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 for 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 poor. In fact there were only ten responses to the Invitation to Bid.

Upon opening and evaluating these bid responses the importance of a proper understanding of tender or bid responses was obvious. The basic mistakes that were made are unforgivable. These were amateur mistakes made by so-called experts in the tender environment, and making them could lead to the immediate disqualification of your bid response.

During the evaluation of the abovementioned bid responses these three unforgivable mistakes were made :

  • 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 detrimental to your bid response.
  • 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 R24,000,000-00 and your price is R2,500,000-00 or R70,000-00 then there is obviously something wrong. When responding to a tender familiarise yourself with exactly what the Purchaser wants to procure and at what cost.
  • Correct Compulsory Documents - when responding to a bid ensure that you have attached all the Compulsory documents that the Government Entity has requested. 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 mistakes made by the responders to the bid 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 instantly disqualified.

The one common element we see when evaluating bid responses is that people who complete the bid responses are careless by not reading the bid document carefully to ensure that nothing is omitted.

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Title Closing Date Tender No.
Supply And Delivery of Paraffin (Re-advertisement). 2018-05-17 12:00 FBS/PAR-BTO-CL-MHLM 2017-18
Professional services: short term insurance portfolio for period of 3 years 2018-05-11 14:00 SCM 17/2018
Supply, Delivery, Installation and Commissioning Of 12KV Switchgear Panels. 2018-05-25 12:00 T38.17.18
Tender for the provision of Travel agency and associated services for King Cetshwayo District for the period ending 30 June 2021. 2018-05-28 12:00 KCDM/19/2018
Electrical and mechanical infrastructure for new inlet works at the Riversdale Wastewater Treatment Works – Phase 2B. 2018-06-01 12:00 HES-TECH 13/1718
Re-Advert: Supply and Delivery of ± 3 (Three) on / off Road Motorbikes by an accredited dealer 2018-05-15 12:00 BS 08/04/2018
Supply and delivery of building works material 2018-05-11 14:00 SCM 19/2018
Eden District Municipality Invasive species monitoring control and eradication plan for its properties. 2018-05-11 11:00 ITE/31/17-18
Printing of an IDP Document. 2018-05-11 11:00 ITE/32/17-18
Panel of service providers for supply and delivery of metering kiosk. 2018-05-11 12:00 A034-2017/18
Appointment of a Maximum of Two (02) Consultants for Designs, Supervision, Monitoring and Project Management of all Municipal Buildings and Community Facilities Projects for a period of 3 (three) years on an ad hoc basis 2018-05-29 12:00 BS01/04/2018
Panel of service providers for supply and delivery of streetlight fittings as and when required. 2018-05-11 12:00 A035-2017/18
Provision of bulk processing, printing, posting and distribution of monthly statements. 2018-05-11 12:00 A036-2017/18
Provisioning of professional services for the Offshore Baseline (OSSB) contamination study in the Port of Saldanha. 2018-05-11 10:00 TNPA SLD249/04/2018
Annual large herbivore survey in the protected areas in the North West province for a period of three years. 2018-05-15 11:00 NWPB/RFT/AERIAL GAME COUNT/002/2018
The Appointment of a service provider for the purchasing, delivery and commissioning of the following: Inductively Coupled Plasma Atom Emission Spectroscopy System and Ultra Performance Liquid Chromatograph coupled with an Ultraviolet Detector. 2018-05-17 11:00 4.4.12.2/4/18
Supply and Delivery of Dairy Products to Gauteng Provincial Government (GPG) Departments Institutions and State Information Technology Agency (SITA) for a period of 36 months. 2018-05-18 11:00 GT/GPT/068/2018
Supply and Delivery of Dry Groceries and Toiletries to GPG Departments and SITA for a period of 36 Months. 2018-05-18 11:00 GT/GPT/069/2018
Request to go out on an urgent RFB to acquire an alternative suitable office space for SITA Mpumalanga Nelspruit through an operating lease for an initial minimum period of 5 years with an option to / renew/ extend for a maximum of another (5) five years. 2018-05-18 11:00 RFB 1731/2018
Rendering of Security Services for Various Areas within the WC024 Municipal Jurisdiction, Until 30 June 2021 2018-06-01 12:00 BSM 87/18

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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