Do I need experience to tender?

Written by Werner van Rooyen

The Functionality Test assesses bidders on different aspects of the contract to determine if they possess the necessary capabilities to carry it out. If a tender response from an enterprise fails this test, it will be deemed non-responsive and will not qualify for evaluation on B-BBEE and Price.

Recently, we received an inquiry from a start-up company curious about whether one can be awarded a tender without prior experience. The answer is straightforward: in 99% of cases, you will not be awarded the tender, as the Procuring Entity automatically disqualifies bids lacking the required experience. Some Government Entities are committed to procuring a certain percentage of goods and services from start-ups (businesses with little or no experience). However, these opportunities are scarce, and many businesses compete for them, resulting in slim chances of securing the bid.

The Procuring Entity, whether in the Public or Private Sector, seeks to understand how many years of experience bidders have in executing similar contracts for the goods and/or services they propose. More experience is advantageous, as it demonstrates to the Organ of State that you have been providing goods and/or services for a significant period and are skilled in your field.

In your tender response, it is crucial to include the following regarding your track record and experience:

  • References:
    Provide contactable references and a proven track record of the goods and/or services offered. Including even one reference can enhance your response. The Organ of State needs assurance of your reliability, and contacting your references is an effective way to evaluate this. Be honest in your response, as the Organ of State will likely reach out to your references.
  • Success Rate:
    Share information about your success rate. While it may seem obvious, emphasizing your previous successes is beneficial. Highlight past tenders awarded to you and how successfully you completed them.
  • Nature of Goods/Services:
    Clearly define the goods and/or services your company provides. It is essential to offer exactly what the tender requests; otherwise, you risk disqualification.
  • Volume and Value:
    Detail the monthly volume and monetary value of the goods and/or services supplied to your existing clients. This information reinforces your experience. Even if you provide small volumes, supplying goods indicates experience.

If you lack experience as a start-up company, we recommend finding something you excel at and starting a small business. Begin conducting business, and once you have gained some experience, you can start responding to quotations and bids.

Consider attending our “Become a Tender Expert” two-day workshops and webinars. You can register online at www.howtotender.co.za/workshops/. If you need further information, please contact us at info@howtotender.co.za.

Advertise With Us

Business Name*
First Name*
Last Name*
Phone Number*
Email*
Ad Placement*
Preferred Start Date*
Notes
Upload Ad
Maximum file size: 4 MB

Send Us Your Tender

Tender Number*
Tender Description*
Tender Type*
Category*
Department*
Province*
Date Published*
Closing Date*
Place where goods, works or services are required*
Special Conditions
Contact Person*
Email*
Telephone number*
Is there a briefing session?*
Is it compulsory?*
Briefing Date and Time
Briefing Venue
Tender Documents*
Maximum file size: 20 MB