Issue Date: 
Thursday, January 31, 2019

Extension of validity period

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Those of you who are familiar with responding to tenders will know that it is common practice for procuring entities to extend the bid price validity period. We received the undermentioned queries regarding the extension of the validity period of the bid price.

The client stated that they are 3 companies bidding on an Organ of State tender. It is quite a complicated tender and the Organ of State asked for an extension of validity. The client thinks that there are other forces at play and wants to request that the tender must be cancelled. The question is: if they decline the extension of validity, is there any law forcing the Organ of State to cancel the tender?

We are not legal consultants or attorneys thus we cannot give a legal opinion. We can give advice on the tender processes. Here is our take on the scenario mentioned above:

  • Organs of State do have the authority to extend the validity period of a tender;
  • If you decline to meet the validity period your tender response will be marked as non-responsive and your tender response will not be considered for evaluation;
  • There is no law which we are aware of that a tender must be cancelled if one of the responders declines the validity extension;
  • According to Regulation 13 of the Preferential Procurement Regulations, 2017, a tender can be cancelled:
    • Due to a change in circumstances;
    • There are no funds available;
    • No acceptable tender offerings have been received;
    • There is a material irregularity in the tender process;

The best advice we can give is to be aware of any extensions of validity that might arise from the tender that you’re responding to. Remember to keep an eye on your fax machine – if you still have land-line fax machine – Organs of State likes to fax extensions of validity. Normally an email would be the preferred communication method.

If you do receive a request for extension of validity it is good practice to double check your cost prices from 3rd party suppliers to ensure that the prices are still in order. If the prices are in order then sign the extension of validity and sent it back before the deadline.

If you cannot extend the validity period and decline the extension of validity, your tender response will be marked as non-responsive and won’t be evaluated any more.

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 www.howtotender.co.za. Please contact Estelle at Estelle@howtotender.co.za should you require more information.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

Title Closing Date Tender No.
Discretionary Grant Advert 2nd Funding Window 2019/2020 2019-06-18 11:00 RFQ/ SASSETA/ 201920120
Cape Town: parliamentary precinct: official office accommodation: provide integrated facilities management services.(2019-2024) appointment of consultants: quantity serverying, electrical & mechanical engineers, civil & structural engineers, health and safety agent. 2019-06-14 11:00 CPTC 004/ 19
Appointment of Board Secretariat Services until 31 March 2020 2019-06-14 11:00 RFP/ SASSETA/ 201920113
Provisioning of Productivity Study/ Assessment and other related services to the RTMC 2019-06-18 11:00 RTMC BID 03/ 2019/ 20
Provision of Security services to the RTMC Midrand offices 2019-06-17 11:00 RTMC BID 01/ 2019/ 20
Cape Town: Provision of integrated facilities management services for parliamentary residential accommodation for a five year period (2019-2024): Appointment of consultants: quantity surveying, electrical & mechanical engineers, civil & structural engineers, health & safety agent. 2019-06-14 11:00 CPTC003/ 19
Appointment of a panel of service providers to provide fraud risk management services to the NYDA for a period of three (3) years. 2019-06-19 11:00 NYDA2019/ 01/ IA
Appointment of a Panel of Service Providers for the National Treasury to Source the Services of Editors for Publications for a period of three Years 2019-06-14 11:00 NT005- 2019
24 months term contract for transportation of members of parliament and sessional officials in the three parliamentary villages. 2019-06-14 11:00 CPTSC 01/ 19
Appointment of a Service Provider to Implement an On-Going Solution for The Management of Emolument Attachment Orders Granted Against Public Servants and a Capacity Building Programme for a Period of 24 Months 2019-06-14 11:00 NT004- 2019
Appointment of a Decor Service Provider for The World Economic Forum on Africa Mokete 2019 to Be Hosted at ICC In Cape Town. 2019-06-14 11:00 NT003- 2019
Repair and maintenance of Generators at Limpopo High Court for 24 months 2019-06-18 11:00 PLK19/ 07
Appointment of a service provider for rendering of co-sourced internal audit services for the National Lotteries Commission for a period of three (3) years 2019-06-26 11:00 NLC/ 2019- 10
Repair and maintenance of HVAC System at Limpopo High Court for 24 months 2019-06-18 11:00 PLK19/ 06
Appointment of Service provider for Events Management (Golden Shield Heritage Awards) 2019-06-26 11:00 NHC/ 01/ 2019/ 20
Repair and maintenance of lifts at Limpopo High Court for 24 months 2019-06-18 11:00 PLK19/ 05
Bloemfontein Sandf: Tempe 1 Sa Tank Regiment: Upgrading of Facility/ Infrastructure (Kitchen) and Replacement of Kitchen Equipment: (Architectural Services) 2019-06-18 11:00 BL19- 009
Bloemfontein Sandf: De Brug Mobilisation Centre: Upgrading of Facility/ Infrastructure (Kitchen) and Replacement of Kitchen Equipment: (Architectural Services) 2019-06-18 11:00 BL19- 010
Postmasburg Magistrate Court: Provisioning of cleaning services for 36 months. (1208.14m²) 2019-06-14 11:00 PF17/ 2019
Olifantshoek Magistrate Court: Provisioning of cleaning services for 36 months. (531.00m²) 2019-06-14 11:00 PF18/ 2019

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Extension of validity period

By Werner van Rooyen

www.howtotender.co.za

31 January 2019

Those of you who are familiar with responding to tenders will know that it is common practice for procuring entities to extend the bid price validity period. We received the undermentioned queries regarding the extension of the validity period of the bid price.

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