How is the 80/20 tender preference points system calculated in South Africa?

Under the 80/20 system (applicable to tenders up to R50 million), price is allocated a maximum of 80 points using the formula Ps = 80 * (1 - (P - Pmin) / Pmin), where Ps is points scored, P is bid price and Pmin is the lowest acceptable bid price. The remaining 20 points are awarded for specific goals such as B-BBEE, ownership and locality.

When is the 90/10 preference point system used?

The 90/10 preference points system applies to major public procurement tenders with a value exceeding R50 million. 90 points are allocated for comparative price and 10 points for specific goals.

Can a higher price win a tender if they have higher B-BBEE points?

Yes. If a bidder with a slightly higher price holds higher specific goals or B-BBEE points (for example Level 1 vs Level 4), their combined total score out of 100 can exceed a competitor who submitted a cheaper price but lower preference points.

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South African Tender Preference Points Calculator

Calculate your tender evaluation score under the official 80/20 and 90/10 Preferential Procurement Regulations. Test pricing scenarios, calculate specific goals points and see how price differences impact your ranking.

Tender Scoring Inputs

Preferential Procurement Regulations (PPPFA) scoring

Procurement Point System

Lowest Acceptable Bid Price (Pmin) in ZARBenchmark lowest price

Your Quoted Bid Price (P) in ZARYour financial proposal

Specific Goals / B-BBEE Points Claimed20 / 20 Points

Points awarded for B-BBEE status, black ownership, women, youth, disability and local enterprise.

0 (Non-compliant)Level 4 / EME (12-18 pts)Level 1 / 100% Black (20 pts)

Live EvaluationOfficial Treasury Formula

Estimated Total Bid Score

92/ 100

Price Points (Ps):72 / 80

Specific Goals Points:20 / 20

Total Score:92 points

Your bid is 10.0% higher than the lowest price. You lost 8.00 price points, which is partially offset by your specific goals score.

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The Official Treasury Preference Point Formulas

South African organs of state (national departments, provincial governments, municipalities and state-owned entities) evaluate responsive bids using standard mathematical formulas prescribed under the Preferential Procurement Policy Framework Act (PPPFA) Regulations:

1. The 80/20 Price Formula (Tenders up to R50 Million)

$$P_s = 80 \times \left(1 - \frac{P - P_{min}}{P_{min}}\right)$$

$$P_s$$ = Points scored for price of the bid under consideration
$$P$$ = Rand value of bid under consideration
$$P_{min}$$ = Rand value of lowest acceptable bid

2. The 90/10 Price Formula (Tenders above R50 Million)

$$P_s = 90 \times \left(1 - \frac{P - P_{min}}{P_{min}}\right)$$

$$P_s$$ = Points scored for price of the bid under consideration
$$P$$ = Rand value of bid under consideration
$$P_{min}$$ = Rand value of lowest acceptable bid

Frequently Asked Questions about Tender Scoring

What are specific goals in South African procurement?

Specific goals represent targeted transformation objectives set by the procuring organ of state in the tender document. These typically include B-BBEE recognition levels, percentage of black women ownership, youth ownership, military veteran status, disability ownership and promotion of local enterprises located in a specific municipal district.

Can you score negative points for price?

If a bidder quotes more than 100% higher than the lowest acceptable price, the formula yields a negative figure. In practice, procurement regulations cap the lowest possible price score at zero points.

What happens if two bidders tie with identical total points?

If two or more bidders score equal total points, the contract is typically awarded to the bidder who scored the highest points for specific goals. If specific goal points are also equal, functionality or drawing lots is used in accordance with the buyer procurement policy.

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