Finding a tender is only the first step. Understanding how government tenders are actually evaluated and awarded is what determines whether your bid has a real chance, and it’s the part most first-time bidders get wrong.
What a Tender Actually Is
A tender is a formal, competitive process for awarding a contract to supply goods or perform work, most commonly used by government departments, municipalities, and state-owned entities. It exists specifically to ensure the work is awarded fairly to whoever qualifies and offers the best value, not simply to the lowest bidder or the first applicant.
What Every Tender Advert Sets Out
A properly advertised tender specifies:
- Where interested bidders can collect the required tender documents
- Whether a compulsory briefing session will be held, and where
- Where and how completed bids must be submitted, along with the closing date and time
Late submissions are not accepted under any circumstances, regardless of the reason. Every bid must include a proposal that directly addresses the requirements set out in the bid document, the standard bidding documents (SBDs) specified, and a valid tax clearance status confirmation from SARS.
How Tenders Are Evaluated and Awarded
South African government tenders are scored using the preference points system set out under the Preferential Procurement Policy Framework Act. Depending on the contract value, this is either an 80/20 split (80 points for price, 20 for B-BBEE contribution) or a 90/10 split (90 points for price, 10 for B-BBEE contribution) for higher-value contracts.
The evaluation generally works like this:
- Functionality assessment first. A bid must meet the minimum functionality threshold set out in the tender document before it is scored further. Bids that fail this stage are eliminated regardless of price.
- Price and preference scoring. Surviving bids are scored comparatively on price, then B-BBEE preference points are added on top, using the applicable 80/20 or 90/10 split.
- Highest combined score wins. Where two bids score equally, the tender is awarded to whichever bidder scored higher on the specified goals or preference criteria.
Successful bidders are typically notified by email or letter. If a bid document lists a specific evaluation contact, querying the outcome through that contact rather than a general enquiries line will get a faster answer.
Where to Actually Look for Tenders
Once you understand how bids are scored, the next step is finding the right opportunities to bid on in the first place. Our guide to where to actually find tenders in South Africa covers the government portals, provincial and municipal sources, and private-sector supplier programmes worth monitoring.
Before you submit anything, make sure your company registration, SARS tax compliance, and B-BBEE status are current. None of these can be sorted quickly once a closing date is already near, and an incomplete submission is disqualified regardless of how strong the underlying proposal is.
