South African government tenders are not awarded on price alone. Under the Preferential Procurement Policy Framework Act (PPPFA), bids are scored on a combination of price and preference points — and for most small businesses, those preference points come mainly from your BBBEE level. Understanding the scoring tells you where you actually stand before you bid.
The 80/20 and 90/10 systems
Every tender is scored out of 100, split between price and "specific goals" (which include your BBBEE status). There are two splits:
| System | Points for price | Points for specific goals (incl. BBBEE) |
|---|---|---|
| 80/20 | 80 | 20 |
| 90/10 | 90 | 10 |
The 80/20 split is used for lower-value tenders and 90/10 for higher-value ones. The exact rand threshold is set in the Preferential Procurement Regulations and each tender states which system applies. The bidder with the highest total score wins, so a slightly higher price can still win if it's backed by more preference points.
BBBEE levels and recognition
Your BBBEE status is expressed as a level from 1 to 8 (plus "non-compliant"). A better level translates into a higher percentage recognition and therefore more of those preference points. Level 1 is the strongest. Your level is determined by a verification agency against the relevant BBBEE scorecard, or, for the smallest businesses, by affidavit.
- Level 1 carries the highest recognition and earns the most preference points.
- Levels step down from there — a weaker level means fewer points on the specific-goals portion.
- Non-compliant businesses generally score nothing on that portion.
EMEs and the free BBBEE affidavit
If your business turns over below the Exempted Micro Enterprise (EME) threshold, you don't need a full verification certificate — a sworn BBBEE affidavit confirming your annual turnover and black ownership is enough, and it's free. A 100% black-owned EME automatically qualifies as Level 1. This is one of the simplest ways for a small business to become more competitive on tenders at no cost.
How this fits your bid
Preference points are claimed on the SBD 6.1 form, with your BBBEE certificate or affidavit attached as a returnable document — see our guide on how to apply for a tender. Getting your BBBEE affidavit or certificate in order, alongside an active CSD registration, is one of the highest-value things a small bidder can do. When that's ready, set up a free TargetTenders profile to get matched to the tenders you can win.