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The tender glossary, in plain English.

Every term you will meet in a South African tender pack, defined the way a colleague would explain it. 39 terms, updated as the rules change.

8
80/20 preference points
The scoring system for tenders under R50M: 80 points for price, 20 for B-BBEE status level. The lowest qualifying price gets the full 80; others score proportionally less.
9
90/10 preference points
The scoring system for tenders over R50M: 90 points for price, 10 for B-BBEE. At this size, price dominates and preference matters at the margin.
A
Award
The buyer's formal decision naming the winning bidder. Published award data (supplier, value) is open data, which is what powers Bidcheck's Buyer Intelligence.
B
BAS
The Basic Accounting System used by national and provincial government. Treasury publishes BAS payment data showing actual payments made to suppliers.
B-BBEE certificate
Proof of your Broad-Based Black Economic Empowerment status level (1 to 8). Issued by a SANAS-accredited verification agency, or by sworn affidavit for EMEs and qualifying QSEs. Valid 12 months.
B-BBEE status level
Your empowerment rating from Level 1 (best, 135%+ recognition) to Level 8. Determines your preference points in tender scoring.
Bid
Your complete tender submission: pricing, returnable documents, SBD forms and any technical proposal. 'Bid' and 'tender response' are used interchangeably.
Bid bond / tender deposit
A guarantee some tenders require to ensure winners sign the contract. More common in construction; the tender pack states the amount.
Briefing session
A pre-bid meeting (on site or online) where the buyer explains the requirement. If marked compulsory, missing it disqualifies your bid automatically.
Buyer / organ of state
The government entity purchasing: a national or provincial department, municipality, or public entity (SOE).
C
CIDB grading
Construction Industry Development Board contractor grading from 1 to 9, combining works capability and financial capacity. Construction tenders state the minimum grade, e.g. 6CE for civil works.
Closing date / closing time
The deadline for submissions. Late means disqualified, with no exceptions, even by a minute.
COIDA letter of good standing
Proof you are registered and paid up with the Compensation Fund for workplace injuries. A standard returnable when you employ staff.
CSD (Central Supplier Database)
Government's master supplier register at csd.gov.za. Your MAAA number is required before any organ of state can pay you. Registration is free.
E
EME (Exempted Micro Enterprise)
A business with annual turnover under R10M. Automatically B-BBEE Level 4, or Level 1 if 100% black-owned, proven by a free sworn affidavit instead of a verification certificate.
eTenders portal
National Treasury's official publication site for public tenders (etenders.gov.za). Bidcheck syncs its open data feed continuously.
e-Submission
Tenders that accept electronic submission through a portal instead of a physical bid box. Check the submission method in the tender pack; many still require hard copy.
Evaluation criteria
How the buyer scores bids: usually compliance gates first, then functionality (quality) if applicable, then price and preference points.
F
Fronting
Misrepresenting black ownership or management to claim B-BBEE benefits. A criminal offence under the B-BBEE Act with penalties up to 10% of turnover and blacklisting.
Functionality score
A quality threshold used on technical tenders. Bids must score a stated minimum (e.g. 70%) on experience, methodology and resources before price is even considered.
J
Joint venture (JV)
Two or more businesses bidding together, often to combine a strong B-BBEE level with technical capacity or a CIDB grade. The JV agreement is a returnable.
M
MAAA number
Your unique CSD supplier number, formatted MAAA0000000. Buyers use it to verify your tax, banking and ownership details in real time.
O
OCDS
The Open Contracting Data Standard, the international open-data format National Treasury uses to publish tenders and awards. The reason platforms like Bidcheck can exist.
P
Preferential procurement
The legal framework (PPPFA) requiring organs of state to score bids on price plus B-BBEE preference points.
PSIRA
The Private Security Industry Regulatory Authority. Security tenders require PSIRA registration at a stated grade (A to E) for the business and officers.
Purchase order (PO) funding
Bridging finance advanced against a signed government order so you can buy stock and pay staff before the state pays you. See SEFA bridging loans.
Q
QSE (Qualifying Small Enterprise)
Turnover between R10M and R50M. 51%+ black-owned QSEs qualify for Level 2 (100% black-owned for Level 1) via affidavit; others need full verification.
R
Returnable documents
Everything that must come back with your bid: SBD forms, certificates, registrations, proofs. Most disqualifications are a missing returnable, not price.
RFI (Request for Information)
A market-scoping exercise, not a tender. No award follows, but responding puts you on the buyer's radar for the real tender.
RFP (Request for Proposal)
A tender where the solution is open: you propose approach and price, scored on functionality plus price and preference.
RFQ (Request for Quotation)
A simplified process for smaller purchases (typically under R1M). Shorter forms, faster turnaround, often sent to CSD-registered suppliers directly.
S
SBD forms
Standard Bidding Documents required in every bid: SBD 1 (invitation), SBD 4 (declaration of interest), SBD 6.1 (preference points claim), SBD 8 (past practices), SBD 9 (independent bid determination).
SCM (Supply Chain Management)
The buyer-side procurement function and its rules. 'SCM unit' is who you call with tender admin questions.
Set-aside
A tender reserved for a category of bidder, e.g. EMEs, QSEs, youth-owned or local businesses. Check eligibility before bidding.
SOE / public entity
State-owned enterprises and schedule entities (Eskom, Transnet, Rand Water, SANRAL). They run their own procurement but publish to the same standards.
T
Tax clearance / tax compliance status pin
Your SARS pin proving tax affairs are in order. Verified live by buyers via CSD; an expired or red status sinks otherwise winning bids.
Tender pack / bid document
The full document set describing the requirement, conditions, evaluation method and returnables. Read the special conditions first.
Tender validity period
How long your offer must stay open after closing (often 90 to 120 days) while evaluation happens.
Two-envelope system
Technical and price proposals submitted separately; price is only opened for bids that pass functionality.
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