How the tender process works
It is imperative for all potential bidders to familiarize themselves with the tender process in South Africa. There are procedures that need to be followed by Government Entities when they issue a request for quotation or competitive bid (tender). These procedures are governed by different Acts such as the Preferential Procurement Policy Framework Act (Act no 5 of 2000) and the Public Finance Management Act (Act 1 of 1999 as amended by Act 296 of 1999) to name but two.
Functionality in Tenders Part 2 - 10 Tips
Tenders in South Africa are measured on three principles, namely Functionality, Price and Broad-Based Black Economic Empowerment (B-BBEE). An Enterprise's ability to execute a contract is measured through the Functionality Principal in the Tender Environment. If an Enterprise's tender response does not pass the Functionality test it can't be measured on Price and B-BBEE. Enterprises that respond to tenders must ensure that they will pass the Functionality test in order to advance.
Functionality in Tenders Part 1
The Preferential Procurement Policy Framework Act 2011, establishes the rules according to how Government Entities must evaluate tenders. The Preferential Procurement Regulations of 2011 takes it a step further and gives guidance on how to specifically award points according to certain criteria such as B-BBEE and Price.
Tender Briefing sessions, Site Meetings & Information Sessions
If you have ever responded to a request for quotation or a competitive bid you will have come across a 'Briefing Session, Site Meeting or Information Session'. These are meetings that are held before the quotation or a competitive bid (tender) is due.
Tender Experience - Do I need it?
A regular question asked is “I am interested in registering a CC, specifically to apply for government tenders. I don't have any experience in business let alone in tendering, so I want to find out if one can be awarded a tender if he/she does not have specific experience?”
Tenders and subcontracting
Did you know tenders and subcontracting go hand in hand. In fact, subcontracting part of a tender is so common in South Africa that there are specific rules regulating subcontracting in executing tenders especially Government tenders.
Compiling your tender response
When responding to Private as well as Private Sector tenders, experience has taught that the system and steps explained below have worked the best. These are simple and easy to replicate and worth following when compiling your tender response.
New Tax Clearance Measures
It is well known fact that if you want to respond to tenders in South Africa, either for Public or Private Sector tenders, you have to submit an original - and valid - Tax Clearance Certificate together with your tender response.
Central Supplier Database Registration - From 1 April 2016 Onwards
The transitional period for registering on the Central Supplier Database expired on 1 April 2016. During the transitional period private business owners had to ensure that they were registered on the CSD should you want to do business with a Government entity. On the other side of the coin, all accounting officers and authorities of Government had to managed their own supplier database and ensure that they were accurate and valid in order to be migrated to the Central Supplier Database.
Tender misconceptions in South Africa
There are many wonderful stories of companies that won tenders in the Public as well as the Private Sector plus some horrible ones of how things can go wrong. However, two of the most common misconceptions regarding tenders and the tender process in South Africa are:
1. All tenders are awarded fraudulently: