Issue Date: 
Wednesday, October 30, 2019

Evaluation of Functionality and Technical criteria

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

The tender processes in South Africa are governed by:

  • The Preferential Procurement Policy Framework Act;
  • Preferential Procurement Regulations, 2017;
  • National Treasury’s Supply Chain Regulations;
  • General Procurement Guidelines.

According to these Acts and Regulations, Competitive Bids – as tenders are legally called in South Africa – tenders in South Africa are measured on Functionality.

The Functionality test evaluate bidders on various aspects of the contract to establish if the bidder has the capabilities to execute the contract or not.  If an Enterprise’s tender response does not pass the Functionality test, it cannot be measured on Price and B-BBEE.   Enterprises that respond to tenders must ensure that they will pass the Functionality test to advance.

During the functionality test the bidder must score a set minimum number of points out of 100.After the Preferential Procurement Regulations 2017, and specifically paragraph three, were implemented it makes tenders much more transparent.  Previously it had been a struggle to determine how many points one can score on specific functionality criteria.

A threshold of 75 out of the 100 is usually set, but this can be higher or lower, depending on the Organ of State.  Only those bidders that reach the minimum threshold, which can be anything between 60 and 90 points out of a possible 100 points, will advance to the next phase, namely the Preference Points Scoring system (Price and B-BBEE).  All tenders achieving less than the set threshold will be declared non-responsive and will not qualify to be evaluated on B-BBEE and Price.

Each Functionality criteria that will be evaluated, will have a weighting in points.  The weighting of each functionality criteria will be dependent on the importance of the criteria in the contract.  Most functionality criteria include:

  • Track record and Experience: The Procuring Entity – either Public or Private Sector – wants to know how many years’ experience the bidders have in executing similar contracts providing the goods and/or services you are proposing.  The more experience you have the better.  This indicates to the Organ of State that you have been providing the goods and/or services for a period and that you are experienced in your field of expertise.
  • Recourses: Human Resources: The bidder must indicate if it has the human workforce, with the necessary experience and expertise to successfully comply with the requirements of the contract;
  • Financial capabilities: Procuring Entities are hesitant to award a contract to anyone who does not have the required capital available to successfully execute the contract.
  • Technology: Do you have the necessary systems, for instance machinery/vehicles/software to execute the contract
  • Usually the Procuring Entity will require other Functionality criteria that are specific to the goods or services that they want to procure.  For example: if the Procuring Entity needs a construction company, the bidder will have to be registered with the Construction Industry Development Board or CIBD for short.  If the bidder is not registered with the CIBD then the bid response will be marked as non-responsive.
  • Can you add value to the goods and/or services that the Organ of State require?  Is there any other information you deem relevant to your proposal?  If yes, provide details.  If you, for example, are selling tables and you offer a table made from wood and steel, it would be better than another supplier that offers plastic tables.  Obviously, your tables would be of a higher quality.

It is especially important to elaborate as much as possible on the technical criteria of your response.  In meeting the technical criteria of any tender, you will be ensured that your enterprise advances to the next phase of evaluation.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Training of 23 EPWP participants on Occupational Certificate: Health Promotion Officer: SAQA ID 94597: NQF Level 3: QCTO Learnership Registration Number 11Q110030001633 in Gert Sibande District Municipality: Project Name: Isiphephelo HBC 2020-09-01 11:00 HP20/ 003GS
Training of 25 expanded public works programme (EPWP) participants on Further Education and Training Certificate: Child and Youth Care Work: SAQA ID: 60209: NQF level 4: HWSETA learnership registration number: 11Q110014351554 in Capricorn District Municipality: Bakone HCBC 2020-09-01 11:00 HP20/ 002GS
Training of 25 EPWP participants on Further Education and Training Certificate: Child and Youth Care Work: SAQA ID 60209: NQF Level 4: HWSETA Learnership Registration Number: 11Q110014351554 in West Rand District Municipality. 2020-09-01 11:00 HP20/ 005GS
Training of 20 expanded public works programme (EPWP) participants on National Certificate: general security practice: SAQA ID: 58577: NQF level 3: SASSETA learnership registration number: 29Q290038431243 in Garden Route District Municipality: Law Enforcement 2020-09-01 11:00 HP20/ 004GS
Provision of haemodialysis services to selected institutions in Kwazulu-Natal Department of Health: 3 year contract. 2020-09-02 11:00 ZNB 5284/ 2020- H
The objective of this Terms of Reference (TOR) is to outline the scope of work for the provision of the MPLS services for CATHSSETA. 2020-08-31 11:00 CATHS/ MPLS/ 021/ 2020
The objective of this bid is to appoint a panel of three (3) Legal and Compliance Experts to assist CATHSSETA with legal matters and ancillary related services. 2020-08-31 11:00 CATHS/ PLCE/ 024/ 2020
The NEF herewith invites potential service providers to submit proposals for the provision of Reliable and Secured Internet Connectivity. 2020-09-01 15:00 RFP: NEF 02/2020/21: (Provision of Reliable and Secured Internet Connectivity)
Procurement Of Supply, Installation, Configuration, Maintenance And Support For NGN Edge Routers, Servers And Peripherals For The National Department Of Labour For The Period Of Five (5) Years. 2020-08-28 11:00 RFB 2217/ 2020
Provide Enterprise Content Management (ECM) Implementation Services for KZN COGTA including Maintenance and Support for a period of three (3) years. 2020-08-28 11:00 RFB 2171/ 2020
Provision of Vulnerability Management Solution with support for the Department of Defence (DOD) for a period of thirty-six (36) month 2020-09-04 11:00 RFB 2200/ 2020
Provision of health and hygiene packages to ECD centres in the Northern Cape Province 2020-08-14 11:00 NC/ SOC/ 007/ 2020
Provision of personal protective equipment (PPEs) for soup kitchens and nutrition centres in NC 2. 2020-08-14 11:00 NC/ SOC/ 008/ 2020
Panel of Three (3) Suppliers for Maintenance/Services and Repairs on Fleet (Trucks, Cars and LDV`s) for Two (2) Years 2020-09-07 12:00 GTLM/INFR17/2020/2021
Supply and Delivery of 500PPM Farm Grade Diesel Fuel for Onrus caravan Park for a contract period ending 30 June 2023 2020-09-11 12:00 SC 2110/2020
Supply and Delivery of 3-Ton Truck with a Canopy 2020-08-21 12:00 GTLM/INFR22/2020/2021
Supply and Delivery of Two Double Cab LDV (4X2) 2020-08-21 12:00 GTLM/INFR23/2020/2021
Planning, Design, Construction Monitoring, Construction and Close Out (Turnkey) of Rooiwal Access Road 2020-09-07 12:00 GTLM/INFR18/2020/2021
Quotation for Wireless Project 2020-08-14 11:00 KCDM/Quote/48/2020
As and When Electrical and Refrigeration Contract for East London 2020-08-15 16:00 ECR/08/08/2020

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