Pastor Welcome Thamsanqa Mlungisi Dlalisa.

Another opportunity for young people in South Africa is tendering.
While entrepreneurs use mainly innovations and creative ideas to create products and services that help grow their businesses, tendering opportunities may not be excluded in the discussion. This can be used for both growing your enterprise and/or getting started.
However, this should not and cannot be used as the single method of running business. The problem is that tenders come and go. Whilst this is true, tendering opportunities cannot be ignored when we talk about growing your business as a young person in South Africa. Provisions and opportunities flowing from policy frameworks like broad-based black economic empowerment (BBB-EE) cannot be excluded when we talk about business empowerment opportunities for black young South Africans.
Just to give some background to this discussion. National government procurement (the obtaining of goods and services) had to be done through the State Tender Board. The State Tender Board has been dismantled and replaced by the Public Finance Management Act (PFMA) No.1 of 1999. The regulations to the State Tender Board Act of 1968 were amended in December 2003 so that the accounting officers of national departments can procure goods and services in terms of the PFMA.
A tender is an offer to do work or supply goods at a fixed price. Getting goods or services is also known as ‘procurement’. Since January 2004, government began referring to tenders as ‘bids’. When government ‘puts out a tender’ or ‘invites bids’, this means government asks the public for price offers to supply work or goods to the government. The 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 policies (known as ‘preferential procurement policies’), which guide 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. BEE considerations gives advantages to black owned entities and businesses. Young people in the township can exploit these preferential opportunities open to them.
Your first step is to identify tenders that are relevant to the goods or services that your business can offer and provide. Some people feel that is it difficult to find tenders and work for their business, however businesses that require goods or services want you to find their tenders and they want you to respond.
That is the reasons why tenders are usually found in obvious places such as newspapers and trade publications or magazines. Websites are a good place to start.
If you have a list of businesses that may need your services, log on to their websites to see is there is any further information available.
If they do not have any tenders available, they may very well have place for you to leave your details in order for them to contact you when tenders become available.
Most major businesses have web pages dedicated to tenders and business opportunities. Daily newspapers are also well worth the look.
Sometimes you will need to register your intent to apply to the tender, either by submitting a letter of intent or by attending a compulsory information session where you will register.
Key tips in responding to tenders are as follows:
– Ensure that all tender documents are completed in the correct format.
– Ensure that all documents are submitted on time.
– Most tenders require company registration documents (CIPC), original tax clearance, BEE certificate, prerequisite forms completed, in full and signed.
– All tenders must be submitted on time and within the set deadline.
– Apply for tenders that are in line with your core business and area of expertise.
– Price must be competitive and profitable.
– All set technical aspects must be considered as non-negotiable requirements.
– Your tender is a professionally presented document. It gives the impression that you are professional, reliable and efficient.
– Allow sufficient time to complete the documents and submit on time.
– Remember that no fax/telex/electronic mail tender submissions will be allowed
– All costs must be taken into account in your costing.
– All prices must be VAT inclusive, if VAT registered.
– The tender price must include a profit.
– It is important that tender prices are calculated properly as any changes to the tender price after the closing date will result in the tender being disqualified or the tender incurring losses
– Fill in and sign all forms in ink.
– Ensure that you address the documents correctly as stipulated in the tender documents.
– Supply the correct address for correspondence.
– State clearly, where requested, that you are authorised to offer the tender, and give proof of such authority.
– Seal the package/envelope and ensure that you clearly mark the tender number and the closing date and time on the outside.