The South African Institute of Black Property Practitioners (SAIBPP) has voiced its concern over the Department of Public Works and Infrastructure’s recent tender for the establishment of a facilities management panel, with a five-year term, calling for the suspension of the current tender and to reconsider its procurement approach.
In its current form, SAIBPP says the tender entrenches the non-transformed status quo of the sector which it is seeking to change and the risks perpetuating the same collection of established and minimally transformed facilities management entities.
“The tender requires bidders to demonstrate a track record and experience with similar projects valued at R80 million or higher to score maximum points. While we appreciate the Department’s challenge in balancing contract performance risk with efforts to broaden the base of black participation, we believe that black participation must be meaningful and transformative, not just tokenistic,” says the institute.
“We must not allow the failures of poor contract management by some small and medium-sized enterprises (SMEs) to tarnish the entire emerging black professional base. The lessons learned from these challenges should not be used as an excuse to exclude qualified, capable, and emerging black facilities management entities from competing for these opportunities.”
“We urge the Department to reconsider its procurement approach for this panel, especially as it holds a responsibility for the stewardship of over 80 000 properties.”
SAIBPP says it is also concerned by the short timelines outlined in the tender process. The tender was issued on the 18th of October 2024 with the document becoming widely available only a few days later. The compulsory briefing was held on the 29th of October 2024 with the tender closing on the 8th of November 2024.
“This timeframe left little opportunity for most black-owned SMEs to meet all the requirements or to seek partnership with larger, established entities as Enterprise and Supplier Development (ESD) partners“.
SAIBPP says it is urging the Department to work closely with the South African Facilities Management Association (SAFMA) to develop an inclusive, robust, and professional facilities management framework, an organisation which the Department recognises as critical to the sector. By engaging with SAFMA, the Department could create multiple facilities management panels based on total and annual expenditure thresholds which would allow emerging entities to participate in contracts that align with their capacity, while still meeting the Department’s needs for experienced providers.
It also encourages the Department to take inspiration from the Construction Industry Development Board’s (CIDB) grading framework.
“We propose that the Department set measurable goals for the progression of black-owned entities through various contract tiers. By incorporating this approach into its broader ESG strategy, the Department could support the growth of sustainable businesses, retain skilled talent, and drive genuine transformation in the sector.”
