80/20 vs 90/10 Points System & Work Examples

One of the most important parts of tender evaluation in South Africa is the Preferential Procurement Policy Framework Act (PPPFA) points system. This is where bids are scored on price and B-BBEE status to decide who wins.

If you’re a Black South African SME, understanding the difference between 80/20 and 90/10 systems—and how to calculate your score—can make or break your bid.

1. What Is the Points System in Tenders?

When tenders are evaluated, the scoring happens in stages:

Compliance check – Are all mandatory documents submitted?
Functionality scoring – Do you meet technical requirements?
Price and preference points – The 80/20 or 90/10 system is applied.

The goal is to reward competitive pricing and empowerment through B-BBEE.

2. 80/20 vs 90/10 Explained

Tender Value	System Used	Price Points	B-BBEE Points
Up to R50 million	80/20	80	20
Above R50 million	90/10	90	10

3. How Price Points Are Calculated

Formula:

Lowest Price ÷ Your Price × Price Points Available = Your Score

Example under 80/20:

Lowest bidder = R1,000,000
Your bid = R1,200,000
Price score = (1,000,000 ÷ 1,200,000) × 80 = 66.6 points

4. How B-BBEE Points Are Allocated

B-BBEE Level	80/20 Points	90/10 Points
Level 1	20	10
Level 2	18	9
Level 3	14	6
Level 4	12	5
Level 5	8	4
Level 6	6	3
Level 7	4	2
Level 8	2	1
Non-compliant	0	0

5. Full Work Example (80/20)

Tender Value: R20 million (80/20 system)

Lowest bidder = R10,000,000
Your bid = R12,000,000
Price Score = (10m ÷ 12m) × 80 = 66.6 points
B-BBEE Level 1 = 20 points

Total Score = 66.6 + 20 = 86.6 points

6. Full Work Example (90/10)

Tender Value: R70 million (90/10 system)

Lowest bidder = R50,000,000
Your bid = R60,000,000
Price Score = (50m ÷ 60m) × 90 = 75 points
B-BBEE Level 2 = 9 points

Total Score = 75 + 9 = 84 points

7. How to Work It Out

You can calculate your tender points in seconds:

Identify the system (80/20 or 90/10).
Take the lowest bidder’s price.
Divide it by your price.
Multiply by 80 (or 90).
Add your B-BBEE points.

8. Common Mistakes SMEs Make

Forgetting to check which system applies (80/20 vs 90/10)
Overpricing and losing too many price points
Not attaching valid B-BBEE affidavit/certificate (0 points awarded)
Miscalculating score and assuming they are competitive when they aren’t

9. Final Tips

Always run the numbers before submitting your bid.
Balance your pricing with sustainability—don’t underquote and lose money.
Keep your B-BBEE affidavit/certificate valid to claim preference points.
Use tools like etenderportal.co.za’s free calculator to see exactly where you stand.

Government tenders are one of the most powerful ways to grow your business — if you’re prepared and compliant. Mastering the 80/20 and 90/10 points system puts you in a strong position to win.