How to Apply for Tenders in South Africa
How to Apply for Tenders in South Africa
Tenders in South Africa offer lucrative opportunities for businesses, particularly SMEs and SMMEs, to supply goods and services to government, municipalities, state-owned entities, and large corporations. Here are the key steps to apply for tenders successfully:
1. Select Relevant Sectors
Focus on 2-3 sectors that align with your company's offerings and capabilities. This allows you to build expertise in those areas. Popular tender sectors include construction, mining, IT, marketing, manufacturing, agriculture, etc. It's crucial to ensure that your business has the staff, skills, and equipment to deliver the services required at the proposed rate and within the proposed timeframe.
2. Get Required Documents
To qualify for tenders, you'll need several documents. These include company registration documents, a tax clearance certificate, proof of CSD registration, a BEE certificate, annual financial statements, and relevant sector-specific documents like construction certificates.
In addition, you may also need to provide a certified copy of shareholders’ certificates, ID documents of the directors or members, the last three years audited/reviewed financial statements, a letter of guarantee from a registered financial institution or financier covering 3 months’ operational costs as per bidder’s proposed costs, proof of public indemnity cover for a minimum of R1 million, a letter of good standing with the Department of Labour for Unemployment Insurance Fund and Compensation for Occupational Injuries and Diseases, and proof of compliance/registration with the Industry Regulator/Association.
3. Register on Supplier Databases
Register on the Central Supplier Database (CSD) and other relevant databases per your sectors. The CSD is a database of organizations, institutions, and individuals who wish to provide goods and services to the government. This registration gives you a supplier number and makes you eligible to bid.
4. Find Tender Opportunities
Search tender websites, newspapers, government tender bulletins to find open tenders in your sectors. You can also subscribe to tender notification services for alerts. Some of the top platforms to explore for tender opportunities in South Africa include Tenders4Me, SA-Tenders, and others.
5. Submit Compliant Tender Documents
Read the tender document carefully. Submit all required forms like SBDs and a detailed proposal before the deadline. Late or incomplete bids get disqualified.
The SBD forms include SBD 1 (Invitation to bid), SBD 2 (Tax clearance certificate requirements), SBD 4 (Declaration of interest), SBD 8 (Declaration of bidder’s past supply chain management practices), and SBD 9 (Certificate of independent bid determination).
Tips for Success
- Attend compulsory bid briefings: These sessions provide valuable information about the tender and allow you to ask questions.
- Collaborate if the tender is too large for you: Partnering with other businesses can increase your capacity to deliver on larger contracts.
- Focus on meeting functionality requirements: Proposals are evaluated on functionality and further in terms of the 80/20 or 90/10 preference points system, where 80/90 points will be for price only and the 20/10 points for BBBEE Level of Contribution.
- Submit bids well before the deadline: This gives you ample time to ensure that your application is complete and compliant.
- Follow up for feedback if you don't win: This can provide valuable insights for improving future bids.
Where to find tenders?
gov.za
Government Tenders
Government tenders are advertised on the National Treasury website. You can search for tenders by the date they were published, their category, or their department. You can also subscribe to the Tender Bulletin, which is published every Friday, to receive notifications of new tenders. The website also provides a guide on how to tender.etenders.gov.za
eTenders
eTenders is a portal where you can find all government tenders in South Africa. You can search for tenders by department, category, or province. You can also subscribe to receive email notifications of new tenders. The website provides a guide on how to use the portal and how to tender.gov.za
Municipal Tenders
Municipal tenders are advertised on the respective municipality's website. You can search for tenders by the date they were published, their category, or their department. You can also subscribe to receive notifications of new tenders.
Tenders Info
Tenders Info is a global tender information provider. You can search for tenders by country, sector, or tender type. You can also subscribe to receive email notifications of new tenders.
With proper preparation, compliance, and a competitive bid, you can successfully secure lucrative government and corporate tenders as an SME.