Beruflich Dokumente
Kultur Dokumente
TENDERING GUIDELINES
TENDERING GUIDELINES
1. How do I tender? 2. Where do I find the tendering information? 3. Where do I find raw materials and equipment?
Tenders are a lucrative source of income for small business, but can be a minefield to negotiate, particularly since legislation has changed, and requirements differ between organisations and government sectors. Getting the process right not only saves time and effort but has the potential to set up lucrative income streams.
Friday, March 10, 2006
www.business.co.uk
This document has been prepared to assist entry-level service providers on the tendering processes in general.
How do I tender?
Am I ready to tender?
First of all, you need to establish whether your business is capable of meeting the requirements of the tender. Usually, an invitation to tender is very specific about the practical tasks to be accomplished. Be realistic about your ability to accomplish those tasks. Remember, failure to deliver what is required at the stated costs and within the time agreed will probably make you liable for penalties in terms of the contract.
Has products that complies with South African National Standards (SANS) Registered in the eThekwini Municipalitys Suppliers Database. Registration forms can be collected from Procurement Monitoring Unit 1st Floor Shell House, Durban; and
Sub-Contracting
Registered with the relevant Professional or statutory Body , such as the Construction Industry & Development Board (CIDB), National Home Builders Registration Council (NHBRC), Small Enterprise Development Agency(Seda), etc. INSIDE FRONT COVER
Page 4
You will need to complete the following information that are often standard forms for National, Provincial and Local government tenders:
Conditions for tendering with the state Official cover page of the tender document Also includes details of the addresses for delivery of your tender application. To be signed in ink. Includes details of the buying department, validity period and closing date Obtained from SARS, should be valid at time of submitting the tender and should have a validity period longer than the validity period of the tender document. Important to study carefully, as deviation from these conditions may invalidate your tender. Also deals with the description of the product of service concerned. State any deviation in specification from those in the original tender; whether or not your quoted price is firm; whether you are an agent for the product or service; the amount of stock you carry; the type and location of the service facilities you offer; your VAT number (if any). Preference Point Certificate to be signed. Applies only for services less than R2 million. Declaration of interest. Promotes development of local businesses ensuring fair and equal treatment, you must declare any relations with members of the tender board or government department.
Closing dates, tender number, durability, price, delivery period etc. Asks questions that will help in the adjudication of the tender
Note: These forms are part of the tender invitation and are also available at any procurement office.
Page 7
Letters of Notification
If you submit your tender to the right address by the due date and time, you will be notified in writing whether you have been successful or not. If your tender was accepted, you have to start planning to deliver the goods or services you offered.
Therefore, before you start looking for tenders: Make sure you have a business with a proper focus. Tender only for those contracts that fit your business's focus.
Page 11
Page 10
Plan to use each tender you win to build up capital in your industry: your reputation, credit with suppliers, extended overdraft limits at the bank, equipment, skilled staff, project management skills. Make sure you continue to take advantage of any Municipalities workshops, information obtainable from the website, media, newspapers etc Don't ever bank on winning a tender. The competition is very stiff. Very successful business owners say they submit at least twelve tenders before winning one. Know that you cannot build a business just by tendering. While it can sometimes give you a good break, or move you to a new level of operation, the results are too unpredictable to build you whole business around. You should try to build up a steady non-government clientele.
What is a tender?
When you need a new pair of shoes, you go to a shop near you to choose, fit and buy the shoes you want. Government cannot work like this - mainly because public money is being spent and the government must try and get the best price and quality for the goods and services it needs. The government must also try to give all businesses equal opportunity to the public money it spends. A tender is therefore the government's way of inviting businesses to provide goods and services on a contractual basis. Once the business completes and submits the tender document it becomes an offer. Once the government accepts the offer, it becomes a contract. This contract is between your business and the relevant government department.
Tendering is a structured, competitive and transparent process: It helps find supplies or services needed from outside government. Better prices and higher quality are also obtained because tenderers compete with each other in an open market. Because of this, and to avoid confusion and unhappiness, there are strict rules that regulate the tendering process.
Page 12
Page 13
Page 14
The following are common mistakes made when tendering: 1. Always provide all of the information requested by in the tender application. Do not forget things like your tax clearance certificate and shareholding certificates. Note: out-dated tax clearance certificates are also not allowed. It is important that the calculations of tender prices is correct. Check and DOUBLE- CHECK this! Often, tenderers misinterpret the scope of the work. If you are unsure of anything in the tender ASK and attend site inspections even if they are not compulsory! Always SIGN your bid document. Unsigned documents are unresponsive and will therefore be disqualified. If you are an HDI, remember to claim your points. Points unclaimed are points lost! Make sure that you drop the tender into the right box, before the closing time. By law, no late bids will be accepted, not even 1 second past the closing time.
Page 17
2. 3. 4. 5. 6.
Classification of Tenders
Goods and Services
For tenders under R30 000, the relevant government department will usually just approach three registered providers for a quotation. This is why it is so important to get your business registered on their database! Tenders of more than R30 000 must generally be advertised to all providers, even those not listed on the register. Large tenders (usually over R200 000) must be advertised and formally adjudicated by one of the Tender Boards.
Page 16
7.
