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Tenders, Bids, Quotations, Evaluations and Contacts explained for South African Tenders.
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- เผยแพร่เมื่อ 16 ส.ค. 2024
- If you would like to apply for tender notification email please log on to our website www.swiftreg.c... and scroll to the tender section on the home page to complete the subscription.
We have a dedicated call center 021-595 44 33 (available during business hours) alternative please browser our website on for more services.
And now for the video script... :)
Right, lets jump right in. There are two main categories of tender providers namely the government and private companies. The government has over 900 different departments which include national, provincial and municipal departments. If you want to apply for a tender from any of these departments, you first have to register on the Central Supplier Database or CSD. If you haven’t registered with CSD already; I would recommend you watch my video on this topic. The good news is that you only have to register once on the CSD as all the government departments refer to this database for compliance, so if all your data is accurate and up to date, you are good to go.
The second major category of tender providers is the private sector. For private companies it is not a requirement to register on the CSD database, but you have to register on the respective vendor databases of each company this means you will have to repeat the registration process for each individual company, should you wish to register with them. Most private companies have closed tenders meaning only bidders registered on their database are invited.
For both Government and the private sector B-BBEE certification is a key requirement for all tender applications. If your company turnover is less than R50m per year you only need an affidavit and not a certificate issued by an accredited verification agency which can be very expensive.
If you would like more information on BEE certification, I have made a video on this topic too. But just to recap, small businesses with turnovers of less than R10m are defined as an Exempt Micro Enterprise and depending on the percentage of black ownership in the company; the BEE level will be either Level 1 for 100% black owned companies or level to 2 for between 99 -51% black ownership and Level 4 for everything less than 50% black ownership companies.
So how does your BEE status effect your tender? To understand this question, you must first get to grips with the tender evaluation points system. Let me explain, each tender is ranked out of a maximum of 100 points and the bidder with the most points is awarded the tender.
Now, depending on the value of the tender, different procedures are followed. For tenders valued at between R30k and R50m the 80/20 points system is used. What this means is that 80 of the 100 points are based on the price of the tender and the remaining 20 points are based on your B-BBEE status. For tenders above R50m the points system changes to a 90/10 ratio.
This may all sound a bit complicated so let give you an example. In this table you will see the BEE statuses on the left ranging from one all the way down past 8 to non-compliant. The middle and righthand columns reflect the number of points allocated for the 90/10 and 80/20 systems respectively. Therefore, if you have a level 4 B-BBEE status and you are tendering on a job valued below R50m you will have look at the 80/20 column, where you will be awarded 12 points out of a possible 20. I hope this makes some sense to you.
Now most importantly, the evaluation committee still needs to award the points for the price of your tender. To do this, your price is compared to the lowest acceptable bid and expressed in points using the following mathematical formula: Points = 80 x (1-((Your price-lowest acceptable bid)/lowest acceptable bid)) This formula determines how many points you get out of 80 for your tender price, with the lowest bid receiving the most points. Remember this example is based on the 80/20 system because the tender value is below R50m.
Now that both the price and the BEE points have been calculated, the committee adds them together and the bid with the highest score will be awarded the tender.
So, where do you find the tenders? There are a multitude of website such as etenders, greengazette, cidb and the dtic. The challenge with looking for tenders using this method is that it is time consuming and tedious as the tender information is scattered across these websites. So to make life easier for you, we have developed a tender notification service were we search, capture and index all government tenders and then make them available to you in one place in a user friendly format. This is updated on a daily basis so the information is fresh and relevant.
Our notification service has a free tender search facility so just click on our website www.swiftreg.co.za and navigate to the tenders section. You can search all government tenders by selecting the region and typing in any keyword.
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Talk about being God sent at the right time. Good video, informative, clearly atticulated. I am a start up and have already subscribed. Where were you all my life! Thanks a million.
Glad it was helpful!
Short and crisp...this is class! Thank you sir!
You're very welcome!
Thank you , I have also learnt something about presentation.......your presentation is out of this world
Hi Chinaman, WOW thank you for such an inspiring compliment.
