Bell's return, off the bench, results from a faster-than-expected recovery from a foot injury.
"It's brilliant to have him back, and it was a great time to give Codie a break. George has made a massive recovery. The medics and surgeon have done a great job.
"He's young, a healer with a great work ethic. He did everything he was asked to do. The surgeon was rapt with his progress in a delicate part of his foot.
Penney said fullback Johnny McNicholl, who will have his first start of the season, had been close to returning over the past month, and his return had been delayed because the back three had been working efficiently. Will Jordan's medial ligament sprain provided the chance to have him return.
Jordan is not expected to play again before the quarterfinals. His loss was a blow.
"It highlights again that his absence last year was massive. Any team he plays with, he offers such a great voice and confidence to those around him. His leadership and his rugby IQ are right up there.
"Any team would miss having him out there, and we certainly did.
"Quinten Strange is back in the mix. He's been waiting patiently, and now he has an opportunity."
The loss to the Chiefs reflected sloppy game management, especially in the second half.
"We did such a good job in the first half, and went away from it in the second half. There were a number of reasons for that.
"We got underway well and then faltered, which has been a challenge for us, so we want to start well, end well, and have a great middle.
"We've had a great review. The coaches have done a great job of the reset heading into the Waratahs because we need to be good over there. They've struggled away but are dangerous at home, and we're excited about that challenge.
"They consistently get up when playing the Crusaders. They love the challenge of playing one of the best teams in the world.
"They're a dangerous proposition if we're not in the right space. It's a short turnaround, and with the travel there are a lot of little banana skins we've got to be wary of."
Penny was also mindful that in last season's loss to the Waratahs and last week's defeat by the Chiefs, errant kick-off receipts cost them at vital stages.
"They would have seen that. They would have seen the pressure points where we're not having the success we need and they'll be dangerous in those areas. We've got to be better."