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

Codes of Good Practice on Black Economic Empowerment

Integrated Transport Sector Codes

Forwarding and Clearing Sub-Sector Code for B-BBEE

3. Indicators of Empowerment (to achieve this vision)

3.5 Preferential Procurement

3.5.2 Stakeholder Undertakings

Purchase

3.5.2.1

Government Commits to:

3.5.2.1.1

Government departments, state-owned enterprises, and other public agencies will align their own procurement practices to this Sub-Sector Code when procuring goods and services from the F&C sub-sector. In particular, government will apply B-BBEE criteria, as set out in this Sub-Sector Code whenever it:

3.5.2.1.1.1

Grants a licence to engage in a specific regulated economic activity;

3.5.2.1.1.2

Grants a concession to a private enterprise to operate an asset or enterprise on behalf of the state;

3.5.2.1.1.3

Enters into a public-private partnership; and

3.5.2.1.1.4

Engages in any economic activity.

3.5.2.2

Private Industry Commits to:

3.5.2.2.1

Procure at least 50% of total measurable procurement spend from B-BBEE suppliers based on their recognition levels within the next 5 years and 70% of total measureable procurement from B-BBEE suppliers based on their recognition levels within the next 10 years.

3.5.2.2.2

Procure at least 10% of total measurable procurement from QSEs and EMEs in the next 5 years and 15% over 10 years.

3.5.2.2.3

Procure at least 9% of total measurable procurement from 50% black- owned and 6% of the total measurable procurement should be from the 30% black women-owned enterprises over the next 5 years. Procure at least 20% of total measurable procurement from 50% black-owned and 30% black women-owned enterprises over the next 10 years.

3.5.2.2.4

QSEs within this sub-sector commit to procuring a minimum of 40% of total procurement from B-BBEE compliant suppliers over the next 5 years and 50% over the next 10 years.

3.5.2.2.5

Adopt and customise the guidelines on Accounting for Affirmative Procurement that will be set by the Transport Sector B-BBEE Council, as specifically agreed by the F&C sub-sector stakeholders and signatories to this Charter.

3.5.2.2.6

An understanding that the 10 year targets stated above may be subject to change as a result of a revision of the Sub-Sector Code5 years from its inception.

3.5.2.2.7

Recognising that a consolidation of invoices may be recognised as a single "invoice" in terms of the measurement principles of Statement 500 of the B-BBEE Codes of Good Practice.