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​BBBEE and Procurement Procedures

            

​BBBEE

BBBEETransnet Freight Rail is the largest division within Transnet, a commercialised organisation with the State as its sole shareholder. We presently represent the group's rail freight and long distance passenger transport interests.

Broad-Based Black Economic Empowerment (BBBEE)

Transnet Freight Rail has affirmed its support for the RDP by committing itself to affirmative procurement since 1994. Black Economic Empowerment (BEE) was integrated with the tender rules and procurement policies to assist historically disadvantaged communities (HDC) and empower Transnet Freight Rail's managers to effect affirmative procurement without compromising specifications, safety and standards.

Transnet Freight Rail, a wholly owned subsidiary of Transnet, subscribes to Transnet's Procurement Procedures. We not only support BEE, but also have a role to encourage other companies to ensure a level playing field in South Africa by removing the current inequalities in business. Transnet Freight Rail prefers to do business with business enterprises who share these same values.

In order to promote the development and support of suppliers and contractors from disadvantaged communities, Transnet Freight Rail decided that a large portion of the available total procurement (discretionary) expenditure be spent in such a manner that it advances Broad Based Black Economic Empowerment (BBBEE). This will be done by setting targets at various levels, which will include:

  • Strategic Supply Management Strategy Objectives

  • Affirmative Procurement Objectives

  • Best Purchasing Practices

Transnet Freight Rail expects its suppliers to comply with all Transnet Freight Rail's BBBEE requirements when submitting tenders. As a pre-condition to selection, a potential supplier must submit a signed BBBEE certificate, the detailed scorecard (by an accredited Rating Agency) and any other documents that may be required by Transnet Freight Rail. These shall form one of the critical criteria in the evaluation of BBBEE requirements.

 

In instances where Transnet Freight Rail sets other BBBEE pre-conditions for participation, these shall form part of the tender evaluation and shall be incorporated into the contract.

Transnet Freight Rail will seriously reconsider continued business relationships with business enterprises that do not possess a BBBEE status of at least level 5. Transnet Freight Rail therefore urges tenderers and suppliers to have themselves rated by an accredited Rating Agency, which does BBBEE ratings in accordance with the latest Codes Of Good Practice (Generic Scorecard) as issued by the DTI or the latest Sectorial Charters.

For higher value procurement transactions, the business needs to supply a signed off Technical Demand Request, containing …

  • The necessary budget or in case of capital expenditure, business case approval of the person with the relevant DOA
  • Clear and detailed functional specifications
  • Technical input into factors that can influence Total Cost of Ownership (e.g. installation, maintenance costs, etc.)
  • Technical evaluation criteria and weightings that are objectively measurable, unambiguous, rational, and justifiable
  • Written proof of Technology Management approval (if a technical evaluation requirement) All relevant information regarding previous suppliers, pilots, lessons learnt, etc.

Enquiries

Suppliers and contractors can seek assistance with regard to our tendering procedures and BEE issues from the Transnet Freight Rail BEE Manager.

 

Tender documents also indicate names and telephone numbers of contact persons who can be contacted regarding any uncertainties which may arise while completing the tender documents.

 

BEE Manager
Mr. Abdool Lutchka
Tel: 011 584 0593/0653

 

​Do’s and Don’ts of the Procurement Process

The business needs to complete a Request for Services (RFS), supplying…

  • Clear quality specifications. 
  •  A SAP requisition
  • Technical evaluation criteria and weightings that are objectively measurable, unambiguous, rational, and justifiable
  • Approval of person with relevant DOA
  • A Technical Demand Request, where applicable (see below)