Office Supplies & RFQ Tenders: Winning Small Contracts (2025)

The Bread and Butter of Procurement: The RFQ

Not every government contract is a billion-rand bridge. The vast majority of procurement transactions are for daily operational needs: Paper, toner, pens, desks, cleaning materials. These are typically procured via the RFQ (Request for Quotation) system for amounts under R1,000,000. This is the entry level for most new businesses.

The 3-Quote System

For purchases below a certain threshold (often R30,000 to R200,000 depending on the department's policy), Supply Chain Management (SCM) officials must obtain three written quotes. They usually source these suppliers directly from the Central Supplier Database (CSD). Strategy: Your CSD registration must be accurate. Ensure your 'Commodity Codes' are exhaustive. If you sell pens, don't just tick 'Stationery'. Tick 'Writing Instruments', 'Office Supplies', 'Paper Products'. If you are not categorized correctly, the SCM official's search will not find you.

The Furniture Trap: Local Content 100%

A common mistake is bidding to supply office chairs or desks using cheap imports. Sector Designation: Office Furniture is designated for 85% - 100% Local Content. You generally cannot supply a chair made in China. The tender will require an SBD 6.2 Declaration. You must buy from local manufacturers. If you quote on imported goods, you will be disqualified.

Toners and Ink: Example of 'Original Equipment Manufacturer' (OEM)

Departments often specify: 'Only Original HP/Canon Cartridges'. If you quote for 'Compatible' or 'Generic' cartridges because they are cheaper, write clearly: 'Alternative Offer: Generic'. Do not try to pass off generics as originals. This is fraud. However, many departments are stuck in contracts that force them to buy OEM to keep printer warranties valid. Read the spec line by line.

Logistics and Delivery: Impact on Margin

Office supply margins are thin (often 10-15%). You must calculate your delivery costs accurately. Scenario: Improving a quote for 50 boxes of paper. The profit might be R500. If you have to drive 100km to deliver it, you have made a loss. Only bid on RFQs in your geographic cluster unless the value justifies the transport.

Case Study: The R500 Delivery Error

A supplier in Soweto won an RFQ to supply 20 whiteboards to a school in Vereeniging (50km away). The quote was R15,000. The Mistake: They assumed the whiteboards would fit in their bakkie. They didn't. They were 2.4m long. The Cost: They had to rent a 4-ton truck for R1,500. Their profit on the deal was R1,200. Result: They did the job for a R300 loss. Lesson: Logistics will kill you. Check the dimensions and weight of every item before you quote.

Step-by-Step: Winning Your First RFQ

1. Step 1: CSD Perfection. Update your CSD profile. Add every relevant commodity code.
2. Step 2: Walk the Floor. Go to the Supply Chain Management office of your local municipality. Hand deliver your company profile. Put a face to the name.
3. Step 3: Response Speed. When an RFQ email lands, respond within hours. SCM officials are under pressure. If you are the first compliant quote on their desk, you have an advantage.
4. Step 4: Presentation. Do not send a messy email body. Send a formal PDF quote on a letterhead, attached with your Tax Pin and BBBEE certificate in one merged PDF.

Compliance Checklist for Supplies

• CSD Registration (Commodities Updated)
• Tax Pin
• B-BBEE Affidavit (Level 1 is standard for stationery)
• SBD 4 (Declaration of Interest)
• SBD 6.2 (Local Content) - Crucial for furniture/textiles
• Bank Confirmation Letter

Regional Trends: Rural Logistics

In provinces like Limpopo and Eastern Cape, the 'Price' is less important than the 'Truck'. Scenario: Delivering 500 boxes of paper to a school in Vhembe District (dirt roads). A standard courier will not go there. The Edge: Tenders in these regions favor suppliers who have their own bakkies/trucks. If you quote 'Courier Delivery', you will fail. You must demonstrate 'Own Transport Capability' to win rural education tenders.

Frequently Asked Questions (FAQ)

1. Q: How do I get SCM officials to invite me to quote? A: Marketing. Send your company profile to the SCM Unit of local departments. Ask to be placed on their 'Internal Rotation List'.
2. Q: Can I require a deposit for goods? A: No. Government pays 30 days after delivery. You need cash flow or supplier credit.
3. Q: What is a 'Transversal Contract'? A: A big national contract (e.g., RT3 for Paper). Once awarded to a few big players, departments must buy from them. RFQs disappear for that item. Check if a Transversal Contract exists before building a business on just one commodity.
4. Q: Do I need to be VAT registered? A: Only if your turnover exceeds R1 million. But remember to compare 'apples with apples'. If you are not VAT registered, your price is your final price.

