Awardee
Guide

80/20 and 90/10: how tender points are scored

Under the Preferential Procurement Regulations, 2022, tenders up to R50 million are scored out of 100: up to 80 points for price and 20 for specific goals the buyer names. Above R50 million it is 90 and 10. The lowest acceptable price gets full price points; every 1% above it costs 0.8 points under 80/20.

Updated 13 October 2026 · Awardee · Sources listed below

The two systems

Tender value (incl. taxes)PriceSpecific goals
Up to R50 million80 points20 points
Above R50 million90 points10 points

The buyer must say in the tender documents which system applies and which specific goals earn points. If it is unclear whether a tender falls under 80/20 or 90/10, the lowest acceptable tender decides (the highest, for contracts that earn the state income).

The price formula

For the 80/20 system, regulation 4 sets the formula:

Ps = 80 × (1 − (Pt − Pmin) ÷ Pmin), where Pt is your price and Pmin the lowest acceptable price.

So the lowest acceptable price scores 80, a price 10% higher scores 72, and a price 25% higher scores 60. The points for specific goals are added and the total is rounded to two decimals. Price dominates, and the field is wide: on the bid registers Awardee has read, the highest bid is typically 3.2 times the lowest.

Calculator

Price points70.40
Specific goals10.00
Total80.40

Your price is 12.0% above the lowest: that costs 9.60 price points.

Specific goals

Before 2023, the remaining points went by B-BBEE status level. The 2022 regulations replaced that with specific goals: each buyer chooses its own goals, states the points for each in the tender, and says what proof it needs. Claim them on the preference points form (SBD 6.1 for national and provincial buyers, MBD 6.1 for municipalities) and attach the proof, or you score zero for them.

Questions

What is the 80/20 preference point system?

For tenders up to R50 million (including taxes), price earns up to 80 points and specific goals earn up to 20. Above R50 million the split is 90/10. These are the Preferential Procurement Regulations, 2022, in force since 16 January 2023.

How are price points calculated?

Points for price = 80 × (1 − (your price − lowest acceptable price) ÷ lowest acceptable price). The lowest acceptable price scores the full 80; a price 10% above it scores 72. Under 90/10, replace 80 with 90.

What are specific goals?

The 2022 regulations replaced fixed B-BBEE level points with specific goals that each buyer names in its tender documents, with the points for each goal and the proof required. Many buyers still use B-BBEE status among their goals.

Does the highest score always win?

The contract must be awarded to the tenderer with the highest points, unless objective criteria justify another award (section 2(1)(f) of the Preferential Procurement Policy Framework Act). Ties are broken by the regulations.

Sources

  1. Preferential Procurement Regulations, 2022 (regulations 3 to 7 and 11), Government Gazette 47452, 4 November 2022
  2. Preferential Procurement Policy Framework Act 5 of 2000, section 2(1)(f)
  3. National Treasury standard bidding forms: SBD 6.1 and MBD 6.1 in terms of PPR 2022
  4. Awardee bid results: on a typical tender the highest bid is 3.2 times the lowest, October 2026

Awardee is an independent service, not a government website. This guide explains the rules in plain language; the gazetted text and the tender documents are what bind you.