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.
Tenders are invited to provide Lumion Essentials Training 2017-12-04 11:00 CSQ11171189
Supply: Gloves 2017-11-29 10:00 GA1180192A
Tenders are invited to provide Revit Advanced Training 2017-12-04 11:00 CSQ11171189
Tenders are invited to provide Revit Intermediate Training 2017-12-04 11:00 CSQ11171189
Supply 20 each x harness; weedeater 2017-11-28 10:00 GA1180193A
Tenders are invited to provide Revit Essentials Training 2017-12-04 11:00 CSQ11171189
Supply: Plants 2017-11-28 16:00 GC11800356
Bidders are invited to provide training for Intermediate Leadership Programme 2017-12-04 11:00 CSQ11171187
Bidders are invited to Repair Scrubber Machine for Fresh produce market Scope of Work 2017-12-04 11:00 CSQ11171187
Supply Klorman Cartridges for Water Purifying 2017-11-28 16:00 GC11800357
Manufacture, Supply and Commissioning of an Inkjet Printing System to Upgrade an Existing Wide Web Printing Press at the Government Printing Works. 2018-01-15 11:00 GPW- M 361
Appointment of a service provider to render hygiene services for the Department of Rural Development and Land Reform: Office of the Chief Registrar of Deeds, Deeds Registry Pretoria, Chief Surveyor General and Surveyor General for a period of 36 months 2017-12-15 11:00 DRDLR (CRD- 08) 2017/ 18
Supply and print ambulance return books x 600 units 2017-12-01 11:00 ZNQ 459/ 17/ 18
Supply and Deliver Bark Chips to City Parks Depot , Sacks Circle Drive Bellville South. 2017-11-28 16:00 GC11800358
Stationery items 2017-12-01 11:00 ZNQ 130 / 2017/ 2018
Appointment of a service provider to render Security Services in Klerksdorp Regional Office for a period of 24 months 2018-01-05 11:00 DMR/ 018/ 2017/ 18
Appointment of three service providers to supply and deliver fresh fruit as and when required over a period of twenty four months (24) . 2017-12-15 11:00 NRFNZG- 027- 2017/ 18
Supply carbolic soap 2017-11-28 16:00 GC11800360
Appointment of a service provider to render Security Services in Rustenburg Regional Office for a period of 24 months 2018-01-05 11:00 DMR/ 019/ 2017/ 18
Appointment of two service providers to supply and deliver fresh and processed vegetables as and when required over a period of one (1) year 2017-12-15 11:00 NRFNZG- 028- 2017/ 18

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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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