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.
Biopsy Instrument Co-Axial. 18g X 15cm Or 18g X 10cm; 18g X 9cm, 16g X 15cm,16g X 9cm Or 16g X 10cm; 14g X 9cm. 2018-08-28 11:00 ZNQ NO.139/ 04/ 18
Supply double action floor spring for timber doors. BTS 60, SS cover plate, dust cover, spindle, bottom strap, top centre, max door width: 1000mm, max door weight 80kg, hydraulic speed control. Hold open only. Components: BTS 60. Ss cover plate, dust cover, spindle, bottom strap, top centre. (to view sample at workshop - Mr. C. Fenner) (provide sample) specification will be attached. Quantity: 4 sets of double door springs 2018-08-28 11:00 ZNQ NO.2220/ 07/ 18
Appointment of a service provider to supply and deliver bee hives, super chambers, bee hive stands and bee colonies for Oranje Kalahari Bye Boerdery Pty (Ltd) project in the Dawid Kruiper Local Municipality, ZF Mgcawu District within the Northern Cape Province 2018-09-07 11:00 5/ 2/ 2/ 1 NC RDLR- 0004(2018/ 2019)
Supply & install 150MM flanged key gate valves in manholes. 2018-08-28 11:00 ZNQ NO.2219/ 07/ 18
Repairs to skywalk between nursing college & doctors quarters as per spec. 2018-08-28 11:00 ZNQ NO.2229/ 07/ 18
Supply Nitinol (Mandril) guide wire: 60cm .018” quantity: 50 units 2018-08-28 11:00 ZNQ NO.1898/ 07/ 18
Supply Brother toner cartridges tn3290 (original only) 6 month contract. (Toners to be delivered monthly in batches of 10 units.) = 60 UNITS 2018-08-28 11:00 ZNQ NO.2147/ 07/ 18
Supply, Delivery, Installation and commissioning of ICP-MS instrument 2018-09-17 12:00 MTK 08/ 2018
Long Term, Retrograde Catheters Double Lumen - 31cm’s 2018-08-28 11:00 ZNQ NO.1773/ 07/ 18
Intra Osseous Needle 15g X 30mm X 10 Units. 2018-08-30 11:00 ZNB 26/ 2018- 2019
Appointment of a service provider for the supply of Office Furniture at the Independent Communications Authority Head Office (Centurion) for a period 80/20 PPPFA 2000, Preferential Procurement Regulation: 2017. 2018-08-27 11:00 ICASA 23/ 2018
Appointment of a professional service provider for the provision of the Internet Service Provider (ISP) for the duration of 36 months for Water Research Commission. 2018-09-07 11:00 WRC- 005- 18/ 19
Fully Equiped Emergency Trolley with Rescuscitation Board, Drawers, Side Racks, Drip Stand and Defibrillator Stand (Paeds and Adults) x 02 2018-08-24 11:00 ZNQ 111 2018/ 19
The Procurement of a Level Two Field Hospital as per African Union (AU) and United Nations (UN) Standards for the South African Military Health Services. 2018-09-17 11:00 CPSC- B- M- 086- 2017RR
R/M32/2018: 4(four) x roller: vibr. pedestrian: 900kg (3E) 2018-09-18 11:00 S081/ 18
R/M43/2018: 14 (fourteen) x breaker: paving engine: standard 2018-09-18 11:00 S082/ 18
Appointment of two National Accounts Consultants to assist Statistics South Africa (Stats SA) with the rebasing and benchmarking of Gross Domestic Product (GDP) and the updating of the Supply and Use Tables (SUT’S). 2018-08-31 11:00 Stats SA 001/ 18
Provision of Travel Management Services in SIU for a period of 36 months. 2018-09-11 11:00 RFP: 030/ 08/ 2018
R/M36/2018: 8 (eight) x trailer: water: <1000l 2018-09-18 11:00 S080/ 18
Appointment a professional service provider to develop a concept document to assist PSiRA to establish a private security industry guarantee fund and perform an actuarial service to establish viability of the fund for The Private Security Industry Regulatory Authority (PSiRA) for a period of 8 months 2018-09-18 11:00 RFB/ 2018/ PSiRA/ 05

Pages

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

Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.