"direct empowerment" (now including managerial as well as ownership control), BEE would also explicitly encompass human resource development (employment equity and skills development) and "indirect empowerment" (procurement policies, enterprise development, and socioeconomic development). Codes of Good Practice to complement the BBBEE Act were gazetted in two phases in 2005, setting out standardised criteria for measuring compliance with BBBEE indicators on a "scorecard"; the codes have been amended occasionally since then. Scorecards At the centre of the implementation of the BBBEE Act is the "scorecard" according to which the compliance of individual businesses is measured. The Codes of Good Practice set out specific criteria (known as "targets") under each of the seven elements or pillars of BBBEE, which correspond to the seven categories on the scorecard. Each entity is measured against the scorecard to determine its BBBEE score (out of 105), which in turn is used to determine its BBBEE level. The level is published in a BBBEE certificate issued to the entity and valid for one year. Significance BBBEE certificates are essential to securing certain incentives or contracts with the state or with other private entities. Bids by private entities for government procurement contracts are typically evaluated in terms of a 90/10 or 80/20 point system: the competitiveness of the price of the bid is evaluated 90 or 80 points, while the remaining 10 or 20 points are awarded for the bidder's BBBEE rating. A BBBEE rating can therefore determine the outcome of closely contested bids. Some state entities also set out minimum BBBEE criteria which entities must meet in order to qualify to submit bids. At the same time, in business between private entities, it is often attractive for entities to contract with entities which themselves have high BBBEE ratings, because this may boost their own BBBEE score (in the preferential procurement category of the scorecard). Entities which have won state contracts (or mining licenses) are also often required to meet certain BBBEE obligations in selecting their private suppliers, as a condition of those contracts. Finally, in some sectors, the award by government of operating licenses and concessions (such as concessions to export) is conditional on the licensed entity meeting certain BBBEE criteria – for example, in terms of the Mineral and Petroleum Resources Development Act, entities are eligible for mining licenses only if they are 26% black-owned. Generic scorecard The generic BBBEE scorecard is as follows: The most