Issue Date: 
Monday, May 23, 2016

Functionality in Tenders Part 2 - 10 Tips

Tenders in South Africa are measured on three principles namely Functionality, Price and Broad-Based Black Economic Empowerment (B-BBEE). An Enterprise's ability to execute a contract is measured through the Functionality Principal in the Tender Environment. If an Enterprise's tender response does not pass the Functionality test it can't be measured on Price and B-BBEE. Enterprises that respond to tenders must ensure that they will pass the Functionality test in order to advance.

But how do you ensure that your tender response will pass the Functionality test? Here are 10 tips on how to pass the Functionality test:

1.    You must realize that the Functionality test in a tender is nothing else but the section where you advertise your goods and / or services. Responding to tenders it is a focussed marketing opportunity. You get the opportunity to focus           your marketing one specific buyer who is in desperate need of procuring goods and / or services such as what you are offering. Ensure to make the most of it!
2.    You earn points during the Functionality test. Before you start responding to tenders go to the Functionality section. Scan the criteria to see if you will earn enough points to go through to the next round of evaluation. It doesn't make           sense to waste time and money on a tender response if you are not going to pass the Functionality test.
3.    Ensure that you respond to a tender that is related to the business you are in. You will not be successful in bidding for something that you have no experience of.
4.    Use the exact phrasing or wording in your tender response that is used in the tender document. This makes it easier for the Evaluation Committee to find what they are looking for in your tender response.
5.    Use the exact same format that the tender document uses in your response on Functionality. If the Functionality in the tender document is in a table then try and use a table as well in your response.
6.    Your items under Functionality must be in the same order as that in the tender document. Don't swap items around. You want to make it as easy as possible for the Evaluation Committee to find what they are looking for.
7.    Don't over sell your business. This might seem weird saying this but many Enterprises have a range of goods and / or services that they sell. Evaluation Committees are only interested in the goods and / or services that they want to         procure. Giving them too much information at the wrong time might prevent them from finding the right information.
8.    Be visual! In today's world everything is about visual effects. We look at mobile screens, computer screens and big screen televisions. Heck, even your car has a screen it these days! Ensure that your tender response, especially               when it comes to Functionality, has some photos in it. Put photos in of your product as well as photos of your Enterprises' people. If you use machinery in your business then showing it of is always a good idea. At the end of the day         the photos that you put into your tender respond must add value to your tender response. Obviously the photos must be relevant to the tender requirements.
9.    Be honest in your functionality response. Remember that a tender is binding and if you cannot execute the contract you might find yourself in legal battles if you have won the tender but you cannot execute the tender.
10.  Finally you must remember that your tender response is going be evaluated by a person such as you and me. Also remember that your tender response is not going to be the only tender response to that specific tender. So make it           easy for the people on the Evaluation Committee to find and score your Functionality items.

If you follow these tips and tricks you will have a better chance in be successful at bidding. 

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.
Provision of existing 196m2 leased office accommodation for The Department of Culture Arts and Traditional Affairs at Naledi service point in Vryburg for a period of 36 months. 2019-01-17 11:00 PWR 133/18
Supply & delivery of plinths for minisub and ringmain unit 2018-11-29 10:00 DIE0014914
Supply & delivery of electrical equipment 2018-11-27 12:00 SCM04-2011-18
Supply & delivery of galvanized poles and pole caps 2018-11-29 10:00 DIC0025766 (READVERTISE)
Provision of existing 196m2 leased office accommodation for The Department of Culture Arts and traditional affairs at Kagisano Molopo service point in Ganyesa for a period of 36 months. 2019-01-17 11:00 PWR 124/18
Supply & delivery of blue jot – it down notebook – 75 with full colour branding. 2018-11-29 10:00 DCG0011888
Supply & delivery of seedling & trees 2018-11-27 12:00 SCM03-2011-18
Cleaning of Reservoirs and Towers 2019-01-22 10:30 JWOPS 015/17RT
Appoint a service provider for the construction of ten (10) timber wendy house units in various areas. 2018-11-27 14:00 1056812
Cleaning and Maintenance of Outfall Sewers. 2019-01-22 10:30 JW OPS 043/18
Printed Books 2018-11-27 14:00 PNQ2 PRINTED BOOKS
Construction of multipurpose community centre building - phase 2B white location, Knysna. 2019-01-23 12:00 T 31/2018/19
Supply and Delivery of One Automated Mineralogical Scanning Electron Microscope based mineral/phase analyser (QEMSCAN) including Training. 2019-01-24 10:00 ERIC0340
Consulting Services- Digital Archivist & Librarian within the Directorate of Information & Communication 2018-12-07 15:00 Re advert- AUC/DIC/IC/327
Supply of hygiene products and services. 2019-01-24 12:00 33/2018
Provision of basic sanitation services in informal settlements with The City of Johannesburg on an as and when required basis. 2019-01-25 10:30 JW 13855
The supply and delivery of water meters 2018-11-28 12:00 61954
Panel to provide travel management services. 2019-01-25 12:00 36/2018
Supply and installation of security parameter fencing at Matopie High Site, Franschhoek. 2018-11-28 11:00 FQ/SM: 75/19
Supply, delivery and installation of high security cage at miniature substation 2018-12-03 11:00 FQ/SM: 73/19

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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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