Being an author on a blog certainly stretches you. Our Company started a blog this year to reach out to people and try address some of the questions we encounter in an informal manner. It is harder than it looks. We have some staff who are amazing authors and in doing so make it look so easy. It isn’t you know. But it does give you the opportunity to expand your skills somewhat.
That being said, one of the questions I encounter is “What do I need to Complete a Tender?” There doesn’t seem to be a one-stop shop for all the tender documentation needed (if there is and I haven’t located it, please share, I would love to know). So we have attempted to locate some tips of the trade from some websites and list some of the documentation needed. Also find the link to our blog below the article where we have a list of all the electronic documents we could find. So here goes….
Step-by-step guide to tendering for government
Get registered with relevant departments on their database.
Goods and services:
For tenders under R30 000 the relevant government department will usually approach three registered providers for a quote
Tenders of more than R30 000 must generally be advertised to all subscribers
Tenders over R20 0000 must be advertised and formally adjudicated
Building and engineering:
Tenders over R2-million have to be adjudicated and formally advertised
Tenders below R2-million are seen as minor and under R100 000 as micro
How do I know my business is ready to tender?
If it’s a registered business
If it has a good banking record and relationship with suppliers and clients
If it is able to deliver on all specifications
If there is no possible conflict of interest with the government body or anyone adjudicating on the tender application, in the form of directorships or shareholding or family relationships
If the business has the required cash flow
If there are qualified staff
If employees are registered with the Department of Labour
A sole trader or partnership can tender – however, the business must be licensed or registered with the relevant local authority, must have a bank account and must have up-to-date tax clearance
Keys to success:
Complete tender documentation in full
Ensure the business is properly registered and licensed, and that taxes have been paid
Preference points will be given to previously disadvantaged individuals (PDI) or women. Generally, for tenders over R50 000, 80% will be adjudicated on price and 20% on PDI or gender status. For tenders over R500 000, the 90% to 10% price system applies
Price plays an important role and the most expensive tenders are likely to be excluded first. Keep in mind that some costs can change, such as labour, material and equipment and this needs to be factored in
Tender documents must contain:
A VAT registration number
- Any proof of product guarantee – like SABS or ISO marks of quality
- Permits for goods not made in South Africa and prices for goods must be supplied
- A number of forms need to be completed for national and provincial government tenders. These include:
- Invitation to bid, in which the company agrees to be bound by terms and conditions of tender (eg Form ST 36)
- Official cover page of the tender document; (eg Form ST 8)
- Tax clearance certificate (eg Form ST 5)
- One form requires: closing date, tender number, price, delivery period (eg Form ST 7)
- Preference point certificate to highlight if there are previously disadvantaged candidates (eg Form ST 11)
- A declaration of interest – businesses are required to declare relationships with members of the tender board or government. A list of these forms can be found on: (eg Form ST 12)
Have you been accepted or rejected?
The Tender Board will notify companies as to whether they have been accepted. It’s important to note that sometimes this can take some time and may not leave unsuccessful companies time to appeal, so experts approached by Corruption Watch advise keeping in contact with the government department and checking on the status of the tender process.
The departments or parastatals are not required to list on their websites who has been appointed, which many feel is a weakness, particularly for small businesses.
Companies can also object to the department or government entity if they feel the period for application is not sufficient, or they may request a copy of the decision by the tender board.
For a further blog article with links to the various documents, click here.
Some helpful websites: