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Government & Procurement

Being the Cheapest Supplier Doesn't Always Mean Winning

Government procurement isn't necessarily a simple competition where the cheapest quotation automatically wins — processes can weigh price alongside functionality, preference points and other requirements, depending on the specific procurement.

A business can spend all its energy trying to become the cheapest supplier when the actual opportunity requires more than price, so understanding the evaluation criteria before preparing a bid matters more than undercutting competitors.

Source: National Treasury — Preferential Procurement Framework

Frequently Asked Questions

Does government always choose the cheapest bid?

No — evaluation can involve multiple criteria beyond price alone.

What is functionality?

It generally concerns whether a bidder's offering meets specified technical or performance requirements.

Why should businesses read the tender document carefully?

Because it sets out the exact requirements and evaluation criteria against which submissions are assessed.

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