Issue Date: 
Friday, July 27, 2018

How can a start-up business win a tender?

In the tender process, it is essential that an enterprise be knowledgeable of the supply it wants to bid for. In fact, the more knowledge the enterprise has of its supply, the better its odds are of being awarded a tender.

The question is ‘where or how do start-up enterprises gain experience?’ or, ‘can a start-up enterprise win a tender?’ The simple answer is yes, start-up enterprises can win tenders.

Organs of State have identified certain industry sectors such as cleaning, grass cutting, security and a few others where they will try and award tenders to start-up enterprises. Furthermore, the new Preferential Procurement Regulations 2017, have got three specific Regulations that Organs of State can apply, to the advantage of designated groups, through sub-contracting 30% of a tender to Small, Medium and Micro Enterprises (SMME’s).

An alternative to overcome the lack of experience would be to go into a Joint Venture. Collaborate with an enterprise that has the necessary expertise and that complies with the Functionality of a specific tender. Finding enterprises to go into a joint venture with can be difficult but if a start-up enterprise can bring unique skills or Black Ownership to a joint venture, it will be easier to find a joint venture partner.

It is practical to start a business in something that you have experience in, so we advise start-up entrepreneurs to use their experience, gained through studying or working in a specific sector, in their tender responses. Use personnel references and ask the supplier/s that you dealt with in your previous job/s to be your references.

The Preferential Procurement Policy Framework Act dictates that Organs of State enforce certain minimum requirements when awarding tenders, in order to verify that an enterprise is legally operating and is tax compliant.

The minimum requirements any enterprise must met in order to respond to tenders are:

  • Being tax compliant;
  • Be registered on the Central Supplier Database;
  • Have an B-BBEE certificate or an EME Affidavit (in the case of a startup);
  • A Fixed address;
  • Bank account;

If you want to learn more about the tender process and how to complete a tender correctly and hopefully successfully, we advise that you attend one of our tender courses. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender which specializes in tender consulting and tender training. (04/05/2018)

Title Closing Date Tender No.
Colostomy Bags for infant x 20 Boxes 2018-10-26 11:00 ZNQ 426/ 2018
Colostomy Bags for new born x10 boxes 2018-10-26 11:00 ZNQ 373/ 2018
Safety Intravenous cannula with introducer needle and needle lock device 18G , 1.3 x 45mm , 100ml/Min ( 50/Box ) 2018-10-26 11:00 ZNQ 80- 2018/ 19
Supply, Install & Commission Three New Domestic Calorifiers as per specification. 2018-10-30 11:00 ZNQ NO.3072/ 09/ 18
Ent Ear Duckball Elevator Curved 2.2mm Blade, 14cm Length 2018-10-30 11:00 ZNQ NO.2474/ 08/ 18
Quik Fil Filling Adaper. 2018-10-30 11:00 ZNQ NO.2404/ 08/ 18
Mepitel Mesh Dressing With Safety Technology 20 X 31cm. 2018-10-30 11:00 ZNQ NO.1848/ 07/ 18
Glucometer Sticks For The Gluco Sure Autocode 2018-10-30 11:00 ZNQ NO.1805/ 07/ 18
Argyle Thoracic Catheter Drain 40fr 2018-10-30 11:00 ZNQ NO.734/ 05/ 18
Rendering, Manufacturing, Repairing, Fitting and Supplying of Aids for Orthotic and Prosthetic Services to Institutions in the Eden and Central Karoo District Under Western Cape Government the Department of Health for a three year Period 2018-11-16 11:00 WCGHCC031/ 1/ 2018
Ethibond Suture Gauge 5. 2018-10-30 11:00 PSH 373/ 1819
Fluid Administrative Giving Set - High Capacity 2018-10-30 11:00 PSH 856/ 1819
Intravenous Catheter (Cannula & Needle) 2018-10-30 11:00 PSH 672/ 1819
Feeds-Tpn Contracts For 3 Years 2018-10-30 11:00 PSH 962/ 1819
Surgiflo Haemostatic Matrix Plus Flexitip Size: 12ml Syringe 2018-10-30 11:00 PSH 829/ 1819
Intravenous Catheter (Cannula & Needle) 2018-10-30 11:00 PSH 957/ 1819
Surgical Stockings Small 2018-10-30 11:00 PSH 259/ 1819
Intravenous Catheter (Cannula & Needle). Size : 16g. 2018-10-30 11:00 PSH 671/ 1819
Butterfly Needle 18g -Neonate/Paeds. 2018-10-30 11:00 PSH 709/ 1819
Percutaneous Tracheostomy Kits Cuffed. 2018-10-30 11:00 PSH 625/ 1819

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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