Issue Date: 
Thursday, October 31, 2019

The 5 Pillars of Procurement and Supply Chain Management

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

The South African Government introduced the Five Pillars of Procurement.  These five pillars were introduced to stimulated and grow Small, Medium and Micro Enterprises.  Every State Department’s Procurement Policy should include these five pillars.  All Bid Evaluation Committees are to follow and apply these five pillars.

The Five Pillars are:

  1. Value for Money
    In short this means that it is not necessarily the tender with the lowest price that is going to win the bid.  If the lowest price means an inferior product then the Evaluation Committee will seek for a better product.  Ensure that, when you respond to a tender, your product is good value for money.
  2. Open and Effective Competition
    Government departments must take care that everybody has a reasonable chance to compete for tenders.  They must ensure that their procurement process is transparent and fully understandable.  They must make sure that there is no favouritism towards any bidder.
  3. Ethics and Fair Dealing
    Government officials must conduct themselves properly without compromising their integrity.  When conducting their tender evaluation, they must not accept bribes or gifts from potential suppliers.  In fact, they must not accept anything of sorts from anybody.
  4. Accountability and Reporting
    This is a two-way street.  You, as potential supplier, must be able to account for your actions and plans.  You must ensure that you have good reporting methods build into your bid.  Government departments must report to their superiors and must be held accountable for their procurement actions.
  5. Equity
    The purpose of the fifth pillar is to promote business with Previously Disadvantaged Individuals (PDI’s).  Small, Medium and Micro Enterprises together with PDI’s must player a bigger part in the development of the larger South African Economy.  Any good Procurement Policy will address Equity as a main feature in the procurement process.

In responding to a tender or request for proposal it is always good to keep these five pillars in mind.  Try to address these five pillars in your tender response and you might just be lucky and win a tender.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Supply and deliver 90 000 corrugated carton boxes (grade cc) and 90 000 corrugated inner pads (grade cc) 2021-02-19 11:00 B/ WCED 2899/ 20
Appointment of NPOs for the Community Work Programme (CWP) for a period of twelve (12) months. 2021-02-12 11:00 COGTA (T) 17/ 2020
Terms of reference of the technical data assistant for the African Union Governance Campus Project 2021-02-11 11:00 APRM/018/SIDA/DAGC/2021
Provision for Career Guidance Coordination Services 2021-01-29 13:00 EWSETA/RFQ/92/2020
Appointment of a Service Provider For Procurement Of An Audit Management Software 2021-01-29 11:00 SD15/ 2020
Appointment of a Service Provider To Supply, Deliver, Install And Maintain Generators To Various Ditsong Museums Of South Africa 2021-02-12 11:00 DMSA 014/ 2020
Appointment of a Panel of Arts, Cultural And Heritage Practitioners To Develop and Implement Arts, Cultural and Heritage Activities (Public Programmes) At Ditsong Museums Of South Africa for A Period Of 36 Months (Three Years 2021-02-12 11:00 DMSA 001/ 2020
Appointment of a Suitable, Qualified and Competent Service Provider (Buyer) to Manage The Design, Manufacturing and Production of Retail-Ready Merchandise For Dmsa Museum Shops 2021-02-12 11:00 DMSA 010/ 2020
Appointment of an Experienced Ict Accredited Service Provider To Make Provision For Servers, Migration of Data (To O365), Data Backups, Datacentre Controls, Email Hosting, Hosted Pabx and Email Archiving For Ditsong Museums of South Africa (DMSA) 2021-02-12 11:00 DMSA 009/ 2020
Disposable Face Masks 2021-02-19 11:00 0010444247
Rendering of A Cremation and Burial Service Of Pauper and Destitute Decedents For Western Cape Government: Department of Health For a Period Of Three (3) Years 2021-02-19 11:00 WCGHSC 0246/ 2020
Limited (Sanral) Invites Tenders For The Reseal And Overlay On National Route N4 Section 11 And 12 Between Rebecca Street (Km 10.0) And Pelindaba (Km 11.29). 2021-02-19 11:00 SANRAL N.004- 112- 2017/ 1R
Appointment of a panel of training providers for provision of training, skills development programmes for in Pretoria, Durban and Cape Town for a period of three (3) years 2021-02-19 11:00 PO 2020/ 21: 001
Supply, install and configure a Next Generation Firewall (NGFW) and a Unified Threat Management (UTM) End to End Managed Service to Statistics South Africa (Stats SA) for a period of thirty-six (36) months 2021-02-12 11:00 RFB 2348/ 2020
Appointment of a Service Provider to conduct anti - corruption survey in Local Government for 97 Municipalities. 2021-02-12 11:00 RFP: 003/ 01/ 2021
Appointment of a Service Provider for a Provision of Employee Wellness Services programme to the Special Investigating Unit (“SIU”) for a period of three years (3) with an option to renew for a further period of two (02) years 2021-02-12 11:00 RFP: 002/ 01/ 2021
Panel Of Recruitment Agency 2021-02-12 12:00 SAT 186/ 21
Appointment of a Service Provider for the Provision Of Customised All-Risk Commercial Insurance Services At South African Tourism (Sat) Head Offices In 90 Protes Road, Chislehurston, Sandton for a period of thirty-six (36) months 2021-02-15 12:00 SAT188/ 20
The South African Social Security Agency hereby invites Service Providers for the change management capability 2021-02-12 11:00 SASSA: 55- 20- CEO- HO
South African Civil Aviation Authority (SACAA) currently want to invite a firms of attorneys to submit proposals to enable them to be considered in the process of appointment of the SACAA panel of attorneys 2021-02-12 11:00 SACAA/ PA/ 0005/ 2020- 2021

Pages

When to choose a Joint Venture, Consortium or Sub-contracting

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

Many people ask us: how do you decide between using a Joint Venture, a Consortium or Sub-contractor in responding to a... Read More

Free Keyword search

Search all tender notices for FREE!

No subscription or registration required!

You can also search by the reference of the the tender.

Advanced search

Search by Issuer, Region or Sector, individually, or using any combination of the three.