The short answer
South African tenders use their own vocabulary: an RFQ is a request for quotation for smaller purchases, SBD forms are the standard bidding documents, the CSD is National Treasury's supplier database, and 80/20 or 90/10 is how points are split between price and specific goals. A compulsory briefing missed usually means disqualification.
Government tender documents use a lot of their own vocabulary. These are the terms South African bidders meet most often, in plain language, checked against National Treasury's forms and regulations. For how the forms fit together, read the SBD forms explained; to get started, register on the CSD; for construction, see CIDB grading.
When you're ready, browse open government tenders. Honde reads each tender's documents and lists the requirements that would disqualify a bid.
- 80/20 preference point system
- Under the Preferential Procurement Regulations, 2022, used for tenders with a Rand value up to R50 million (all applicable taxes included): up to 80 points for price and up to 20 for specific goals.
- 90/10 preference point system
- Used for tenders with a Rand value above R50 million: up to 90 points for price and up to 10 for specific goals.
- Bid box
- The locked box at the buyer's offices where hard-copy bids are deposited before the closing time. SBD 1 gives its address.
- Bid validity period
- How long your offer stays open for acceptance, counted from the closing date or time. The tender sets it, and the SBD 7 contract forms make your offer binding during it.
- B-BBEE status level
- A business's broad-based black economic empowerment rating, from Level 1 (highest) to Level 8 or non-compliant, proved with a verification certificate, a sworn affidavit (EMEs, and QSEs at least 51% black owned) or a CIPC certificate (EMEs).
- Central Supplier Database (CSD)
- National Treasury's free database of suppliers to government. Registration gives a supplier number starting with MAAA, which the SBD forms ask for.
- CIDB grading
- A construction contractor's registration with the Construction Industry Development Board, written as a grade (1 to 9, by tender value) and a class of works, such as 4GB or 6CE.
- Closing date and time
- The deadline for submitting a bid. SBD 1 states that late bids will not be accepted.
- Compulsory briefing session
- A meeting or site inspection the tender says bidders must attend, usually signing an attendance register. Missing a compulsory briefing usually disqualifies the bid.
- Consortium or joint venture (JV)
- Two or more businesses bidding together. Under SBD 1, each party must submit its own tax compliance status PIN or CSD number.
- Exempted Micro Enterprise (EME)
- Under the generic B-BBEE codes, a business with annual revenue of R10 million or less. It proves its level with a sworn affidavit or a free CIPC certificate.
- eTender Portal
- National Treasury's website, etenders.gov.za, where national and provincial departments and public entities must publish their open competitive bids.
- Functionality
- The quality part of an evaluation: experience, methodology, staff and capacity, scored against criteria in the tender. A tender that uses it usually sets a minimum score, and bids below it are not evaluated further on price and preference.
- General Conditions of Contract (GCC)
- National Treasury's standard terms that apply to government contracts, alongside any special conditions in the tender. SBD 1 makes every bid subject to them.
- List of Restricted Suppliers
- National Treasury's list of suppliers barred from doing business with the state. SBD 4 says a listed person is automatically disqualified, as is anyone on the Register for Tender Defaulters.
- MBD forms
- Municipal bidding documents: the municipal versions of the SBD forms, such as MBD 1 and MBD 6.1.
- Person in the service of the state
- SBD 1 says no bids will be considered from persons in the service of the state, or from companies or close corporations whose directors or members are. SBD 4 asks whether any director, trustee, shareholder, member or partner is employed by an organ of state.
- Pmin
- The price of the lowest acceptable tender, used in the price formula: Ps = 80 × (1 − (Pt − Pmin) ÷ Pmin) under 80/20, or 90 under 90/10, where Pt is the price being scored.
- Preferential Procurement Policy Framework Act (PPPFA)
- The Act (No. 5 of 2000) under which the preference point systems are set. Its current regulations are the Preferential Procurement Regulations, 2022, in force since 16 January 2023.
- Qualifying Small Enterprise (QSE)
- Under the generic B-BBEE codes, a business with annual revenue between R10 million and R50 million. If it is at least 51% black owned it can use a sworn affidavit; otherwise it needs verification.
- RFB (request for bid)
- An invitation to submit a bid, the term many organs of state use for a competitive tender.
- RFP (request for proposal)
- An invitation to propose how you would deliver a service, often professional services, usually evaluated on functionality as well as price and specific goals.
- RFQ (request for quotation)
- An invitation to quote for a smaller purchase, below the threshold where competitive bidding is required.
- SBD forms
- National Treasury's standard bidding documents: SBD 1 (invitation to bid), SBD 3.1 to 3.3 (pricing schedules), SBD 4 (bidder's disclosure), SBD 6.1 (preference points claim) and SBD 7.1 to 7.3 (contract forms).
- Specific goals
- The goals a tender awards preference points for under the 2022 regulations, for example contracting with people historically disadvantaged by race, gender or disability. Each tender states its goals, the points for each and the proof required.
- Sworn affidavit (B-BBEE)
- A statement of a small business's B-BBEE level on the dtic template, signed in front of a commissioner of oaths. Valid for 12 months from the date it is commissioned.
- Tax compliance status (TCS) PIN
- A PIN from SARS that lets a buyer check your tax compliance status on eFiling as at the moment they check. SBD 1 asks for it or your CSD number. Request it on SARS eFiling.
Questions people ask
What is the difference between an RFQ and a tender?
An RFQ (request for quotation) is used for smaller purchases, with written quotes from suppliers. Larger purchases go out to competitive bidding (a tender), advertised publicly, usually on the eTender Portal.
What does 80/20 mean in a tender?
Under the 2022 preferential procurement regulations, 80 points go to price and up to 20 to specific goals for tenders up to R50 million, including taxes. Above R50 million the split is 90/10.
What is a compulsory briefing session?
A meeting or site visit the tender says bidders must attend. If it is compulsory, a bidder who didn't attend and sign the register is usually disqualified.
What is a bid validity period?
How long your offer stays open for the buyer to accept, counted from the closing date. The tender states it, and the SBD contract forms make your offer binding during it.
Sources this guide was checked against
- National Treasury: Preferential Procurement Regulations, 2022 (Government Gazette 47452) (archive.treasury.gov.za)
- National Treasury (OCPO): Standard Bidding Forms (ocpo.treasury.gov.za)
- Central Supplier Database (secure.csd.gov.za)
- SARS: manage your Tax Compliance Status (sars.gov.za)
- National Treasury: PFMA SCM Instruction No. 9 of 2022/23, mandatory use of the eTender Portal (ocpo.treasury.gov.za)
- cidb: overview of the Register of Contractors (cidb.org.za)
- the dtic: B-BBEE sworn affidavit template for Exempted Micro Enterprises (general) (thedtic.gov.za)
Rules and forms change. If an advert or tender document says something different, follow it.