Tendering in Kenya- Seven (7) tips to prepare a winning tender bid
Posted on 16th Jul 2016
Tenders are one of the major business to business (B2B) contracting processes in Kenya. The main objective of the tendering process is to ensure the “best fit” supplier is selected to supply goods and/or services to the customer which offers best value for money. Such a supplier is likely to be sound commercially, technically competent, financially sound and perceived as best for the task.
In Kenya the government is the biggest procuring entities with contracts running to hundreds of billions. National and County Government and Public agency procurement processes are guided by the Public Procurement and Disposal Act of 2015. However as lucrative as they are, Government tenders are riddled with claims of corruption and dealings and are tricky to navigate for new enterprises.
Starting 2013 the Kenyan Government implemented a plicy of setting aside 30% of its public procurement to Youth, Women and Persons with disability. Access to Government Procurement Opportunities (AGPO) Initiative http://agpo.go.ke/ was established by The Public Procurement Directorate under the Ministry of Finance to enable youth, women and people with disability access 30% of Government Tenders. For the purpose of benefiting from preference and reservations schemes, an enterprise owned by youth, women or persons with disabilities shall be a legal entity that: Is registered with the relevant government body; and has at least seventy percent membership of youth, women or persons with disabilities and the leadership shall be one hundred percent youth, women and persons with disability, respectively
The Public Procurement Oversight Authority (PPOA) overseas public procurement in Kenya. PPOA ensures that procurement procedures established under the Act are complied with; monitoring the procurement system and reporting on its overall functioning. You can access procurement rules and regulations, including sample tender application documents from PPOA website at www.ppoa.go.ke .
Another important body in Kenya Government contracting is the Public Procurement Administrative Review Board (PPARB. PPARB was established to promote and uphold fairness in the Public Procurement System through judicious and impartial adjudication of complaints arising from disputed procurement proceedings.
Below are ten tips to winning government of Kenya and corporate tenders.
- Research – Start by researching on the department or agency that is inviting you to tender. By research you will be able to understand what value you can provide to the government department or company.
- Read each section and respond in full – Ensure that each requirement of the question is addressed, provide evidence of relevant, recent experience.
- Prove and emphasize your company’s capability - Demonstrate an understanding of the product or service required, demonstrate that you are in a unique position to provide the service. Draw on previous experiences to provide examples, and offer certificates, samples, references and referees to further justify statements.
- Ensure Compliance with tender conditions - Your tender will be assessed to see if it complies with mandatory tender and contract conditions. If it doesn't it may be considered to be invalid and eliminated from further evaluation. Make sure you address in detail the requirements of the tender specifications as well as the conditions of contract and tender.
- Remember Customer Service Pays – Provide a detailed and comprehensive customer service proposal. Your customer service proposal maybe the only can differentiator of your response and that of other bidders. This can generate big variations in scoring.
- Identify and Offer Value Added – Create unique value proposition by offering value added initiatives that you can offer at no extra cost. These should be related to the product or service you are tendering for and are of value to the company or government department procuring.
- Quote the right Price - Although value for money can be an important component of many tenders, the way you price your bid can also make the difference between winning or losing business. For Kenya government tenders you may want to factor in possible delays in payments. For commonly procured items, the PPOA publishes Market Price Index which gives average prices for commonly procured items by government departments. Consult this list if you are tendering such items.
- Make timely submission and in right manner - Ensure the tender is returned to the right place at the right time. If you are using the electronic Tendering system please do not leave making your submission to the last day. Some organizations experience IT problems on the final day which could lead to late submission or no submissions at all - don't let it happen to you - plan ahead!
You can find all the latest government, NGO and private company tenders here at Surelynk.com. We wish you all the best as you look to growing your business.
From the Editor, Surelynk Blog