Mastering RFQs: How to Win Government Quotes Under R1 Million

The Hidden Market: RFQs

While multi-million rand tenders grab the headlines, the bulk of government buying happens through Request for Quotations (RFQs). These are purchases usually below R1,000,000 (standard threshold, though often R200,000). They don't require a full public tender process, making them faster and more accessible for small businesses.

How the System Works

1. The 3-Quote System

For purchases between R2,000 and R30,000, officials often just need three written quotes. Speed is key. If you are called, submit your quote within hours.

2. The 7-Day Notice

For purchases above R30,000 up to R1 Million, the RFQ must formally be advertised (usually on the department's website or notice board) for at least 7 days.

The Role of CSD Rotation

To prevent corruption and spread opportunities, Treasury regulations mandate a Rotation System. Officials purchase from the CSD list. If you received an order last month, you move to the back of the queue. This is designed to give other suppliers a chance.

Winning Strategies for RFQs

Since functionality scoring is rarely used for RFQs (it's mostly Price and Preference), your strategy is simple:

1. Price Sharp: Margins on commodities are thin. Know your break-even.
2. Stock Availability: 'Ex-stock' is a winning phrase. Government often buys because they need it now.
3. Compliance Ready: Have your Tax Pin and CSD report ready to attach instantly.

Conclusion

RFQs are the training ground for larger tenders. They build your cash flow and track record. Monitor departmental websites daily, as these short-notice opportunities disappear quickly.