Issue Date: 
Monday, August 31, 2015

Tenders explained

Each day hundreds of tenders are being advertised but we often only hear about those where things have gone wrong or where the concept has been abused. It gives ‘Tenders’ a stink it doesn’t deserve. In today’s blog, we look at what exactly a tender is.

A tender is an offer to perform work, supply goods, services or products at a fixed price. The tendering process is generally utilized for procurements or contracts involving substantial amounts of money. Generally speaking, it is government departments, offices, agencies, private sector companies and businesses that put requests out on tenders. By so doing, they basically ask the public for price offers to supply required products or services. Once the tenderer accepts a tender, it is binding to both the tenderer and the person or company who won the tender. Therefore, the person or company has to provide the goods or services in the manner agreed to and at the price offered. In turn, the tenderer must pay the agreed price on the agreed deadline.

What is tendering?

Tendering is the process of making an offer, bid or proposal. It can also be expressing interest in response to an invitation or request for tender. Organisations will seek other businesses to respond to a particular need, such as the supply of goods and services and will select an offer or tender that meets their needs and that provides the best value for money.

Where are tender requirements stated?

The requirements of a tender are stated in the Requests for Tender (RTF) or Requests for Proposal (RFP) documents. In these documents, the service or products the particular tendering organisation needs or requires are outlined. These documents also outline the criteria and provide instructions that are to be followed.

Tenders are usually widely advertised in both print and electronic publications. This is to allow as many people as possible to take note of the opportunity. It also stimulates competition and provides wide variety of choice. Interested suppliers will then prepare a tender response to the offer, including pricing, schedules as well as their eligibility for the project.

Once the tendering period has closed, the submitted tender responses are evaluated with regard to defined criteria. The process must be done fairly and honestly, free from bias or favoritism. The offer that best meets all of the requirements and provides value for money should win the contract.

While the concept of tendering may seem daunting at first, it can be easily tackled by having a plan of ‘action`. It is important to understand your business` suitability for the project and ability to manage the contract if you win the tender. By understanding these points and demonstrating that you are able to meet the criteria and offer a competitive bid, you will increase your chances of success.

How are tenders awarded?

After the closing date, all the tenders are checked for basic compliance to the tender regulations. Tenders can be disqualified during this process if they are found to be non-compliance. The compliance of the products or services offered and price is considered. All tenders which comply with the specifications are listed in order of price. Those in the lowest price tender list are in the lowest price group. Preference points given to those suppliers on the list of lowest price tenders are first verified. Preference points are only awarded after the most expensive tenders have been excluded, as this makes the process quicker and fairer. Those with verifiable information come out with the best preference points and are therefore awarded the contract.

The above formulate what tenders are and if you understand these, then you are in the best position to bid for a tender.

Title Closing Date Tender No.
Appointment of a Maximum of two (2) Service Providers for the Supply, Delivery and Off-Loading of Lime and Sludge Thickening Polyelectrolyte as and when required for a period of thirty six (36) months 2018-04-19 12:00 BS12/02/2018
Consultants for the Investigation, Design, Supervision and Monitoring of Rietkuil Reservoir and Bulk Supply Pipe Lines in Steve Tshwete Local Municipality 2018-04-18 12:00 BS04/02/2018
Repair of light vehicle and trucks. 2018-04-18 11:00 67/2017/2018
Supply and delivery of cleaning chemicals, equipment and accessories. 2018-04-18 11:00 65/2017/2018
Supply and delivery of traffic road marking paints. 2018-04-18 11:00 77/2017/2018
Panel of Maximum Three (03) Mechanical Contractors to Provide Services for Repair and Maintenance of Plant and Equipment at the Water and Wastewater Treatment Works as and when required for a period of thirty six (36) months. 2018-04-24 12:00 BS06/02/2018
Supply, repair, fitting of tyres, wheel alignment and balancing. 2018-04-18 11:00 73/2017/2018
Supply and delivery of sanitary bins, air fresheners and dispensers. 2018-04-18 11:00 74/2017/2018
Supply and delivery of stationery. 2018-04-18 11:00 76/2017/2018
Request for the Civil Engineering Professional Service Providers for the Design, Supervision and Monitoring of Construction of a Outfall Sewer Line From German Development to Eastdene 2018-04-05 12:00 BS10/03/2018
Recruitment Engagement and Registration of Disaster Management Volunteers 2017/2018. 2018-04-17 11:00 COMM-36/2017/2018
Panel of a maximum of three (3) civil contractors for supply, delivery, erection and commissioning of ventilated improved toilets within MP313 rural areas for a period of 36 months as and when required 2018-04-19 12:00 BS04/03/2018
Provision of Employee Wellness Service. 2018-04-17 11:00 COR-A29/2017/2018
Proposal to invite black empowered enterprises, especially women owned to supply building and construction material on an "as when required basis" 2018-04-19 11:00 RFP065/2018
Proposals for design and supply of tables and chairs for municipal council chambers. 2018-04-19 12:00 2018/01/24/CCF
The Supply and Delivery of Wet Rations, bread and rolls to the Department of Defence (Maluti area). 2018-07-05 11:00 SPSC- B- 080- 2017
The Supply and Delivery of Wet Rations, various Meat (fresh and frozen) to the Department of Defence (Maluti area). 2018-07-05 11:00 SPSC- B- 079- 2017
The appointment of a service provider for the supply and delivery of perfusion and cardiothoracic surgery requirements to Groote Schuur - Tygerberg- and Red Cross War Memorial Children’s Hospital for a period of three (3) years. 2018-04-20 11:00 TBH514/2017
The Supply and Delivery of Wet Rations, various Dairy Products to the Department of Defence (Maluti area). 2018-07-05 11:00 SPSC- B- 083- 2017
Appointment of a Panel of Maximum Seven (7) Consulting Engineers for the Provision Of Professional Services, Planning, Design And Implementation of Civil Engineering Projects for a period of 36 months as and when required 2018-04-24 12:00 BS06/03/2018


Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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