Tenders are a necessary part of doing business with the government. To be considered for a contract, businesses need to submit a tender. This can be confusing and daunting, but it doesn’t have to be. With a little understanding of how the process works, you can put your best foot forward and increase your chances of being awarded a contract. This guide will provide an overview of the main aspects of public tenders, including the different types of tenders, the bidding process, and the evaluation criteria.

What is a Tender?

A tender is a document businesses submit to be considered for a contract with the government. Tenders must include all of the information required by the government to be considered for a contract. Folks at trackerintelligence.com recommend using a tracker for you never to miss any tender opportunity. The content of a tender will vary depending on the project. However, it will typically include a description of the work to be done, the timeline for completion, and the price.

The primary purpose of a tender is to ensure that all businesses vying for a contract have an equal opportunity to be awarded the contract. The government will review the tenders and award the contract to the business that meets the requirements and offers the best value for money.

The Different Types of Tenders?

There are three main types of tenders: open, restricted, and closed.

Open Tendering

Open tendering is the most common type of tendering process. It is open to all eligible suppliers who meet the minimum requirements set out in the tender documents. The tender documents will be publicly available, and suppliers can obtain them from the procuring entity.

Suppliers are typically required to submit a tender proposal, which is a document that outlines their offer. The proposal will be evaluated against set criteria, and the procuring entity will award the contract to the supplier who offers the best value for money.

Restricted Tendering

Restricted tendering is used when the procuring entity has determined that a limited number of suppliers can meet the tender’s requirements. The procuring entity will invite these suppliers to submit a tender proposal.

The main difference between open and restricted tendering is that restricted tendering is only open to a select number of suppliers, whereas open tendering is open to all eligible suppliers.

Closed Tendering

Closed tendering is used in cases where only a limited number of suppliers are invited to submit a tender. Maybe due to the nature of the goods or services being procured or the government’s existing relationship with the supplier.

The invitation to tender (ITT) will only be sent to pre-selected suppliers. These suppliers will then be allowed to submit a proposal. The proposals will be evaluated, and the contract will be awarded to the supplier who offers the best value for money.

The Bidding Process

The bidding process is the process by which businesses submit their offers (in the form of a tender proposal) to the procuring entity. The procuring entity will evaluate all proposals and award the contract to the supplier who offers the best value for money. The bidding process typically consists of three main stages: pre-qualification, submission, and evaluation of proposals.

Pre-Qualification

The pre-qualification stage is used to shortlist the suppliers who will be invited to submit a proposal. The procuring entity will assess the supplier’s capabilities and ability to meet the tender’s requirements. This assessment will be based on the information provided in the supplier’s expression of interest (EOI) or pre-qualification questionnaire (PQQ).

Only the successful suppliers in the pre-qualification stage will be invited to submit a proposal.

Submission of Proposals After the pre-qualification stage, the procuring entity will invite the shortlisted suppliers to submit a proposal. The deadline for submission will be specified in the invitation to tender (ITT).

Suppliers will be required to submit their proposals under the instructions set out in the ITT. The proposal must include all the information required by the procuring entity, such as a price list, terms and conditions, and a detailed description of the goods or services offered.

Evaluation of Proposals

Once the proposals have been received, the procuring entity will evaluate them against set criteria. This evaluation will be based on several factors, such as price, quality, delivery time, and experience.

The procuring entity will award the contract to the supplier who offers the best value for money. The supplier awarded the contract will then be notified and asked to sign the contract.

Evaluation Criteria

The evaluation criteria are the standards against which the proposals will be assessed. The procuring entity will use these criteria to determine which supplier offers the best value. The evaluation criteria will vary depending on the goods or services being procured. However, some standard evaluation criteria are used in many tenders, such as price, quality, delivery time, and experience.

Price: The price is often the most critical evaluation criterion, as it will directly impact the cost of the goods or services being procured. The procuring entity will assess the prices quoted by the suppliers and award the contract to the supplier who offers the best value for money.

Quality: The quality of the goods or services offered is also important. The procuring entity will assess the quality of the proposals and award the contract to the supplier who offers the best value for money.

Delivery Time: Another vital evaluation criterion is delivery time. The procuring entity will assess the suppliers’ ability to meet the required delivery timeframes and award the contract to the supplier who can deliver the goods or services within the specified timeframe.

Experience: The procuring entity may also consider the supplier’s experience when assessing the proposals. The procuring entity will assess the supplier’s ability to meet the tender requirements and award the contract to the supplier with relevant experience.

Public tenders are a key part of the procurement process in many jurisdictions. This guide has provided an overview of the main aspects of public tenders, including the different types of tenders, the bidding process, and the evaluation criteria. To increase your chances of success, it is vital to be familiar with all aspects of the public tender process. In particular, ensuring your bid is as strong as possible in all areas is vital.