Understanding Different Types of Tenders in South Africa
Whether you're a new business seeking to enter the public procurement space or an established supplier navigating complex procurement systems, it's essential to understand the different types of tenders and procurement methods used by South African government departments and public entities. Below is a breakdown of the most common types of tenders and what they mean for you as a supplier.
🔹 1. Request for Bid (Open Tender)
Definition:
An Open Tender is a competitive procurement method where any qualified supplier may submit a bid in response to a public advertisement. This is the most transparent and widely used method in the South African public sector.
Where It’s Used:
For high-value contracts above the prescribed threshold
When transparency, fairness, and value for money are priorities
When the buyer wants to maximize competition
Process Highlights:
Publicly advertised on platforms like eTenders.gov.za
Suppliers submit a detailed response, including pricing, compliance documents, and technical proposals
Evaluation is done according to Preferential Procurement Policy Framework Act (PPPFA) guidelines, using a points system (e.g. 80/20 or 90/10)
Opportunities & Challenges for Suppliers:
Ideal for new suppliers to break into the market
High competition and compliance expectations
Bidders must meet B-BBEE, tax clearance, and CSD registration requirements
🔹 2. Request for Bid (Limited Tender)
Definition:
A Limited Tender (also called closed tender) involves inviting selected suppliers to submit bids without advertising the opportunity publicly.
Where It’s Used:
When there are few qualified suppliers in the market
In emergency procurement situations (e.g., natural disaster response)
For proprietary or specialized goods/services
Process Highlights:
Only invited suppliers may respond
Still follows procurement rules but with fewer participants
Requires justification and internal approval
Implications for Suppliers:
More likely to be used for specialized suppliers
Limited public access—networking with departments can lead to invitations
Businesses must be registered on CSD and maintain up-to-date profiles to be considered
🔹 3. Request for Quotation (RFQ)
Definition:
An RFQ is a simplified procurement process used to quickly obtain prices and basic service information from a few selected suppliers, usually for low-value or routine purchases.
Where It’s Used:
For goods and services under a set financial threshold (e.g., R30,000)
When a full tender process is not justified due to low risk or cost
Frequently used by municipalities, schools, and smaller departments
Process Highlights:
At least three written quotes are usually obtained
Must be compared based on price and quality
Procurement officer awards to the most suitable offer
Tips for Suppliers:
Keep your CSD profile and tax status updated to be considered
Regularly check opportunities sent by email or internal supplier databases
Ensure your quotes are professional, responsive, and timeous
🔹 4. Request for Information (RFI)
Definition:
An RFI is a non-binding process used to gather information from the market to understand available solutions, innovations, or supplier capabilities.
Where It’s Used:
Before issuing a tender or RFP
To explore feasibility, technology trends, or supplier options
Often used for complex projects (e.g., IT systems, public infrastructure)
Process Highlights:
No award is made—purely exploratory
Used to guide future tenders
May involve questionnaires, workshops, or presentations
Supplier Role:
Showcase your capabilities, innovations, or technologies
Build relationships with procurement officers
Position yourself for the subsequent tender or RFP
🔹 5. Request for Proposal (RFP)
Definition:
An RFP is used when a buyer is seeking a solution to a complex problem, and price is not the only factor in determining the award. It allows suppliers to propose methodologies, innovations, and strategies.
Where It’s Used:
Professional services (consulting, legal, engineering)
IT systems, research projects, development programs
Projects requiring creativity, customization, or value-added solutions
Process Highlights:
Focuses on value-for-money, not just price
Evaluation criteria include methodology, team qualifications, experience, and innovation
May involve negotiation or clarification rounds
Supplier Considerations:
Strong proposal writing and project planning are essential
Demonstrate your unique approach, case studies, and capacity
Technical and financial proposals are usually submitted in separate envelopes
🔹 6. Expression of Interest (EOI)
Definition:
An EOI is a preliminary process inviting suppliers to express interest in a future opportunity. It’s used to pre-screen or pre-qualify vendors before a tender is issued.
Where It’s Used:
When the buyer needs to build a shortlist or assess the market
Infrastructure projects, long-term service agreements, or framework contracts
To reduce the administrative burden for complex projects
Process Highlights:
Submission usually includes company profile, experience, CSD documents
Not evaluated on price, but on capability
May lead to inclusion in a closed RFP or tender list
For Suppliers:
EOIs are your chance to get on the radar early
Focus on highlighting your track record and expertise
Maintain a compelling, compliance-ready company profile
🔹 7. SITA Contract
Definition:
SITA (State Information Technology Agency) contracts relate specifically to government ICT procurement. SITA manages the procurement of IT hardware, software, and services on behalf of government departments.
Where It’s Used:
For all technology-related procurement by public entities
Software licenses, networks, cybersecurity, ICT support
Procurement done through SITA’s central database
Process Highlights:
Suppliers must be registered on the SITA supplier database
Contract awards are listed on the SITA website
Stringent technical and compliance evaluations
Supplier Requirements:
Must be ICT specialists
Often requires OEM authorization, accreditations, and SITA-specific compliance documents
Higher chances with a strong portfolio of government work
🔹 8. Transversal Contract
Definition:
A Transversal Contract is a centrally negotiated contract by National Treasury that allows multiple departments to procure the same goods/services at standardized pricing.
Where It’s Used:
Common goods like laptops, vehicles, stationery, and fuel
Services like travel, courier, and security
To promote bulk buying and reduce procurement duplication
Process Highlights:
A lead department runs the original tender
Participating departments "call off" goods or services as needed
Suppliers deliver directly to departments under pre-agreed terms
What This Means for You:
Being awarded a transversal contract gives you nationwide access
Requires strong distribution/logistics capacity
Payments and engagements still handled by each participating department
🔹 9. Participation
Definition:
Participation refers to one department or entity using an existing tender or contract awarded by another government body. This is allowed when it is cost-effective and within regulations.
Where It’s Used:
Smaller departments "participate" in bigger transversal or provincial contracts
Can happen informally with approval from relevant authorities
Key Points:
Saves time and money for government
Suppliers must ensure pricing and deliverables remain consistent
Participation must be properly documented and approved
🔹 10. Deviation
Definition:
A Deviation is when a public institution departs from standard procurement procedures, usually due to urgency or unique circumstances. It must be justified and is only permitted in exceptional cases.
Where It’s Used:
Emergencies (e.g. pandemics, service interruptions)
Sole-supplier situations
Urgent repairs or one-off requirements
Process Highlights:
Must be approved internally with full motivation and documentation
Not a preferred method—often reviewed by oversight bodies
May attract audit attention if misused
What to Watch For:
Deviation-based contracts may be short-term or once-off
Opportunities are usually not publicly advertised
Ensure proper delivery and documentation if awarded through this channel