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.
Implementation evaluation of corporate governance in South Africa’s State Owned Enterprises (SOE’s) 2018-12-07 12:00 DPME 11/ 2018- 2019
Repairs to ceiling boards, gutters, floors, fascia boards, wall, tiles and paintwork at DOT cost centre office, Eshowe 2018-12-14 11:00 ZNTU 03429 W3
Supply and delivery of ten (10) laptops equivalent to lenovo thinkpad T580 2018-12-14 11:00 ZNQ 18/ 19/ 0017/ NCR
Dundee Regional Laundry: Refurbishment, Service Equipment and Procurement of New Equipment. 2018-12-14 11:00 WIMS 068237- ZNTL 03894W
Supply and delivery of twenty (20) of all-in-one desktops equivalent to Lenovo think centre M910z. Contract period: 01 month. 2018-12-14 11:00 ZNQ 18/ 19/ 0016/ NCR
Appointment of a Mult-Disciplinary Entity to Provide Professional Services to Undertake the Assessment and Upgrading of the Central Air Conditioning System at St. Aidans Hospital 2018-12-14 11:00 WIMS 063141
The Department of Local Government (DLG) requires a Service Provider to provide the Municipal Minimum Competency (MMC) Training programme to identified officials. 2018-12-14 11:00 LG 01/ 2018/ 2019
Training of 100 beneficiaries in Vehicle Maintenance & Repair Assistant Skills Programme NQF L2. 2018-11-23 11:00 T/ 37/ 18 Skill VMRA
The appointment of the service provider to develop an Environmental Management Framework (EMF) for the Cape Floral Region Protected Areas World Heritage Site (CFRPA WHS) for the period of eighteen months. 2018-12-07 11:00 E 1489
False Bay College: All Campuses: Supply & Delivery of IT Workstations and Peripheral Devices 2018-12-07 11:00 FBC T12/ 2018
Sibasa SAPS Training Centre: Repairs to Training Centre 2018-12-11 11:00 PLK18/ 43
SAPS: Grassy Park Police Station: Upgrading of Stormwater Drainage 2018-12-07 11:00 CPT 1014/ 18
The appointment of the service provider to assist the Waste Bureau with the identification and securing of site, development of a business plan, and management of the setting-up; equipping; operating; training of beneficiaries and handover of the Pilot Construction and Demolition Waste Crushing and Block Manufacturing Facility. 2018-12-07 12:00 E 1490
Service and maintenance of standby and base load generators for 24 months. 2018-12-07 11:00 KIM- 1018/ 107452
Invitation of service providers for monitoring and evaluation of Gauteng City Region Academy (GCRA) Training and Development Intervention Programmes for a period of three (3) years 2018-12-07 11:00 GT/ GDE/ 160/ 2018
Outsource for the Service Providers for a Forensic Investigation of the Repair and Maintenance Project at 11 Military Hospital for Defence Inspectorate Division (DACAF). 2018-12-14 11:00 CPSC- B- G- 161- 2018
Midlands Region: Department Of Basic Education: Umzinyathi District ( Msinga) Umbonje High School: Sanitation Programme Phase II 2018-12-18 11:00 ZNTL 02899 W
Midlands Region: Department Of Basic Education: Umzinyathi District ( Msinga) Mhlangezulu Secondary School: Sanitation Programme Phase II 2018-12-18 11:00 ZNTL 03804 W
Midlands Region: Department of Basic Education: Umzinyathi District ( Msinga) Asibambisane Primary School: Sanitation Programme Phase II 2018-12-18 11:00 ZNTL 03089 W
Appointment of Professional Services Providers for development of 5-year reliable water and sanitation services delivery plan (Phase1) – Situational Assessment Review and Phase 2 – Development) for Ilembe DM. 2018-12-07 11:00 MISA/ DWSS/ IDM/ 043/ 2018

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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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