Functionality and Tenders
In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.
Usually Organs of State evaluate competitive bids (tenders) as follows:
- The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
- A threshold of between 65 to 75 out of 100 points is usually set, but this can be higher or lower, depending on the Organ of State.
- All tender responses achieving less than the set threshold will be declared non-responsive and will not qualify to be evaluated on B-BBEE and Price.
Functionality includes the following main points:
- Track record and experience
- Operational fit
In your tender response it is always important to stipulate the following when it comes to your track record and experience:
- How many years of experience do your company or enterprise has with the goods and/or services you are proposing?
The longer 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 of time and that you are experienced in your field of expertise.
- Provide contactable references and proven track record of the goods and/or services.
In your response it is always good to provide references, even if it is just one reference. The Organ of State needs to know that you can be trusted and how better to evaluate this by contacting your references. Remember to be honest in your response as the Organ of State is sure to contact your references.
- Provide information on your success rate.
This is overstating the obvious but it is good. Tell them about previous tenders that were awarded to you and how successfully you have completed it.
- What is the nature of goods and/or services your company supply?
It is imperative that you supply the goods and/or services that the tender asks for. If you do not supply the exact goods and/or services that the tender asks for you may be disqualified.
- Provide details of your monthly volume and rand value of goods and/or services you supply to your existing clients.
This again will show your experience. Even if you are providing small volumes you still supply the goods and that means experience.
- Is there any other information you deem relevant to your proposal? If yes, provide details.
This is especially important when you can add value to the goods and/or services that the Organ of State requires.
It is very important to elaborate as much as possible on Functionality in your response. In meeting the Functionality criteria of any tender you will be ensured that your enterprise advances to the next phase of evaluation.
If you want to learn more about Functionality and how it works be sure to attend one of our How-to-Tender workshops that Kunaku Procurement Solutions present across South Africa.
Until the next time – happy tendering.
This article is written by Werner van Rooyen, one of the Directors on Kunaku Procurement Solutions which specialises in tender consulting and tender training.