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.
Request for sector development and implementation plan to support sustainable veterinary pharmaceutical industry development in South Africa 2019-03-11 12:00 T02/02/19
Department of Science and Technology: Appointment of a service provider to pilot Bio-cultural Community Protocol in Mpumalanga Province 2019-03-04 13:00 RFQ-0000063
Invitation for project tenders (Phase 1): The Uniting Reformed Church Atteridgeville - Alterations and additions to existing church buildings on Erf 1088 no. 19 Matseke Street 2019-03-12 12:00 No reference supplied
Insurance for Msukaligwa Local Municipality for a period of three (3) years. 2019-03-18 11:00 8/3 27/2018
Maintenance of highmast lights: as and when required for the period ending 30 June 2019. 2019-03-18 11:00 8/3 26/2018
Repairing of open kiosk/mini-sub/ pole mounted transformers: as and when required for the period ending 30 June 2019. 2019-03-18 11:00 8/3 25/2018
Service provider that specializes on 11kv substation protection scheme for the following substations: 11kv main substation_13 panels Wesselton main substation_7 panels Kwazanele main substation_4 panels Breyten main_3 panels 2019-03-18 11:00 8/3 24/2018
Repairs and servicing of emergency vehicles in the municipal fire and rescue fleet for a period of three (3) years commencing 1 February 2019 to 28 February 2022. 2019-03-18 11:00 8/3 23/2018
Replacement of copper overhead lines: as and when required for the period ending 30 June 2019. 2019-03-13 11:00 8/3 22/2018
Provision of an electronic document management system at GMM for 36 months 2019-03-15 12:00 8/3/1-05/2019
Upgrading of the Rooikoppen Sewer 2019-03-08 12:00 DTS 11/2018/2019
Supply, delivery of material to site, installation and commissioning of energy efficient lighting for high masts within Lekwa Local Municipality 2019-03-08 12:00 DTS 10/2018/2019
Construction of Workshop at Jouberton Campus 2019-03-01 11:00 No reference number
Department of Science and Technology Illumination Assessment 2018-2019 2019-03-04 13:00 RFQ-0000062
Provision of security services 2019-02-28 12:30 08/2/16/57
Panel of two (2) Service providers for Supply and delivery of protective clothing for a period of 36 months(as and when required) 2019-03-01 11:00 LNM071/2018/19
Printing and folding of municipal monthly statements for a period of 36 months 2019-03-01 11:00 LNM067/2018/19
Supply and delivery of ICT equipment 2019-02-26 11:00 LNM050/2018/19
Professional Service provider for licensing of municipal borrow Pits 2019-02-26 11:00 LNM056/2018/19
Professional Service provider for review of environment management plan 2019-02-26 11:00 LNM055/2018/19

Pages

Tender Knowledge

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Sometimes I am surprised at how little business people in South Africa know about Tenders and the Tender Process. Simple things like terminology and general tender information are difficult for people to comprehend not to mention the Standard Bidding Documents and Tender Pricing.

Unbelievably there are still Entrepreneurs that thinks to respond to tenders are an actual business? You will find that these Entrepreneurs would... Read More

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