Tendering Process
Tendering is an important process used in procurement when an organization wants to purchase goods, works or services from an external supplier. The process involves a commercial offer from the supplier, followed by a period of negotiation during which the purchaser attempts to obtain the best terms and price for the goods, works or services.
One of the key features of tendering is that it should be open, impartial and fair for all bidders. This means that all the necessary information about the specific requirements of the goods, works or services should be provided clearly and unambiguously to all the eligible bidders. This allows them to submit bids in a uniform way, leaving the bidder to make their own decisions on how best to meet the requirements.
A tendering process usually begins by establishing an open call for tender. A tender document will be prepared, outlining the specification and requirements of the goods, works or services being procured. It also outlines the terms and conditions of the individual tender, the method of evaluation, and sometimes a bid bond requirement.
The next stage of the process is the invitation to tender. This might be done through the posting of an advertisement in a newspaper or other publication, or by direct mailing to known potential bidders. The tender document and any other relevant documents should be sent to the eligible bidders, who can then have an opportunity to submit their bid.
At this stage, any questions from bidders should also be actively encouraged and managed. This could be done through providing an opportunity for bidders to attend a pre-bid conference, through sending out information bulletins or via email. This ensures that all bidders have the same level of understanding and insight into the tender.
In the final stage of the tendering process, the bids will be evaluated and compared to the tender requirement. Here the bidders are compared on the basis of price, quality, delivery and compliance with the requirements as set out in the tender documents.
Once the evaluation stage is complete, the successful bidder will be selected and a contract will then be drafted. Depending on the size and complexity of the tender, this may be done in consultation with the bidder, allowing them to make suggestions as to how the contract can be structured in their favor.
Overall, the tendering process is an important procedure that ensures fairness and impartiality in procurement decisions. It also ensures that all bidders are given an equal chance to submit bids, allowing them to compete on price and quality. This in turn helps to ensure that the procuring organization obtains the goods, works or services in the best possible terms for the lowest possible price.
