Preferential Procurement Scorecard

The third step in relation to the Preferential Procurement element is to calculate the score achieved by assessing the Preferential Procurement Spend against the targets above (which are relative to the Total Measured Procurement Spend figure).

The BEE123 Scorecard Software will automatically pull through this information from the Preferential Procurement Calculator.

Example

Below is an example of how the Preferential Procurement element score is calculated:

STEP 1

Calculate Total Measured BEE Spend of the entity:

Expense Items		Less Exclusions
Cost of Sales	R 450 000	Taxes	R 475 000
Operational Expenditure	R 212 000	Salaries and Wages	R 335 000
Capital Expenditure	R 500 000	Depreciation	R 45 600
Intercompany Expenses	R 2 500	Excludable Imports	R 221 900
Finance Costs	R 5 000	Enterprise & Supplier Development Spend	R 20 000
		Third party pass through procurement	R 15 000
		Loss of Sale of Assets	R 45 000
		Foreign Exchange Loss	R 2 000

Total Measure Procurement Spend			R 10 000

STEP 2:

Calculate Attributable BEE spend in relation to each supplier.

The measured entity has purchased goods and services form the following 5 suppliers during the measurement period:

Supplier A:

Procurement Spend = R 3 000
Entity Type: Generic
51% Black Owned: No
35% Black Female Owned: No
BEE Status Level: Level 6 (0.6 multiplier)
Empowering Supplier: Yes
Supplier Development Beneficiaries with a 3 year contract (1.2 multiplier): No
51% black owned EME or QSEs with a 3 year contract (non- Supplier Development beneficiaries) (1.2 multiplier): No
A First time Black-Owned Entity supplier to the measured entity (1.2 multiplier): No
51% Black owned Designated Group supplier: No (for bonus points)

The Attributable BEE spend in relation to supplier A is a follows:

R 3 000 x 0.6 = R1800

Supplier B:

Procurement Spend = R 500
Entity Type: EME
51% Black Owned: Yes
35% Black Female Owned: Yes
BEE Status Level: Level 1 ( 1.35 multiplier)
Empowering Supplier: Yes
Supplier Development Beneficiaries with a 3 year contract (1.2 multiplier): Yes
51% black owned EME or QSEs with a 3 year contract (non- Supplier Development beneficiaries) (1.2 multiplier): No
A First time Black Owned Entity supplier to the measured entity (1.2 multiplier): Yes
51% Black owned Designated Group supplier: Yes (for bonus points)

The Attributable BEE spend in relation to supplier B is a follows:

R 500 x 1.35 x 1.2 x 1.2 = R 972

Supplier C:

Procurement Spend = R 350
Entity Type: QSE
51% Black Owned: No
35% Black Female Owned: yes
BEE Status Level: Level 7 ( 1.35 multiplier)
Empowering Supplier: No
Supplier Development Beneficiaries with a 3 year contract (1.2 multiplier): No
51% black owned EME or QSEs with a 3 year contract (non- Supplier Development beneficiaries) (1.2 multiplier): No
A First time Black Owned Entity supplier to the measured entity (1.2 multiplier): No
51% Black owned Designated Group supplier: No (for bonus points)

The Attributable BEE spend in relation to supplier C is a follows:

R 350 x 0.5 = R 175

HOWEVER - because the supplier is NOT an Empowering Supplier the attributable spend is deemed to be zero.

Supplier D:

Procurement Spend = R 1500
Entity Type: Generic
51% Black Owned: No
35% Black Female Owned: No
BEE Status Level: Level 3 (1.1 multiplier)
Empowering Supplier: Yes
Supplier Development Beneficiaries with a 3 year contract (1.2 multiplier): No
51% black owned EME or QSEs with a 3 year contract (non- Supplier Development beneficiaries) (1.2 multiplier): No
A First time Black Owned Entity supplier to the measured entity (1.2 multiplier): No
51% Black owned Designated Group supplier: No (for bonus points)

The Attributable BEE spend in relation to supplier D is a follows:

R 1500 x 1.1 = R 1650

Supplier E:

Procurement Spend = R 600
Entity Type: QSE
51% Black Owned: Yes
35% Black Female Owned: Yes
BEE Status Level: Level 2 (1.25 multiplier)
Empowering Supplier: Yes
Supplier Development Beneficiaries with a 3 year contract (1.2 multiplier): No
51% black owned EME or QSEs with a 3 year contract (non- Supplier Development beneficiaries) (1.2 multiplier): Yes
A First time Black Owned Entity supplier to the measured entity (1.2 multiplier): Yes
51% Black owned Designated Group supplier: Yes (for bonus points)

The Attributable BEE spend in relation to supplier E is a follows:

R 600 x 1.25 x 1.2 x 1.2 = R 1080

STEP 3:

Calculate the score achieved in relation to each of the sub-elements of the Preferential Procurement scorecard.

Preferential Procurement Spend across All Suppliers:

= Supplier A + Supplier B + Supplier C + Supplier D + Supplier E

= R1800 + R972 + 0 + R1650 + R1080

= R5502

= R5502 ÷ R 10 000

= 0. 5502

= 55.02% ÷ 80%

= 0.68775 x 6 points

= 4.13 points

Preferential Procurement across QSEs:

= Supplier C + Supplier E

= R0 + R1080

= R1080

= R1080 ÷ R 10 000

= 0.108

= 0.108% ÷ 15%

= 0.72 x 3

= 2.16 points earned

Preferential Procurement across EMEs:

= Supplier B

= R972

= R 1506.25 ÷ R 10 000

= 0.1506

= 15.06% ÷ 15%

= 1.004 x 3

= 3.01 points earned

Preferential Procurement across 51% black owned suppliers:

= Supplier B + Supplier E

= R 972 + R 1080

= R2052

= R 2052 ÷ R 10 000

= 0.2052

= 20.52% ÷ 20%

= 0.513 x 4

= 4.10 points earned (Limited to the available 4 points)

Preferential Procurement across 35% black female owned suppliers:

= Supplier B + Supplier C

= R 972 + R0

R972 ÷ R 10 000

= 0.0972

= 9.72% ÷ 12%

= 0.81 x 3

= 2.43 points earned

TOTAL Points earned

= 4.13 + 2.16 + 3.01 + 4.00 + 2.43 = 15.73

Bonus Points

Preferential Procurement with 51% Black owned Designated Group suppliers:

Supplier B + Supplier E

= R 972 + R 1080

= R2052

= R 2052 ÷ R 10 000

= 0.2052

= 20.52% ÷ 20%

= 1.026 x 3

= 3 points earned (maximum)

Enterprise and Supplier Development
Measurement Category & Criteria		Weighting Points	Compliance Targets
2.1 Preferential Procurement	2.1.1 B-BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend	6	80%
	2.1.2 B-BBEE Procurement Spend from all Empowering Suppliers that are Exempted Micro-Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend	3	15%
	2.1.3 B-BBEE Procurement Spend from all Empowering Suppliers that are Qualifying Small Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend	3	15%
	2.1.4 B-BBEE Procurement Spend from Empowering Suppliers that are at least 51% Black Owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend	4	20%
	2.1.5 B-BBEE Procurement Spend from Empowering Suppliers that are at least 35% Black Women Owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend	3	12%
Bonus Points	2.1.6 B-BBEE Procurement Spend from Empowering Suppliers that are at least 51% owned by Black Designated Groups based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend.	3	20%
Bonus Points	2.1.7 B-BBEE Procurement Spend from Empowering Suppliers that are at least 51% Black Women Owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend	1	8%