Issue Date: 
Wednesday, October 30, 2019

Disastrous mistakes when responding to a Bid

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

We had the privilege to be part of an Evaluation committee of a Government Entity that put out an Invitation to Bid.  The Bid was for a fairly technical service and therefor the response to the bid was sparse.  In fact, there were only ten responses to the Invitation to Bid.

Upon opening and evaluating these bid responses the importance of tender or bid response training was highlighted again.  The basic mistakes that some of the responders made are unforgivable.  Even more concerning is the fact that these fatal mistakes were made by experts in the tender environment!  These are novice mistakes and making them can lead to the immediate disqualification of your bid response.

During the evaluation of the abovementioned bid responses these three unforgivable mistakes were made by some of the responding companies:

  1. No bid price – if you do not provide a price for the product or service that you are going to supply then you will be disqualified.  Government uses the Preferential Point System to determine a winning bid and the two pillars of the Preference Point System is Price and B-BBEE – not providing a price is fatal to your bid response.
  2. Bid price is too high or too low –it might sound absurd that having the highest or the lowest bid price can disqualify you but if the average price of all the responses are R2,500,000-00 and your price is R24,000,000-00 or R70,000-00 then there is obviously something wrong with your price. When responding to a tender familiarise yourself with exactly what the Purchaser wants to procure and at what cost.
  3. Correct Compulsory documents – when responding to a bid ensure that you have attached all the Compulsory documents the Government Entity asks for.  There are reasons why they want to see your B-BBEE certificate or the Annual Financial Statements.  Ignoring the request for Compulsory documents can lead to your bid response being disqualified.

The effect of these three unforgivable mistakes made by the responders to the bid we evaluated was that five of the ten bids were disqualified.  The responders of this bid had a one out of ten chance to be successful but instead they got disqualified and had no chance at being successful.

The one common element we see when evaluating bid responses are that the people whom compile the bid responses are careless by not reading the bid document cautiously to ensure that nothing gets left out.

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.
Request for Proposals (RFP) The provision of Managed Bandwidth Connectivity Link for University of Venda for the CSIR based in Pretoria 2020-02-07 16:30 3354/07/02/2020
Appointment of duly authorised service provider for training of 118 child and youth care workers in Dr Ruth Segomotsi Mompati District 2020-02-20 12:00 NW/DSD/13/2019
Provision of security services at Apel Regional Office, Moses Mabotha Civic Hall, Strydkraal Community Hall, Municipal House In Burgersfort, Burgerfort Flea Market, Burgersfort Landfill Site and Pelangwe Community Hall (Cluster 5) 2020-02-17 12:00 FTM/T11/19/20
Supply, delivery, registration and licencing of sedans for traffic department 2020-02-07 12:00 FTM/T10/19/20
Request for two (2) 60 Seater Buses for the University of Limpopo 2020-02-19 10:00 UL/2020/01/03
Request for Ultra High Performance Liquid Chromatography - Mass Specifications for the University of Limpopo 2020-02-19 10:00 UL/2020/01/01
HOPETOWN: MAGISTRATE OFFICE: Installation and replacement of air conditioners 2020-01-31 11:00 CW02/ 20
NOUPOORT: MAGISTRATE OFFICE: Installation and replacement of air conditioners 2020-01-31 11:00 CW05/ 20
BRITSTOWN: MAGISTRATE OFFICE: Installation and replacement of air conditioners 2020-01-31 11:00 CW01/ 20
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the provision of consulting services for the reseal between St Albans I/C and Linton Grange I/C on National Route 2 Section 11 km 7.19 to km 23.26. 2020-02-14 14:00 SANRAL N.002- 110- 2019/ 1F
DE AAR: MAGISTRATE OFFICE: Installation and replacement of air conditioners Bidders should have a: CIDB Grading: 1ME OR HIGHER OR 1 MEPE OR HIGHER 2020-01-31 11:00 CW04/ 20
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the improvement on National Route N2 Sections 14 and 15 from Green River (km 60) to Buffalo River bridge (km 3.2). 2020-02-14 14:00 SANRAL N.002- 145- 2012/ 1
Department of Basic Education: Midlands Region: Estcourt: Emadolobheni Primary School: Water and sanitation: upgrades to sanitation systems contract period: nine (09) calendar months cidb grading: 4GB or higher (open tender) joint venture: 3x3GB 2020-02-18 11:00 ZNTL 03026 W
Invitation for contractors with C2DB holding 2GB to 7GB, 2CE to 7CE and 2EP to 7EP to register on the Department of Human Settlements Framework [NEC] for a period of three years. 2020-02-14 11:00 HSC 03/ 2019/ 2020
SANSA invites bidders to bid for Comprehensive Travel Management Services for SANSA for a period of three (3) years. 2020-02-18 11:00 SS/ 018/ 01/ 2020
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the Consulting Engineering Services for the Reseal between Jeffreys Bay I/C and Gamtoos River on National Route 2 Section 10 km 39.2 to km 54.0. 2020-02-14 14:00 SANRAL N.002- 100- 2019/ 2F
Appointment of a service provider to maintain, enhance and hosting of website for Robben Island Museum (RIM) for a period of thirty-six (36) months 2020-02-14 11:00 RIM ICT 03- 2019/ 2020
The South African National Roads Agency SOC Limited (SANRAL) invites tenders for the improvement on National Route N2 Sections 14 and 15 from Green River (km 60) to Buffalo River bridge (km 3.2). 2020-02-14 14:00 SANRAL N.002- 145- 2012/ 1
The Road Accident Fund (RAF) requires rental of office space for the RAF Cape Town Branch for a period of nine (9) years and eleven (11) months. 2020-02-21 11:00 RAF/ 2019/ 00028
Appointment of a service provider to conduct Environmental impact assessment and Township establishment for Gauteng Industrial Development Zone (GIDZ) Springs SEZ 2020-02-10 11:00 GIDZ/ 07/ 2019- 20/ SPRINGSSEZ

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