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.
Supply of Red Hat Enterprise Linux Maintenance and Support for thirty six (36) months. 2018-09-06 11:00 RFB 1781/ 2018
Supply Plumbing tools (specification will be available on request) 2018-08-24 11:00 ZNQ 095 2018/ 19
The appointment of a panel to supply ICT hardware 2018-09-06 12:00 RFP013/ 2018
Supply Plumbing materials (specification will be available on request) 2018-08-24 11:00 ZNQ 096 2018/ 19
Lease of the cottage with a portion of municipal land (±1. 7138 ha) situated on a remainder of portion 13 of the Farm Long Valley No.15, Dassieshoek, Robertson 2018-09-14 12:00 48/ 2018
Request for the provision of services to department of planning, monitoring and evaluation (DPME) to support, maintain and enhance the web-enabled local government management improvement model (LGMIM) assessment tool and technical/content advisory services for a period of 12 months with the option to extend the contract for an additional 24 months. 2018-09-07 11:00 RFB 1785/ 2018
Alienation of various available erven 2018-09-14 12:00 49 /2018
Tenders are hereby invited for the Supply, Delivery, Installation and maintenance of Photocopier machines for a 5 Year Operational Lease and Maintenance Agreement. 2018-09-07 11:00 Tender 3/ 2018 (PUR 401/ 9)
Supply , Deliver and Offload Protective Clothing for Land Care. 2018-09-06 11:00 ZNB 4266/ 18A
Supply of Equipment and Software (Shipment and Delivery), Equipment Installation, Configuration, VM Migration and Project Management and 5-year Support and Maintenance. 2018-09-07 11:00 SCMU3- 18/ 19- 0121- HO
Supply, delivery , Offload and installation of Two Center Pivot for Hlubi project at Alfred Duma (Ladysmith) Uthukela District. 2018-09-06 11:00 ZNB 4270/ 18A
Phototherapy (Puva)/ Narrow Band UVB 2018-08-28 11:00 ZNQ NO.5882/ 04/ 18
Slimroll Hand Towel Sheet Size 200mm X 155m to Fit Kimberley Clark Slimroll Hand Dispensers. 2018-08-28 11:00 ZNQ NO.5565/ 03/ 18
Supply, delivery, Offload and installation of Irrigation at Block 1 Mbonwa Irrigation scheme at Umuziwabantu Local Office Ugu District. 2018-09-06 11:00 ZNB 4269/ 18A
Portable Rebound Tonometer 2018-08-28 11:00 ZNQ NO.2303/ 07/ 18
Appointment of a service provider for the Landcare alien weeds and bankrupt bush control projects. 2018-09-07 11:00 GT/ GDARD/ 114/ 2018
Heat & Moisture Exchanger for Attachment to a 15mm Connector, with Oxygen Supply Port 2018-08-28 11:00 ZNQ NO.2148/ 07/ 18
Supply Paper photocopy white bond 80GSM A4 X 3000 reams 2018-08-24 11:00 ZNQ 436/ 18
A Simple System for Accurate Intra Abdominal Pressure Monitoring In Criticallly Ill Patients. 2018-08-28 11:00 ZNQ NO.1863/ 07/ 18
Supply and delivery of frozen chicken products and frozen fish products to the Red Cross War Memorial Children’s Hospital for two years (24 month) contract period with an option to extend the contract for a further 1 year (twelve months) based on performance. 2018-09-14 11:00 RCCH04/ 2018

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In Australia, for example, government procurement guidelines only allow suppliers who actually tender to be considered for a procurement decision. If the leading supplier or suppliers do not tender, the purchaser can only consider bids from suppliers who do tender. If leading suppliers are not considered, the purchaser may end up buying inferior product or service... Read More

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