How Tender Evaluation Works: The 80/20 and 90/10 Scoring Systems
How South African tenders are scored — functionality thresholds, the 80/20 and 90/10 preference point systems, and how winners are decided.
The Three Stages of Evaluation
South African public tenders are evaluated in stages, and a bid must survive each one to reach the next:
- Administrative compliance — are all mandatory documents present, signed and valid? Non-responsive bids are eliminated here (common disqualification reasons).
- Functionality (technical) evaluation — where the tender specifies functionality criteria, your technical offer is scored against them. Bids below the minimum threshold (often 70% or 80%) are eliminated regardless of price.
- Price and preference points — surviving bids are scored on price plus specific goals under the Preferential Procurement framework.
The 80/20 and 90/10 Systems
The Preferential Procurement Policy Framework Act (PPPFA) prescribes two point systems:
- 80/20 applies to tenders up to R50 million: 80 points for price, 20 points for specific goals.
- 90/10 applies to tenders above R50 million: 90 points for price, 10 points for specific goals.
Price points are relative: the lowest acceptable bid earns full price points and other bids earn proportionally fewer, based on how far they are above the lowest price.
Specific goal points are set out in the tender document itself. Since the 2022 Preferential Procurement Regulations, buyers define which goals earn points — commonly BBBEE status level, but organs of state may also use goals such as local ownership or enterprise location. Read the SBD 6.1 form carefully for what the specific tender rewards (BBBEE levels explained).
What This Means Practically
- On an 80/20 tender, the gap between BBBEE Level 1 and Level 4 can be several points — often more than the price difference between competitors. Preference points win close races.
- On a 90/10 tender, price dominates. Sharp pricing matters more as contract values grow (pricing strategy).
- Functionality thresholds are pass/fail gates, not tie-breakers. A beautifully priced bid that scores 65% functionality against a 70% threshold is dead.
The Award Decision
The bid with the highest total points should ordinarily win, but the buyer may award to a lower-scoring bid on justifiable grounds — for example if objective criteria in the tender provide for it. Awards above certain values are published, and unsuccessful bidders can request reasons (what happens after you submit).
Understanding how you will be scored should shape how you bid. Check what past contracts in your field actually went for by browsing awarded tenders on AITenders.