Issue Date: 
Monday, June 30, 2014

Composition of Tender documents

By Werner van Rooyen

www.how2tender.com

30 June 2014

I had the privilege to respond to a Request for Proposal document last week. The Request for Proposal was for a State Owned Company. One thing that has bothered me frequently is how bad Tender and Request for Proposal documents are compiled. This Request for Proposal that I did last week was no exception.

I sometimes get the idea that the people (or person) that compiles these tender documents do not know exactly how to do it. Sometimes it seems like they had copy and paste a previous document that is more or less the same as their tender. The reason I`m saying this is because there are forms in the Tender document that is not at all applicable to the Tender that one has to respond to. This is confusing for the Responder. You as the Responder to the Tender is already nervous and unsure and putting unnecessary forms into the tender document are not helping ones` cause.

Another obvious mistake that I have come across is where the Organ of State request normal BEE information and not B-BBEE information. What is the difference you ask? It is where they ask the Responder to state the Equity Ownership of the Enterprise that is responding to the tender. They also neglect to ask for your B-BBEE certificate. In 2007 the new Broad-Based Black Economic Empowerment Act came into effect whereby an Enterprise is measured according its B-BBEE scorecard. Before the B-BBEE Act, Enterprises were measured on there Equity Ownership - the more equity black people had in an Enterprise, the more likely it was to win a tender. Because of the unfairness of this the Government changed Black Economic Empowerment to Broad-Based Black Economic Empowerment.

If you respond to a tender and you get these types of tender documents that are not compiled correctly I suggest the following:

  • Where you have to respond to forms that are not applicable to your business or to the product that you are bidding for, just draw a line through the document and say NOT APPLICABLE. A good example of this is the Standard Bidding Document 5 which deals with the National Industrial Participation Programme. The chances are very little that your SMME is going to have to comply with this form.
  • When you respond to a Tender or Request for Proposal you always attach your current B-BBEE certificate or your EME Letter form your Auditor. If the Tender Document requests any Equity figures I suggest you draw a line through it and refer the reader to your B-BBEE certificate.

If you have any other questions regarding the completion of Tender Documents go to our website at www.how2tender.com. There you will find all the necessary information, guidelines and documents you will need to respond to a tender correctly and accurately.

Until the next time - happy tendering.

When Must I Sub-Contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

The Draft Preferential Procurement Regulations stipulates the following: 

  1. For contracts above R30 million, the tenderer MUST sub-contract a minimum of 30% of the value of the... Read More
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