Understanding the African Tender Process is not much different from the South African Tender process (see link to previous blogs referencing SA Tender Process).
In general, tendering follows the following (simplified) process:
A need for a service is identified.
Approval is obtained from the necessary entities.
Documentation (including Bid Documents, BoQ, Drawings, Specifications, etc.) is prepared and approved.
Advertising of Tenders.
Receipt and opening of tenders.
Evaluation of Bids.
Awarding of Bids
Procurement can be achieved via the following methods:
Single Source (also referred to as Direct Contracting), Requests for Quotations (RfQ’s), Two-Stage Tendering, Request for Proposals (RfP’s), Restricted Tendering, Open Tendering, Prequalified Tenders. (For an explanation of the methods, please see http://procurementclassroom.com/procurement-methods/).
Of course, each country will have its own Public Procurement Regulations, rules and laws that govern the procurement process. Furthermore, each institution may have its own policy that is applied over and above the country’s regulations. Each advertisement will identify the forms and documents that will be required for that specific bid.
Some things to bear in mind specific to understanding the African Tender Process are the following:
There might be language barriers: depending on which country is advertising the bid, it might be advertised in another language (not English). Some bids will include a copy of the bid documentation which has been translated to English, but in the cases where they do not provide translated documents, it might be necessary for a translator.
When needing to contact the specific institution, ensure that you have the right dialing code for the country you are trying to contact.
It might be easier to communicate via email and this will ensure that there is also a paper trail of any queries raised and answered, in which case, the correct email address is a necessity.
[tweetthis]Communication with the right people and always confirming the details is essential.[/tweetthis]
For some tips on tendering, please have a look at the following articles:
I joined the L2Q Team in 2006, as a L2Q Support Assistant and have been the HOD since 2010. I supervise L2Q Bills, Daily Tender Bills, Control Lists and Directory.
The PRASA (The Passenger Rail Agency of South Africa) Saga revolves around an Upgrade Project that was out outsourced by PRASA to Swifambo Rail Leasing which in turn awarded the contract to Vossloh España for R3.5 billion.
The height of the Afro 4000 Locomotives purchased for the Shosholoza Meyl long-distance passenger service in relation to the height of the overhead power lines has come into question. The Initial order height for the locomotives was 4.262m high and the current height is 4.1m. All current locomotives in use have a maximum height of 3.965m. The normal accepted safe distance between a locomotive roof and electrical cables is at least 150mm (ie. the cables should be at least 4.5 metres above the rail tracks). Although the power lines are supposed to be no lower than 4.5m there are many places in the country where, because of poor maintenance, overhead wires are much lower. In order to provide safe travel conditions for the new locomotives overhead power lines will have to be raised, the costs of which are unclear at this point.
Prasa interior
A brief Timeline:
13 October 2013 – The DA requests that the Auditor-General, Terrence Nombembe, investigate the PRASA R3.5 billion locomotives deal
February 2014 – A report from PRASA in February 2014 points out four places where overhead lines are as low as 4.22m.
January 2015 – One of the four batches of locomotives procured by PRASA from Spanish manufacturer Vossloh España arrive in Table Bay Harbour.
March 2015 – Transnet Freight Rail General Manager, Caesar Mtetwa wrote to to PRASA’s Chief Engineer, Dr Daniel Mtimkulu, stating the locomotives exceeded the permitted height limit for Transnet’s rail system.
10 May 2015 – ‘Rapport’ publishes an article regarding issues surrounding the Locomotive Tender
5 July 2015 – ‘Rapport’ publishes an article stating the Locomotives procured are “too high for the long distance routes they were intended for”.
6 July 2015 – Lucky Montana, the CEO of PRASA speaks at a media briefing regarding the “grossly misleading” article published in Rapport.
12 July 2015 – An article published in the ‘Rapport’ with documents attached highlight the following:
* PRASA sent a message to Spain on 5 November 2013 to ask whether the locomotives, which had been ordered eight months previously, could be lowered.
* PRASA wanted the locomotives heights lowered to 3 965mm.
* But Vossloh España said in a letter, which Rapport obtained, that the PRASA request was not possible, “Although it is not possible to reduce Euro 4000 locomotives’ height below 4 140mm … it is understood that with actual height and with the information we manage, the locomotives should be acceptable for operations on South African tracks,” sent in late 2013.
* 1 week later PRASA paid R468m for the first locomotives.
16 July 2015 – PRASA Board resolves that CEO of PRASA, Lucky Montana will not be required to complete his notice period (1 June to 31 November 2015) due to him not complying to the conditions of serving out his notice.
17 July 2015 – PRASA Executive Manager for Engineering, Daniel Mthimkhulu, is suspended as a result of an inquiry revealing he lacked the necessary qualifications.
17 July 2015 – The Public Protector’s office confirms it has concluded an investigation into PRASA and CEO Lucky Montana after a union requested a probe in 2012 into allegations of maladministration relating to financial mismanagement and tender irregularities and will be “ready to release it on 23 July”.
23 July 2015 – The Public Protector, Thuli Madonsela postpones the release of her report. According to City Press, staff at PRASA had approached Madonsela requesting to make representations against Ex CEO Montana now that he was not at work. “They feared they would lose their jobs, but now they feel at ease and want to make submissions,” said a government official.
