERCISE 2

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Cost Price = R969 000,00 Less Vat (Input) = R 119 000,00 = R850 000,00 Mark Up 15% = R127 500,00

EXERCISE 2

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Cost Price = R969 000,00 Less Vat (Input) = R 119 000,00 = R850 000,00 Mark Up 15% = R127 500,00 Total = R977 500,00

EXERCISE 2

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Cost Price = R969 000,00 Less Vat (Input) = R 119 000,00 = R850 000,00 Mark Up 15% = R127 500,00 Total = R977 500,00 Add Vat (Output) = R136 850,00

EXERCISE 2

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Cost Price = R 969 000,00 Less Vat (Input) = R 119 000,00 = R 850 000,00 Mark Up 15% = R 127 500,00 Total = R 977 500,00 Add Vat (Output) = R 136 850,00 Total price =R 1 114 350,00

Vat Payable

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Vat payable = Output tax less Input taxFormula = Price x rate/ 100 + rateOutput = R 1114350,00 x 14 114 R 136 850,00Input = R 969 000,00 x 14 114 R 119 000,00Vat payable = R 136 850,00 - R 119

000,00 R 17 850

Tools required

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LaptopAccess to internet – 3G data cardData projectorTraining venueWill to learn

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Thank You

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Sello & Associates [email protected]

www.facebook.com/tender.opportunities www twitter.com/BooksySello

Mobile : 0847976212 Fax : 0865152849

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Preferential procurement 2 (2)

Business

Transcript of Preferential procurement 2 (2)