How does government buy goods and services?
Government departments, municipalities and public entities buy through a supply chain management process. Small purchases are usually done through written requests for quotations sent to suppliers on the CSD. Larger purchases go out as open, advertised tenders with a closing date and detailed bid documents.
What do I need before I can tender?
Get these in place before you look for opportunities, so you can respond quickly:
- CSD registration, with your details verified. See CSD registration.
- Compliant tax status and a tax compliance PIN. See tax clearance.
- Company documents: COR 14.3, director IDs and share certificates.
- B-BBEE sworn affidavit or certificate. See B-BBEE affidavits.
- COIDA letter of good standing if you employ staff. See COIDA.
- Industry registrations that apply, such as CIDB for construction or PSIRA for security.
- A company profile showing what you do and who you have done it for. See company profiles.
Where do I find government tenders?
- The National Treasury eTenders portal, which lists tenders from national and provincial government and many public entities
- Your municipality's and province's supply chain or procurement web pages
- State-owned entities' own tender pages
- Notices of compulsory briefing sessions and site meetings
Set aside time every week to check, and filter for your industry and area.
How are tenders evaluated?
Bids are usually checked in stages:
- Administrative compliance: all forms completed, signed and submitted on time
- Functionality (on some tenders): experience, capacity, methodology and references, scored against a minimum
- Price and preference: under the preferential procurement rules, price counts for most of the points and the rest go to specific goals, such as ownership by black people, women, youth or people with disabilities. The 80/20 system is used for smaller tenders and the 90/10 system for larger ones.
How do I write a strong tender bid?
- Read the whole document before starting, and list every required form and attachment
- Attend compulsory briefing sessions; missing one disqualifies you
- Price accurately: include wages at legal rates, materials, transport, insurance and your margin
- Answer functionality questions with evidence: projects, references, staff and equipment
- Fill in every standard bidding document (SBD) form and sign where required
- Submit before the closing date and time, in the format requested
How can a small business win its first tender?
Start where competition is lower and contracts are smaller: requests for quotations, municipal work in your area, and subcontracting to bigger contractors. Each completed job gives you a reference letter, and references are what win larger tenders. A good business plan and pricing model help you grow without taking on work you can't deliver.
What are the common tender mistakes?
- Expired documents (tax PIN, B-BBEE affidavit, COIDA letter)
- Unsigned or incomplete forms
- Pricing below cost to win, then failing to deliver
- Copying a previous bid without adapting it to the new specification
- Submitting late
Step by step
- Register on CSD. Register on the Central Supplier Database and fix any verification failures.
- Prepare compliance documents. Get your tax PIN, company documents, B-BBEE affidavit, COIDA letter and industry registrations ready.
- Find opportunities. Check eTenders and municipal and provincial procurement pages every week.
- Read and plan the bid. List every required form, briefing session and attachment before you start.
- Price and complete the documents. Price from real costs, complete every SBD form and attach the evidence requested.
- Submit on time and follow up. Submit before the closing time, then track the award and ask for feedback.