Issue Date: 
Friday, July 27, 2018

How can a start-up business win a tender?

In the tender process, it is essential that an enterprise be knowledgeable of the supply it wants to bid for. In fact, the more knowledge the enterprise has of its supply, the better its odds are of being awarded a tender.

The question is ‘where or how do start-up enterprises gain experience?’ or, ‘can a start-up enterprise win a tender?’ The simple answer is yes, start-up enterprises can win tenders.

Organs of State have identified certain industry sectors such as cleaning, grass cutting, security and a few others where they will try and award tenders to start-up enterprises. Furthermore, the new Preferential Procurement Regulations 2017, have got three specific Regulations that Organs of State can apply, to the advantage of designated groups, through sub-contracting 30% of a tender to Small, Medium and Micro Enterprises (SMME’s).

An alternative to overcome the lack of experience would be to go into a Joint Venture. Collaborate with an enterprise that has the necessary expertise and that complies with the Functionality of a specific tender. Finding enterprises to go into a joint venture with can be difficult but if a start-up enterprise can bring unique skills or Black Ownership to a joint venture, it will be easier to find a joint venture partner.

It is practical to start a business in something that you have experience in, so we advise start-up entrepreneurs to use their experience, gained through studying or working in a specific sector, in their tender responses. Use personnel references and ask the supplier/s that you dealt with in your previous job/s to be your references.

The Preferential Procurement Policy Framework Act dictates that Organs of State enforce certain minimum requirements when awarding tenders, in order to verify that an enterprise is legally operating and is tax compliant.

The minimum requirements any enterprise must met in order to respond to tenders are:

  • Being tax compliant;
  • Be registered on the Central Supplier Database;
  • Have an B-BBEE certificate or an EME Affidavit (in the case of a startup);
  • A Fixed address;
  • Bank account;

If you want to learn more about the tender process and how to complete a tender correctly and hopefully successfully, we advise that you attend one of our tender courses. 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 which specializes in tender consulting and tender training. (04/05/2018)

Title Closing Date Tender No.
Construction of Workshop at Jouberton Campus 2019-03-01 11:00 No reference number
Department of Science and Technology Illumination Assessment 2018-2019 2019-03-04 13:00 RFQ-0000062
Provision of security services 2019-02-28 12:30 08/2/16/57
Panel of two (2) Service providers for Supply and delivery of protective clothing for a period of 36 months(as and when required) 2019-03-01 11:00 LNM071/2018/19
Printing and folding of municipal monthly statements for a period of 36 months 2019-03-01 11:00 LNM067/2018/19
Supply and delivery of ICT equipment 2019-02-26 11:00 LNM050/2018/19
Professional Service provider for licensing of municipal borrow Pits 2019-02-26 11:00 LNM056/2018/19
Professional Service provider for review of environment management plan 2019-02-26 11:00 LNM055/2018/19
The Madikwe River Lodge is calling for proposals from reputable tourism agencies to provide marketing and sales services to the resort. 2019-03-20 13:00 MRL001/19
Organised supply and delivery of reagents for the analysis of Chemical Oxygen Demand and Free Chlorine at BCMM municipal laboratory 2019-02-22 12:00 RFQ/DSS/2018-19/364
Operation of an electrical control centre and fault centre in Buffalo City Metropolitan Municipality for a period of three years 2019-03-19 12:00 ED: 405
Re-advertisement: TD-01/06/18: Provision of tyres and tyre associated service items, including new and re-treaded replacement tyres, puncture repairs, fitment, wheel balancing, wheel alignment, wheel rotation and emergency call out to attend to tyre breakdowns for a period of three years 2019-02-22 11:00 TD-01/06/18
Tender for heritage study: De Rust, Dysselsdorp & Oudtshoorn 2019-03-25 12:00 TD-01/02/19
Provision and administration of an electricity and water prepayment vending system for a contract period ending 30 June 2022 2019-03-25 11:00 TD-05/02/19
Supply, delivery, assembly and installation of various items of furniture and accessories for Thusong Centre in Motherwell. 2019-02-28 11:00 SCM/19-97/G
Expression of interest for the supply and delivery of PPE. 2019-03-14 11:00 SCM/19-139/G
Document: Archiving: Learners and Drivers licences. 2019-03-14 11:00 SCM/19-114/S
Standards of Generally Recognised Acccounting Practices (GRAP) financial reporting training service provider for a two year period 2019-02-28 12:00 SAICA0032019
Provision of Security Services at Various ECDC Owned Premises for thirty Six months (3 years) 2019-03-11 12:00 ECDC/ELN/108/012019
Supply and delivery of Road Construction Material for Taweni Access road 2019-03-11 12:00 IHLM/87/01/2018-19/TS

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10 things to remember when you tender

By Werner van Rooyen

31 January 2019

There are many things that you as a small business owner must remember when you respond to a tender and sometimes responding to a tender can be overwhelming. Experience has taught me that there are some important things to remember when responding to a Tender and there are some less important things to remember when responding to a Tender.

Here are ten of the important things to remember when responding to a Tender. Please remember that all ten of these items mention here are equal... Read More

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