Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Black Economic Empowerment

Integrated Transport Sector Codes

Bus Commuter and Coach Services Sub-Sector Code for B-BBEE

3. The Bus Commuter and Coach Services Sub-Sector B-BBEE Scorecard

3.2 Indicators of empowerment

3.2.5 Preferential Procurement

3.2.5.3 Measurement Principles and Application of the Charter

Purchase

3.2.5.3.1

Measurement principles associated with the preferential procurement element are contained in Statement 500 of Code 500 of the Generic Code of Good Practice.

3.2.5.3.2

The formulae required in the determination of the preferential procurement score are contained in Annexure 500 (A) of Statement 500 of Code 500 of the Generic Code of Good Practice.

3.2.5.3.3

Measurement principles required in evaluating the preferential procurement contributions made by QSEs within this sub-sector are contained in Statement 805 of Code 800 of the Generic Codes of Good Practice.

3.2.5.3.4

Monopolistic procurement - This type of procurement can only be excluded from total measured procurement if it is from entities that are listed as schedule 1 (constitutional institutions) or are regulated monopolies.

3.2.5.3.5

Imports - Imports may be excluded from total measured procurement if the relevant goods and/or services are not being produced in South Africa.

3.2.5.3.6

Subcontracting from black owned; black women owned; EMEs QSEs; and, B-BBEEE compliant suppliers are recognised as preferential procurement contributions and forms part of B-B BEE procurement.

3.2.5.3.7

If a subcontracting entity is also involved in enterprise developing one or more of its subcontractors, the procurement spend from such subcontractors will be enhanced by a factor of 1.2.