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Tips For Submitting a Responsive Tender

Tips For Submitting a Responsive Tender

Moore Forensics

Public sector procurement is the process through which public entities purchase goods, works or services from suppliers to ensure these public entities fulfil their Constitutional Mandate of service delivery[1] and general good governance[2]. It should be noted that public procurement is not only trailed by legal importance, but due to the substantial amount of public funds being involved, the extended importance of public procurement is amplified when the economical and societal impact is brought into focus.
 
The general procurement guidelines issued by National Treasury states that “proper and successful government procurement rests upon certain core principles of behaviour - the Five Pillars of Procurement”. These pillars are Value for Money, Open and Effective Competition, Ethics and Fair Dealing, Accountability and Reporting, as well as Equity. In keeping in-step with these pillars and being mindful of the legal obligations stipulated in the Constitution and the PMFA, public entities are stringent and thorough when evaluating which tenderer/s is/are awarded a bid. Also, to fully enforce these pillars, the public procurement process has a committee system which deals with drafting the specifications, evaluating the tenders received and lastly adjudicating recommendations made. To ensure the integrity of the procurement process and unnecessary disqualifications, there are certain do's and don'ts that tenderers need to adhere to so that a tender is deemed responsive which will enable them to further compete with other tenderer/s.
 
Based on our experience, the following do’s and don’ts have been compiled after having reviewed countless bid submissions in relation to various tenders: -
 
The Do's – tenderers are to
 
  1. Establish whether any legislation would be applicable (for the type of goods or service that is required). Where a particular legislation is found to be applicable/ active, tenderers are to familiarize themselves with same in order to ensure their bid will not be found ‘deficient’. In addition, tenderers are also encouraged to familiarize themselves with any changes with regards to regulations that may affect the tender process.
  2. Research and seek clarity from the public entity with regards the content and requirements of the tender to ascertain whether the tenderer will be able to deliver the goods or service. This will assist in determining whether the tenderer is not only capable of delivering the required goods or service but whether the tenderer would require additional resources in order to ensure the successful delivery under the tenderer. If the latter is answered in the affirmative, the tenderer is then able to further consider how such resources will be obtained and initiate the required steps to provisionally secure the additional resources, pending the favourable consideration to the tenderer’s bid.
  3. Read and familiarize themselves with the contents of the tender document and ensure that the tenderer understand all the tender requirements, specifications, and conditions.
  4. Where applicable, ensure that the tenderer is registered with the relevant Statutory Body or any Affiliation/s within the tenderer’s industry as prescribed in the tender document. This will ensure that the tenderer meets the requirements regarding any Statutory Bodies/Affiliations stipulated in the tender document.
  5. Attend compulsory or non-compulsory clarification/briefing meetings so that any uncertainties can be clarified. This will assist the tenderer/s to obtain a clear and better understanding of the tender requirements and expectations.
  6. It is the tenderer/s obligation to ensure that all returnable documents are fully completed and signed by the authorized person. Incomplete tender documents and not supplying all requested documents may lead to disqualification from the tender process.
  7. Ensure full compliance with the requirements of the tender document, i.e. public entities usually advise tenderers to complete tender documents with black ink. This is to ensure that the information provided by the tenderers cannot be altered without noticing the changes. Where an error or alteration is made, the tenderer is advised to countersign next to the change to avoid heightened suspicion.
  8. Tenderer/s is/are to ensure that offers are market-related after taking into account all requirements stated in tender document. An example would be the CIDB grading threshold. A CIDB grade 6 maximum value is R20 million, therefore the tenderer’s submitted offer should approximate this value. By so doing, the tenderer’s bid will be considered competitive.
  9. Allow for sufficient time to review tender documents to ensure that it is submitted on the closing date and the timeous submission of the document.
  10. Attend tender openings so that all submissions and prices are noted. This will give the tenderer an idea of who the competition is as well as enabling the tenderer to make necessary adjustments for future tenders.
  11. Where the bid has been considered non-responsive, the tenderer should query the reasons for such consideration. By so doing, the tenderer will be able to prevent similar mistakes in future.
  12. Where a tenderer feels aggrieved by the outcome of the tender process, the tenderer has the right to object (within 14 days of receipt of communication) or appeal the process or decision to the relevant authorities.
  13. Report all suspected corruption and fraud via the applicable whistleblowing channels. This will promote ethical conduct and transparency in the tender tendering process.
 
The Don'ts:
 
  1. The tenderer is not to assume the bid evaluation committee knows the tenderer. Therefore, the tenderer is to provide sufficient information about the tenderer, its capabilities, and resources to increase the tenderer’s chances of success.
  2. Do not submit an incomplete tender document. Incomplete documents may lead to disqualification of the tender.
  3. Do not submit misleading, unverifiable, and fraudulent information. This may lead to legal and reputational repercussions for the tenderer.
  4. Refrain from interfering or influencing the bid evaluation process. This is to ensure a fair and transparent evaluation process.
  5. Do not assume that there will be a second opportunity to submit documentation or pricing. Submit all required documents and pricing accurately and within the given timeframe.
  6. Do not cut and paste information from previous tenders. Each tender is unique, and submissions should reflect that uniqueness.
  7. Refrain from colluding with other tenderers as this may lead to the tender being disqualified, and criminal proceedings being instituted against the tenderer. This is to ensure a fair and competitive tendering process.
 
It is critically important that tenderers understand and follow the rules and regulations in the public procurement sphere. A reasonable understanding will ensure the levelling of the playing field. Being a tenderer in public procurement requires adherence to certain do's and don'ts to ensure a successful, competitive, and fair tendering process. In view of the above, these cannot guarantee that the tenderer will be successful, but merely serves as guidelines to ensure the tenderer’s bid is responsive and will be considered during the evaluation stage.
 
Where additional information or assistance with preparation, review, lodging an objection or appeal or simply an internal review of a tenderer’s Supply Chain System is required, get in touch you’re your local Moore firm here.
 
[1] Sections 152(1)(c) and 217 of the Constitution of South Africa, 1996 (as amended) 
[2] Preamble to the Public Finance Management Act, 1 of 1999 (as amended)