The 3 Principles of Tenders in South Africa | SA-Tenders.co.za
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.
Tank replacement at Witzand Water Treatment Plant. 2018-06-01 12:00 SK11800295
Supply and Installation of Vehicle Tracking System and Monitoring for the period from 01 July 2018 Until 30 June 2021 2018-06-08 12:00 ENG - 16/2017/18
Supply Paint brushes 2018-05-28 15:00 GB11800775
Upgrading of Mv and Lv Electrical Network in main road, Riviersonderend 2018-06-08 12:00 ELEC 02/2018/19
Supply and delivery of sewerage tanker onto a single chassis 2018-06-08 11:00 BV 714
Supply Hach sc 200 - dissolved oxygen input. 2018-05-28 12:00 GD11801236
Supply and delivery of Security Uniform. 2018-05-23 11:00 64/2017/2018
Supply and delivery of light delivery vehicles (LDVs) 2018-06-08 11:00 BV 715
Supply and delivery of sound system. 2018-05-25 11:00 GK11800698
Repairs to Gas at Brackenfell rugby club Sport Complex. 2018-05-30 12:00 SB11800596
Supply and delivery of mobile devices. 2018-05-25 11:00 GK11800692
Provision of IT Audit 2018-05-23 11:00 88/2017/2018
Supply and delivery of desktop graphics. 2018-05-25 11:00 GK11800690
Provision of consultancy services for training of NEPAD finance staff on the SAP FI; CO; FM and PS financial aspects modules 2018-06-07 14:30 90/NPCA/BS/FIN/IC/2018
Supply and Delivery of Speed measuring instrument 2018-05-29 11:00 53/2017/2018A
Plants: Supply and deliver of Topdressing 60% compost, 40% Sand at PP Smith Sport Field, Bloemhof street. 2018-05-25 16:00 GC11800702
Supply standard pressure grease. 2018-05-25 16:00 GC11800698
Supply rodenticide 2018-05-25 16:00 GC11800699
Upgrading of Aventura Sewerage Pump-station: Installation of Mechanical and Electrical Works 2018-06-08 12:00 SCM/2019/09/ENG
Supply: Medical supplies 2018-05-25 15:00 GF11800890

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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