Tenders and Pricing | SA-Tenders.co.za
Issue Date: 
Monday, March 17, 2014

Tenders and Pricing

By Werner van Rooyen

www.how2tender.com

17 March 2014

One of the most important parts of any tender is pricing.

All tender documents will tell you that it is not necessarily the lowest bid that will win the tender and that there are also other factors that influence the final decision. This might be true but be assured that you will lose more tenders than you will win if you have the highest price. Make sure you price your tender correct.

Dealing with the Standard Bidding Document 3 (SBD 3.1, 3.2 and 3.3), which is the pricing document, can be hair-raising. In these documents they talk about firm prices, non-firm prices, professional service providers, exchange rates and lots more confusing matters. There are three SBD 3 documents namely the:

  • SBD 3.1 for firm prices
  • SBD 3.2 for non-frim prices
  • SBD 3.3 for professional service providers.

Many people ask the question - how must we work out our tender price? There is no straight answer because every tender is different. The fact is that a tender for the supply of furniture will have a different pricing structure than a tender for the supply of food for a government function. So to provide individual pricing techniques would be very difficult.

In general there are a couple of points that must be dealt with when you calculate your price. These include:

  • Be precise; when your product that you supply is R10-26 then state it in the tender document as R10-26 and not as R10-00 or even R11-00. Small differences like these can amount to large amounts that can be lost, depending on the size of the tender.
  • Ensure that you take all your costs into consideration; double check your pricing - something small left out can come back and bite you later on.
  • Always remember to add Value Added Tax (VAT) at 14% to your price. The tender committees want to see the final price. They do not want to sit with a calculator and calculate what your price is supposed to be. Most tenders state that the price must include VAT.
  • Try and quote firm prices, even if the tender duration in more than 12 months. Tender committees are hesitant for non-firm prices.

If you apply these points above, your pricing will be less of a challenge.

Another peace of advice is to draw-up your own pricing schedule and to refer on the SBD 3 document back to your own pricing schedule. The reason being: every supply is unique and to try and fit your pricing into the SBD 3 forms is usually undoable. You will find that almost all bidders do this. Your tender would not be judged as non-responsive by using a separate pricing schedule.

If you want to learn more about the tender process and how to complete a tender correctly and hopefully successfully, please visit our website at www.how2tender.com to find out more.

Until the next time - happy tendering.

Don’t delay, get educated today!

Title Closing Date Tender No.
NW405 - J B Marks – Potchefstroom Local Office Accommodation 2018-06-08 11:00 IEC/ NW- 01/ 2018
EC443 - Mbizana Local Office Accommodation 2018-06-08 11:00 IEC/ EC- 03/ 2018
Appointment of a panel of service providers for the supply of Ethernet Layer 2 services (Wireless connectivity services) to Sentech SOC (Ltd) for a period of Three (3) years with and optional extension of two (2) years). 2018-06-19 12:00 SENT/005/2018-19
Northern Cape: Victoria West Provisioning of office Accommodation for the Department of Social Development 2018-06-18 11:00 DRPW038/ 2017
Northern Cape: Loeriesfontein Provisioning of office Accommodation for the Department of Social Development 2018-06-18 11:00 DRPW002/ 2018
Cleaning services at SABC Bloemfontein offices. 2018-06-19 12:00 RFP/LOG/2018/36
Placement or outright purchase of film coverslipper analyser for NHLS Braamfontein, Doctor Goerge Mukhari Hospital, Chris Hani Baragwanath Hospital and NIOH for a period of three years 2018-06-11 11:00 RFB031/ 18/ 19
Placement of Haemoglobinopathy Analyser for Groote Schuur Hospital. 2018-06-20 11:00 RFB 014-18-19
Northern Cape: Nieuwoudtville Provisioning of Office Accommodation for the Department of Social Development 2018-06-18 11:00 DRPW004/ 2018
Northern Cape: Frazerburg Provisioning of Office Accommodation for the Department of Social Development 2018-06-18 11:00 DRPW003/ 2018
Placement of haemoglobinopathy analyser for Groote Schuur Hospital. 2018-06-20 11:00 RFB 014/ 18/ 19
General Building Maintenance. 2018-06-20 11:00 COR-A46/2017/2018
Secunda: Dol: Acquisition of office Accommodation Measuring Approximately 192.50sqm and no Parking Bays 2018-06-20 11:00 NST18/ 019
Supply abdominal swabs size: 370 x 450mm x 4ply sterile case of 48 x 5 SABS approved as per specification 2018-05-28 11:00 ZNQ 74/ 18- 19
Amersfoort: Dol: Acquisition of office Accommodation Measuring Approximately 115.20sqm And 02 Parking Bays 2018-06-20 11:00 NST18/ 020
The appointment of a professional service provider(s) to assist with organisational strategy review, policy alignment, business process mapping, business continuity management including annual reporting methodology for the organisation. 2018-06-21 12:00 RE-ADVERT ERW201706/TNDR-009
Supply swabs gauze absorbent size: 100 x 100 x 8ply non-sterile SABS approved as per specification 2018-05-28 11:00 ZNQ 119/ 18- 19
SECUNDA: SAPS: Acquisition of office Accommodation Measuring Approximately 1455.88sqm and 14 Parking Bays 2018-06-20 11:00 NST18/ 017
Supply and deliver toxicoligy kits x 30 kits 2018-05-25 11:00 09/ 2018/ 19
Supply, Planning, Installation and Support of Point to Multipoint Microwave Equipment to Sentech SOC (Ltd) for a period of Five (5) years with the option to renew for an additional two (2) years. 2018-06-21 12:00 SENT/006/2017-18

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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... Read More
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