Training Tenders: SETA Accreditation & QCTO Compliance (2025)

The Skills Development Economy

The South African government spends billions on 'Capacity Building' and 'Skills Development'. Every department has a training budget. However, they cannot spend this money on just any trainer. They are legally required to spend it on Accredited Training, which earns NQF credits for the learner.

The Accreditation Maize: SETA vs QCTO

For years, providers registered with one of the 21 SETAs (e.g., Services SETA, LGSETA, CETA). Major Shift: The landscape is changing. The Quality Council for Trades and Occupations (QCTO) is taking over the quality assurance function. 'Legacy Qualifications' (Unit Standards) are being phased out in favor of 'Occupational Qualifications'. Impact: If you are tendering in 2025, check if the tender asks for the old Unit Standards or the new QCTO Curriculum. Being accredited for the old system when the tender demands the new one is a fat disqualification.

Anatomy of a Training Tender

Tenders usually ask for a 'Turnkey' solution:

1. Recruitment: You must find the learners (often from rural areas).
2. Training Delivery: Facilitation, Assessment, and Moderation.
3. Stipend Management: You must pay the learners their monthly stipend (from the contract funds) and manage the payroll/UIF.
4. Certification: You must ensure the SETA issues the Sor (Statement of Results) and Certificates. Without certificates, you don't get your final payment.

Key Personnel Requirements

You cannot just start teaching. You need:

• Registered Assessor: Registered with the specific SETA for the specific Unit Standard.
• Registered Moderator: A different person to the assessor, to quality assure the results.
• Project Manager: To handle the admin.

Case Study: The Stipend Protest

A training provider in Mpumalanga won a R5 million tender to train 200 youth. They were paid the first tranche. They trained perfectly. But they delayed paying the learner stipends (R1,500/month) by 5 days because of 'bank clearing issues'. Result: The learners rioted. They locked the facilitators in the classroom. The Department cancelled the contract for 'Reputational Damage'. Lesson: Stipends are sacred. If the government is late paying you, you must have the cash flow to pay the learners. Never, ever play with stipends.

Step-by-Step: The Accreditation Application

1. Step 1: Choose Your Qualification. Don't try to be everything. Pick one niche (e.g., New Venture Creation).
2. Step 2: Buy Material. Do not write your own curriculum unless you are a PhD. Buy accredited material from a reputable developer. It costs ~R3,000 per unit standard.
3. Step 3: QMS. Develop your Quality Management System. Policies on appeals, grievances, assessment.
4. Step 4: Submit & Site Visit. The SETA will visit your premises. They check if you have valid classrooms, toilets, and OHS compliance.

Financial Deep Dive: Budgeting for Skills Tenders

Pricing a training tender is a mathematical minefield. If you underquote, you will bankrupt your college. If you overquote, you lose the bid. You must build your price from the bottom up, factoring in the 'Hidden Costs' of skills development.

The Cost Per Learner Model

Most tenders ask for a 'Cost Per Learner' (CPL). A typical 12-month learnership CPL is between R40,000 and R65,000. Here is how that breaks down:

• The Stipend (40%): This is a pass-through cost. If the stipend is R2,500/month, that is R30,000 per year. You do not make profit on this. It goes straight to the learner. Warning: You must pay UIF (1%) on this.
• Facilitation (20%): The salary of the lecturer. A good facilitator costs R25,000/month. If they handle 25 learners, the cost is R1,000 per learner per month (R12,000/year).
• Assessment & Moderation (10%): You pay freelance assessors per Portfolio of Evidence (PoE). Rate is usually R450 per PoE for assessment and R150 (30% sample) for moderation.
• Admin & Overhead (15%): Rent, electricity, printing, data usage, and the Project Manager's salary.
• Profit Margin (15%): The remaining slice. On a R50,000 grant, your profit is only R7,500. You need volume (50+ learners) to make it viable.

The QCTO Curriculum Shift: Detailed Analysis

The transition from Unit Standards to Occupational Qualifications is the biggest regulatory change in 20 years. The new QCTO model requires three distinct components:

1. Knowledge Component (Theory): Taught in the classroom. Minimum 20% of credits.
2. Practical Component (Simulation): Taught in a lab or workshop. Minimum 20% of credits.
3. Workplace Component (Experience): Done at a host employer. Minimum 20% of credits. Critical: You cannot be accredited for a QCTO qualification unless you have signed MOUs with workplaces to host your learners.

The EISA (External Integrated Summative Assessment) is the final exam. Unlike the old system where you (the provider) issued the result, now the QCTO runs a national exam. If your learners fail the EISA, you get a 0% pass rate, and your accreditation will be revoked. The stakes are higher.

