Issue Date: 
Wednesday, February 14, 2018

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places.
  • In the event of equal points being scored, the bid will be awarded to the bidder scoring the highest number of points for specified goals.

What this means is that after the closing date, an elementary check is done of all the tenders submitted to see if they comply with the formal requirements of the tender. If, for example, you have not indicated a price, your tender will be disqualified.

Small mistakes or omissions may be deemed insufficient to disqualify you from the tender process; this is a question of interpretation of the tender rules. For example, if the rules say "may disqualify" rather than "must disqualify" for a specific mistake, it is up to the official involved to decide whether the mistake is important enough to the particular tender to warrant your disqualification.

Thereafter the compliance of your product or service is compared with the specifications and price as per the terms of reference. Those submissions that do not comply with the specifications are removed from the list, while all the tenders which comply with the specifications are listed in order of price. Those that fall in the lowest price group are placed in a "lowest price tender" list.

At this stage the preference points come into play. All the preference points claimed by those on the list of lowest priced tenders are first verified. Then the formula is applied to determine who of those on the lowest price list, and whose points are verifiable, come out with the best result on points, and therefore who should be awarded the tender.

Preference points therefore only come into play after the most expensive tenders have been excluded. This is to ensure that the most expensive options do not win solely on points, and also to speed up the process, as only those on the lowest price list have their preference points verified.

The relevant tender bulletin announces tender winners, listing the price and other factors taken into account in awarding the tender.

 
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

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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

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