Issue Date: 
Monday, October 26, 2015

3 Unforgivable Mistakes When Responding To A Bid

We had the privilege to be part of an Evaluation committee of a Government Entity that put out an Invitation to Bid. The Bid was for a fairly technical service and therefor the response to the bid was sparse. In fact there were only ten responses to the Invitation to Bid.

Upon opening and evaluating these bid responses the importance of tender or bid response training was highlighted again. The basic mistakes that some of the responders made are unforgivable. Even more concerning is the fact that these fatal mistakes were made by experts in the tender environment! These are novice mistakes and making them can lead to the immediate disqualification of your bid response.

During the evaluation of the abovementioned bid responses these three unforgivable mistakes were made by some of the responding companies:

1.    No bid price - if you do not provide a price for the product or service that you are going to supply then you will be disqualified. Government uses the Preferential Point System to determine a winning bid and the two pillars of the                 Preference Point System is Price and B-BBEE - not providing a price is fatal to your bid response.

2.    Bid price is too high or too low -it might sound absurd that having the highest or the lowest bid price can disqualify you but if the average price of all the responses are R2,500,000-00 and your price is R24,000,000-00 or R70,000-00         then there is obviously something wrong with your price. When responding to a tender familiarise yourself with exactly what the Purchaser wants to procure and at what cost. 

3.    Correct Compulsory documents - when responding to a bid ensure that you have attached all the Compulsory documents the Government Entity asks for. There are reasons why they want to see your B-BBEE certificate or the                   Annual Financial Statements. Ignoring the request for Compulsory documents can lead to your bid response being disqualified.

The effect of these three unforgivable mistakes made by the responders to the bid we evaluated was that five of the ten bids were disqualified. The responders of this bid had a one out of ten chance to be successful but instead they got disqualified and had no chance at being successful.
The one common element we see when evaluating bid responses are that the people whom compile the bid responses are careless by not reading the bid document cautiously to ensure that nothing gets left out.

During our tender training we highlight the above mentioned and other critical factors that will ensure your bid response is compliant and hopefully successful. Please visit our website for more details on our upcoming events at www.how2tender.com or email werner@how2tender.com should you need any assistance in this regard.
 

Title Closing Date Tender No.
Rental of Airport Refreshment Kiosk 2018-11-23 12:00 SCM/RFQ/2019/026/CORP
2 x Electronic Multichannel Pipettes With Adjustable Spacing(1-10ul). 1 x Electronic Multichannel Pipette With Adjustable Spacing(5-50ul). 2018-11-27 11:00 RFQ: GAU66
Corporate Event 2018-11-21 12:00 B342/2018/19
Supply and delivery of Solid Brass Padlock 40mm keyed alike 2018-11-22 12:00 B343/2018/19
Histology Cassette Printer 2018-11-27 11:00 RFQ: GAU67
Supply of CAMO Jonsson Legendary Sunhats or similar 2018-11-22 12:00 B345/2018/19
Renovations to Wf Lebowakgomo Nhls Laboratory in Limpopo 2018-12-13 11:00 RFQ NO: 1551834
Sound and Lighting: Live Gospel Show 24 November 2018 2018-11-21 12:00 B346/2018/19
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 2 2018-11-27 12:00 213/2018/19
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 6 2018-11-27 11:00 RFQ214/2018/19
Supply and Install Air Conditioners at Tshepong Laboratory 2018-12-12 10:30 RFQ NO: 1464133
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 9 2018-11-27 12:00 215/2018/19
Renovations to Wf Knobel NHLS Laboratory in Limpopo 2018-12-13 11:00 RFQ NO: 1339393
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 10 2018-11-27 12:00 216/2018/19
Call for Auctioneers to submit quotations for providing service to auction redundant and obsolete inventory and movable assets on behalf of Knysna Municipality 2018-11-27 12:00 190/2018/19
Render a Cleaning Service at the Premises of the Metro North Education District (Mned) Office, Situated at 9 Timmerman Street, Parow for a period of two (2) years, starting from 1 April 2019 to 31 March 2021. 2018-12-14 11:00 B/WCED 2473/18
On-site Auditing, application of Grading System to and Training of 349 Clubs through Club Development Toolkit 2018-12-18 11:00 ZNB: DSR43/ 1819
Provision of Short Term Insurance Services in SIU for a period of 60 months. 2018-12-14 11:00 RFP: 005/ 11/ 2018
Appointment of a Service Provider to provide an Internal Audit Services on a co-sourced basis for a period of Three (3) years 2018-12-07 12:00 RFP/ T 08- 2018/ 19
Appointment of a maximum of four (4) Media Agents to provide media buying (including print, radio, television and online media) and related services to the NRF SAASTA for a period of thirty six (36) months 2018-12-14 11:00 NRF/ SAASTA/ 02/ 2018- 2019

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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