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 panel of debt collectors for PSiRA for a period of 3 years. 2018-09-19 11:00 RFB/ 2018/ PSiRA/ 06
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-14 11:00 ZNT373T/ C235/ 1100/ S/ 3
Appointment of a technical assistant to undertake an economist/education planner role on The Eastern Cape Department of Education (ECDoE) Schools Rationalisation Project. 2018-09-07 11:00 GTAC 022- 2018
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-14 11:00 ZNT373T/ C235/ 1100/ S/
Purchase of a Lowbed Trailer 2018-09-07 11:00 ZNB0003/ 18
The appointment of service provider for rendering of general cleaning services for surveyor-general: Cape Town for a period of thirty six (36) months for number 90 Plein Street, Part 8th floor, 9th & 10th floors. 2018-09-07 11:00 SSC WC 09 (2018 / 2019) DRDLR
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-19 11:00 ZNT373T/ C237/ 1200/ S/ 9
Appointment of a suitable service provider for the management of SAP hosting service for a period of two (02) years. 2018-09-17 11:00 NHBRC 03/ 2018
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-19 11:00 ZNT373T/ C237/ 1200/ S/ 5
Request for proposals for the appointment of a suitable service provider on a panel to conduct consulting service in the built environment for a period of three (03) years 2018-09-19 11:00 NHBRC 01/ 2018
The Province of KwaZulu Natal, Department of Transport, invites tenders from Vukuzakhe Contractors. Tenderer must be registered as grade 3 CE only with the CIDB in the Civil Engineering class of construction works 2018-09-19 11:00 ZNT373T/ C237/ 1200/ S/ 10
Appointment of a service provider for technical and functional support for the implemented SAP solution for a period of three (03) Years. 2018-09-17 11:00 NHBRC 02/ 2018
Appointment of Service provider to Develop and Implement an Enterprise Resource Planning System for the MQA. 2018-09-19 11:00 MQA/ 05/ 18- 19
Minor Structure Repairs on P272 2018-09-17 11:00 C252/ 1718/ MS/ 592
Upgrade of Main Road P16-3 from KM28+200 to KM33+800 - CIDB Grading 8CE 2018-09-13 11:00 ZNT3656/ 15
Appointment of service providers for the supply and delivery of branded promotional material/items to INSETA. 2018-09-11 11:00 Proj/ 2018/ 07
Pretoria: Bryntirion, Construction of Roads, Stormwater, Water Reticulation and Sewer on Western side and Central area of the Bryntirion Estate 2018-09-18 11:00 PT18/ 025
Servicing of heat pumps 2018-08-24 11:00 ZNQ58/ 18/ 19
Appointment of a service provider to provide job profiling, grading and remuneration survey/bench marking services. 2018-08-27 11:00 RFQ/ 2018/ 63
Servicing of sewer pump 2018-08-24 11:00 ZNQ68/ 18/ 19

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