You are such a good speaker...the clarity is awesome
Thank you Naomi, what a wonderful compliment! :)
This is the best video I've watched by far, clean details 👌🏿
I appreciate that!
Thanks atleast this channel is relevant to SA business
I'm glad it was helpful.
Thank you so much. I have been thinking of doing this for about two years but didn't know where to start.
Hi Younis, glad I could help!
THANK YOU VERY MUCH SIR, GOD BLESS YOU !
You are very welcome
Give this man a bells
Thank you, what a lovely compliment.
Thank you I have learnt a lot in this presentation
Glad it was helpful!
im so grateful for this video🙏
I'm so glad!
Everything was so extremely helpful.
Hi Angela, glad it was helpful.
Thanks for this detailed explanation
Glad it was helpful!
@@swiftreg hi can you give a lecturs on bids specification functions in gov
@@odettejacobs2175 Hi Odette, I will certainly add it to the pipeline of work
Very informative and well explained.
Glad it was helpful!
Thank you, informative video
You are Welcome!
The videos are helpful if you can also do videos about contract law. but you were spot on this video.
Thank you for the compliment it is very encouraging. I will add contract law to the the pipeline.
Thank u
You are Welcome :)
Priceless
-Thank you
Thank you for the wonderful compliment!
Thank you so much. very informative.
Glad it was helpful!
This is how my dad has been making loads of money for years
Hi there, that good to hear. South Africa needs a lot more successful businesses to help build our economy and reduce our unemployment.
This is very useful information
Glad it was helpful!
Oh my bad thank you so much this is helpful
You are Welcome!
Thank you...very helpful
Glad it was helpful!
thanks for the infor. very useful
Glad it was helpful!
great video
Glad you enjoyed it
Thank you.
You're welcome!
Hi Douglas.
Thankyou for taking the time to share these valuable tips.
One Question: is there a way of QUADRIPLE checking the authenticity of tenders and their source?
I get emails a lot for various RFQ's from government departments whose window from bidding to close date is about a week. I almost got frauded a couple of years ago to supply goods only to realise it was a cloned tender - the stamps looked real, the letterheads, all looked real - it was the email domain that "kind" of gave it away ( they would always reply on mail but would never pick up the phone when I called).
What are the main criteria in making sure a tender is real and what can we look out for to make sure we are not scammed.
Thanks.
Hi Funi, I also get daily fake RRQ emails. You are wise to to be so vigilant by checking the email domain. You can also hover over any attachment with you mouse without clicking on the attachment to check the domain extension. For example .ru is from Russia. You are correct to follow up with a phone call and if nobody answers I would stay away.
Have you tried our notification service? We only scrape government websites so the email and the tenders are all legitimate.
@@swiftreg I will try that thanks again.
I do have a lot more questions to pose and will do so in due course.
Still holds relevant.
That is correct, the 80/20 and 90/10 preferential points still apply despite the latest changes in regulations which allow procurement institutions to set specific goals for the tender.
Well explained
Thank you Debbie, that is encouraging.
Great info
Glad it was helpful!
Thanks
Your welcome
Greetings, thank you for such great content, I'm interested in tendering and I'm a beginner but as soon as I make quotations I tremendously fail to put mark-ups. So my question is, is there a formula I should use for mark-ups and what is your advice for me. I understand better now but I fail to understand pricing. Thank you in advance.
Hi Gert, pricing is tricky to get right as it is part science and part art I have made a video about this topic called: How to price your products - The Dark Art. th-cam.com/video/vsaJrTmy0Lw/w-d-xo.html I am not sure if you have watched it, but hopefully it will help. Please let me know. Kind Regards Douglas
@@swiftreg Hi Douglas, thank you so much for taking your time to reply, I've just watched the video you sent the link to, it's a bit complicated for my understanding though, I thought price was maybe calculated like "R400 + R400×200% which will equate to R2000. I'll have to watch it a few more times to get some deep understanding. Thank you so much for your assistance.
