Issue Date: 
Monday, May 16, 2016

Functionality in Tenders Part 1

The Preferential Procurement Policy Framework Act 2011, establishes the rules according to how Government Entities must evaluate tenders. The Preferential Procurement Regulations of 2011 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 companies with the best ability are evaluated according to the Regulations. This is a safety measure built into the system to keep the companies with limited ability but with the lowest price from winning a tender. Private Sector Entities have also adopted the same system, although slightly modified. For a better understanding, we will name Government Entities and Private Sector Entities together as Procuring Entities.

It is fair that a Request for Quotation or Competitive Bid (Tender) is awarded to the company with the best ability.

Otherwise no contract awarded will be executed correctly, according to specifications and delivered on time.

An Company’s ability to execute a Request for Quotation or Competitive Bid is measured through its ability to perform and deliver. This ability is measured in many different ways but most of the common areas are:

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

The first three are easy to understanding and easy to approve. It is the fourth item, Goods or Services delivery capacity, which many companies struggle with. Procuring Entities must ensure that when procuring goods and/or services from an company that it will be done:

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

This can only be proved if a company has the necessary infrastructure to deliver the goods and/or services required.

We strongly believe that going forward Procuring Entities will be strict in ensuring that contracted companies have the ability to deliver.

The above mentioned criteria will be discussed in detail during the next few of articles to follow.

To receive proper training in the business of responding to quotations and competitive bids you should attend the How-to-Tender workshop (www.how2tender.com).

Earn to learn!

Title Closing Date Tender No.
Service Provider to Provide Service for Learner’s and Driver’s License for 39 People 2018-03-01 12:00 RFQ / 357
Conference facility with catering 2018-02-26 12:00 B651/2017/18
Supply: Gauge for spray Gun;1.3 Spray Gun;1.8 Spray Gun 2018-02-28 12:00 GD11800771
Service Provider to Train 50 Smme’s on the tender Document Processes 2018-03-01 12:00 RFQ / 358
Supply: Hardware items 2018-02-28 12:00 GG11800716
Appointment of a service provider to assist with the recruitment and selection process of Section 56 Managers 2018-02-27 12:00 RFQ 293/2017/18
Supply padlock; brass 2018-02-22 11:30 GG11800711
Accredited Firefighter 1 Training (Firefighter 1 course and Hazmat Awareness) 2018-02-27 11:00 296/2017/18
Supply ceramic tiles 2018-02-28 12:00 GG11800710
Trencing and Installation of Cables as and when required 2018-03-26 12:00 ENG012/2018
Provide Health Care Services - Medical Surveillance 2018-03-13 12:00 JCPZ/SHEQ01/2017
Recruitment Services 2018-03-13 12:00 JCPZ/HR03/2017
Monitoring and Inspection Services. 2018-03-13 12:00 JCPZ/RFP/NBD01/2017
To Operate, Maintain and to Supply Equipment in Sewer Treatment Plant 2018-03-27 10:00 MPPPSC001082
Supply solid SA pine timber 2018-02-28 12:00 GG11800714
Supply and deliver new borehole motor and pump combination 18.5KW 8.3l/s @ 125m (head) 2018-02-27 12:00 294/2017/18
Provision of Cleaning Services. 2018-03-14 11:00 OTT/444/201802
Request for Proposals are Invited for Investment in the Refurbishment and Management of the Rustenburg Showgrounds on a Long-Term Lease Basis 2018-03-27 10:00 RLM/DLED/0101/2017/18
Maintenance of Hydraulic Bin Compactors for two (2) years. 2018-03-15 14:00 58726
Request for Proposal for Drilling Two (2) Slim Hole Geologic Characterization Wells in the Zululand Basin for the South African Pilot Carbon Storage Project. 2018-03-16 11:00 435

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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