Tool: The Moderator's Report Template

To pass verification, your internal moderation must be rigorous. A standard Moderator's Report should contain the following fields. If any are missing, the ETQA verifier will flag it.

• 1. Sample Size: 'I have sampled 10% of the portfolios (3 out of 30) selected at random.' You must list the learner names.
• 2. Pre-Moderation: 'I verified the assessment instrument before it was used.' (Did the assessor use the correct version?)
• 3. Variance Analysis: 'The assessor was too lenient on Question 4. I recommend regrading.' If you agree with everything the assessor does 100% of the time, the verifier will suspect you are lazy. You must show critique.
• 4. Appeals: 'Were any appeals lodged by learners?'. Record 'None' if applicable.
• 5. Recommendation: 'I uphold the assessment decision' OR 'I overturn the decision'. This is the legal binding line.

Keep these reports for 5 years. They are your defense if a learner claims they were unfairly failed years later.

Compliance Checklist for Training Providers

• Accreditation Letter (Valid, not expired)
• Programme Approval for the specific qualification tendered
• Assessor & Moderator Registration scopes
• Learning Material (Aligned and Approved)
• QMS (Quality Management System) policies

Regional Trends: The Rural Skill Gap

There is an oversupply of training providers in Gauteng. The opportunity is in the rural provinces. Eastern Cape & Mpumalanga: There is a massive backlog of 'Artisan Training' (Plumbers, Welders). Tenders here often include an 'Accommodation Allowance' because they know you have to travel. Strategy: Do not fight for the 50th Project Management tender in Sandton. Bid for the Welding Workshop in Mthatha. The competition is zero, and the margins are higher.

Frequently Asked Questions (FAQ)

1. Q: How long does accreditation take? A: 6 to 18 months. It is not a quick process. Do not tender until you have the letter in hand.
2. Q: Can I use freelance assessors? A: Yes, provided you have a signed SLA with them and their scope is attached to your application.
3. Q: What is a 'Learnership'? A: A structured programme (usually 12 months) combining theory and workplace experience. It offers tax breaks (Section 12H) to the employer.
4. Q: Do I need to be registered with DHET? A: Only if you offer full qualifications as a private college. For short courses, SETA accreditation is usually enough.

Glossary of Skills Development Terms

• SETA (Sector Education and Training Authority): The 21 bodies responsible for skills development in specific sectors (e.g., Services Seta, SASSETA).
• QCTO (Quality Council for Trades and Occupations): The body now responsible for all occupational qualifications. They design the curriculum.
• Unit Standard: The 'legacy' building block of a qualification (e.g., US 115753: Conduct Assessment). Getting phased out.
• Learnership: A work-based learning programme that leads to an NQF registered qualification. Employers get tax rebates for hosting them.
• SDL (Skills Development Levy): The 1% tax employers pay. This is the pot of money that funds these tenders.
• ETQA (Education and Training Quality Assurance): The function within a SETA that audits providers.
• SoR (Statement of Results): The official transcript issued by the SETA proving a learner passed. Essential for payment.
• Moderation: The process of checking the assessor's work to ensure fairness and consistency.
• RPL (Recognition of Prior Learning): Assessing what a learner already knows to fast-track their qualification.
• WSP (Workplace Skills Plan): A document large companies must submit annually to claim back mandatory grants.

Common Mistakes to Avoid

• Wrong Scope: Applying for a Lay Health Worker tender when you are only accredited for IT Training.
• Expired Accreditation: Submitting a letter that expired last month. Renewals take time; plan ahead.
• Ghost Learners: Signing up learners who don't exist to claim stipends. This is fraud and you will be blacklisted.
• Under-quoting Stipends: Budgeting R1,000 when the sectoral determination says R2,500.

Future Outlook: The QCTO 2026 Vision

One final warning: The landscape is shifting. By 2026, the 'Legacy Qualifications' (Unit Standards) will be fully phased out, replaced entirely by QCTO 'Occupational Qualifications'. The Impact: If you are currently accredited for old Unit Standards, your accreditation has an expiry date. You must start the re-alignment process now to convert your courses to the new QCTO curriculum. Providers who wait until the deadline will find themselves unaccredited and unable to tender. Future-proof your business today.

Conclusion

Training tenders are about more than just teaching; they are about 'Data Management'. Managing the paperwork for 500 learners—ID copies, attendance registers, assessment portfolios, moderation reports—is a logistical feat. Specialized 'Learner Management Systems' (LMS) are essential for scaling.