It is common knowledge that tenders are fraught with wide spread problems. An idea I had is list, in brief, below.
My thought is to address the problem of tenders.
I suggest that a company is only eligible for a tender to the value that is the equivalent of their turnover from other business (non government). Example if the tender value is R4million then the business must have other turnover of R4 million, I.e total turnover of R8million.(possible variations for lower tender values)
In this way the following is prevented or curbed/ and other benefits flow:
Companies set up merely to benefit from tenders, are restricted. This is common particularly where there is a government link.
One person benefiting from multiple tenders is reduced – this helps to spread the business.
Poor delivery of the contract obligations – where the successful tenderer only services the particular contract there is no other business or assets to seek recourse against when poor work is done.
Possible reduction in BEE fronting.
A possible cure?