B-BBEE Requirements for Tenders

B-BBEE status doesn’t decide whether you may bid — but it decides up to 20% of your score, and on tight tenders the preference points are the whole ballgame. This guide explains how the points work, what evidence to submit, and the free route most small businesses don’t realise they qualify for.

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

Under the Preferential Procurement framework, bids are scored out of 100. For tenders with a value up to R50 million, 80 points go to price and 20 to your B-BBEE status level. Above R50 million it becomes 90/10. Level 1 earns the full preference points, sliding down roughly like this (80/20 system):

The free route: sworn affidavits

If your annual turnover is under R10 million, you are an Exempted Micro Enterprise (EME) — automatically Level 4, or Level 2 at 51%+ black ownership, or Level 1 at 100% black ownership. You claim this with a free sworn affidavit (the DTIC template), signed before a Commissioner of Oaths — no verification agency, no cost. QSEs (R10–50 million turnover) that are 51%+ black-owned also qualify for affidavit-based Level 1/2 status. Only larger or lower-ownership firms need a paid SANAS-accredited verification certificate.

What evaluators actually check

• The affidavit/certificate is valid (12 months) and matches the entity bidding
• SBD 6.1 is completed and claims the same level as the evidence (see SBD forms explained)
• Turnover claimed on the affidavit is plausible against your financials
• Fronting indicators — misrepresenting ownership is a criminal offence under the B-BBEE Act

Beyond points: set-asides and subcontracting

Some tenders apply pre-qualification criteria — only EMEs/QSEs, or only firms above a stated B-BBEE level, may bid at all. And on contracts above R30 million, the 30% subcontracting rule channels work to black-owned SMMEs. Each tender’s page on SA Tenders AI surfaces the B-BBEE requirements it found, and the free compliance check tells you if your affidavit or certificate is what’s missing.