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
Functionality in Tenders (1)
Briefing Sessions, Site Meetings & Information Sessions
If you have ever responded to a request for quotation or a competitive bid you will have encountered a Briefing Session, Site Meeting or Information Session. These are meetings that are held before the quotation or a competitive bid (tender) is due.
Must I Have Specific Experience To Tender?
Recently we received the following question via email: "I am interested in registering a CC, specifically to apply for government tenders. Now, 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
Tenders and subcontracting go hand in hand. In fact, subcontracting part of a tender is so commonly placed that in South Africa there are specific rules regulating subcontracting in executing tenders. This is especially true for South African Government tenders.
Compiling your tender response
2 Tender Misconceptions in South Africa
Acts Governing the South African Tender Environment - PPPFA
There appears to be a serious lack of knowledge regarding South African tender procedures. Here, the tender processes are ruled by various Acts, Regulation and Guidelines which are specifically designed to ensure that the tender processes are in line with the Constitution of South Africa - which dictates that the tender process should be fair, equitable, transparent, competitive and cost-effective.
Planning, Stipulation of Preference Point System to be Utilized and the Determination of Designated Sectors
It is important to know that when you respond to a tender there are certain guidelines that Government Officials need to follow in order to evaluate your tender. According to the Implementation Guide - Preferential Procurement Regulations, 2017, pertaining to the Preferential Procurement Policy Framework Act, Accounting Officers and Accounting Authorities of all public entities listed in Schedules 2, 3A, 3B, 3C and 3D to the PFMA and municipal entities must comply with the rules and guidelines stipulated below.