Issue Date: 
Wednesday, October 30, 2019

Evaluation of Functionality and Technical criteria

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

The tender processes in South Africa are governed by:

  • The Preferential Procurement Policy Framework Act;
  • Preferential Procurement Regulations, 2017;
  • National Treasury’s Supply Chain Regulations;
  • General Procurement Guidelines.

According to these Acts and Regulations, Competitive Bids – as tenders are legally called in South Africa – tenders in South Africa are measured on Functionality.

The Functionality test evaluate bidders on various aspects of the contract to establish if the bidder has the capabilities to execute the contract or not.  If an Enterprise’s tender response does not pass the Functionality test, it cannot be measured on Price and B-BBEE.   Enterprises that respond to tenders must ensure that they will pass the Functionality test to advance.

During the functionality test the bidder must score a set minimum number of points out of 100.After the Preferential Procurement Regulations 2017, and specifically paragraph three, were implemented it makes tenders much more transparent.  Previously it had been a struggle to determine how many points one can score on specific functionality criteria.

A threshold of 75 out of the 100 is usually set, but this can be higher or lower, depending on the Organ of State.  Only those bidders that reach the minimum threshold, which can be anything between 60 and 90 points out of a possible 100 points, will advance to the next phase, namely the Preference Points Scoring system (Price and B-BBEE).  All tenders achieving less than the set threshold will be declared non-responsive and will not qualify to be evaluated on B-BBEE and Price.

Each Functionality criteria that will be evaluated, will have a weighting in points.  The weighting of each functionality criteria will be dependent on the importance of the criteria in the contract.  Most functionality criteria include:

  • Track record and Experience: The Procuring Entity – either Public or Private Sector – wants to know how many years’ experience the bidders have in executing similar contracts providing the goods and/or services you are proposing.  The more experience you have the better.  This indicates to the Organ of State that you have been providing the goods and/or services for a period and that you are experienced in your field of expertise.
  • Recourses: Human Resources: The bidder must indicate if it has the human workforce, with the necessary experience and expertise to successfully comply with the requirements of the contract;
  • Financial capabilities: Procuring Entities are hesitant to award a contract to anyone who does not have the required capital available to successfully execute the contract.
  • Technology: Do you have the necessary systems, for instance machinery/vehicles/software to execute the contract
  • Usually the Procuring Entity will require other Functionality criteria that are specific to the goods or services that they want to procure.  For example: if the Procuring Entity needs a construction company, the bidder will have to be registered with the Construction Industry Development Board or CIBD for short.  If the bidder is not registered with the CIBD then the bid response will be marked as non-responsive.
  • Can you add value to the goods and/or services that the Organ of State require?  Is there any other information you deem relevant to your proposal?  If yes, provide details.  If you, for example, are selling tables and you offer a table made from wood and steel, it would be better than another supplier that offers plastic tables.  Obviously, your tables would be of a higher quality.

