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.
Supply and Delivery of Stationery for SABC Offices at Auckland Park on an “as and when” Requiredd Basis, for a Period of Three (3) Years 2019-01-11 12:00 RFP/LOG/2018/19
Maintenance of Electricals and HVAC Controls Systems 2019-02-01 11:00 ORT5749/2018/RFP
Supply and Delivery of 10 X 290 2wd Sunroof 60 Kw Tractors for Zululand District Municipality 2018-12-19 12:00 ZDM 111/2018
An Enabling Agreement (EA) for Design, Supply, Delivery, Installation, Commissioning, Training, Support and Repairs of Operational Technology (OT) Voice and Regional Operational Voice Control System on an "as and when required" basis for a period of 5 (Five) years. 2019-02-07 10:00 CORP4640
Refurbish Fit and Install Lime Feeder Machine at Withoogte Purification Plant 2018-12-19 12:00 6/5/2/387
Eskom to conduct tests at the supplier's laboratory for determination of the current withstand of medium voltage overhead line hardware over period of three (3) years on an "as and when required" basis 2019-02-08 10:00 CORP 4609
Appointment of service provider to upgrade and installation of a security systems at Council for Geoscience Head Office. 2019-02-08 11:00 CGS-2018-041A
Request for proposal for pilot project for leak detection on Rand Water pipelines using satellite technology 2019-02-08 12:00 RFP00552/18
Compilation of the 2017/2018 MIG Annual Report 2018-12-20 12:00 RFQ/501
Request for proposal for development of economically viable solutions for the handling, disposal and reuse of water treatment residue at Rand Water 2019-02-08 12:00 RFP00553/18
Copper Tube 28mm Class 2, Sabs 460 2018-12-21 11:00 SQ12181326
Couplings 15 Mm X 20 Mm Reducing Male I.T.C. Cobra Or Q D-2rxs - Sans 10525/1 Approved. 2018-12-21 11:00 SQ12181326
Elbow 3/4" X 22mm X 90 Deg. Male I.T.C. D8xs (Sabs Approval Required On Coupling) 2018-12-21 11:00 SQ12181326
Developing, hosting and managing Black Umbrellas virtual incubation platform 2019-01-21 17:00 No reference supplied
Coupling 15 Mm Straight C.T.C. D-1xs (Sabs Approval Required On Coupling) -Sans 10525/1 Approved 2018-12-21 11:00 SQ12181326
Couplings Straight 20 Mm X 3/4" Male Polypropylen E For Hdpe Pipe 2018-12-21 11:00 SQ12181326
Clamps Centre Phase Pole For 22kv Single Pole Construction As Per Drawing A2/539 Available At Purchase Office, Harrower Road, P.E 2018-12-21 11:00 SQ12181326
Adaptors Flanged 100 Mm Iron Class "C" Drilled 4504 Table 16 F.B.E. Coated Blue. 2018-12-21 11:00 SQ12181327
Pipes Pvc 96 Mm Class 16 -Supplied In 6 Meter Lengths. 2018-12-21 11:00 SQ12181327
Toilet Seat Double Flap Complete With Bolts & Nuts Colour White National N I P Fs28b 2018-12-21 11:00 SQ12181327

Pages

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
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.