A tender is an offer to do work or supply goods at a fixed price. Getting goods or services is also known as "procurement". Tenders and bids are the same thing. When government "puts out a tender" or "invites bids", this means government asks the public for price offers to do work or supply goods. Government then assesses who to choose based on the prices offered and the nature of the person or company making the tender.
The tender or bid process is designed to ensure that the work to be done for government is given out in a fair way. There are a number of procurement policies with special mention of the Preferential Procurement Policy Framework Act (PPPFA) that guides government on how to make decisions on which tender to accept. Although price is very important in the decision on which tender or bid to accept, it is not the only factor taken into account.
Once government accepts a tender, it is binding on both parties. This means that the person or company that won the tender has to provide the goods or services in the manner agreed to and at the price offered, and government must pay the agreed price at the agreed time. In other words, once accepted, a tender is a binding contract.
Tenders at all levels of government (national, provincial, local) must be advertised.
You can also subscribe by post to the Government Tender Bulletin for an annual fee by contacting the Government Printer: Private Bag X85, Bosman Street, Pretoria, 0001. You may also contact the Government Printer on 012 334 4735 / 012 334 4736 / 012 334 4737.
Detailed information about forms, compulsory meetings and tender process is described in the Provincial Treasury Instructions (PTIs).
The five district councils and 24 local councils in the Western Cape are required to advertise their tenders in local newspapers and in public places, such as libraries and council noticeboards.
Other information of interest:
- Declaration of Interest
- Insight into Supply Chain Management in a Municipal Environment
- Know the basics of How to do Business with Government
- Preferential Procurement & Broad Based Black Economic Empowerment
- Unsolicited Proposals
- Vat Implications in the tendering/bid process
- Performance Management in Supply Chain Management
- Certificate of Independent Bid Determination (SBD 9)