This system comprises standard letters of invitation,stated procedure for bidding, simultaneous notice to bidders, minuted pre tender meetings, controlled points of interaction between company and bidders, defined scope of works, specifications, terms of reference etc.
The seven main steps in the tender process are
1. Tender process is determined: the organisation requesting the tender will determine the type of tender that will be used, as well as what will be involved in the tender process.
2. Request for tender is prepared: the request for tender outlines what is required, the contractual requirements and how you should respond.
3. Tenders are invited: the value, complexity and business category determine how tenders are invited.
4. Suppliers respond: you should first obtain all relevant documentation. Then:
a. Attend any pre tender briefing sessions being conducted
b. Clarify any uncertainties
c. Plan your response
d. Prepare your response
e. Submit your response in the right format, on time and at the right location
5. Evaluation and selection: each tender will be checked for compliance, and if compliant, then evaluated against the criteria specified in the tender documentation. The tender that offers best value for money will win the business.
6. Notification and debriefing: when a contract has been awarded, the successful tenderer will be advised in writing of the outcome. Unsuccessful tenderers are also advised and offered a debriefing interview.
7. Contracts established and managed: generally a formal agreement will be required between the successful tenderer and the relevant agency.
Tender Procedure with Example:
- Invitation to tender
- pre/Post Qualification Questionnaire
- Bid Bond
- Site Visit – mandatory and non-mandatory
- Tender Boxes
- Receipt of Tenders
- Withdrawal of Offer
- Tender Openning
- Evaluation of Tenders
- Recommendation for Award/Approvals
- Letter of award
- Conditions of award – insurance and performance bond
Type of Tendering
- Open tendering
- Selective tendering
- Negotiated tendering
- Prequalified tendering
- Single and restricted tendering