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.
Appointment of a Service Provider to Update the Topographic Data for The Chief Directorate: National Geospatial Information, Rhodes Avenue, Mowbray, Cape Town 2019-06-14 11:00 SSC WC 04 (2019/ 2020) DRDLR
Request for proposal for provision of security services for Coega Development Corporation SEZ 2019-06-24 12:00 CDC/ 66/ 19
Appointment of a Service Provider to Render Hygiene Services for the Department Of Rural Development and Land Reform Head Offices at 184 Jeff Masemola Street, Icd Building at 338 Thabo Sehume Street and Capitol Towers’ Building In (Church Square) Helen Joseph Street for a Period of Twenty-Four (24) Months. 2019-06-13 11:00 5/ 2/ 2/ 1- RDLR 0005(2019/ 2020)
RT252-2019: Supply and delivery of surgical instruments and equipment to the State for the period 01 August 2019 to 31 July 2022. 2019-06-25 11:00 RT252- 2019
Supply and delivery of DDT wettable powder to the National Department of Health for a period of 24 months. 2019-06-25 11:00 NDOH 04/ 2019- 2020
Terms of Reference for the Appointment of a Suitable Service Provider To Coordinate, Organise and Manage Multiple Events I.E. Conferences, Workshops And Official Meetings for the Department Of Higher Education And Training for a period of three (3) years 2019-06-25 11:00 DHET125
Supply, Delivery, Installation, Demonstration, Training of Personnel and Maintenance Plan for a Period of Three (03) Years of 2 x Fire Safety Chemical Storage Cabinets for 1 Military Hospital. 2019-06-26 11:00 CPSC- B- M- 016- 2019
Tenders are hereby invited for the provision of Security Services for a period of three(3) years 2019-06-18 11:00 WCC- SS- 2019
Appointment of a service provider for the provision of print management services for the Council for Geoscience for a period of three (3) years 2019-06-28 11:00 CGS- 2019- 009S
Provision of student computers and radio equipment. 2019-06-07 11:00 NEMISA/ 2019/ ICT/ RFB005
Appointment of a caretaker operator of scientific equipment for the Council for Geoscience at Boshof for a period of three (3) years 2019-06-27 11:00 CGS- 2019- 010S
Provision of Physical Security Services for NYDA Branches and Districts over a period of Three (3) Years 2019-06-25 11:00 NYDA2019/ 01/ FAC
Provision of Cleaning Service at Regional Office - Empangeni 2019-06-26 11:00 ZNB0012/ 18T
Request of a service provider for the cleaning of all interior and exterior glass panels that are at a height greater than 2 meters at SITA Erasmuskloof, Centurion, Numerus and Beta buildings for a period of 36 months 2019-06-07 11:00 RFA 1945- 2019
Security Service for Regional and MLB Offices, Cost Centre22 and District Office, Camperdown Depot, New Hanover Depot, Area Office Merrivale, Taylors Halt Depot and Nottingham Depot for 36 months contract. 2019-07-12 11:00 ZNB0010/ 18T
Supply and delivery of round 9x19mm calibre, ball (full metal jacket) Nato ammunition to the South African Police Service for a period of three (3) years 2019-06-24 11:00 19/ 1/ 9/ 1/ 148 TT (18)
Appointment of a Services Provider for Tthe Physical Gurdiang Services to Be Provided to the GDARD and The GDED for Tthe Period of Twelve Months 2019-06-07 11:00 GT/ GDARD/ 034/ 2019
Motheo District Municipality: 24 Months Preventative Maintenance, Servicing And Repairs to High Tension Installation 2019-06-04 11:00 BL19- 001
Supply and delivery of round 5,56 x 45mm calibre, ball (full metal jackets) Nato (R5) ammunition to the South African Police Service for a period of three (3) years 2019-06-24 11:00 19/ 1/ 9/ 1/ 147TT(18)
Maintenance, Repairs, Upgrade and Servicing of Mv Voltage Switchgears, Transformers and Mini Substations- Umgungundlovu & Harry Gwala Regions: Three Year Period. 2019-06-27 11:00 ZNB 5837/ 2019- H

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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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