Broad Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)
Codes of Good Practice on Black Economic Empowerment
Code Series 500: Measurement of the Preferential Procurement Element of Broad-Based Black Economic Empowerment
Statement 500 : The General Principles for Measuring Preferential Procurement
A:· B-BBEE Procurement Spend
A = sum of (B x C)
A is the calculated total B-BBEE Procurement Spend for the Measured Entity.It is equal to the sum of tht of the product of B and C for each Supplier of the Measured Entity not excluded under the exclusion from total measured procurement spend.
B is the value of procurement falling within Total Measured Procurement Spend and not excluded under the exclusion from Total Measured Procurement Spend from each Supplier of the Measured Entity.
C is the B-BBEE Procurement Recognitil of each such Supplier of the Measured Entity.
B: The Calculation of Preferential Procurement Contributions to B-BBEE
A = B x D
A is the calculated preferential procurement score for each criteria in the scorecard under statement 500 for the Measured Entity.
B is the total B-BBEE Procurement Spend of the Measured Entity calculated under measurement of B-BBEE Procurement Spend as a percentage of total Measured Procurement Spend of that Measured Entity.
C is the compliance target for each criteria specified in the scorecard under statement 500.
D is the Weighting points allocated to each criteria specified in the scorecard under statement 500.
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