How tender points work: the 80/20 and 90/10 systems

Tenders are scored under the Preferential Procurement Regulations, 2022, made under the Preferential Procurement Policy Framework Act, 2000. They took effect on 16 January 2023 and replaced the 2017 regulations; a tender advertised before that date was dealt with under the 2017 regulations.

Parliament passed a Public Procurement Act in 2024 that would have replaced these rules, but it never came into force: National Treasury said in 2024 that the existing procurement laws remain in place until it does, and in September 2026 the Constitutional Court declared the Act invalid because it was adopted in a manner inconsistent with the Constitution. These regulations are therefore still the ones that score tenders.

The 80/20 system applies to a tender with a Rand value of R50 million or less, and the 90/10 system to one above R50 million, both including all applicable taxes. The Rand value is the total estimated value of the contract when the tender is invited.

The tender documents must say which system applies. Where that is unclear, they must say that the lowest acceptable tender decides it (the highest acceptable tender, for a tender that generates income).

Under 80/20, up to 80 points are for price (90 under 90/10). The lowest acceptable price scores the full 80; a higher price scores less, using the formula in the regulations: points = 80 × (1 − (your price − lowest price) ÷ lowest price).

For example, if the lowest acceptable price is R100 000 and yours is R110 000, you score 80 × (1 − 0.1) = 72 points for price.

Up to 20 points (10 under 90/10) are for the specific goals the tender names — for example contracting with people historically disadvantaged by unfair discrimination on the basis of race, gender or disability. The tender must state each goal, the points for it and the proof you must give. You claim them on the SBD 6.1 form, and a claim without the proof asked for is treated as not claimed.

Your price points and specific-goal points are added and rounded to two decimal places, and, subject to the Act, the contract goes to the bidder with the highest total. If two bidders tie, the one with more points for specific goals wins; a complete tie is decided by drawing lots.

If an organ of state believes a bidder gave false information about a specific goal, it must tell the bidder and allow 14 days to respond. If it concludes the information is false, it may disqualify the bid or end the contract, and claim damages.

Govermate lists open tenders and requests for quotation by province. The points system and the specific goals of each one are in its own tender documents — read them before you price.