Issue Date: 
Monday, September 7, 2015

The 3 Principles of Tenders in South Africa

By Werner van Rooyen

7 September 2015

www.how2tender.com

Tenders in South Africa are based on three principles:

  1. Functionality
  2. Price
  3. B-BBEE

Functionality

All tenders, whether it is for the Public Sector or the Private Sector, will be evaluated on Functionality. Functionality is the most critical part of any tender response. If you get the Functionality part wrong during your response the chances are good that you will not advance to the following phase of the evaluation process – you will most probably fall out of the race.

When responding to tenders ensure that you understand exactly what is required in the Functionality part of the tender. Read the scope of the tender carefully and respond to direct questions as well as indirect questions. Functionality is the part where you advertise your company so make sure you do it properly.

Price

Most of the tenders that are awarded all around the world and for that matter in South Africa as well, Price will be the determining factor. At the end of the day, all that buyer’s want is to procure the best product at the best price.

In South Africa we even have a formula to determine which tender response is ranked where in the tender awarding process. The response or responses with the lowest price receive the most points and the more expensive tender responses receive fewer points. Ensure that your tender response scores the most points in the evaluation process.

B-BBEE

Last but not least, all tender responses will be evaluated on its B-BBEE levels. It does not matter if you respond to a Public Sector or Private Sector tender, your B-BBEE score will always be taken into account to determine the outcome of the tender award.

The Amended Codes of Good Practice that came into effect on 1 May 2015 is very stringent and obtaining a good or high B-BBEE score is going to take a lot of planning and hard work. Ensure that you have a good B-BBEE score to have any say in the outcome of a tender award.

How2Tender.com is hosting B-BBEE seminars to help you to get a better understanding of the Amended Codes and what it means to you and your business. You can also gain all the knowledge when it comes to tender responses by attending one of our “How-to-tender” workshops. Please visit our website for more details at www.how2tender.com.

Happy tendering  

Title Closing Date Tender No.
Supply and delivery of Mildsteel Galvanised Tee Bolts and Nuts at Withoogte 2017-11-29 12:00 6/5/2/321
Appointment Of A Service Provider For Meter Reading Services For The City Of Mbombela 2017-12-07 11:00 175/2017
Data Centre Maintenance and Repairs of Air Conditioning System 2017-12-07 11:00 RFP 129
Appointment of a service provider for assessment and valuation of the Legacy Rehabilitation liability cost 2017-12-08 11:00 ALEX RFP 4/2017/2018
Design, Provision and Management of a Wide Area Network for the Eden District Municipality 2017-12-08 11:00 E/04/17-18
Repair to Infrastructure in Tergniet – Stairs at Tidal Pool Kus Road 2017-12-08 12:00 49-17/18
Supply and delivery of tyres (one year contract). 2017-12-08 12:00 SCM/INFR13/2017/2018
Supply and Delivery of a Grader 2017-12-08 12:00 SCM/INFR12/2017/2018
Compilation of the 2017/2018 GRAP Compliant Financial Statements 2017-11-23 13:45 SCM/FS06/201/2018
Port Engineering - Smart Peoples Port Study 2017-12-12 12:00 PEH 135/VB
Port Engineering - Dredging of Small Craft Areas 2017-12-12 12:00 PEH 134/VB
Appointment of a suitable service provider for the training of 25 beneficiaries in basic bookeeping for a period of 12 months 2017-11-29 11:00 7Z - 35406
The construction of 50 sow piggery for Intandela multipurpose and project cooperative at Goodhome under Ntabamhlophe area in ward 14 of Inkosi Langalibalele Local Municipality under Uthukela District Municipality in the Kwazulu-Natal province 2017-12-14 11:00 SS-KZN 7/1/6/3 (642) 000R
Implementation of GRAP 12;16 and 17 assets register for a period of a period of three years 2018-01-02 12:00 SCM/FS05/2017/2018
Construction of Sewer Lines Tarka Mossel Bay 2018-01-12 12:00 45-17/18
Construction of the extension of Taung library 2018-01-02 12:00 SCM/SS06/2017/2018
Supply and delivery of Safety Clothing for the Langeberg Municipality, for the Period of 3 Consecutive Years 2017-12-08 12:00 T 32/2017
The Supply and delivery of 7 x Sealing End 132kv 400SQ CU of D2872 2018-01-23 13:00 DX 756
Supply, delivery and installation of Sewer Pumps Mandela Square Montagu 2017-12-01 12:00 TE 87/2017
Supply: Guard rail 2017-11-27 14:00 GE11800781

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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