Tendering is a long and complicated process. Some helpful guidelines can help ensure your e-tender response is positive.
The process of sending and receiving formal offers or bids with other organisations for soliciting goods or services via online procurement platforms is known as electronic tendering or e-Tender. The e-tendering process was created to eradicate common wrongdoings in traditional bidding methods. E-Tendering improves visibility, compliance, and decision-making across operations, which makes a significant difference in the procurement process.
Tips for a winner e-tender
Filling a tender is different from winning one – and it can be a long and complex process. Procurement officials must act per several policies, procedures, laws, and rules to procure goods and services. Tenders are accepted only when they conform to the policies that guide the procurement process. E-tendering requires thorough planning from minor to macro level, as noncompliance can result in the disqualification of a tender.
Some valuable guidelines can ensure your tender is accepted and comes out as a winner. Here are some checks you can conduct before submitting a tender.
Identify the tender type
A well-structured e-tendering process in India ensures that bidding is done reasonably, efficiently, and without violating the norms. Most organisations have well-defined procurement policies that guide a transparent evaluation and selection of vendors. Tenders are classified according to the intricacy of the project, the expertise required to handle the project’s requirements, and the applicable tendering regulations. Some common types of tenders include:
a. Open tender
b. Negotiated tender
c. Selective tender
d. Term tender
Understanding the types of tenders
- Open tender is a principal tender procedure for private and government sectors. Open tendering is the most common procedure in the engineering and construction industry. The client advertises the tender openly on the e-tender platform, in a newspaper, and with some important information about the proposed works. This tender type allows any interested contractors and suppliers, even upcoming ones, to bid. However, the process is time-consuming.
- Negotiated tender is mainly done in is suitable for highly specialized contracts. The contractor takes part in the project and is part of pre-contract and post-contract negotiations. This tendering is done in engineering and construction contracts.
- Selective tender was conceived to address the limitations of the open tender procedure. This tendering allows suppliers to submit tenders by invitation. The suppliers for selective tender need to have experience in particular contract sizes, complexities and the nature of work involved. As only a few suppliers meet the criterion, so only quality bids are received, resulting in a speedy selection process.
- Term tender is commonly used in large projects that require extensive repairs. The contractor is asked to bid for work on specific buildings or constructions in various locations via this tender. This tender type is limited in time and can include specific criteria that must be met by the supplier while complying with the client’s requirements.
Confirm the nature of the client
There are special instructions and requirements for e-tender documents depending on whether the client is a public or private organisation.
The e-tender documents requirement for Public sector procurement are
- Expression of Interest (EOI) : Before requesting detailed quotations, an Expression of Interest (EOI) document is used to shortlist interested vendors. The issuing authority can then employ the selective tendering process to solicit bids from interested parties. The EOI serves as a screening process. It speeds up the process and ensures that only interested parties submit quality bids.
- Pre-qualification Questionnaire (PQQ) : To help streamline the process, the government has made available for review a standardised Selection Questionnaire. The selection process starts when the buyers receive the Pre-Qualification Questionnaire.
- Invitation to tender (ITT) : supplier questionnaire Invitation to Tender is issued – After receiving the PPQ (Pre-qualification Questionnaire), the document will be assessed and evaluated against all the predetermined criteria. A tenderer should adhere to all the requirements for an increased chance of winning the tender. Once the evaluation is completed, the successful tenderer will be communicated with and added to the buyer’s list, while the unsuccessful tenderers will be informed of the result.
Required documents for Private sector procurement are :
- Request for Information (RFI): A request for information is used to gather information about the project’s requirements and the solutions vendors provide to meet those requirements. It’s a preliminary document that helps businesses understand project requirements and vendor capabilities.
- Request for tender (RFT): A Request for Tender (RFT) is a document used to solicit supplier responses to supply goods or services based on specified delivery requirements, performance specifications, and terms and conditions. The evaluation criteria in an RFT are typically centred on price and delivery requirements.
- Request for Proposal (RFP): A Request for Proposal (RFP) is a document that requests a detailed action plan from vendors to handle a project. It includes extensive details about the project’s various challenges, as well as the project’s business goals and time frame for completion.
- Request for Quotation (RFQ): Request for Quotations is a more specific document that mentions the organization’s requirements. The document entails the vendors quoting their prices to provide the product with precise specifications as mentioned in the RFQ. RFP offers creative freedom to the vendors to provide innovative solutions, while the RFQ does not give any scope for innovation.
Tendering is a complex and elaborate process, making it prone to errors or oversight. A tender may be deemed ineligible for evaluation if there are inadequacies in its filing or documentation.
Analyse the requirements
To begin with, ensure that the contract notice you are interested in is genuinely a tendering opportunity and not a request for a quotation. Also, compare the contract size (if available) to your annual revenue. Once you find a relevant opportunity, make sure you fulfil the requirements – ask yourself if your company can afford the time and cost involved in filing the tender if we don’t win. Does your work portfolio meet the technical skills and expertise required? Does the work fit with your business growth strategy?
Submit a complete e-tender
You must carefully read the tender documents and associated contract terms and conditions. Address all mandatory requirements and complete all documentation for the pre-qualification stage. Also, you can outreach to the client and ask for all the information, including Requests for Information, Proposal, Request for Quotation, and Request for Tender. Review and double-check the final version, and ensure you have the resources and expertise to meet all the requirements.
Respect the process
E tendering can be a long and complicated process. The documentation and filing process is highly demanding as each document has to be comprehended and answered carefully. Tendering rules need to be complied with to win the bid. There are protocols and timelines for the submission and approval of documents. Follow the rules, stick to the procurement process, and do not negotiate your way around – this may come across as unprofessional.
Showcase your expertise
A winning e-tender expresses and highlights some key facts:
- Portray your USP and demonstrate how you can add value to the project. Check that your qualifications are current and relevant to the position. There will be page limits and space constraints, so ensure you include the most relevant qualifications for the contract.
- Provide references to similar existing or previous projects you have worked on. It gives clients confidence that you have the necessary expertise to meet their requirements.
- Let the client know you can align your services to suit the procurement goals. You must address every question or statement with an answer that is to the point and demonstrates your organisation’s understanding of the customers’ needs. Show confidence in your abilities with assertive wording, like replacing ‘we can’ with ‘we will.’
- Avoid using industry jargon when drafting the document. Use language that is simple and understandable by the client. Make sure to include relevant documents and marketing material in your tender.
Achieving final closure and success in winning e-tenders is possible once you have the discipline for detail and a desire to be the best fit as a service provider. Let your e-tender response reflect your work ethic. Make sure your tender response stands out. Don’t shy away from selling your services, as this will invite a favourable response to your e-tender.
