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.
Provision of a manufacturing facility in zone 1A of The Elidz. 2018-08-21 12:00 EB/ASP2/03/18/Z1A
Construction of Izixhotyeni Access Road. 2018-08-21 12:00 MNQ/SCM/04/18-19
Construction of Dyam-Dyam Access Road. 2018-08-21 12:00 MNQ/SCM/05/18-19
Construction of Lower Toboshane Access Road. 2018-08-21 12:00 MNQ/SCM/06/18-19
Supply and delivery of various valves on an as and when required basis for a period of five (5) years. 2018-08-22 14:00 MAT00312
Design, Manufacture, FAT, Delivery of new 400V AC Unit Boards System and Associated Equipment to Site, Offloading, Rigging, Erection, Installation, Site Testing and Commissioning for Units 1 - 4 at Drakensberg Power Station. 2018-08-23 10:00 E/LH3681
Completion of Libode Social Development Offices – including remedial works. 2018-08-23 11:00 SCMU5-18/19-0016
Provision of professional services in consortium/joint venture or multi-disciplinary practice for SCM offices. 2018-08-23 11:00 SCM/18-100/S
Provision of professional services: Review and development of an automated fare collection system (AFC) tender including contract management for the NMBM Integrated Public Transport System. 2018-08-23 11:00 SCM/18-230/S
Installation of street light furniture and maintenance. 2018-08-23 11:00 SCM/18-207/CSCM/18-207/C
Completion of Monti Ntlozelo (Electrification). 2018-10-05 11:00 MBIZ LM 0004 ENG
Provision of banking services. 2018-09-20 12:00 MBIZ LM 06/03/18/LT/ BTO
Manufacturing and Installation of Bus Shelters and the Construction of Bus Stops and associated civil works. 2018-08-20 12:00 T/ING/024/2018
General Building Maintenance Services at various Central Grid Substations on an as and when required basis for a period of three (3) years. 2018-08-24 10:00 CORP4493
Request for proposals for the appointment of a service provider to render Cleaning Services to the Unemployment Insurance Fund. 2018-08-27 11:00 UIF2/2018
Geotechnical Drilling for Foskor’s north and south Pyroxenite Pits 2018-08-20 11:00 T144/18
Appointment of a service provider to lease commercial office accommodation to SASSETA for a period until 31st March 2020 with an option to re-new 2018-08-24 11:00 RFP/SASSETA/1718006/01
Supply of Fbo (Vebeo) Fitting Kits for Bt 1064 Project Currently Running at Transnet Locomotive Business in Durban for a period of three (3) years "as and when required" 2018-08-21 10:00 TE 18 DBN 6GM 05118
Upgrade to microsoft skype for business 2018-08-21 11:00 FSCA2018/19-T009
Road condition data (Paved and Upaved) including instrumental /Automated Road Survey Data, Traffic Data and Bridge Conditions for Vhembe District 2018-08-21 12:00 RAL/C750E/2018

Pages

7 Disadvantages of Competitive Bidding

The bidding process can be very tedious sometimes. Here are some of the disadvantages of the bidding process.

1.    Leading suppliers may not tender

In Australia, for example, government procurement guidelines only allow suppliers who actually tender to be considered for a procurement decision. If the leading supplier or suppliers do not tender, the purchaser can only consider bids from suppliers who do tender. If leading suppliers are not considered, the purchaser may end up buying inferior product or service... 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.