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 Deeds Office: Maintenance of Fire Protection System 2018-09-11 11:00 BL18/ 039
Ndpw: Security Guarding Services at the Regional Office for 7,9, 10th Floor and D Parking 2018-09-07 11:00 NST18/ 028
Servicing of stand-by generator 2018-08-24 11:00 ZNQ59/ 18/ 19
Appointment of a service provider to provide Information Communication Technology (ICT). 2018-09-17 11:00 FB SETA (17- 18) T0002
Servicing of autoclave machine 2018-08-24 11:00 ZNQ60/ 18/ 19
Witbank Prison Wastewater Treatment Works: 12 Months Operation and Scheduled Maintenance. 2018-09-07 11:00 NST18/ 027
The Financial Intelligence Centre request for proposals from service providers for IT Solution Architecture and Consulting Services for a maximum of thirty six (36) months. 2018-09-07 11:00 FIC/ RFB/ CARA/ 0011/ 2018/ 19
Terms of Reference for the appointment of a service provider for the ETDP SETA’s Business process analysis services. 2018-09-11 11:00 SCMU: 10 - 2018/ 19
Servicing of boiler room 2018-08-24 11:00 ZNQ57/ 18/ 19
Terms of Reference for the appointment of a service provider for a video conferencing solution for the ETDP SETA 2018-09-11 11:00 SCMU: 11 - 2018/ 19
Zonstraal Military Base Oxidation Ponds: 12 Months Operation and Scheduled Maintenance 2018-09-07 11:00 NST18/ 026
N.G Dlukulu clinic, Grahamstown, Makana Local Municipality, Sarah Baartman District: Renovations and Extensions. 2018-09-17 11:00 SCMU3- 18/ 19- 0264- HO
Appointment of experienced and reputable service provider to partner with Tshabo community on snail farming for a period of 24 (twenty-four) months. 2018-09-17 11:00 SCMU 04 - 2018/19:
Middle Terrace and Virginia Shumane Clinics Grahamstown, Makana Local Municipality, Sarah Baartman District: Renovations and Extensions 2018-09-17 11:00 SCMU3- 18/ 19- 0265- HO
Appointment of a Service Provider to Develop and Administer a Consumer Credit Readiness Initiative 2018-09-14 11:00 HS 04/ 2018/ 2019
Dube TradePort invites proposals from suitably qualified, experienced and accredited water testing laboratories to provide water testing services for a period of three (3) years. 2018-09-14 11:00 DTP/ RFP/ 11/ AGZ/ 06/ 2018
False Bay TVET College invites bids for Westlake Site Centre of Specialisation - New Fitting & Turning Training Centre: Repairs & Renovations to Existing Infrastructure 2018-09-07 11:00 FBC T10/ 2018
National Institute for the Humanities and Social Sciences (NIHSS) Invites Suitably Qualified Service Providers to Provide The Insitute with the Office Accomodation 2018-09-24 12:00 NIHSS/ OFFICE- 01/ 2018
Dube TradePort invites proposals from suitably qualified, experienced and independent professional service provider to support the fibre network for a period of three (3) years. 2018-09-14 11:00 DTP/ RFP/ 12/ ICT/ 06/ 2018
DTPC invites proposals from suitably qualified, experienced and independent professional service providers to provide technical services in the acquisition of projects in the Mechanical Engineering and maintenance field for its Bid Specification Committee (BSC) and Bid Evaluation Committee (BEC). 2018-09-14 11:00 DTP/ RFP/ 15/ CEO/ 07/ 2018

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