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10 Aug 2021| Posted by Marsh | In Other Services
Tendering Basics:
To begin with, a tender can be simply explained as an offer to perform some task or supply goods at a predetermined price. Once the client accepts the tender, it is binding on both the parties involved. Tenders get accepted or rejected based on the eligibility criteria policies defined by the tendering department. With the onset of automating the tendering framework online, “E-tendering” was designed to get away with wrongdoings involved in traditional methods of bidding. The development and advancements in the technology of e-procurement software have further stimulated this process.
Noteworthy differences between public and private sector tenders.
1. Framework:
Traditionally, the public sector procurement framework was divided into majorly three stages:
Stage 1: Expression of Interest (EOI)
Stage 2: Pre-qualification Questionnaire (PQQ)
Stage 3: Invitation to Tender (ITT)
Recent changes to the public sector tender framework efficiently merge stages 1 and 2 i.e. (EOIs and PQQs) into a single-stage named “Supplier Questionnaire” also known as SQ.
On the other hand, Private sector procurement has these five stages, all of which begin from the letter ”R”
Stage 1: Request for Information
Stage 2: Request for Tender
Stage 3: Request for Quotation
Stage 4: Request for Proposal
Stage 5: Request for Offer
2. Volume:
A very evident difference between public and private sector tenders is that the volume of public tenders is far more than private ones. This simply means private sector tenders are much harder to source, compared to public sector tenders which are wide open to public examination.
3. Nature of the Tender:
The government projects/Public sector tenders are usually kept as open tenders in order to let procurement happen in a fair manner without any biases. In our previous blogs we have explained the different types of tendering methods:
a. Open Tenders
b. Limited Tenders
c. Single Tenders
d. Global Tenders
Based on the requirement of the contract a suitable method is chosen.
A brief overview on Open Tenders:
Open tendering is the most widely utilised in the engineering and construction sector. It is the most utilised tendering method for both the private as well as public tenderers, which allows the masses to submit a tender in order to supply the required goods and services. This not only opens up opportunities for emerging suppliers but also allows the pool to bid effectively as per their respective capabilities. Each contract goes through a robust evaluation procedure conducted by the tendering officers.
The public tendering process in India is highly structured and successful. They follow these steps to maintain uniformity:
1. Identify a relevant opportunity –
The first step is to identify the relevant opportunities & tenders that are found easily on the TenderOnTime portal according to your varied requirements.
2. Make sure you fulfil the requirements –
Once you have identified the opportunities, the next step is to go through the checklist specifications to understand if you meet the requirements of the tender process by downloading the tender notice. Ask yourself these questions to move ahead:
a. Can my organization afford the time and cost involved if we don’t win the tender?
b. Does my organization house the technical skills and expertise required?
c. Do the project and sector complement my organization’s strategy?
3. Express interest to the buyer -
At this stage in the tendering process, If you’re confident enough that you meet all the requirements as mentioned above, it is the right time to express your interest to the buyer which is known as “Expression of Interest”. It simply involves outreaching the buyer authority and requesting the full documentation or downloading the same via an online portal.
Similarly, tenders can be issued through:
a. Request for Information - Help to define the project.
b. Request for Proposal – Project requirements are defined but creative and flexible solutions are required.
c. Request for Quotation – Invite businesses to quote for specific goods and services.
d. Request for Tender – An invitation by public advertisement.
Please note: If the open procedure is used, you will need to submit a full tender document at this stage. In other cases, buyers use the restricted procedure to narrow the number of applicants before the tender stage.
4. Complete the Pre-Qualification Questionnaire –
At this stage, buyers will share a Pre-Qualification Questionnaire which re-energises the selection process. To maintain uniformity in the selection process, the Government has released a standardised Selection Questionnaire for scrutiny.
5. Invitation to Tender is issued –
After Pre-Qualification Questionnaire (PPQ) has been received, it will be assessed and evaluated against their criteria. The more the criteria your questionnaire ticks off the more the chances of you winning the tender contract. Once the evaluation procedure is completed, the tenderer will be selected and notified of their successful tender and others of the unsuccessful submissions. If you have won the contract at this stage, you will have joined the buyer’s shortlist.
6. Submit full tender response –
The most critical steps towards successfully bagging a tender project are crossed. The tender initiator (buyer authority) has reviewed your application and is assured that you have the required resources and expertise to meet all the project requirements and they invite you to tender. Here comes the last step in the tender application process - submitting your tender response. This stage requires you to boost all the projects you have successfully completed or emphasise critical unforeseen situations that your organisation handled without hiccups. Remember, here you can win or lose the contract, so ensure your best foot forward. Make sure your tender response stands out. Don’t be afraid to sell yourself as this is what will set you apart from the rest.
After it has been received by the buyer authority, your tender will be scored by the buying organization whether you are the best fit to provide the services or not.
All this information may seem like a lot to digest but with TendersOnTime’s robust online tendering systems you can get the right information at the right time at your comfort and convenience. Dive in for all the latest government tenders with our advanced search mechanism.
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