Issue Date: 
Monday, May 16, 2016

Functionality in Tenders Part 1

Functionality in Tenders (1)

The Preferential Procurement Policy Framework Act 2017, establish the rules according to how Government Entities must evaluate tenders. The Preferential Procurement Regulations of 2017 takes it a step further and gives guidance on how to specifically award points according to certain criteria such as B-BBEE and Price. 

Government Entities have developed a system called "Functionality" or "Technical Criteria" to enhance the system and to ensure that the Enterprises with the best ability are evaluated according to the Preferential Procurement Regulations. This is a safety measure built into the system to keep the Enterprises with no ability but with the lowest price out from winning a tender. Private Sector Entities have, although slightly modified, also adopted the same system. For a better understanding, we will name Government Entities and Private Sector Entities one as Procuring Entities.

It is just fair that a Request for Quotation or Competitive Bid (Tenders) is awarded to the Enterprise with the best ability. Otherwise no contract awarded will be executed correctly, according to specifications and on time.

An Enterprise's ability to execute a Request for Quotation or Competitive Bid is measured through its ability to perform. This ability to perform can be measured in many different ways but most of the common areas that are measured are:

  • Experience;
  • Human Resources;
  • Financial Resources; and
  • Goods or Services delivery capability.

The first three is easy to understand and easy to proof. It is the fourth item, Goods or Services delivery capacity that many Enterprises struggle with. Procuring Entities must ensure that when procuring goods and/or services from an Enterprise that it will be done:

  • Timeously;
  • Correctly as per specifications; and
  • Continuously. 

This can only be proofed if an Enterprise has the necessary infrastructure to deliver the goods and/or services required. 

To learn more about this and many other tender conditions please attend one of our How-to-Tender workshops. For more information on the tender courses please email Werner at werner@how2tender.com

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.
 

Title Closing Date Tender No.
Refreshments for Office of the Director: Corporate Services 2018-12-14 12:00 B391/2018/19
Videography and Photography Services for Cross Over 2018-12-20 12:00 Q07.12.18
Supply and Delivery of 6m Steel Container to Fairview 2018-12-18 12:00 241/2018/19
Supply and Delivery of Traffic Uniforms for Traffic and Law Enforcement Officers 2019-01-15 12:00 08/2/16/41
Supply and Delivery of Traffic Signal Materials (Until June 2020) 2018-12-20 10:00 CES 34/2018
Supply and Delivery of Road Traffic Signs (Until 30 June 2020) 2018-12-20 10:00 CES 33/2018
Invitation for the provision of security services at Dr. Kenneth Kaunda District for the Department of Social Development 2019-01-30 11:00 NW/DSD/06/2018
Invitation for the provision of security services at Dr Ruth Segomotsi Mompati District for the Department of Social Development 2019-01-31 11:00 NW/DSD/05/2018
Supply & delivery of toolboxes. 2018-12-20 10:00 DIE0015186
Supply & delivery of fluke clamp 375. 2018-12-20 10:00 DIE0015182
Appointment of a Service Provider to Design, Manufacture and Delivery of Two (02) Fire Trucks for a period of Eighteen months (18) for The North West Province and Maintenance of Three (03) years after delivery. 2019-01-31 11:00 CS&TM 07/18/19
Provision for municipal finance management programme 2019-01-14 12:00 GTLM/FS06/2018/2019
Provision of legal services to review draft By-law and finalization thereof 2018-12-14 11:00 FQ/SM: 93/19
Supply and delivery of ready mixed, concrete 2019-01-14 11:00 FIN/SC/C1/09/2018
Supply and delivery of cement products, kerbs, etc 2019-01-14 11:00 FIN/SC/CP/09/2018
Supply and delivery of crushed stone, crusher sand, slurry seal 2019-01-14 11:00 FIN/SC/S1/09/2018
Upgrade of Rosendal Chlorine Station. (Supply and Install Chlorine Dosing Equipment) 2018-12-18 11:00 FQ/SM: 86/19
Appointment of a Supplier for the Bioremediation at the pniel wwtw 2018-12-18 11:00 FQ/SM: 88/19
Construction of toilet top structures in Kutlwanong, Kagisho & Phomolong Phase 1 2019-01-28 11:00 INFRA/CE/T2/2018
Tenders are invited to Supply,Install and Deliver eight(8) Gun Safes 2018-12-18 11:00 CSQ12181511

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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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