Guide to the Tender Application Process in Zimbabwe

📝 Guide to the Tender Application Process in Zimbabwe

Applying for tenders in Zimbabwe, particularly those issued by government ministries, parastatals, or local authorities (known as Procuring Entities), is governed by the Public Procurement and Disposal of Public Assets (PPDPA) Act [Chapter 22:23] and overseen by the Procurement Regulatory Authority of Zimbabwe (PRAZ).

The process is highly regulated and requires strict adherence to legal and administrative requirements.

1. Statutory Prerequisites (What’s Needed)

Before a business can even bid on a public tender, several foundational legal and administrative requirements must be met. These are non-negotiable and failure to provide them often leads to immediate disqualification.

A. Core Company Documents

• Certificate of Incorporation: Proof of the company’s legal existence.

• CR5 and CR6 Forms (or CR14 and CR6): Documents filed with the Companies Registrar, listing the current Directors (CR5/CR14) and the company’s Registered Office Address (CR6). Ensure all details are up-to-date.

• Memorandum and Articles of Association: The company’s constitution, detailing its objectives and operational rules.

   

B. Tax and Regulatory Compliance

• Valid Tax Clearance Certificate (ITF 263): Issued by the Zimbabwe Revenue Authority (ZIMRA), this certifies that the company is compliant with its tax obligations. This is crucial; without it, procuring entities are obliged to withhold 30% of any payment made.

• Proof of Registration with PRAZ: All suppliers wishing to engage in public procurement must be registered with the Procurement Regulatory Authority of Zimbabwe (PRAZ) in the relevant category (Goods, Works, or Services). You must have a Supplier Registration Number.

• Vendor Number: If seeking contracts from the government (Ministry of Finance and Economic Development), a Vendor Number is required for the purpose of receiving payments through the Treasury.

• NSSA Certificate: A valid certificate from the National Social Security Authority.

C. Financial and Experience Documents

• Business Bank Account: A corporate bank account is mandatory, as no payment will be made into a personal account.

• Trade References: At least three traceable trade references (letters from previous customers/clients, ideally not more than 12 months old) to demonstrate a track record of successfully supplying similar goods or services.

   

• Detailed Company Profile: A comprehensive document outlining the company’s history, core business, services/products offered, structure, key personnel, and past projects. This must be tailored to address the specific tender’s requirements.

   

2. The Tender Application Procedure

The tender process is sequential and requires meticulous attention to detail at every stage.

Step 1: Tender Discovery and Clarification

• Finding Opportunities: Tenders are advertised in the Government Gazette, national newspapers (like The Herald or Chronicle), and increasingly on the PRAZ e-GP System (e-Government Procurement).

• Obtaining Documents: Purchase or download the official Bidding Document (or Request for Proposal – RFP) from the Procuring Entity. This document is the single most important guide, containing the Statement of Requirements, evaluation criteria, and all administrative instructions.

• Seeking Clarity: Attend any pre-bid meeting or submit written queries to the Procuring Entity before the deadline for clarification. Never make assumptions about the requirements.

Step 2: Bid Preparation and Documentation

The proposal must be comprehensive, addressing all requirements (technical, commercial, and administrative).

• Technical Bid: Focuses on the Statement of Requirements. Detail how you will deliver the works, goods, or services, including your methodology, equipment, qualified personnel (CVs and qualifications), and project timelines.

• Financial/Commercial Bid: Contains the Pricing Schedule. Prices must be clearly itemized, and currency must comply with the tender (e.g., ZWL or USD, or both). This section often requires a Bid Submission Sheet.

• Administrative/Mandatory Documents: Compile all the prerequisites listed in Section 1 (PRAZ registration, Tax Clearance, etc.).

• Bid Security: For certain high-value tenders, a Bid Security (a bank guarantee or certified bank cheque, typically between 1% and 2.5% of the estimated contract value) or a Bid-Securing Declaration may be required.

Step 3: Submission

• Format: Prepare the required number of copies (usually one original and two or more copies), clearly marked. The documents must be bound and sealed.

• Sealing and Marking: Place the bid in a sealed envelope clearly marked with the Procurement Reference Number, the Bidder’s name and address, and the tender description.

• Deadline: Bids must be submitted to the specified address (usually a dedicated tender box) by the exact date and time of the deadline. Late bids are automatically rejected. Ensure you receive a receipt confirming submission.

   

Step 4: Evaluation and Award

• Preliminary Examination: Procuring Entities first check for administrative compliance (all mandatory documents provided, correct submission format, valid Bid Security, etc.). Failure at this stage results in immediate disqualification.

• Detailed Evaluation: Compliant bids are evaluated based on the criteria set out in the Bidding Document, focusing on Technical Capability, Financial Competitiveness (value for money, not just lowest price), and Past Performance.

• Award: The successful bidder is notified by a Notice of Award, and a contract is then signed, often requiring a Performance Security (guarantee) to ensure contract delivery.

Crucial Tip: The principle for winning tenders is absolute compliance. The evaluation process is objective; if a mandatory document is missing or expired, the bid will be rejected, regardless of the quality of the technical proposal or the price.