Issue Date: 
Monday, August 10, 2015

Important Evaluations Before Responding to a Tender

Although bidding for a tender can be attractive, not all tenders will suit your criteria, experience and expertise. It is not wise to quickly jump into responding to any tender that you come across. An objective decision must be made as to whether or not to bid for a tender.

The decision to bid or not is a decision that should be carefully considered. It should balance the opportunity against a realistic evaluation of the likelihood of success. The approach should be systematic and could be beneficial by using a scoring matrix. To assist you, we have drafted a list with a few objective questions. Answering these questions will help you evaluate your chances of winning the tender and the worthiness of bidding.

Do you meet the mandatory requirements?

The mandatory requirements usually include financial stability, qualifications or accreditations. Buyers generally ask for audited accounts of the past three years. Has your business seen year-on-year growth and if not is there a valid explanation as to why not?

Can you show the relevant experience?

Have you done this type of work before or will you need a partnership to do it effectively? Having relevant references will certainly work in your favour. If you don`t have references, you will need to demonstrate that you have transferable skills from customers with similar needs.

Who are you competing against?

Who is currently servicing the contract and who else is bidding? When you can answer these questions, you can compare your strengths, weaknesses and experience with your competitors and consider your opportunities.

Is the contract the right size for your business?

Will you be able to manage the contract or will it clash with any existing or upcoming work? Remember, all clients are valuable. It is risky to bid if a tender value is more than 25% of your turnover. Buyers will certainly check if the tender contract value is not too much for the company to handle. Do not overstretch the business to the point where service or quality issues will arise as you were too eager to bid.

What is the profit potential of the tender?

Winning a contract can put a strain on a business`s financial resources. It is important to fully understand and assess the risk of the working capital requirements of the contract. It is also important to determine whether your business can support any peaks that may occur.

Do we have sufficient resources to professionally respond within the deadline?

Writing a tender response is time consuming. It is important to have a consistent procedure in place to ensure that time and money is not wasted on contract opportunities which are of no economic or strategic benefit. If you were directly invited by the buyer to bid, but you decide not to, then inform the buyer immediately of your intentions. Explain carefully the reasons for your decision, without prejudicing your chances of being invited to bid for other work in the future.

Consider the questions above. If you can answer them confidently, you certainly can go ahead and bid. If not; wait for the bid that fits your skills, expertise and experience. Patience is virtue and it pays off!

Title Closing Date Tender No.
Data Centre Maintenance and Repairs of Air Conditioning System 2017-12-07 11:00 RFP 129
Appointment of a service provider for assessment and valuation of the Legacy Rehabilitation liability cost 2017-12-08 11:00 ALEX RFP 4/2017/2018
Design, Provision and Management of a Wide Area Network for the Eden District Municipality 2017-12-08 11:00 E/04/17-18
Repair to Infrastructure in Tergniet – Stairs at Tidal Pool Kus Road 2017-12-08 12:00 49-17/18
Supply and delivery of tyres (one year contract). 2017-12-08 12:00 SCM/INFR13/2017/2018
Supply and Delivery of a Grader 2017-12-08 12:00 SCM/INFR12/2017/2018
Compilation of the 2017/2018 GRAP Compliant Financial Statements 2017-11-23 13:45 SCM/FS06/201/2018
Port Engineering - Smart Peoples Port Study 2017-12-12 12:00 PEH 135/VB
Port Engineering - Dredging of Small Craft Areas 2017-12-12 12:00 PEH 134/VB
Appointment of a suitable service provider for the training of 25 beneficiaries in basic bookeeping for a period of 12 months 2017-11-29 11:00 7Z - 35406
The construction of 50 sow piggery for Intandela multipurpose and project cooperative at Goodhome under Ntabamhlophe area in ward 14 of Inkosi Langalibalele Local Municipality under Uthukela District Municipality in the Kwazulu-Natal province 2017-12-14 11:00 SS-KZN 7/1/6/3 (642) 000R
Implementation of GRAP 12;16 and 17 assets register for a period of a period of three years 2018-01-02 12:00 SCM/FS05/2017/2018
Construction of Sewer Lines Tarka Mossel Bay 2018-01-12 12:00 45-17/18
Construction of the extension of Taung library 2018-01-02 12:00 SCM/SS06/2017/2018
Supply and delivery of Safety Clothing for the Langeberg Municipality, for the Period of 3 Consecutive Years 2017-12-08 12:00 T 32/2017
The Supply and delivery of 7 x Sealing End 132kv 400SQ CU of D2872 2018-01-23 13:00 DX 756
Supply, delivery and installation of Sewer Pumps Mandela Square Montagu 2017-12-01 12:00 TE 87/2017
Supply: Guard rail 2017-11-27 14:00 GE11800781
Supply Water distribution material 2017-11-30 16:00 GE11800782
Supply Bricks 2017-11-27 14:00 GE11800783

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Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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