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 proposals for the long term lease and development of Erf 1015 City and Suburban. 2018-11-30 10:30 RFP 32/2018
Request for proposals for the long term lease and development of Remainder of Erf 5100 Johannesburg. 2018-11-30 10:30 RFP 31/2018
Request for proposals for the long term lease and development of Erven 171 – 178 Marshalltown. 2018-11-30 10:30 RFP 30/2018
Request for proposals for the long term lease and development of Erven 326 and 327 Berea. 2018-11-30 10:30 RFP 29/2018
Request for proposals for the long term lease and development of Erf 527 Yeoville and Remainder and portion 1 of Erf 528 Yeoville. 2018-11-30 10:30 RFP 28/2018
Request for Request for proposals for the long term lease and development of Erf 776 Turfontein. 2018-11-30 10:30 RFP 27/201
Request for proposals for the long term lease and development of Erven 1633, 1637, 1638, 1639 and 1640 Turfontein. 2018-11-30 10:30 RFP 26/2018
Request for proposals for the long term lease and development of Erf 737 Yeoville. 2018-11-30 10:30 RFP 25/2018
Request for proposals for the long term lease and development of Erven 1864 and 1865 Johannesburg. 2018-11-30 10:30 RFP 24/2018
Request for proposals for the long term lease and development of Erf 2252 Johannesburg. 2018-11-30 10:30 RFP 23/2018
Request for proposals for the long term lease and development of Erven 1905-1907 and 4734 Johannesburg. 2018-11-30 10:30 RFP 22/2018
Queenstown SA Police Station: Repairs & renovations & newly build accommodation. 2018-10-18 11:00 PE15/ 2018
The Supply and Delivery of Dry Rations, Coffee, Tea and Cooking Oil to the Department of Defence (West Coast area). 2018-10-25 11:00 SPSC- B- 012- 2018
The Supply and Delivery of Dry Rations, Condiments, Pickles and Herbs and Spices to the Department of Defence (West Coast area). 2018-10-25 11:00 SPSC- B- 011- 2018
The Supply and Delivery of Dry Rations, Juices Dried Fruit & Veg, Canned Fruit & Veg, Canned meat etc to the Department of Defence (Cape Metropole Area). 2018-11-22 11:00 SPSC- B- 019- 2018
The Supply and Delivery of Wet Rations, various dairy products to the Department of Defence (Cape Metropole Area). 2018-11-08 11:00 SPSC- B- 018- 2018
The Supply and Delivery of Wet Rations, frozen vegetables to the Department of Defence (Cape Metropole Area). 2018-11-08 11:00 SPSC- B- 017- 2018
The Supply and Delivery of Wet Rations, fresh fruit and vegetables to the Department of Defence (Cape Metropole Area). 2018-11-08 11:00 SPSC- B- 016- 2018
The Supply and Delivery of Wet Rations, various meat (fresh and frozen) to the Department of Defence (Cape Metropole Area). 2018-11-08 11:00 SPSC- B- 014- 2018
The Supply and Delivery of Dry Rations, Baking goods, Essence, Pudding, Jelly and Sugar to the Department of Defence (West Coast area). 2018-10-25 11:00 SPSC- B- 010- 2018

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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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