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.
Forklift training. 2018-07-19 12:00 SD11900050
Underwriting and Management of Insurance Portfolio for a Period of Three (3) Years 2018-08-13 11:00 8/2/224/2017-2018C
Supply 100 each concrete kerb 2018-07-19 14:00 GE11900132
Supply carbon asphalt 2018-07-19 14:00 GE11900131
Supply 60 meter steel round bar 2018-07-19 14:00 GE11900136
Supply mild steel angle iron 2018-07-19 14:00 GE11900135
Supply 60 meter flat bar 2018-07-19 14:00 GE11900137
Supply and delivery of Uniform for the Traffic Department 2018-07-27 12:00 SCM /05/2018-19
Supply 5 each galvanised Metal sheet 2018-07-19 14:00 GE11900138
Supply ductile iron saddle 2018-07-19 14:00 GE11900139
Supply and delivery of Printing Paper for the period ending 30 June 2021 2018-08-10 11:00 BV 658
Supply and delivery of Tissue Paper Products for the period ending 30 June 2021 2018-08-10 11:00 BV 657
Consultancy Service to prepare 2019 Maternal, Newborn and Child Health Status Report under the theme “Women and Children in Humanitarian/ Conflict Contexts and Internally Displaced Persons (IDPs) 2018-07-31 15:00 AUC/SAD/C/2
Rental and servicing of sani bins for all fire stations 2018-07-19 14:00 SL11900014
Supply: Cleaning items 2018-07-23 15:00 GB11900013
Supply and delivery of detergents and cleaning materials for the period ending 30 june 2021 2018-08-10 11:00 BV681
Supply plain ended ductile iron valve 2018-07-23 14:00 GE11900112
Supply Lubricants 2018-07-20 16:00 GC11900020
For Consultancy Service to prepare 2019 Common African Position on Population Report 2018-07-31 15:00 AUC/SAD/C/6
Supply, Deliver and Install Alarm Systems into Electrical Substations 2018-07-17 11:00 SCM 04/2018

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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