If samples are requested, sufficient amounts must be supplied to enable the item to be evaluated under the appropriate technical or clinical conditions. Ensure that any requirements related to compliance with SABS specifications are met.
Shop around
Shopping around does not only mean looking for the best price. It also allows you to increase your technical awareness of different products and their specifications. Say for example you phone a supplier of industrial toasters and they quote you on two products, one at R3000 and one at R5000. Ask them about the difference between the two - what features does the more expensive one have? Ask yourself if you need these features. Now, when you phone another supplier for a quote, you could ask them if this product has the features you were interested in. Suppliers will also have an opinion about which features are best. If you listen through the sales talk, you will get an idea of the range of products available and learn more about different features and functions. Then you can decide which product would be the most suitable and represents the best value for money.
Page 18
Page 19
You will be surprised how many business owners out there are happy to help. They have all been through the same process and understand the value of informal networks amongst business owners. You might come across a few who are truly cagey and unwilling to share information, more so in some industries, but just keep trying until you find those willing to talk to you. They will be worth their weight in gold. It might help if you approach people who are not or will not be your direct competitors, for example a similar business to yours, but in a different area. Throw your net wide. You will have to take the initiative here. Don't wait for a particular business owner to become available or return your message. Move on to the next person on your list. You can always come back to the first one later. When you phone a business owner you have a 50/50 chance of getting a good response. It depends on a combination of things: the mood of the business owner, whether you have caught him or her at a bad time, the way you come across over the phone. Never take it too personally. As you phone around, you will find an approach that works well for you. In most cases a short and to-the-point approach works best. If you want to know something fairly straightforward, introduce yourself very briefly and just ask, "I run a Bed and Breakfast/am starting a Bed and Breakfast in Cape Town; do you know where I can find an industrial size toaster?" You don't have to start with "Can I ask you a few questions?", or "Could I have a few moments of your time?" If they think about it, they will realise that they do not have time. If you need to have a longer discussion, you can try to make an appointment. Some people will manage this better than others. If you do manage this, then stick firmly to the time you said you would need. If you can not succeed in making an appointment, try the ambush approach - ask your question right there and then. "What do you think the best toaster is to get for my size business?" Normally, you will get a valuable response. Often, once a business owner starts talking it is quite difficult to make them stop. Start networking. If you join the industry's business association, you will meet other business owners face to face in a relaxed environment. Here it will be much easier to pick their seeds . Many of the business associations have their own websites on which suppliers advertise
Yellow pages
The Yellow Pages is a directory of contact numbers for businesses and professions in a particular area. The businesses are arranged according to categories, for example, "Amplifiers", "Crates", "Refrigeration". It is sometimes tricky to find the exact category for the type of product or service that you need. It is useful to take a look at the index first to see what categories there are. The advantage of the Yellow Pages is that all businesses in a specific area get one free listing in the Yellow Pages, so it is quite comprehensive. Beware however, that they have to choose in which language they want their free listing to be, so you might find some businesses in the Afrikaans section that do not appear in the English section and vice versa. You are entitled to a free copy of your area's Yellow Pages if you are a Telkom subscriber. It normally comes as part of your Phone book, but in larger areas like the Cape Peninsula, Johannesburg, Pretoria and Durban, the Yellow Pages come as a separate volume. A new updated version comes out once a year. If you want the Yellow Pages of a different area than the one you live in, phone 0860111 837 The Yellow Pages also has an electronic version at: www.yellowpages.co.za/iyellow/index.jsp The electronic version is simply the same as the publication - it works according to categories, not keywords. If you type in "toaster" in the search box, you will not get a listing, but perhaps you would get a listing if you type in the category "Electrical Appliances."
Internet searches
The internet has become a valuable tool for finding suppliers of even the most obscure articles. You have to learn how to streamline your searches so that you do waste too much time and money on the internet. Use a search engine. This is a tool on the internet that allows you to type in keywords. It will then give you a list of websites that contain these keywords. You can click on the links to these sites for more details.
Page 20
Page 21
Use South African search engines - you can then choose to view only South African websites. It is no good finding a product only to find it is sold in England or the USA. Here are some good South African search engines to try: o (www.aha.co.za) We found this the best search engine to source business supplies. This is mainly because they have a category in their directory called "business to business". If you click on that, you can do searches with keywords that will only bring up websites of other businesses, so you do not get links to news articles, or other non-relevant websites. o (www.aardvark.co.za/search) A very good feature here is that you can narrow down your search results quite effectively, by doing a further keyword search within your results. They also have a directory (i.e. a list of categories), but your search is more limited here, because they do not have a business-to-business category and it is difficult to assess which other category in the directory matches your query. The best way to use this site is to do a keyword search that searches all South African sites. o (www.ananzi.co.za) This site provides you with good tips on how to search using a search engine. It is very similar to aardvark in all other respects.
seda
If you are reading this fact sheet, you probably know that the Business Referral and Information Network (seda) has a database of suppliers to various industries. They also have contact numbers of the business associations for your industry.
Some of the information contained document is taken from the sources listed below:
Seda Website: www.brain.org.za/factsheets/opportunities/tender/find_tender.html Capegateway: http://www.capegateway.gov.za/eng/tenders/how_to_tender/ Business Day Newspaper
Page 22