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.
Paediatric Negative Pressure Chest Drainage Bag Xl200 -With A Collection Chamber Of 400ml & A Compact Hanger. Must Have Accurate Volume Measurement, A Large Diameter Drainage Tap, A Needle Free Sampling Port. 2018-08-28 11:00 ZNQ NO.1861/ 07/ 18
Placement or Outright purchase of an automated scanning and imaging system for Cytogentics and Fish Diagnostic tests 2018-09-11 11:00 RFB 0088/ 17/ 18
Brother Printer Drum Unit. Dr3215 (Original Only) 2018-08-28 11:00 ZNQ NO.2145/ 07/ 18
Provision of panel of auditors nationally to the NHLS for a period of three (3) years. 2018-09-11 11:00 RFB 073/ 18/ 19
Appointment of a service provider to supply and erect trellis system for Coboop Irrigation Project, situated under Khai-Ma Local Municipality in the Namakwa District, Northern Cape Province 2018-09-07 11:00 5/ 2/ 2/ 1 NC RDLR- 0003(2018/ 2019)
Extremity Drape - Size 220cm X 320cm, Spunbond Drape With Laminated Spun Bond Under Leg Area To Ensure Impervious Nature, Integrated Velcro Cable Holders, Loose Non-Slip Pad Included, Sterile, Single Packed, With Expiry & Package Date, Latex Free, Water Proof. 2018-08-28 11:00 ZNQ NO.1845/ 07/ 18
Placement or Outright purchase of Point of Care Troponin Analyser in Kwazulu Natal region for a period of (3) three years 2018-09-10 11:00 RFB 068/ 18/ 19
Sterile Needles for Injection 30g 1/2 “ 0.3 X 13mm 2018-08-28 11:00 ZNQ NO.1814/ 07/ 18
Placement or Outright purchase of Automated Glass Coverslipper for Universitas for a period of (3) three years 2018-09-11 11:00 RFB 072/ 18/ 19
Spring Loaded Biopsy Needle, 14g X 20cm W 2018-08-28 11:00 ZNQ NO.1821/ 07/ 18
Hard, Plastic, Blue Scissor Clamps with Locking Ability for Clamping Lines 2018-08-28 11:00 ZNQ NO.1820/ 07/ 18
The Gauteng Department of Health invites of proposal from qualified medical doctors to perform Voluntary Medical Circumcision (VMMC) service as will be determined by the Department for a period of Three (3) years. 2018-08-31 11:00 GT/ GDH/ 099/ 2018
Supply: 300 units - Cannula manual vacuum aspiration size: 6mm; 250 units - Cannula manual vacuum aspiration size: 7mm; 100 units - Cannula Manual vacuum aspiration size: 8mm; 50 units - Syringe manual and vacuum aspiration double valve autoclavable to 121 degrees celsius 2018-08-29 11:00 356/ 18
Disposable Endoscopic Bite Blocks, 2cm Opening In Diameter & 48 French Depth, with Side Holes for Suctioning, Head Strap Inclusive. 2018-08-28 11:00 ZNQ NO.1819/ 07/ 18
Bid for the supply and delivery of pet bottles used for sugar and salt solution to assist with alleviating diarrhoea. These bottles to be supplied and delivered to various sub-structures and districts under the control of The Department of Health: Western Cape Government for a two year period. 2018-09-14 11:00 WCGHCC033/ 2018
Arterial Line Single Transducer Dtx Plus 2018-08-28 11:00 ZNQ NO.1786/ 07/ 18
Ultra Sound Assisted Liposuction Machine with an Infiltration Pump with a Variety Of Sizes Of Infiltration and Suction Cannulas. 2018-08-28 11:00 ZNQ NO.1659/ 06/ 17
Supply 3000 Units - Nebulizer Oxygen mask for peads 2018-08-29 11:00 ZNQ 318/ 18
Supply: Swabs gauze 100 X 100MM X 8Ply - non-sterile (200 PKTS X 6 months) 2018-08-24 11:00 ZNQ 435/ 18
Locking Pigtail Drain Sets - 8fr 10fr & 12fr - 25cm. 2018-08-28 11:00 ZNQ NO.1542/ 06/ 18

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7 Disadvantages of Competitive Bidding

The bidding process can be very tedious sometimes. Here are some of the disadvantages of the bidding process.

1.    Leading suppliers may not tender

In Australia, for example, government procurement guidelines only allow suppliers who actually tender to be considered for a procurement decision. If the leading supplier or suppliers do not tender, the purchaser can only consider bids from suppliers who do tender. If leading suppliers are not considered, the purchaser may end up buying inferior product or service... Read More

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