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:
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.
Rules and Guidelines for Government Accounting Authorities
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*, Accounting Officers and Accounting Authorities of all public entities** and municipal entities must comply with the rules and guidelines stipulated below.
5 reasons why Joint Ventures fail
Joint ventures are collaborative arrangements where two or more businesses decide to collaborate for a common purpose such as bidding for a tender.
Open and effective competition when bidding
If one looks at the General Procurement Guidelines that National Treasury issued to Government Departments, it is clear that Government wants the tender process to be fair, equitable, transparent, competitive and cost-effective exactly as Section 217 of the Constitution of South Africa requires.