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.
Training of 23 EPWP participants on Occupational Certificate: Health Promotion Officer: SAQA ID 94597: NQF Level 3: QCTO Learnership Registration Number 11Q110030001633 in Gert Sibande District Municipality: Project Name: Isiphephelo HBC 2020-09-01 11:00 HP20/ 003GS
Training of 25 expanded public works programme (EPWP) participants on Further Education and Training Certificate: Child and Youth Care Work: SAQA ID: 60209: NQF level 4: HWSETA learnership registration number: 11Q110014351554 in Capricorn District Municipality: Bakone HCBC 2020-09-01 11:00 HP20/ 002GS
Training of 25 EPWP participants on Further Education and Training Certificate: Child and Youth Care Work: SAQA ID 60209: NQF Level 4: HWSETA Learnership Registration Number: 11Q110014351554 in West Rand District Municipality. 2020-09-01 11:00 HP20/ 005GS
Training of 20 expanded public works programme (EPWP) participants on National Certificate: general security practice: SAQA ID: 58577: NQF level 3: SASSETA learnership registration number: 29Q290038431243 in Garden Route District Municipality: Law Enforcement 2020-09-01 11:00 HP20/ 004GS
Provision of haemodialysis services to selected institutions in Kwazulu-Natal Department of Health: 3 year contract. 2020-09-02 11:00 ZNB 5284/ 2020- H
The objective of this Terms of Reference (TOR) is to outline the scope of work for the provision of the MPLS services for CATHSSETA. 2020-08-31 11:00 CATHS/ MPLS/ 021/ 2020
The objective of this bid is to appoint a panel of three (3) Legal and Compliance Experts to assist CATHSSETA with legal matters and ancillary related services. 2020-08-31 11:00 CATHS/ PLCE/ 024/ 2020
The NEF herewith invites potential service providers to submit proposals for the provision of Reliable and Secured Internet Connectivity. 2020-09-01 15:00 RFP: NEF 02/2020/21: (Provision of Reliable and Secured Internet Connectivity)
Procurement Of Supply, Installation, Configuration, Maintenance And Support For NGN Edge Routers, Servers And Peripherals For The National Department Of Labour For The Period Of Five (5) Years. 2020-08-28 11:00 RFB 2217/ 2020
Provide Enterprise Content Management (ECM) Implementation Services for KZN COGTA including Maintenance and Support for a period of three (3) years. 2020-08-28 11:00 RFB 2171/ 2020
Provision of Vulnerability Management Solution with support for the Department of Defence (DOD) for a period of thirty-six (36) month 2020-09-04 11:00 RFB 2200/ 2020
Provision of health and hygiene packages to ECD centres in the Northern Cape Province 2020-08-14 11:00 NC/ SOC/ 007/ 2020
Provision of personal protective equipment (PPEs) for soup kitchens and nutrition centres in NC 2. 2020-08-14 11:00 NC/ SOC/ 008/ 2020
Panel of Three (3) Suppliers for Maintenance/Services and Repairs on Fleet (Trucks, Cars and LDV`s) for Two (2) Years 2020-09-07 12:00 GTLM/INFR17/2020/2021
Supply and Delivery of 500PPM Farm Grade Diesel Fuel for Onrus caravan Park for a contract period ending 30 June 2023 2020-09-11 12:00 SC 2110/2020
Supply and Delivery of 3-Ton Truck with a Canopy 2020-08-21 12:00 GTLM/INFR22/2020/2021
Supply and Delivery of Two Double Cab LDV (4X2) 2020-08-21 12:00 GTLM/INFR23/2020/2021
Planning, Design, Construction Monitoring, Construction and Close Out (Turnkey) of Rooiwal Access Road 2020-09-07 12:00 GTLM/INFR18/2020/2021
Quotation for Wireless Project 2020-08-14 11:00 KCDM/Quote/48/2020
As and When Electrical and Refrigeration Contract for East London 2020-08-15 16:00 ECR/08/08/2020

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