The term tender is used to describe a proposal to perform a certain task or to supply materials at predetermined prices. When the tender is accepted by the client, both parties are bound by it. E-tendering was introduced to undo the wrong done in the traditional way of bidding and the e-procurement software has encouraged it even more. There are a few notable differences between private and public sector tenders. Do find the best Defence Tenders
The public sector procurement was classified into three different stages like
- Expression of Interest (EOI)
- Pré-Qualification Questionnaire (PQQ)
- Invitation to tender (ITT)
The private sector procurement is likewise classified into different stages beginning with “R”
- Request for Information
- Request for Tender
- Request for Quotation
- Request for Proposal
- Request for Offer
The public sector has merged PQQs and EOIs into one single Supplier Questionnaire (SQ). The major difference is the volume of public tenders which is higher than that of private tenders. The public sector tenders are open to public examination. The procurement takes place fairly as the government tenders are open without any discrimination. Three types of tendering are available, that includes:
- Open tendering: This is more visible in the construction and engineering industries. It is both for the government and private sector where anybody can submit to the tender for supplying the materials that are required. Not all the companies that bid are eligible for the contracts as it is a time-consuming process.
- Selective tendering: It permits the suppliers to propose the tenders by invitation. Experienced suppliers are registered here and the clients are convinced that all their requirements are met as only eligible firms who meet the standards are registered here.
- Negotiated tendering: It will begin from tendering and will last up to the dispute resolution. The contractor will take part in the project which results in the flow of information and effective communication. This is suitable for contracts that are highly specialized and used in construction contracts and engineering.
A successful public tendering has these stages
- To identify the suitable proposal opportunities which are easily found on the BidAssist portal as per the requirements.
- After identifying the opportunities, the requirements have to be met. For this check the specifications to see if it meets the requirements.
Here are a few questions for examination:
- Does my organization have the essential technical skills?
- Do they fit into the strategy of the organization?
- If my organization does not win, can it afford the cost and the time involved?
Expression of interest is where the organization expresses the interest to the buyer. It involves reaching out to the buyer and requesting them the entire documentation. It can also be downloaded by using the online portal. The tenders can be issued by using the various methods:
- Request for information
- Request for proposal
- Request for quotation
- Request for tender
Whenever the open procedure is used, a full tender must be submitted. Otherwise, buyers can make use of restricted procedures to shortlist the number of applications. It involves completing the pre-qualification questionnaire. An invitation to the tender is issued and the entire tender response must be submitted.