South African Procurement Glossary
Essential terminology for government tendering and procurement in South Africa. 25 terms defined.
RFQ (Request for Quotation)
A formal document issued by a government entity inviting suppliers to submit price quotations for specific goods or serv...
RFP (Request for Proposal)
A solicitation document issued when the procuring entity needs both a technical solution and pricing. Unlike RFQs, RFPs ...
RFB (Request for Bid)
A formal invitation to submit a competitive bid for goods, services, or works. RFBs are the most common form of governme...
RFI (Request for Information)
A preliminary document issued to gather information about potential suppliers and market capabilities before issuing a f...
EOI (Expression of Interest)
A call for suppliers to indicate their interest in a potential procurement opportunity. EOIs are used to create shortlis...
B-BBEE (Broad-Based Black Economic Empowerment)
South Africa's legislative framework for promoting economic transformation. B-BBEE status is measured on a scorecard cov...
CIDB (Construction Industry Development Board)
A statutory body that regulates and develops the South African construction industry. CIDB registration is mandatory for...
CSD (Central Supplier Database)
The South African government's centralised database of registered suppliers, administered by National Treasury. CSD regi...
PPPFA (Preferential Procurement Policy Framework Act)
The primary legislation governing preferential procurement in South Africa. The PPPFA prescribes a points system: 80/20 ...
SCM (Supply Chain Management)
The system used by government entities to manage procurement from demand planning through to contract management and pay...
SBD (Standard Bidding Documents)
Standardised forms issued by National Treasury that must be completed and submitted with government tenders. Common SBDs...
MBD (Municipal Bidding Documents)
The municipal equivalent of SBD forms, used specifically for municipal procurement. MBDs follow a similar structure to S...
PFMA (Public Finance Management Act)
Legislation that governs financial management in national and provincial government departments, constitutional institut...
MFMA (Municipal Finance Management Act)
Legislation governing financial management in South African municipalities. The MFMA establishes supply chain management...
CIPC (Companies and Intellectual Property Commission)
The South African government agency responsible for company registration, intellectual property, and compliance. A valid...
SARS Tax Compliance
A tax compliance status issued by the South African Revenue Service. A valid tax compliance certificate (or tax clearanc...
Functionality (Technical Evaluation)
The first stage of tender evaluation in South Africa's two-stage process. Functionality assesses a bidder's technical ca...
Preference Points
Points allocated for B-BBEE status under the PPPFA. In the 80/20 system (tenders up to R50 million), up to 20 points are...
Joint Venture (JV)
A business arrangement where two or more companies combine resources to bid on and execute a tender contract. JVs are co...
Briefing Session (Site Meeting)
A meeting arranged by the procuring entity to clarify tender requirements and answer questions from potential bidders. B...
Bid Validity Period
The period during which a submitted bid must remain valid and binding. Standard bid validity in South Africa is typicall...
Deviation (from Competitive Bidding)
A procurement method used when competitive bidding is impractical or impossible. Deviations are permitted under specific...
Transversal Contract
A contract arranged by National Treasury on behalf of all government departments for commonly used goods and services. T...
eTender (Electronic Tender)
The South African government's electronic tender portal at etenders.gov.za. All national and provincial government tende...
COIDA (Compensation for Occupational Injuries and Diseases Act)
Legislation requiring employers to register with the Compensation Fund and maintain good standing. A COIDA letter of goo...
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