Participating in government procurement can be a great way for businesses to get started or to expand their operations. Government agencies usually issue tenders for goods and services that they need, and businesses can then compete for these contracts. The procurement process is usually conducted through competitive bidding, with the selected supplier being the one that offers the most advantageous bid in terms of price, quality and delivery
With the above benefits in mind, you may sign up as a GeBiz Trading Partner to start browsing through available procurement opportunities through GeBiz. This portal will give you access to prospective tenders in the public sector, enabling you to prepare in advance.
However, do note that to qualify for certain tenders, it may be necessary to have a valid Government Supplier Registration (GSR) status that substantiates your tendering capacity. This will be stated in the tender notice and documentation. Your tendering capacity will be assessed based on the:
For example, in order to be considered for a financial grade of S4 project worth $500,000, your company will need to have an NTA of at least $25,000 and annual revenue of $500,000. Having said that, if you do not fulfil the turnover/sales/revenue criteria under your preferred financial grade, $500,000 in this case, you can still be eligible for financial grade of S3 project worth $250,000 as long as you meet the NTA criteria and paid up capital criteria required of S3, even though you do not meet the $250,000 turnover/sales/revenue criteria for S3.
In addition, you will also need to submit accurate and complete financial statements. These can either be audited or unaudited financial statements of the last closed accounting year of 12 months. In the case of unaudited financial statements, bear in mind that it must come accompanied with a signed director’s declaration form.
For certain tenders, the party is also required to submit pro-forma financials for the first 3 years of operation in the event that the tender is awarded. This include:
Upon submission and approval, your GSR status will be valid for at least one and a half years to three years, after which a renewal is required. With that, you can then proceed to explore the latest procurement opportunities and prepare your bid proposal documents.
Overall, the awarding of a government tender can be a significant boost to your business as it provides a guaranteed source of income and can lead to further contracts with other clients. However, before participating in a government tender, it is important to consult with an accounting advisory provider. This will ensure that you have a clear understanding of the financial requirements and commitments involved in Singapore.
Accounting advisory services can also help you to develop a realistic budget and timeline for the project. Without forecasting this information, it may be difficult to accurately estimate the cost of the tender and to make informed decisions about whether or not to participate. In addition, an experienced advisor may provide valuable insight into the bidding process and what other companies are likely to offer. This information can help you to tailor your bid to be more competitive.
Ultimately, consulting with an accounting advisory provider like Chartsworth before bidding will give you a better chance of success. By doing so, you can have the assurance that you are in a strong position to win the tender and deliver on the project. To get started, don’t hesitate to contact our team at Chartsworth for more information.
Gone are the days where you have to engage different companies just to have an update on your accounting, tax, corporate secretary matters separately. At Chartsworth, we are your one-stop corporate service provider. We would assign an expert accountant to be your main point of contact, ensuring effective communication and increased efficiency in our dealings.
Ditch paperwork and traditional accounting software. We use cloud accounting, offering greater accessibility and scalability to your business. Our monthly accounting plans come with a free XERO cloud accounting subscription. Enjoy having your accounting information at your fingertips to help you make quick and better business decisions.
With Chartsworth, you no longer need to worry about sorting out your monthly financials and missing your compliance deadlines. We would take care of these essential but time-consuming aspects so that you could focus on growing revenue and taking your business to new heights.
The CA (Singapore) designation remains the highest form of professional designation conferred by the Institute of Singapore Chartered Accountant (ISCA). Our team is equipped with up-to-date knowledge and financial expertise to offer advice to your business.
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