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 Service Providers for Emergency Accomodation as and when needed until 30 June 2019. 2018-07-25 11:00 6/19
GIZ SAGEN wishes to appoint a consultant to develop an automated Statistical Measurement and Verification Tool (MVT), to 'electronify' the South African National Accreditation System (SANAS) Technical Guide (TG) 50-02 document and with specific reference to the South African National Standard for Measurement and Verification, i.e. SANS 50010:2018, (Edition 2). 2018-07-20 12:00 #83294869
Supply Front hub seal 2018-07-19 14:00 WE11900212
Supply Alternator belt 2018-07-19 14:00 WE11900211
Supply 3 each x beta bait stations boxes 2018-07-19 14:00 GC11900021
Supply Durable sentinel mat with city logo 2018-07-23 12:00 GL11900027
Tenders are invited for the Hiring of 1.8 Ton Diesel Forklift Truck for a period of one month. 2018-07-24 11:00 CSQ07181343
Tenders are invited for the Hiring of 1.8 Ton Diesel Forklift Truck for a period of one month. 2018-07-24 11:00 CSQ07181343
Bookbinding of agendas. 2018-07-19 12:00 SD119O0035
Supply A5 leather folders 2018-07-23 12:00 GL11900032
Provision of Internet Services 2018-08-17 15:00 ADB/RFP/RDGS/2018/0090
Appointment of an Experienced Service Provider to Conduct Locality Analysis for the Tshwane Clothing and Textile Hub Project 2018-07-31 11:00 TEDA/PPM 01/07/18
Shuttle service (hire of 14 seater) 2018-07-24 09:00 WJ11900030
Supply and delivery of voice recorder. 2018-07-20 11:00 GK11900023
Request for proposals from service providers to deliver international executives development programme (NQF level 8) aimed at senior managers and executives in the transport sector (all transport sub-sectors) 2018-08-03 11:00 TETA18/CS/0003/IEDP
Appointment of a service provider to lease commercial office accommodation to SASSETA for a period until 31st March 2020 with an option to re-new 2018-08-13 11:00 RFP/SASSETA/1718006/01
Supply Clear carpet protectors Subcouncil 18, Lotus River. 2018-07-20 12:00 GL11900031
Supply unit packaging carbon asphalt 2018-07-20 14:00 GE11900144
Supply Clean filling sand 2018-07-25 14:00 GE11900143
Macro-Economic Impact Assessment of the Contribution of the EPWP on the South African Economy. 2018-08-06 12:00 IDTDPW29NATN

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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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