How is the Functionality methodology applied in government tenders?
20-07-2021
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Taranis
Source
The Preferential Procurement Policy Framework Act 2017 Regulations (PPPFA) stipulate that when an organ of state has decided to apply the process of Functionality as a methodology for Evaluation in a tender, it must clearly indicate in the bid document, the relevant criteria and the points to be awarded for each or any sub-criterion, where applicable.
Regulation 5 of the PPPFA Regulations further instructs organs of state, that any criteria used, must be objective and Treasury recently advised municipalities not to use criteria where it demands bidders to have a “Local Office” in order to be scored under the Functionality methodology of evaluation.
When applying Functionality within a specific tender, the organ of state must also stipulate, the “Minimum Qualifying Score” in order for a tender to be considered further during the next stage, i.e., the Bid Adjudication stage.
The Regulations also instruct organs of state not to make the “Minimum Qualifying Score” too low in order that it will comprise the quality of the bids or make it too high, that it becomes restrictive and, in the process, eliminate quality bids from consideration.
The ““Minimum Qualifying Score” of each bid is achieved as follows, “The percentage of each panel member should be added and divided by the number of panel members to establish the average percentage obtained by each bidder for functionality.”
Where, for example, a tender stipulated the “Minimum Qualifying Score” to be 80%, all bids scoring the target percentage and more, will be short-listed for the bid adjudication stage.
According to Gerrit Davids, Lead Advisor at TaranisCo Advisory, tendering agency, “One of the most pertinent complaints from bidders, is that organs of state stipulate very unreasonable criteria and allocation of points, respectively, with the result that quality bids are unfairly eliminated from the process, as they would not graduate to the bid adjudication stage.”
Davids says, that bidders to government tenders must always make an analysis as to whether a bid’s Functionality criteria is line with the prescript of Section 217 of the Constitution, which stipulates that all tender processes must be, “Fair, Equitable, Transparent, Competitive and Cost Effective”, respectively.”
For more details on Functionality and many other aspects of government’s tendering process, Click Here
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