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How to Complete a Tender or Bid

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How to Complete a Tender or Bid

by Cape Gateway
13 Mar 2007
Cape Gateway
Cape Gateway

An article, courtesy of the Cape Gateway Website, describing how to go about completing a Tender of a Bid.



How to Complete a Tender of Bid

Each tender or bid advert indicates where you can collect the documents you will need to fill in to submit your tender, and where they should be submitted. The advert also indicates a closing date. This is a very firm deadline - no late tenders can be accepted.

Tenders or bids have to be in writing. Each tender has a number of associated forms, which must accompany the tender you submit. The specific forms you require for your tender should be listed in the tender documentation. You should consider very carefully how you fill in these forms. Get advice if you are unsure of anything.

Once you have all the forms completed and signed, place your tender in an envelope with the tender number on it and deliver it before the closing time to the place specified when the tender was advertised.

Tender of Bid Forms

  1. National and Provincial Tender Forms or Bid Documents
  2. Western Cape Provincial Construction Tender Forms
  3. Local Government Tender Forms

NATIONAL AND PROVINCIAL TENDER FORMS OR BID DOCUMENTS

Each tender or bid has a number of associated forms, which must accompany the tender or bid you submit. These used to be known as 'tender forms' and are now called 'bid documents'. These bid documents have the prefix SBD and WCBD for national and provincial bid documents respectively.

The forms usually required for national and provincial tenders (except Provincial construction tenders) are the following:
  1. The Bid SBD1/WCBD1.
    In this document you agree to be bound by the tender or bid terms and conditions.
  2. Tax Clearance Requirements SBD2 / WCBD 2.
    Your taxes must be in order to be a successful with your tender or bid. This document has an 'Application for tax clearance certificate' form attached to it. You have to complete this form and hand it in at your nearest South Engican Revenue Services (SARS) office, to get a tax clearance certificate. You must then attach the original tax clearance certificate that you get from SARS, to the tender or bid documents. This certificate serves as proof that you are not in arrears with your tax payments.
  3. Price and motivation SBD/WCBD 3.1 or 3.2 or 3.3.
    Which of these documents you complete depends on the subject of the tender. In this form, you motivate your price, by describing the product you will supply or the experience of the person who will perform the service. This form is often amended for the particular tender, so check which one you need to complete carefully.
  4. Declaration of Interest SBD4 / WCBD4.
    This is the document in which you declare whether or not you have a relationship (friend, family, business) with anyone who works for government. This is so that those people are not involved in awarding the tender in any way, to avoid corruption.
  5. Industrial Participation Programme SBD5 /WCBD5.
    Any contract having an imported content equivalent to or exceeding US$ 10 million has an industrial participation (IP) obligation, which must be addressed in the tender.
  6. Preference certificate SBD-WCBD 6.1.
    You must fill in the SBD 6.1 form for provincial tenders even if you are not claiming any of the preference points. If you are claiming preference points, you need to fill in those of 12 documents SBD /WCBD 6.1-6.12 which relate to kinds of points you are claiming (national and provincial) as explained above.
  7. Contract form SBD/WCBD 7.1 or 7.2 or 7.3.
    This is the contract that binds the parties should the tender be successful. There is a different form for purchases (7.1, services 7.2 or sales 7.3)

There may be other forms to fill in for a specific tender or bid. These should be included with the tender or bid documents that you receive. However, a typical tender or bid package will probably have the following documents:
  • SBD 1 - WCBD 1
  • SBD 2 - WCBD 2 (Tax Certificate)
  • SBD 3.1 - WCBD 3.1 (Firm pricing: purchases)
  • SBD 3.3 - WCBD 3.3 (Pricing schedule: Professional services)
  • SBD 4 - WCBD 4 (Declaration of interest)
  • SBD 6.1 - WCBD 6.1 (Preferential procurement points)
  • SBD 6.10 - WCBD 6.10 (Preferential points- local area)
  • SBD 6.3 - WCBD 6.3 ( Preferential points - SMME)
  • SBD 6.4 - WCBD 6.4 (Preferential points - local content)
  • SBD 6.9 - WCBD 6.9 (Preferential points - WC Province)
  • SBD 7.1 - WCBD 7.1 (Contract purchase)
  • SBD 7.2 - WCBD 7.2 (Contract services)
Annexure A - GCC (General Conditions of Contract) draws special attention to certain general conditions applicable to government bids, contracts and orders; and ensures that clients are familiar with the rights and obligations of all parties involved in doing business with government.

WESTERN CAPE PROVINCIAL CONSTRUCTION TENDER FORMS

For provincial construction-related tenders the usual forms are a little different; new construction "bid" forms are also in the process of being developed in 2004:
  • Tender declaration
  • General conditions for construction tenders DPW6
  • Additional particulars DPW.7E
  • Declaration of interest DPW.57E
  • Financial particulars
  • Application for tax clearance certificate WCBD2.
  • Preference certificate WCBD6.1.


Again, there may be additional forms to complete, which will be included with the tender documents.

LOCAL GOVERNMENT TENDER OR BID FORMS

At local level, each council may have its own forms, which you should enquire about directly.

How Tenders or Bids are Awarded


The document SBD / WCBD 6.1 explains how tenders or bids are decided. WCBD says:
  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to 2 decimal places.
  • In the event of equal points scored, the bid will be awarded to the bidder scoring the highest number of points for specified goals.

What this means in practice, is the following. After the closing date, an elementary check is done on all the tenders submitted to see if they comply with the formal requirements. For example, if you have not indicated a price, your tender will be disqualified.

Smaller mistakes or omissions may or may not disqualify you from the tender process; this is a question of interpretation of the tender rules. For example, if the rules say "may disqualify" rather than "must disqualify" for a specific mistake, it is up to the official doing the check to decide whether the mistake is important enough to this tender to disqualify you.

The next phase looks at compliance of the product or services with the specifications, and price. Those which do not comply with the specifications are removed from the list, while all the tenders which comply with the specifications are listed in order of price. Those that fall in the lowest price group are then considered in a lowest price tender list.

It is in this phase that the preference points come into play. All the preference points claimed by those on the list of lowest price tenders are first verified. Then the formula is applied to determine who of those on the lowest price list with verifiable points come out with the best result on points, and therefore who should be awarded the contract.

In other words, preference points only come into play after the most expensive tenders have first been excluded. This is to ensure that the most expensive options do not win solely on points, and also to speed up the process, as only those on the lowest price list have their preference points verified.

The Tender Bulletin shows who has won previous tenders, listing the price and other factors taken into account in awarding the tender.


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