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.
Bloemfontein Sandf: De Brug Mobilisation Centre: Upgrading of Facility/ Infrastructure (Kitchen) and Replacement of Kitchen Equipment: (Architectural Services) 2019-06-18 11:00 BL19- 010
Postmasburg Magistrate Court: Provisioning of cleaning services for 36 months. (1208.14m²) 2019-06-14 11:00 PF17/ 2019
Olifantshoek Magistrate Court: Provisioning of cleaning services for 36 months. (531.00m²) 2019-06-14 11:00 PF18/ 2019
Refurbishment of Swimming Pool at SAS Saldanha as per Statement of Work. Evaluation 80/20 principle. 2019-06-27 11:00 SPSC- B- 005- 2019
Outsourcing of a Service Provider to Grade the Firebreaks of the DOD Ammunition Depots (Proqurement Plan Number: DOD PROC PLAN 18-19/LOG DIV/ 865). 2019-06-27 11:00 CPSC- B- G- 272- 2018
Appointment of a service provider to provide analytical support in preparation of agricultural sector country status in terms of profile outline; malabo goals and milestones report and; policy and programme opportunities outline. 2019-06-14 11:00 4.4.12.2/ 2/ 19
Supply, delivery and offload protective clothing for LandCare 2019-06-13 11:00 ZNB 4294/ 19A
Warden Saps: Repair and Maintenance to Electrical, Structural and Civil Elements to the Station and Detective Office (Electrical Engineering) 2019-07-18 11:00 BL19- 011
Appointment of panel of mentorship facilitating agents to mentor, train and support projects identified for 2019/20 - 2020/21 financial years. 2019-06-13 11:00 ZNB 4295/ 19A
Provision of Executive and Leadership Coaching 2019-06-25 11:00 SAMRC/ HRPE& LC/ 2019/ 04
Appointment of a service provider for procurement of periodicals and journals for departmental libraries for a period of 36 months (3 years) 2019-06-13 11:00 ZNB 4296/ 19A
Request for a qualified panel to be part of the KwaZulu-Natal Film Commission production crew for a period of 3 years. 2019-06-17 11:00 KZNFC- T07/ 19/ 20
The iSimangaliso Wetland Park Authority invites suitable, qualified and competent firms of Environmental Consultants to send proposals to be considered for appointment as iSimangaliso’s service providers 2019-06-07 16:00 RFP NUMBER: 01/ MAY/ 2019
Appointment of a service provider to supply, deliver, commission, train and maintain a Lidar Systems for the use on a Drone (UAV) for the Council for Geoscience 2019-06-25 11:00 CGS- 2019- 001A
Appointment of a service provider to provide office furniture to the CCMA Nationally on an as and when required basis for a period of 36 months. 2019-06-14 11:00 CCMA/ 2018/ 41AFAC
Panel of service providers to render probity audit services to Gauteng Provincial Government departments and entities in the procurement of infrastructure, goods and services for a period of 3 years (36 months) 2019-06-14 11:00 GT/ GPT/ 033/ 2019
Expression of Interest for the Upgrade, Management and Effective Commercialisation of the Krugersdorp Game Reserve 2019-06-14 11:00 GT/ GIFA/ 029/ 2019 (EOI)
Request for proposal for provision of training services – seven (7) learnerships 2019-06-18 12:00 CDC/ 195/ 19 (A- G)
The Financial Intelligence Centre request proposals for the development and configuration of a compliance monitoring and assessment system utilising Microsoft business intelligence tools 2019-06-21 11:00 FIC/ RFB/ CMAS/ 003/ 2019/ 20
The Film and Publication Board (FPB) invites suitable service providers for the provision of data connectivity and voice over IP services a period of 36 months. 2019-06-25 11:00 RFT01 2019_20

Pages

Tender Knowledge

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Sometimes I am surprised at how little business people in South Africa know about Tenders and the Tender Process. Simple things like terminology and general tender information are difficult for people to comprehend not to mention the Standard Bidding Documents and Tender Pricing.

Unbelievably there are still Entrepreneurs that thinks to respond to tenders are an actual business? You will find that these Entrepreneurs would... Read More

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