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.
Vacant land - old scrap metal site 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3C
Supply: Furniture 2018-09-27 12:00 GL11900254
Vacant Land - Gately (Erf no. 20436) 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3C
Supply and install ferric dosing station at Voelvlei Water Treatment Plant. 2018-10-05 12:00 SK11900114
Workshop adjacent to Dry dock 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3C
Land and face-brick building adjacent to Car Terminal 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3C
Land and building - Radio workshop 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3C
Appointment of a Civil Maintenance Contractor for a Period of three years. 2018-10-16 12:00 PLZ 17/2018
Land and building-Old dredging building 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3C
Heritage Houses 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3B
Cape Town Stadium two day catering(25 and 26 September 2018). 2018-09-21 10:00 SD11900231
Supply: Tools and equipment 2018-09-26 12:00 GD11900336
Supply: Clothing 2018-09-26 10:00 GA11900263
Supply: Tools and equipment 2018-09-26 12:00 GD11900339
Land and building - Old Shipyard 2018-10-12 12:00 ELS/HPM 3/17/09/2018/3A
Supply & printing of no access notebooks Water & Sanitation Department. 2018-09-28 12:00 SK1190034A
Network Partner 2018-09-28 16:00 No Reference
Provision of a Talent Management Solution 2018-10-08 12:00 RFP GvdW-4601170/2018
Supply Tools and equipment 2018-09-21 12:00 GD11900341
Catering for Tourism Workshop. 2018-10-21 10:00 SD11900230

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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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