It is especially important to elaborate as much as possible on the technical criteria of your response.  In meeting the technical criteria of any tender, you will be ensured that your enterprise advances to the next phase of evaluation.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Appointment of a service provider to Supply and Install a Digital Internet Protocol Television (IPTV) system with 3 years maintenance and support for the dti. 2020-03-13 11:00 dti 18/ 19- 20
The appointment a service provider for the provision and implementation of a Forecaster Workstation Solution, to allow for optimal visualization of different meteorological data sets needed to deliver weather forecasting services. (Re-advertisement) 2020-03-13 11:00 SAWS- 235/ 19
Manufacturing, Supply and Deliver of Cap Peak, Hat W/P, Peak Cap Braided Brig/Gen, Peak Cap Braided Lt Col/Col, Border Hat Gold Braided Brig/Gen W/P, Border Hat Gold Braided Lt Col/Col And Bar Coded Labels for a Period of Two (2) Years: Division: Supply Chain Managememt 2020-03-17 11:00 19/ 1/ 9/ 1/ 59TC (19)
Manufacturing Supply and Delivery of Shirts Field Dress Grey, Chambray, Camouflage Stf and Pps, Shirts Saps Guards and Shirts Long Sleeve to the South African Police Service for a period Of Two (2) Years: Division: Supply Chain Management 2020-03-16 11:00 Gauteng: Department of Police: SAPS: SUPPLY CHAIN MANAGEMENT: PROCUREMENT MANAGEMENT
Individual consultant junior archivist 2020-03-18 11:00 EOI 7B/2019
Supply of Caps, utility, baseball and Caps, garrison for the S.A. Navy. 2020-03-31 11:00 SPSC- B- 032- 2019
Supply of Jacket, Cold Weather for the S.A. Navy. 2020-03-26 11:00 SPSC- B- 028- 2019
Supply and delivery bullet resistant vest spare parts to the South African Police Service for a period of three (03) years 2020-03-20 11:00 19/ 1/ 9/ 1/ 25TT(19)
Supply of Belts for the S.A. Navy, blue/black. 2020-03-26 11:00 SPSC- B- 027- 2019
Supply of Tracksuits for the S.A. Navy Blue and White 2020-04-01 11:00 SPSC- B- 033- 2019
DISPOSAL OF TRUCKS TRUCK ONE Make: Mercedez Benz,Vehicle Category: Heavy Load Vehicle ,Gross Vehicle mass: 3500 kg ,Tare :6850/2017-11-30, Driven: Self propelled ,Vehicle description: Van Body. TRUCK TWO Make: Mercedez Benz ,Vehicle Category: Heavy Load Vehicle ,Gross Vehicle mass: 3500 kg equip to draw Tare :6450/2012-10-31 ,Driven: Self propelled ,Vehicle description: Truck 2020-03-06 11:00 SAST/ 2020/ DISPOSALOFTRUCKS
Supply and delivery of 9 x 19 mm, calibre, ball, (full metal jacket) ammunition to the South African Police Service for a period of two (02) years 2020-03-20 11:00 19/ 1/ 9/ 1/ 76TT(19)
Appointment of a Panel of Legal Firms To Provide Legal Services and Legal Support To Umalusi for a period of (3) years 2020-03-12 12:00 Umalusi Tender(19- 20) T005
Supply and delivery of backpack with hydration bladder to the South African Police for a period of two (2) years 2020-03-20 11:00 19/ 1/ 9/ 1/ 50TA(19)
Appointment of a service provider to provide Executive Search Services for the position of a Chief Executive Officer (CEO) for the South African Weather Service (Re-advertisement) 2020-03-13 11:00 SAWS- 236/ 19
The South African Social Security Agency hereby invites proposals from potential service providers for the provision of WAN services at SASSA. 2020-03-19 11:00 SASSA: 41/ 19/ ICT/ HO
Purchasing and issuing of gym equipment to the South African Police for a period of two (2) years 2020-03-30 11:00 19/ 1/ 9/ 1/ 40TA(19)
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the Routine Road Maintenance of National Route R524 from Louis Trichardt to Punda Maria Gate, R578 from Louis Trichardt to Greater Giyani Municipal Border, R36 from Molemole municipal border to Bandelierskop, N1 from Molemole municipal border to Louis Trichardt. 2020-03-20 11:00 X.002- 103- 2019/ 1 (NON- TOLL) & N.001
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the Routine Road Maintenance of National Route N11 from Mokopane to Blouberg Municipal border, R518 from Mokopane to Lepelle-Nkumpi Municipal border, R101 from Mokopane to Polokwane Municipal border. 2020-03-20 11:00 SANRAL X.002- 090- 2019/ 1
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the Routine Road Maintenance of National Route R521 from Molemole municipal border through Vivo to Makhado municipal border, R523 from Blouberg municipal border to Masekwaspoort, N1 from Louis Trichardt to Beit Bridge Border Post. 2020-03-20 11:00 SANRAL X.002- 102- 2019/ 1 (NONTOLL

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