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 panel of service provider(s) for rendering security escorting and emergency guarding services in Western Cape for a period of two (2) years as and when required by Broadband Infraco 2019-05-17 12:00 INF/TEN/0240
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in Northern Cape for a period of two (2) years as and when required by Broadband Infraco. 2019-05-17 12:00 INF/TEN/0241
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in Mpumalanga for a period of two (2) years as and when required by Broadband Infraco. 2019-05-17 12:00 INF/TEN/0242
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in Limpopo for a period of two (2) years as and when required by Broadband Infraco. 2019-05-17 12:00 INF/TEN/0243
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in KwaZulu Natal (KZN) for a period of two (2) years as and when required by Broadband Infraco. 2019-05-17 12:00 INF/TEN/0245
Supply and Delivery of Conference and Printing Equipment, Accessories/Spare Parts and Consumables 2019-05-17 15:00 AUC/DCMP/G/001
Consultancy service to develop an accountability framework for the CARMMA campaign 2019-05-03 15:00 AUC/DSA/C/012
Appointment of a service provider for the provision of media monitoring services for the WRC for a period of three (3) years 2019-05-03 11:00 WRC-003-2019/20
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in Gauteng for a period of two (2) years as and when required by Broadband Infraco. 2019-05-17 12:00 INF/TEN/0246
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in free state for a period of two (2) years as and when required by Broadband Infraco 2019-05-17 12:00 INF/TEN/0247
Appointment of a panel of service provider(s) for rendering security escorting and emergency guarding services in eastern cape for a period of two (2) years as and when required by Broadband Infraco. 2019-05-17 12:00 INF/TEN/0248
Maintenance of CCTV and access control systems and adhoc repairs and installations 2019-05-07 11:00 RFP-GSM058/18
Appointment of a service provider to supply and install CCTV Cameras in the Office Building of Dr Kenneth Kaunda District Municipality 2019-05-10 12:00 KKDM 02/18
Invitation to bid for the collection, dispatch, conducting customs clearance and delivering of diplomatic freight “AF” bags to and from DIRCO head office and South African missions abroad including Department of International Relation and Cooperation (DIRCO) parliamentary office and the protocol offices in Cape Town, Durban and Johannesburg for a period of two (2) years. 2019-05-08 11:00 DIRCO 01/2019/20
Purchase of uniform for protection unit 2019-04-26 12:00 MBIZ LM 02/04/19/01 UPS
Personal insurance - Mechem Contractors 2019-05-20 11:00 DLS150683
Request for proposals-compilation of GRAP compliant annual financial statements for the period of 36 months 2019-04-30 12:00 DLM/SCM/49/2018/19
Debt Recovery 2019-04-26 12:00 FIN2019-FM-018
Appointment of a service provider to render financial accounting services to The Market Theatre for a period up to three months 2019-05-06 12:00 MTF 01.06.2019
Provision of Travel Agency Services 2019-04-26 12:00 IYM05/04/2019T

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The 8 steps in the Tender Adjudication process

By W van Rooyen

www.howtotender.co.za

31 January 2019

It is important to understand the Adjudication process when one responds to a Tender or Request for Proposal. If you have these 8 steps under control when responding to tenders, changes are good that you will proceed to the next round.

Here are 8 steps in the adjudication process that Organs of State will most often follow in determining which bidder will win the tender:

  1. Opening... Read More
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