CODE 500: PREFERENTIAL PROCUREMENT

Area:

Target

Weighting Points

% of Points

Formula

Notes

 

Year 0 – 5

Year 6– 10

 

 

 

 

Statement 500: General Principles

 

 

20

 

 

 

1. BBBEE Procurement Spend from all Suppliers based on the BBBEE Recognition Levels as a % of Total Measured Procurement Spend

50%

70%

12

60%

BBBEE Procurement Spend =? of Total measured procurement spend from each supplier

Procurement from a recipient of the ME’s Enterprise Development contribution is multiplied by 1.2. Procurement from a Value-Adding Enterprise is multiplied by 1.25

2. BBBEE Procurement Spend from Qualifying Small Enterprises or Exempted Micro-Enterprises based on the applicable BBBEE Procurement Recognition Levels as a % of Total Measured Procurement Spend

10%

15%

3

15%

x BBBEE Recognition Level of each supplier

Total measured procurement includes cost of sales, opex, capex, certain public sector procurement, procurement from monopolies, procurement for 3rd parties reflected as an expense of the ME, labour brokers & independent contractors, pension & medical aid contributions (excluding investment portion), trade commissions, empowerment expenses, certain imports, and certain intra-group procurement.

3. BBBEE Procurement Spend from any of the following Suppliers as a % of Total Measured Procurement Spend:
3.1 Suppliers that are 50% black owned (3 of 5 points)
3.2 Suppliers that are 30% black women owned (2 of 5 points)

15%

20%

5

25%

(BBBEE Procurement Spend / Total measured procurement spend) target x target points

Total measured procurement excludes tax, public sector procurement, salaries & wages, pass through 3rd party procurement, certain empowerment expenditure and certain imports.