660 government entities
By Werner van Rooyen
23 March 2015
Did you know that there are 660 government entities that put out tenders and request for proposals? This includes national and provincial departments, municipalities, state-owned companies and entities. These 660 government entities must use the tender process to do most of their procurement. It is only small procurement supplies, usually less than R30 000-00, that do not have to go through the tender process. The end result is that there are literally thousands of tenders being published every month.
Of these 660 government entities, 226 are municipalities and 127 are State Owned Enterprises. This leaves 307 government departments. If all of these government entities only require procuring on average five supplies per month with a value greater than R30 000-00 then it means there are 3300 tenders going around per month. There is plenty of business going around for each and every one and that is without counting the private sector tenders that also goes out every day.
The reason for giving you all these numbers is to prove that if you need to expand your business then responding to tenders and/or request for proposals are the way forward. The only trick is to respond correctly to tenders and/or request for proposals.
There are plenty of talk about a new electronic system that will be up and running on 1 April 2015 whereby all 660 government entities will have to register their daily tenders and request for proposals that do not exceed R500 000-00. This system is developed to combat fraud and to give the Small, Medium and Micro Enterprises the same opportunity to respond to tenders on an equal playing field. We will have to wait and see how effective these vast numbers of tenders are going to be managed on this electronic system.
But until such time that we know the answer, you can get all the knowledge on how to respond to a tender by attending one of our “How-to-tender” workshops. Please visit our website for more detail at www.how2tender.com.