A company can submit the lowest price and still not necessarily win if another bidder scores better under the applicable preference-point system. Tender preparation therefore requires more than calculating a competitive price — a supplier needs to understand the evaluation methodology and the evidence required to substantiate any preference-point claims.
Source: National Treasury — Preferential Procurement Regulations
Frequently Asked Questions
What does 80/20 mean?
It refers to a scoring structure where price can account for up to 80 points and specified goals for up to 20 points.
What does 90/10 mean?
It refers to a structure where price can account for up to 90 points and specified goals for up to 10 points.
Does the cheapest tender always win?
No — the applicable scoring system considers price together with the specified preference goals.