Issue Date: 
Monday, November 23, 2015

4 Requirements for Start-ups

In the tender process it is essential that an enterprise has some experience of the supply that it wants to tender on. In fact, the more experience the enterprise have in supply the better its changes of being awarded a tender.

Can a startup enterprise be awarded a tender? The answer to this question is for the Organ of State that has issued the tender, to decide. But, there are definitely some things that a startup can do to ensure that it subscribe to the minimum requirements of a tender. 

The minimum requirements that any enterprise must have are:

1.    Tax compliance.
2.    B-BBEE compliance.
3.    Central Supplier Database registered.
4.    Bank account.

The reason a start-up enterprise must comply with the four minimum requirements above is that the Organ of State must verify that an enterprise is legit. The Preferential Procurement Policy Framework Act necessitates Organs of State to comply with these minimum requirements. 

It is also crucial for an enterprise to have some kind of B-BBEE credentials because the enterprise's B-BBEE score is used to calculate the enterprise's Preferential Points. Without these points it will be difficult for an enterprise to get pass the evaluation stadium of any tender process, not even to mention the adjudication stadium. No points will result in losing the tender. The good news is a Start-up Enterprise automatically qualifies as a Level one, two or four Contributor to B-BBEE. It all depends on your Black ownership.

Tenders are evaluated on Functionality first and then on Price and B-BBEE. Usually the enterprise must score between 65 to 75 points on Functionality to advance to the next phase of evaluation. This is exactly where startup enterprises fail. The entrepreneur does not realize that if you respond to a tender you must have some expertise of the supply you want to deliver. This little point in the tender process is much enterprises downfall. 

So how does an enterprise, especially a startup enterprise, overcome this problem? The logical answer would be to join forces with an enterprise that has the necessary expertise and that comply with the Functionality of a specific tender. Finding enterprises that will go into a joint venture can be difficult but if the startup enterprise can bring some special skills to the joint venture it will be easier to find a partner.

If you want to learn more about the tender process and how to complete a tender correctly and hopefully successfully, please visit www.how2tender.com
 

Title Closing Date Tender No.
Appointment of a Professional Consulting Engineer For Planning, Design and Project Management: Refurbishment and Upgrading of Kameelmond Wastewater Treatment Works 2018-10-19 14:00 TN078/2018
Supply and delivery of fittings for MIG water meters project- Brandfort. 2018-09-26 12:00 2018/09/002
Supply and delivery of fittings for MIG water meters project- Winburg. 2018-09-26 12:00 2018/09/004
Supply and delivery of 4 core cables. 2018-09-26 12:00 13/09/2018
Quotation for 3x computer monitors, 3 laptops. 2018-09-26 11:00 KCDM/QUOTE/31/2018
Design, planning and project management of a steel structure with rooftop for the Dawid Kruiper Municipality 2018-10-12 14:00 TN078/2018
Development of an app & social media Platforms. 2018-09-26 11:00 C2/2018
Supply and delivery of digital camera and video camera. 2018-09-25 12:00 IHLM-46/09/2018-19/CS
Supply and delivery of chemicals 2018-09-25 12:00 Q005826
Supply and delivery of dry beans for led projects. 2018-09-25 12:00 Q005828
Supply and delivery of Geopositinal System (GPS) devices. 2018-09-25 12:00 Q005865
Supply and delivery of tools: Electrical Department 2018-09-27 11:00 FQ/SM : 2/19
Area East Career Expo Catering 2018- Exhibitors 2018-09-25 10:00 SM11900107
Supply, delivery and installation of a water flow meter system 2018-10-02 11:00 FQ/SM : 25/19
Consultant required to provide Monitoring, Evaluation, Accountability and Learning (MEAL) technical support to SCSA projects in Gauteng Province 2018-10-04 16:00 No reference number supplied
Supply of Services to Repair Traffic Signals and Associated Equipment within the Breede Valley Municipality 2018-09-27 11:00 288145
Consultancy services for SAP grant management implementation support 2018-10-05 15:00 ET-AUC-78675-CS-QCBS
Supply and Delivery of VBTS Collimator Insulating Piece. 2018-09-25 11:00 Themba LABS – RFQ/2018/19:84
Supply, delivery and Laying of Tiles 2018-09-28 11:00 280918
Procurement of Bus Services for Spring Schools – 4 x 30 Seater Buses. 2018-09-25 11:00 iThemba LABS – RFQ/2018/19:92

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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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