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Do you consider market related prices,or is it just ,the lowest price wins the bid

Market related prices.

  • Submissions to Government (National) are evaluated as follows:
    0 - 30 000 = lowest compliant response is generally appointed (quote process)
    30 000 to 500 000 = using 80/20 points system (80 = price and up to 20 = BEE) compliant supplier with highest points is generally appointed (quote process)
    500 000 to 1 000 000 = using 80/20 points system (80 = price and up to 20 = BEE) compliant supplier with highest points is generally appointed (BID process)
    Above 1 000 000 = using 90/10 points system (90 = price and up to 10 = BEE) compliant supplier with highest points is generally appointed (BID process)
    Also remember that with BID process, other factors are taken into account but these are generally specified on the bid document

    Local Government has different levels
  • Supply Chain professionals should always perform a reality check on prices. They get trained to research the product or service before in order to have a view on realistic pricing. Then there is also a comparison between the prices provided by competitive bids and if one is significantly higher and lower it prompts them to investigate if those prices are realistic.
    This is the theory though and one cannot confirm that it is applied in 100% of cases in public sector procurement.
  • In reply to James P:

    This is all good and well on paper,however id like you to investigate why the same companies gets most of the jobs all the time,while the rest of us is scrambling for scraps.
  • In reply to ismail hendricks:

    We constantly aim to create the awareness among suppliers to challenge behaviour that is not in line with regulations but there is a fear of retribution and hence people keep quiet and remain unhappy.
    We are an independent service provider and community and we are not able to investigate many transactions ourselves. Do you think it will help to have the ability for suppliers to question awards made that they do not believe is fair or above board? Then we can automate a complaint process.
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