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.
Occupational health and safety services for resurfacing of municipal roads (Rawsonville, Worcester, De Doorns, Touwsrivier). 2019-04-30 11:00 296861
Terms of Reference for Consultancy Services to Undertake Gender Mainstreaming Study in the Energy Sector in Africa 2019-05-07 15:00 AUC/IED/C/014
Construction of Speed-Humps 2019-05-03 12:00 SCM/2019/114/ENG
For the supply and delivery of safety boots for delivery to Kimberley, Supply Chain Services Warehouse. 2019-04-30 10:00 WRAC/KBC/29581
Supply and delivery of various PPE material on an “as and when” required basis to Bellville 2019-05-14 10:00 BLE RME 2202/2019
SHEQ Dept - Collection and Disposal of Medical Waste on a month-to-month basis not exceeding 12 months 2019-05-07 12:00 PEHR 007/19-20
Construction of Ward 4 Elityeni Internals Streets 2019-05-17 11:00 TECH/MIG 01/2019/20
Construction of Chintsa East Internal Streets 2019-05-17 11:00 TECH/MIG 02/2019/20
Construction of Icwili Sports Field 2019-05-17 11:00 TECH/MIG 03/2019/20
Construction of Ward 6 Youth Centre 2019-05-17 11:00 TECH/MIG 04/2019/20
Provision of Website Management services at KHTVETC for a period of 36 months ( 3 years) 2019-05-23 11:00 KHC Bid 01/2019
Provision of the Secondment of the Water Sector Manager 2019-04-25 11:00 EWSETA/RFQ/11/2019
Appointment of a service provider for the design and construction of houses with basic services infrastructure for evicted farm dwellers from Vaalpoort Farm in Pixley Ka Seme Local Municipality 2019-05-15 11:00 CONMP 0001 (2019/ 2020)
Procurement of Support and Maintenance of VMware Enterprise Licences, the reconfiguration of Enterprise Licenses at Head Office and the Procurement of 12 Additional Enterprise Licences wit x1 VMware vCentre standard including installation and configuration for 36 months 2019-05-10 11:00 RFB 1918- 2018
Request for proposals from reputable and suitably qualified research houses to submit proposals to conduct a Domestic and Departure Tourism Survey for the South African Tourism. 2019-05-10 12:00 SAT 148/ 19
Request for proposal for the appointment of a service provider to render employee wellness programme for the Office of the Public Service Commission (OPSC) for a period of thirty six (36) months. 2019-05-14 11:00 OPSC 001/ 19
The provision of professional catering services for the National School of Government for a period of three (3) years. 2019-05-10 11:00 NSG/ BID/ 12/ 2018/ 19
The comprehensive management and maintenance services of CCTV survailance, access control and intruder alarm systems at the national school of government for a period of 36 months (three years). 2019-05-10 11:00 NSG/ BID/ 13/ 2018/ 19
Supply and delivery of fine aggregate, coarse aggregate, crusher run and rip rap to the Department of Water and Sanitation, Clanwilliam Dam. 2019-06-06 11:00 DWS03- 0419 WTE
Appointment of a Consultant for the Development of 5- Year Business Plan (2019 - 2023) for Sci-Bono Discovery Centre (Sci-Bono) Operations. 2019-05-02 12:00 SCM/CEO/R19-20/11

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Ease of opening a business

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

South Africa is currently rated 88nd when it comes to the ease of doing business according to survey that is done yearly by The World Bank. This is all good and well if you are an overseas investor with a lot of money and looking for new places to invest in. However, if you are a South African with little or no money, doing and / or starting a business in South Africa can be a daunting task!

To begin with, the statistics are... Read More

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