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.
Calibration of electrical instruments 2019-01-29 10:00 WRAC/KBC/28149
Appointment of a Service Provider to Supply and Deliver Nonflush Chemical Toilets to Various Areas in Theewaterskloof Municipal Area On an Ad-Hoc Basis for the Period From January 2019 To June 2020 2019-01-18 12:00 DEV 09/2018/19
The provision of rigging resources to Koeberg Operating Unit 2019-01-29 10:00 KBG1874
Implementation of energy saving measures and initiatives for George Municipality: Replacement of Aircons, Heatpumps, 7 building lighting lamps. 2019-02-01 12:00 ENG040/2018
Supply and delivery of water filtration sand to Petrosa GTLR in Mossel Bay (call off contract) 2019-02-12 11:00 CTT20925
Supply and delivery of mineral slag sand and grit to PetroSA GTLR in Mossel Bay (call off contract) 2019-02-12 11:00 CTT20926
Requests proposals to perform the tasks on behalf of the entity to perform a revaluation of electrical infrastructure assets and owner occupied land and buildings. The appointment will be valid for twenty four (24) months. 2019-01-21 11:00 RFP 26/2018
Resin replacement 2019-02-07 10:00 MPGXC005240 R1
Supply and delivery of care kits for community health workers for Free State Department of Health 2019-02-08 11:00 DOH (FS) 13/2018/2019
Plumbing services 2019-02-14 10:00 MPGXC005431
Specification for security services at Maletswai One Stop Centre in the Joe Gqabi District for a period of 3 years 2019-02-04 11:00 SCMU4-18/19-0040
Appointment of service provider to provide security services at Chris Hani District – Melton Gardens Child and Youth Care Centre for the Department of Social Development, Eastern Cape for a period of three (3) years 2019-02-04 11:00 SCMU4-18/19-0041
Specification for security services at Umtata One Stop Centre in the OR Tambo District for a period of 3 years 2019-02-04 11:00 SCMU4-18/19-0039
Development of a Plan For Incorporating Biomimicry and Bio-Wise Principles Into Existing and Planned Projects 2018-12-21 12:30 SCM/RFQ/2019/032/EDP
Appointment of service provider to provide security services at Protea Child and Youth Care Centre for the Department of Social Development, Eastern Cape for a period of three (3) years 2019-02-04 11:00 SCMU4-18/19-0029
Appointment of service provider to provide security services at or Tambo District – Qumbu Child and Youth Care Centre for the Department of Social Development, Eastern Cape for a period of three (3) years 2019-02-04 11:00 SCMU4-18/19-0038
Appointment of a Panel Of Attoneys to Assist Sedibeng District Municipality with Legal Related Matters on an Ad Hoc Basis. 2019-01-08 12:00 8/2/1/2-2018
Appointment of service provider to provide security services at Buffalo City Metropolitan Municipality – Silver Crown Old Age Home for the Department of Social Development, Eastern Cape for a period of three (3) years 2019-02-04 11:00 SCMU4-18/19-0037
Provision of Short Term Insurance for the Period From 01 July 2019 to 30 June 2022 2019-01-18 12:00 FIN 01/2019/20
Consulting engineering services for the routine road maintenance of national route N2 section 8 km 80.08 to section 10 km 73.50 and national route R62 section 6 km 36.76 to section 8 km 2019-02-04 14:00 X.003-030-2019/1F

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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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