An invitation to tender is a formal, structured procedure for generating competing offers from different potential suppliers or contractors looking to obtain an award of business activity in works.
1. It has come to the attention of the Board that there are some Procuring Entities (PEs) that continue to require bidders to submit certified copies of PPADB certificates, Tax Clearance certificates, Trade licenses, National Identity Cards, and other documents during the tendering process for compliance purposes. This places a lot of burden on bidders as each time they submit tenders they need to certify copies which are also said to expire every 3 (three) months. The Board wishes to provide clarification to Procuring Entities (PEs) and contractors on mandatory documentation required to be submitted by bidders for tendering purposes.
2. The Board herewith highlights the revised requirements for tendering purposes. Please note that the list is not exhaustive. Bidders are advised to refer to specific tender documents for any other compliance requirements that will not call for certified copies;
2.1. PPADB registration certificate: Submission of a certified PPADB certificate is no longer a requirement. Tender documents should state codes, sub-codes, and grades for Works related tenders required with a statement to the effect that procuring entities will verify contractor registration status online. Procuring Entities should verify the status of PPADB registration of any contractor online through the Integrated Procurement Management System (IPMS) for public tenders at http://ipms.ppadb.co.bw
2.2. BURS Tax Clearance: For local companies, they should provide a tax registration number and the tax clearance certificate number. The verification of the validity of the BURS Certificates should be done by procuring entities on the BURS e-services portal at www.burs.org.bw
Foreign companies not based in Botswana should be required to submit a copy of a certified tax exemption from BURS.
2.3. Declaration form for tendering purposes: The form is to be filled in full. An oath is to be taken before the Commissioner of Oath to attest to the correctness and truthfulness of the information provided. Part B of the form is to be completed by 100% citizen-owned companies in order for them to be eligible for participation in Reserved Projects or gain Price Preferences. Contractors should not be required to attach any other documents from CIPA.
2.4. Certified Copies of identity Card: Submission of certified copies of National Identity (Omang) is not required. Bidders should provide a National Identity (Omang) number or notarized copy of their Passport for foreigners.
2.5 Trade licenses: No longer required as Compliance documents.
2.6. Academic qualifications: Provision of proof of registration with a professional body or academic qualifications where there is no professional body regulating the required discipline. This should be certified by commissioners of oaths or notarised by Notary Public.
2.7. EDD certificate: EDD certificate has been added as a requirement for qualification for preference under citizen empowerment schemes for supplies, services, and works. It is required that a copy be submitted. Procuring Entities will then verify the certificate with the Ministry of
Investment, Trade, and Industry (MITI). The copy of the certificate, therefore, does not need to be certified.
2.8 Proof of Citizenship /CEE Policy – Procuring Entities are advised that where there is a requirement to prove citizenship in bidding documents, bidders should be requested to provide national identity card numbers of the shareholders of the company and not copy of their identity document (Omang). The PE can then verify the information with the National Registration Office.
2.9 2-5 days grace period to submit missing information: Procuring entities are still required to give bidders 2-5 days from the date of notification to submit missing documents or correct compliance documents as per Circulars No.1 and 5 of 2016.
3. PEs are advised that Tender Documents should therefore be amended accordingly to include the above requirements.
4. Micro Procurement
4.1. The Board has also been made aware that PEs require the above-mentioned documents under micro procurement. PEs are reminded of Regulation 60 (2) in the PPAD Regulations which states that “In the micro procurement method, the selection of a supplier shall be conducted on a sole supplier basis without competition and without the requirement of the following – (a) bidding documents; (b) written bid; and (c) signed contract document”. The Board appreciates that for governance purposes PEs prefer to source quotations from suppliers to ensure competition at the micro procurement level. However, contractors should not be unduly burdened by onerous demands at this level.
4.2. PEs are reminded of PPADB Circular No. 7 of 2017 which exempted small businesses who wish to engage in micro procurement (at the time micro procurement was P30, 000.00, and the threshold was increased to P50, 000.00 in 2016) from registering with PPADB.
4.3. The Board advises PEs to keep lists of suppliers which should be updated periodically to avoid situations where PEs will rely on the same companies for micro procurement. Critical requirements such as trade licenses and tax clearance may be made a requirement for inclusion in the list. The list could then be used to select suppliers on a rotational basis during micro procurement provided the quality and pricing are reasonable.
Accounting Offices are encouraged to find ways of preventing corruption in micro procurement through improved oversight.
4.4. PEs are also advised to enter into Framework Contracts where common user items have not been included in existing Framework Contracts under the Office of Accountant General to avoid frequent use of micro procurement which is prone to abuse.
5. Kindly feel free to liaise with PPADB for clarity where needed at 360 2000.
What are the requirements for tendering?
- SARS / Tax Services: Tax Clearance Certificate. VAT Registration. UIF / PAYE / SDL Registration. Import / Export License. Workman’s Compensation: COID Registration. Letter Of Good Standing. …
- Accounting Services: Monthly Accounting. Monthly Payroll. CIPC Services: Annual Returns at CIPC. Company Amendments. Trademark Registration.
What documents are required for tender filing?
Tender documents might include: A letter of invitation to tender; The form of tender (formal acknowledgment that the supplier understands and accepts the terms of conditions of the tender documents);
What are the essential necessities for the tenders?
Requisites of valid tender
- It must be unconditional.
- It must be done in the right place.
- They must conform to the terms of the obligation.
- It must be done at the right time.
- It must be done in the proper way.
- The person making the bid must be able and willing to fulfil their obligation.