23 July 2015 – PRASA Chairman, Dr Popo Molefe reports that he has received death threats which have been reported to the Police who are investigating ‘a case of conspiracy to commit murder’.
27 July 2015 – PRASA Executive Manager for Engineering, Daniel Mthimkhulu resigns. PRASA is to continue with its criminal case against Mr Mthimkulu.
Is all this controversy really over a 400mm clearance between a locomotive and the contact wires or is it something more? Is it about R3.5 Billion which has been spent on locomotives which may not be able to operate on our railways? Is it about Politics? Is it about Corruption? Is it about Tender Irregularities? Is it about a lack of leadership?
In my opinion it is the latter; a lack of leadership. Let’s consider:
In essence what is leadership? The following adjectives come to mind: Accountable, Alert, Approachable, Authentic, Aware, Communicative, Credible, Customer-focused, Decisive, Dedicated, Ethical, Knowledgeable, Moral, Motivating, Pro-active, Responsible, Transparent, Trustworthy and Vigilant.
Does this describe those in leadership roles in the PRASA Saga?
In order for any organisation to succeed and prosper, it is critical that the right leadership is in place. I think Dwight D. Eisenhower said it best, “The supreme quality for leadership is unquestionably integrity. Without it, no real success is possible, no matter whether it is on a section gang, a football field, in an army, or in an office.”
There is much excitement when a Project Status moves into Tender Stage. This means the project is going out to tender – tender for construction! Whoop whoop! Things are happening, construction is going to commence shortly. If, however, the Project goes out to tender for the professionals the Project Status will remain in Procedural stage as this is a tender for professional services to conduct feasibility studies, EIA studies etc.
But, back to the tender for construction. This could be an invited tender and this is limited to preferred contractors only who are invited by the developer to tender on the contract. These tenders are very hard to obtain information about as they are, well, invited. “Invited” also translates as code for “big secret, don’t tell anybody anything!”
Open/public Tenders are published in newspapers and the media and these are open to general contractors who may only be limited by their CIDB grading. With publishing of the Tender notices comes site inspection dates (which are generally compulsory) and site attendance registers. The Tender closing date is perhaps the second most important date after the site attendance date. The Tender notices (DTA) that are listed on the Projects include a hyperlink which links the Project and Tender. Once the Tender has closed and the bids are in, bidders lists are then requested and if successfully obtained, the bidders list is attached to the DTA and the Project as a document.
On average, it takes about 3 – 4 months for Tenders to be awarded, (but it can take longer. Much longer in Africa). Once 3 months have passed, it is time to follow up on the Tenders and see if any awards have been made and this is when the fun begins.
It involves phoning the contact(s) listed on the Tender, usually in the Procurement Department and hoping they are willing to release details of the awarded company. When phoning African countries, this could involve many calls and being transferred to several different people and then finally being told…. “No, you cannot have the award details”. So, I wait (after all, “good things come to those who wait”) and try again in another couple of weeks or months depending on the forcefulness of the ‘No’. Sometimes, I get lucky and if the Project is big enough to warrant media attention, and an article appears in a local newspaper giving details of the awarded company I am able to update the award details on our database. Alternatively, more phone calls and emails, until eventually (sometimes only once construction has commenced) a kind person will relent and give me the award information. Other times, sadly I am not so lucky……
But I digress …… back to getting the award information….
When obtaining the award information, it is important to get the spelling of the awarded company’s name correct, usually using the NATO phonetic spelling which is: Alpha for A, Bravo for B, C for Charlie etc. However, it appears that not everyone is able to recall this list when it comes to spelling and in Africa there appears to be many variations to this list, including the use of animal names – and I have had some more unusual phonetic names, including “J” …. for Giraffe and “A” for ….Umbrella!! Really!?!
T is for Tenacious, E is for Excellent, N is for Never giving up, D is for Diligent, E is for Enduring and R is for Relentless: T E N D E R
This is one of the most asked questions that I have received over the years. What is the difference between a Tender and a Project? So I thought I would break it down as best as I understand it.
A Tender is is put out for supply of services or products where various entities can bid to be awarded the contract. This is one phase in a Project life cycle and generally happens over a short period of time e.g. two to three weeks.
A Project is the full life cycle from Conceptual stage to Completion/Postponement/Cancellation.
The stages of a project could be broken up as follows:
Conceptual stage is the beginning phase of the project.
Client / Developer – Feasibility Process – Securing Funding – Request for Proposal – Procedural stage involves obtaining various approvals and authorisations. Basic Design – Geotechnical Study – Licensing – EIA Process – Property Rezoning – Professionals.
Design & Tender
This stage involves detailed design, the tender process and bill pricing. The majority of the Project Professionals have been appointed at this stage. Bidding Contractors’ details are listed under Bidders. Detailed Design – Expression of Interest – Negotiation – Tender – Anchor Tenant – Invited List.
Awarded & Underway
The main contractor and subcontractors have been awarded and construction is underway.
Complete/Postponed/Cancelled
Practical completion is nearing the end or is structurally complete. The project is on hold for various reasons.
All this information is captured on our system in an accessible manner for our subscribers so they can keep up to date and put their business’s in the right position to take advantage of the opportunities that exist.
This is a very basic explanation, I know. If you want to add to it, please feel free to provide feedback for those reading.
Social Media adventurer exploring new frontiers and learning how to survive. Tongue in cheek and mischief are the order of any good day topped with a sprinkling of laughter.
