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.
Request for Proposal for Airport Economic, Social and Environmental Impact Study for five (5) years 2019-02-15 11:00 COR5649/2018/R
Tenders are invited from an international rating agency who is a registered CRA to perform Annual Credit Rating 2018-12-21 11:00 CSQ12181512
Ballcock 25 Mm Rough Brass 1090 Fi Sabs, Jaswic Approved. 2018-12-21 11:00 SQ12181329
Ballcock 20mm Rough Brass Cobra 1090 Fi Sabs . Jaswic Approved. 2018-12-21 11:00 SQ12181329
Ballcock 15 Mm Rough Brass 1090 Cobra S.A.B.S. (Jaswic Approved) 2018-12-21 11:00 SQ12181329
Supply & Delivery of Poles Steel Heavy Duty Galvanised Type H Straight No Bow Single Spigot 2018-12-21 11:00 SQ12181330
Tenders are invited to provide Stack Emissions Testing Training 2018-12-19 11:00 CSQ12181509
Tenders are invited to provide Electromagnetic Radiation Training 2018-12-19 11:00 CSQ12181509
Rental Of Photocopier Machines for a period of 36 months 2019-01-11 12:00 104/2018
Invitation for the provision of security services at Ngaka Modiri Molema District for the department of social development 2019-01-29 11:00 NW/DSD/04/2018
Dragon Naturally Speaking Professional v.15 Software 2018-12-19 11:00 RFQ 1660216
Invitation for the provision of security services at head office for the department of social development 2019-01-29 14:00 NW/DSD/08/2018
Videography and Photography Services for Cross Over 2018-12-20 12:00 Q07.12.18
Supply and Delivery of Traffic Uniforms for Traffic and Law Enforcement Officers 2019-01-15 12:00 08/2/16/41
Supply and Delivery of Traffic Signal Materials (Until June 2020) 2018-12-20 10:00 CES 34/2018
Supply and Delivery of Road Traffic Signs (Until 30 June 2020) 2018-12-20 10:00 CES 33/2018
Invitation for the provision of security services at Dr. Kenneth Kaunda District for the Department of Social Development 2019-01-30 11:00 NW/DSD/06/2018
Invitation for the provision of security services at Dr Ruth Segomotsi Mompati District for the Department of Social Development 2019-01-31 11:00 NW/DSD/05/2018
Supply & delivery of toolboxes. 2018-12-20 10:00 DIE0015186
Supply & delivery of fluke clamp 375. 2018-12-20 10:00 DIE0015182

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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
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