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.
The South African National Roads Agency SOC Limited (SANRAL) invites tenders from qualified Bidder/s to enter into an agreement for Database Administration and Managed Services (Oracle, Microsoft Mssql and Mongodb). 2019-07-10 14:00 NRA 58000/ 2019/ ORAMSSQL/ R
The RAF hereby invites experienced, suitably qualified service providers for Enterprise Project Portfolio Management (EPPM) Solution for a period of five (5) years. 2019-07-16 11:00 RAF/ 2019/ 00016
Appointment of a Service Provider to Provide Travel Management Services to Public Protector South Africa (Ppsa): Head Office Over a Period of Three (3) Years 2019-07-12 11:00 PPSA 001/ 2019
Provision of Technical Advisory Services to National Treasury: Intergovernmental Relations for The Cities Support Programme (Csp) to Enable Streamlined Online Reporting By Eight Metropolitan Municipalities Local Government Monitoring, Evaluation And Reporting Specialist 2019-07-05 11:00 GTAC 010- 2019
Data Centre Hosting Services for a period of 36 months 2019-07-19 11:00 SCMN001/ 2019
Appointment of a Service Provider to Conduct an Implementation Evaluation of The Sector Infrustructure Programme. 2019-07-05 11:00 SD02/ 2019
Appointment of aService Provider for Rendering of Travel Management Services to Dsd In Terms of Air Travel, Accommodation, Car Rental, Shuttle Services and Parking at The O R Tambo International Airport. 2019-07-05 11:00 SD03/ 2019
The appointment an event management company to provide event management services to National Film and Video Foundation. 2019-07-08 11:00 RFT 02 2019- 2020
Placement of automated serology / immunology analysers for Braamfontein for a period of five (5) years. 2019-07-15 11:00 RFB 022/ 19/ 20
Appointment of Panel of Experts to Assist The Department In Specialist IPTN-Related Fields for The Period of 36 Months. 2019-07-12 11:00 DOT/ 02/ 2019/ PT
Appointment of a Service Provider to Assist The Department With The Review of Legislation And Streamlining The Legislative Mandates of Road Traffic Management Corporation, The Cross Border Road Transport Agency, The South African National Roads Agency Limited, The Road Traffic Infringement Agency and The Road Accident Fund. Further More to Align all Those Legislation With The National Road Traffic Act. 2019-07-12 11:00 DOT/ 03/ 2019/ RT
Placement of automated serology / immunology analysers for Braamfontein for a period of five (5) years 2019-07-15 11:00 RFB 023/ 19/ 20
Provision of Office Accommodation: Ladysmith Local Office for a leased period of 5 years.(Leases ranging from seven to ten years will also be considered).The office space required should be a minimum of 300m² with six (6) parking bays. 2019-07-19 11:00 08/ 2019
Supply and delivery of promotional items nationally for a period of five (5) years. 2019-07-16 11:00 RFB006/ 19/ 20
Establishment of an INSETA Research Chair (RC) and Centre of Excellence (CoE) for research in Kwazulu Natal and Western Cape. 2019-07-10 11:00 Skills/ 2019/ 01
Appointment of a service provider for the supply, delivery and commissioning of one (1) gas chromatograph with flame ionization detector for the analytical services south laboratory in Stellenbosch. 2019-07-04 11:00 4.4.12.2/ 5/ 19
Thermo Scientific Nalgene Analytical test filter funnels 250 mL (0.45μm Cellulose nitrate filter membrane) (Case of 50).......x1; GE Whatman Binder free Glass microfiber filters, Grade 93-AH Circles (1.5μm particle retention size and 47mm membrane diameter) Pack of 100.........x2; GE Whatman Binder free Glass microfiber filters, Grade 93-AH Circles (0.7μm particle retention size and 47mm membrane diameter) Pack of 100.........x2; GE Whatman Binder free Glass microfiber filters, Grade 93-AH Circles (1.0μm particle retention size and 47mm membrane diameter) Pack of 100.........x2; Polyethersulfone membrane filters (0.2μm particle retention size and 47mm membrane diameter) Pack of 100........x2; Polyethersulfone membrane filters (0.45μm particle retention size and 47mm membrane diameter) Pack of 100......x2 2019-06-21 11:00 RFQ000337
Invitrogen: RNAlater Tissue Collection: RNA Stabilization Solution (250mL)...........x4; Invitrogen: Superoxide Dismutase (SOD) Colorimetric Activity Kit [Cat # EIASODC 192 tests]........x2; Invitrogen: Glutathione Colorimetric Detection Kit [Cat # EIAGSHC 384 tests]..........x1; Invitrogen: Catalase Colorimetric Activity Kit [Cat # EIACATC 192 tests]........x2 2019-06-21 11:00 RFQ000336
Appointment of service provider to deliver regulatory examinations (RE-5) workshops as well as to support candidates preparing to write examinations. 2019-07-09 11:00 ETQA/ 2019/ 01
Department of Agriculture requires supply, delivery and installation of a vacuum infiltration tissue processor 2019-07-15 11:00 BID 858 - 2019/ 2020

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10 things to remember when you tender

By Werner van Rooyen

31 January 2019

There are many things that you as a small business owner must remember when you respond to a tender and sometimes responding to a tender can be overwhelming. Experience has taught me that there are some important things to remember when responding to a Tender and there are some less important things to remember when responding to a Tender.

Here are ten of the important things to remember when responding to a Tender. Please remember that all ten of these items mention here are equal... Read More

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