Strategic Deep Dive: Sourcing Like a Pro

The barrier to entry in office supplies is low. Everyone has a CSD number. To win, you must have a better supply chain than the other 50 bidders.

Manufacturer Accounts vs Retail

Amateurs buy from Makro or Game. Professionals buy from the Distributors (e.g., Waltons, Hortors, Actnet). The Price Gap: A box of paper at a retailer costs R450. At a distributor, it costs R380. If you build a margin on the retail price, you will never win a tender. You must open a 'Cash Account' with major distributors. Eventually, graduate to a '30-Day Account', which allows you to deliver the goods before you pay for them (matching your extensive government payment cycle).

Managing Cash Flow on Low Margins

Office supplies is a volume game. You might make only R5 on a stapler. You need to sell 1,000 staplers to make it worth it. The Risk: If you win a R500,000 order for 1,000 chairs, do you have R400,000 cash to buy them? Solution:

1. Supplier Credit: Negotiate terms with the manufacturer.
2. Cession of Payment: Some departments allow you to sign a 'Cession Agreement', where they pay the manufacturer directly from the tender proceeds, and pay you the difference (profit). This removes your cash flow burden, but many departments are reluctant to do the admin.

Tool: The SBD 4 Declaration Cheat Sheet

The SBD 4 (Declaration of Interest) is the most dangerous form. If you lie here, it is fraud. Here are the common traps:

• State Employee: 'Are you or any director employed by the state?'. The answer must be NO. If you are a teacher, nurse, or admin clerk, you CANNOT have a business that tenders. You must resign first.
• Kinship: 'Do you have any family member working for the state?'. You must disclose this. If your wife is a teacher, you TICK YES and write her name and Persal number. It does not disqualify you (unless she works in the SCM unit awarding the tender), but failing to disclose it DOES disqualify you.
• Signatures: The Commissioner of Oaths stamp must be dated the SAME DAY as your signature. If you sign on Monday and he stamps on Tuesday, the form is invalid.

The 'Specification' Defense

When doing RFQs, always ask for the 'Full Technical Spec'. If they ask for 'Black Pens', ask: 'Ballpoint or Rollerball? 0.7mm or 1.0mm?'. By asking technical questions, you signal that you are a serious supplier. It also prevents the 'Wrong Spec' rejection later. Keep an email trail of these questions.

Glossary of Supply Chain Terms

• RFQ (Request for Quotation): A simplified procurement process for goods under R1 million (threshold varies by department).
• RFP (Request for Proposal): A complex tender for larger services, usually over R1 million.
• Commodity Code: The specific category code on the CSD (e.g., 44120000 for Office Supplies). You must be registered for the right codes to get RFQs.
• Transversal Contract: A centrally negotiated contract (e.g., by National Treasury) that all departments must use. If 'Pens' are on a Transversal Contract, you can't sell them via RFQ.
• Local Content: A policy requiring certain goods (furniture, textiles, cables) to be manufactured in South Africa.
• OEM (Original Equipment Manufacturer): The original brand (e.g., HP, Canon). Tenders often specify OEM to avoid cheap generics.
• SBD 4: The Declaration of Interest form. EVERY quote needs this.
• SBD 6.2: The Local Content declaration form. Required for furniture and textiles.
• Purchase Order (PO): The official document confirming the order. Never deliver without a PO.
• 30-Day Payment: The standard government payment term. It means 30 days from receipt of a valid invoice.

Common Mistakes to Avoid

• Partial Delivery: Delivering 90 pens when they ordered 100. Invoice won't be paid until the last pen arrives.
• Wrong Spec: Delivering A4 paper when they asked for A3. Instant rejection.
• No PO: Delivering goods based on a verbal promise from an official. You will struggle to get paid.
• Price Changes: Trying to increase your price after the quote is accepted because 'petrol went up'. Not allowed on RFQs.

Conclusion

The 'Stationery and Supplies' sector is crowded. Everyone wants to sell paper. To survive, you must be reliable. If you say you will deliver on Tuesday, deliver on Tuesday. SCM officials remember reliability. If you save them from a headache (e.g., 'The Minister needs this pen by 5 PM'), they will call you first next time.