Cancelation of Government Tenders

Many of you who have responded to Government tenders have been disappointed when a tender is cancelled. You have put in many days and nights’ worth of effort just to receive the unwelcome news the tender is cancelled.

The question is – do Government entities have the right to cancel tenders?

Government entities do have the authority to cancel a tender before it has been awarded.  Regulation 13 of the Preferential Procurement Regulations, 2017 stipulates that a tender can be cancelled –

• Due to a change in circumstances – for example there is no longer a need for the goods or services specified in the tender invitation.
• There are no funds available to cover the cost of the expenditure;
• No acceptable tender offerings have been received.
• There is a material irregularity in the tender process.

The decision to cancel a tender must be published in the same way the original tender invitation was advertised.

If an Organ of State wants to cancel a tender invitation for a second time, it must get prior approval for National Treasury.