government tenders are open the eligible people to apply but there are some requirements that must me made . While it is true that a single tender is capable of changing your life forever, it is also true that the tendering process is a tedious and tricky one. Many people give up at the preliminary stages and the few that soldier on have horror stories to tell of long delays, bribery and the general hassle that goes into securing a tender.
REQUIREMENTS TO APPLY GOVERNMENT TENDERS
STEP 1 you must acquire an Access to Government Procurement Opportunities (AGPO) certificate. To qualify for this certificate under the preference and reservations schemes, an enterprise owned by youth, women or people with disabilities should be a legal entity that:
a) Is registered with the relevant government body;
b) Has a proprietorship or directorship of at least 70 per cent of the preference group they wish to apply for, for instance made up of 70 per cent women to qualify for the women’s category.
Step 2 – If business is a partnership, get a partnership deed from a lawyer, if it is a limited company a CR12 from the registrar of business names and for a co-operative, its constitution and membership.
Step 3 – Acquire a PIN and tax compliance/ tax exemption certificate from the Kenya Revenue Authority website or offices.
Step 4 – Acquire all required certifications from professional bodies and authorities such as National Construction Authority, Insurance Regulatory Authority, ICPAK, LSK, National Council for Persons with Disability, NEMA, ERC and all other authorized bodies.
Step 5 – Open a bank account for the business and acquire a bank reference from the bank for payment of government tenders
HOW TO APPLY FOR TENDERS
1 Documentation: Make sure you have the above documents
2 . qualification –
Now that you have your documentation in order and your shiny door opening Access to Government Procurement Opportunities (AGPO) certificate, you can register for pre-qualification.
Pre-qualification is the process of registering your company to supply goods, works, services and consultancies to whichever institution sends out a Notice for Pre-Qualification. If you are successful at pre-qualification and your company is shortlisted as a supplier, then you are half-way there.
3. paper work
government Tender Notices are circulated nationally, for instance in newspapers, and lately, on the Treasury website, (hhtp://supplier.treasury.go.ke).
Bidders are then given a period to purchase or download the tender document from their website. The bids that ultimately comply with the eligibility criteria of the notice and the bidding document are evaluated after tender opening. The tender is then awarded after an exhaustive evaluation.
4. financial proposals
The technical proposal may get you through the first round of elimination, but your financial proposal will define whether or not the man hours and resources put into the project are worth it.
To successfully win a tender, your financial proposal needs to be the most competitive. Many think this means your bid needs to be the lowest, but this is not always true.
The institution’s procurement committee will not only compare your quote to what is readily available in the market, they will also consider your volumes and specifications. In a case where your cost is higher, but your specifications better, you may win over a lower cost with poor or average specs
5. bank credit – government Tender documents will ask you to specify your credit period because even with a Local Purchase Order (LPO), institutions can take up to 90 days to honour an invoice; sometimes more. You are, however, contractually obligated to continue supplying the goods, works or services for the duration of the contract.
6. follow with creditors –
HOW TO WIN GOVERNMENT TENDERS
1 Know the types of tenders and financing methods
Currently, Jamii Bora Bank provides a one-day training covering topics from types of tenders, how to price bids and identifying credible procuring entities. This training is also complemented by the bank’s trade finance solutions, such as bank guarantees, LPO financing and invoice discounting.
2. Create connections
Connections are key when it comes to getting the right tender to bid for. Jamii Bora equips its trainees with information on financing, helps them build networks with like-minded individuals, and connects people to tenders that are beneficial to them.
3. request quotations
As a supplier for government tenders, you should standardise your product prices in terms of quantity, quality, terms of contract, as well as human resources before you send it to the buyer. This will help you win or lose your bid.
4.Do a proper cost analysis when calculating your bid prices.Bids calculated too high or too low are considered unresponsive.
5. Inquire about the bid and obtain all the relevant information before completing the tender document.
6. Feel free to ask why you were unsuccessful so that you maylearn from mistakes made.
7. Make sure that you are able to meet all the requirements within the specified time and are able to honour your offer in the event that your bid is successful.
8. Do not make any misinterpretations or false statements in your bid documentation.It is a legal document and therefore enforceable by law.
9. Be patient. Pre-qualification is likely to take up to a year or more as public entities pre-qualify annually or even bi-annually
10. follow up – in the event you lose the bid, it is important to follow up with the organisation to find out why you missed it, it might be good insight into how to win the next one