What is a Tender?

What is a tender?

A tender is a formal invitation from a buyer — usually a government department, municipality, state-owned entity, or large private organisation — asking suppliers to submit priced offers to provide goods, services, or works.

In South Africa, most public-sector tenders are published by organs of state and must follow the rules of the Public Finance Management Act (PFMA), the Municipal Finance Management Act (MFMA), the Preferential Procurement Policy Framework Act (PPPFA), and the associated Treasury regulations.

Why tenders exist

The purpose of the tender process is to make public spending:

• Fair — every eligible supplier has an equal opportunity to bid.
• Transparent — the rules, requirements, and decision-making are published up-front.
• Competitive — price, quality, and B-BBEE contribution are weighed against each other.
• Accountable — decisions can be reviewed and audited.

What happens in a typical tender

1. The entity identifies a need (e.g. office cleaning, construction, IT support).
2. A tender is advertised on eTenders, the entity's website, and sometimes in newspapers.
3. Bidders collect the tender document and prepare their submissions.
4. A briefing session may be held — sometimes compulsory.
5. Bids are submitted by the closing date and time.
6. Bids are evaluated in stages: mandatory compliance, technical scoring, then price + B-BBEE.
7. An award is made to the successful bidder(s) and published.

What it means for you

Tendering is a long-term game. The first few bids you prepare will take longer than you expect. Once you have a solid base pack — company profile, CVs, CSD report, tax PIN, B-BBEE affidavit, standard forms — future bids become much faster.