So there are no mathematical formulas to pricing?
@@swiftreg I thought there's a specific mark up percentage that is being used.
Morning Gert, once you have your break even price, you must add a percentage markup which is your profit. There is no set (fixed) percentage, but if you price too high you won't get the job and if you price too low you won't make a profit. I hope you find the sweet spot. Good luck, let us know if you were successful with the tender. Kind regards Douglas
@@swiftreg thank you so so much, now it makes perfect sense. It's a matter of the amount pf profit that I deem to be enough for me while not charging too much or too little.
Thank hou
You are welcome
I have learnt a lot from this video. I would like to ask how does one acquire "Letter of Good Standing" while still new on this? Also, what kinds of points are they looking at?
Hi Enos, thank you for asking this question as it is very confusing to many of our clients. This is because a letter of good standing was refer to both the Department of Labour's COID application and the SARS tax compliance status. To clear up the confusion SARS now refers to the compliance status and not a letter of good standing.
I assume you are referring to the tax compliance status of your company.
Pls for a garvement Tendas
Hi Rebecca, please let me know with what exactly you are struggling with regarding government tenders as we would love to assist you. You can contact us at info@swiftreg.co.za
can you secure the tender without have the necessary expertise ,but hire a company that has the experience to work for you and yall share 50/50?
Hi there, this is known as fronting. The evaluation committee checks for fronting and should disqualify the company.
👍👍👍👍
Thanks for the compliment it makes the hard work worth it.
Hello,
Would you refer me to someoje who will be welcoming me to work for free, I really need to build my experineces and skills in this filed
Hi Bashar, that is a very generous offer and the right attitude to get your foot in the door with any company. Keep on trying and the opportunity will present itself. Good luck.
Are there tenders for marketing agents?
Yes, I am sure "marketing" can be used as a keyword. Please give it a try.
How to apply for the small opportunity
Hi Zilungele, when registering on the Central Suppliers Database the Government does not differentiate between large and small companies.
So basically if I wish to get into tendering and I don’t have experience nor funds to volunteer to gain the experience, I am hopeless?
Hi Celiwe, nobody is hopeless, but I hear you. It is not easy to start a business with nothing other than your time and labour to sell. The government has stipulated the experience requirement on tenders as they had issues with poor quality work in the past. I have made a video on starting a business with no money th-cam.com/video/FXDxa_0jMr8/w-d-xo.html I hope it gives you some ideas or inspiration. Just imagine how much more rewarding it will be if you succeed in starting a business from nothing. Please don't loose hope as you need a goal to drive you forward. Good luck.
How can I gather the necessary experience if I have no experience at all ?
Hi Riya, I understand how difficult this is to achieve, but it is not impossible. If you think about it; every company, once upon a time, had to start with no experience. I do try and address this in the video, by starting small. I suggest that the first small job should be done as cheaply as possible or even if possible for free, just to gain the experience so that you get the opportunity to document it (including photographs) and add it to your CV. I hope this helps and wish you good luck with your business journey.
I’m South African but living in the UK. I have a company here in the UK with a track record. Am I eligible to bid for tenders in SA?
Hi there, probable yes, there should be nothing stopping to apply for tenders in South Africa, unless the criteria for the specific tender states only for South African companies. In my opinion, the evaluation committee will most likely not award the tenders to foreign companies unless it the product or service offered by them is not available in this country.
what about paying bribes?
That would be an entirely different video :)
How can I gain relevant work experience if I’m just a beginner
Hi Lesedi, The hardest challenge of starting a business is just to get going. What type of business do you intend to start?
Please share the video link...
Hi Thapedi All my videos are available on my channel th-cam.com/channels/1feV95WbD2YTs2dcONeKHw.html however the tender video is available on the following link th-cam.com/video/pLmfhXOQcTY/w-d-xo.html Hi hope this helps.
Tape so red its almost crimson
Agreed
I really wanted to know
Hi Aarik, I assume you found the video helpful?
@@swiftreg
You welcome
Ok
Glad I could help