Level of Contribution

BEE Score Required to Earn the Level of Contribution

Recognition of Rand Value of Procurement from Supplier at Each Level

1

Greater than 100

1.35 or 135%, meaning R1 spent on a supplier at this Level is accounted for as R1.35. R1 x 1.35 = R1.35 (greater than what was actually spent)

2

85 – 100

1.25 or 125%, meaning every R1 counts for R1.25 of preferential procurement expenditure

3

75 – 85

1.1 or 110, equating every R1 spent on a supplier at this level to R1.10 of preferential procurement expenditure

4

65 – 75

1.0 or 100%, implying that for every R1 spent procuring goods and services from suppliers at this level translates into R1 of preferential procurement expenditure

5

55 - 65

0.8 or 80%, meaning you may only claim 80% of every R1 spent on procurement from suppliers at this level as preferential procurement expenditure. R1 x 0.8 = 80 cents (less than what was actually spent)

6

45 – 55

0.6 or 60%. R1 x 0.6 = 60 cents

7

30 – 45

0.5 or 50%. R1 x 0.50 = 50 cents

8

30 – 40

0.1 or 10%. R1 x 0.1 = 10 cents

Not compliant

Less than 30

0 or 0%, meaning if you procure all your goods and services from suppliers at this level, all the Rand value of your procurement expenditure counts for nothing when calculating your preferential procurement expenditure. R1 x 0 = 0