TenderPal guide
How the 80/20 and 90/10 Preference Point Systems Work in South African Tenders
South African public tenders evaluate bids using either the 80/20 preference point system (for tenders up to R50 million) or the 90/10 system (for tenders above R50 million).
Updated 2026-10-07 · Always confirm requirements in the official tender pack.
The 80/20 Preference Point System (Tenders up to R50 Million)
Under the 80/20 system, a maximum of 80 points is allocated for price and 20 points for specific goals (such as B-BBEE, ownership demographics and locality). The lowest acceptable price receives the full 80 price points.
The formula for price points is: Ps = 80 * (1 - (P - Pmin) / Pmin), where Ps is the points scored, P is the comparative price of the bid under consideration and Pmin is the lowest acceptable comparative price.
The 90/10 Preference Point System (Tenders above R50 Million)
For major tenders exceeding R50 million, 90 points are allocated for price and 10 points for specific goals. The formula is: Ps = 90 * (1 - (P - Pmin) / Pmin).
How specific goals differ between organs of state
Under the Preferential Procurement Regulations 2022, each organ of state determines its own specific goals within its procurement policy. Always review the tender document to see whether points are awarded for B-BBEE level, black women ownership, military veterans, youth or local enterprise location.