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 is usually set, but this can be higher or lower, depending on the Organ of State.
- All tender responses achieving less than the set threshold will be declared non-responsive and will not qualify to be evaluated on B-BBEE and Price.
Functionality includes the following main points:
- Track record and experience;
- Operational fit;
In your tender response, it is always important to stipulate the following when it comes to your track record and experience:
- How many years of experience does your company/enterprise have with the goods and/or services you provide?
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 significant period of time and thus have experience in your field of expertise.
- Provide contactable references and a proven track record of the goods and/or services.
- It is always good to provide references in your response, even if it is just one reference. Refences show that you can be trusted, and how better to evaluate your experience than by contacting your references. Remember to be honest in your response as the Organ of State is sure to contact your references.
- Provide information on your success rate.
- This is overstating the obvious, but it is good to tell them about previous tenders that were awarded to you, and how successfully you completed them.
- What is the nature of goods and/or services your company supplies?
It is imperative that you supply the goods and/or services that the tender asks for. If you do not supply the exact goods and/or services that the tender asks for, you may be disqualified.
- Provide details of your monthly volume and rand value of goods and/or services you supply to your existing clients.
This again shows your experience, even if the volumes are small, you still supply the goods and that means experience.
- Is there any other information you deem relevant to your proposal? If yes, provide details. This is especially important when you can add value to the goods and/or services that the Organ of State requires.
It is very important to elaborate as much as possible on Functionality, in your response. In meeting the Functionality criteria of any tender, you will be sure to advance to the next phase of evaluation.
If you want to learn more about Functionality and how it works be sure to attend one of our How-to-Tender workshops that HowToTender present across South Africa. Please visit our website at www.how2tender.com to find out more or email Werner at email@example.com.
This article was written by Werner van Rooyen, Director of HowToTender which specializes in tender consulting and tender training.