10 Principles When Pricing Your Tender

We are often asked how to work out a tender price? But there is no straight answer because every tender is different. The fact is that a tender for the supply of furniture will have a different pricing structure to that of the supply of food for a government function. So to provide individual pricing techniques would be very difficult.

In general, there are ten points that must be considered when calculating price. These are:

The 3 Principles of Tenders in South Africa

By Werner van Rooyen

7 September 2015

www.how2tender.com

Tenders in South Africa are based on three principles:

  1. Functionality
  2. Price
  3. B-BBEE

Functionality

Tenders and Pricing

By Werner van Rooyen

www.how2tender.com

17 March 2014

One of the most important parts of any tender is pricing.

All tender documents will tell you that it is not necessarily the lowest bid that will win the tender and that there are also other factors that influence the final decision. This might be true but be assured that you will lose more tenders than you will win if you have the highest price. Make sure you price your tender correct.

Direct and Indirect Costs: 2 items that determine tender pricing

Article by Werner van Rooyen

www.how2tender.com

13 October 2014

Many bidders that respond to tenders struggle when it comes to calculating a price for a specific tender. One of the reasons for this is that a large number of small business owners are usually new to the tender process and therefore they lack the necessary experience to price their bids correctly.

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Title Closing Date Tender No.
Unometer intra abdominal pressure device Ref 158100110190 x 100 units 2017-08-30 11:00 134/ 08/ 17
Double oxygen flow meters x 95 (specification attached) 2017-08-30 11:00 136/ 08/ 17
Spiral Extension set for anaesthetic use, micobore +-3 m, manufactured from medical grade Plastic & kink resistant micro-bore tubing x 1000 units. 2017-08-30 11:00 132/ 08/ 17
Disposable cuscos Large x 5000 Medium x 3000 Small x 2000 2017-08-30 11:00 95/ 07/ 17
Surgical gowns disposable reinforced X -Large x 8000 units. (Periodic Contract for 04 months). 2000 units to be delivered per month. 2017-08-30 11:00 119/ 08/ 17
Gowns surgical sterile reinforced - Large x 8000 units. (Periodic Contract for 04 months). 2000 units to be delivered per month. 2017-08-30 11:00 108/ 07/ 17
Half day infusor 5ml/h portable elastometric infusion system sterile x 120 units 2017-08-30 11:00 99/ 06/ 16
Skin graft carriers 3:1 dermacarriers (box of 20) x 60 boxes 2017-08-30 11:00 07/ 04/ 17
6-0 Prolene (0.7 metric) 30” (75cm) polypropylene suture blue monofilament sterile non absorbable surgical suture -4 strands per packet x 40 units. (This item is used in arterial surgery to repair tiny structures). 2017-08-30 11:00 131/ 08/ 17
Percutaneous endoscopic gastrostomy standard P.E.G.Kit 20F (67mm) for single use - sterile with contents x 20 units (This item is used in endoscopic surgery for gastrostomies). 2017-08-30 11:00 133/ 08/ 17
Skin graft carriers 1,5 : 1 dermacarriers (box of 20) x 60 boxes 2017-08-30 11:00 06/ 04/ 17
Dressing transparent adhesive film 56cm x 84m (box of 10) x 480 boxes. (Periodic Contract for 12 months) 40 boxes to be delivered per month 2017-08-30 11:00 40/ 05/ 17
2 Boxes, Advance DSP tip curved scissors 23Ga, 2 Boxes, Advance DSP tip ILM forceps 23Ga, 2 Boxes, Advance DSP tip endgrasping forceps 23Ga, 2 Boxes, Advance DSP tip MPC vertical scissors 23GG 2017-08-28 11:00 ZNQ: 492/ 17/ 18
Each box, Hydrofiber dressing with silver size 20 x30cm (Box/5) 2017-08-28 11:00 ZNQ: 490/ 17/ 18
Each, Magnetic resonance conditional superalloy coil with with spaced synthetic fibers 0.035” compatible various sizes 2cm- 2mm, 2cm- 3mm, 3cm- 2mm, 3cm-3mm. 2017-08-28 11:00 ZNQ: 498/ 17/ 18
Each, Magnetic resonance conditional superalloy coil with with spaced synthetic fibers 0.035” compatible various sizes 1cm- 2mm, 1cm- 3mm, 5cm-5mm, 20cm- 10mm, 20cm- 20mm 2017-08-28 11:00 ZNQ: 496/ 17/ 18
Each, Magnetic resonance conditional superalloy coil with with spaced synthetic fibers 0.035” compatible various sizes 10cm- -10mm, 10cm-12mm, 10cm-15mm, 10cm- 5mm, 10cm-8mm 2017-08-28 11:00 ZNQ: 495/ 17/ 18
Each, Temporary hymodialisis double lumen catheter kit size 11.5F 19.5cm 2017-08-28 11:00 ZNQ: 484/ 17/ 18
Each, Clear suction liner, 2L, Blue/White/ LIGHT Green with shutoff valve 2017-08-28 11:00 ZNQ: 480/ 17/ 18
10 Pack, Adult cardiopulmonary by pass tubing pack 2017-08-28 11:00 ZNQ: 382/ 17/ 18

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Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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