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.
Consultancy services to manage an online public health journal for Africa CDC 2018-11-09 15:00 AUC/ACDC/C/382
Supply & Install Centrifuge NHLS-Christ The King 2018-10-26 11:00 RFQ -KZN-129
Supply & Install Micro Tube Centrifuge NHLS-Mahatma Ghandi 2018-10-26 11:00 RFQ- KZN-121
Supply and Install Hydroboil X2 NHLS- Catherine Booth NHLS- Greytown 2018-10-26 11:00 RFQ-KZN-6/17
Consultancy services to facilitate the operationalization of PAWO in to AU specialized agency 2018-10-30 15:00 AUC/WGDD/C/270/2018
Supply and install centrifuge x2 2018-10-26 11:00 RFQ- KZN 89/92
For Time and Date Recorder For Tonga Labaratory 2018-10-24 09:00 RFQ 0704979
For 2x Time And Date Recorders For Themba Laboratory 2018-10-24 09:00 RFQ 0715891
Request For Laptops 2018-10-19 11:00 1493104/18-19
Consultancy service to manage the implementation of the African Women’s Legacy Project 2018-10-30 15:00 AUC/WGDD/C/269/18
Supply: Care packs / wellness 2018-10-22 12:00 GG11900596
Supply, replacement and service of first aid firefighting appliances for Overstrand Municipality for a contract period ending 30 June 2021. 2018-11-16 12:00 SC1909/2018
Installation of Sewer reticulation in Kleinmond, Phase 1 2018-11-16 12:00 SC1915/2018
Supply: Hardware items 2018-10-22 12:00 GG11900597
Installation of Sewer Reticulation at Gansbaai, Stanford and Hermanus. 2018-11-16 12:00 SC1916/2018
Replacement of Water pipes, Rooi Els to Hermanus and Construction of Sewer Pipelines 2018-11-16 12:00 SC1919/2018
Upgrade of Electrical Bulk Supply Network – Louisvale Rd 2018-11-02 14:00 TN069/2018
Mhlathuze Water hereby invites tender submissions for the supply of laboratory chemicals and consumables. 2018-11-09 12:00 MW/9/8/2018
Retrofitting of high pressure sodium floodlights with LED flood lights on existing 30 m and 40 m high mast light structures 2018-11-02 14:00 TN070/2018
Mhlathuze Water hereby invites tender submissions for the supply of Laboratory Gases to Mhlathuze Water Scientific Services laboratory. 2018-11-09 12:00 MW/17/10/2018

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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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