What Is Tendering Process In Procurement?
What Is Tendering Process In Procurement?
Are you new to the procurement world and wondering what exactly tendering is? Or are you a seasoned professional who wants to refresh their knowledge on the topic? Regardless of where you fall, this blog post is for you. In today’s competitive business landscape, obtaining goods and services at the best price possible is paramount. That’s where tendering comes into play. But what exactly is it, and how does it work? Keep reading to find out everything you need to know about the tendering process in procurement.
What is Tendering?
Tendering is a process through which organizations request the lowest quotation for goods and services. In order to tender, an organization must first identify the products or services that it needs and specify the quantities required. The organization then solicits quotations from potential suppliers. The supplier with the best price will be selected based on various factors such as quality, delivery time, and other specific requirements set by the organization.
Types of Tendering Processes
There are two main types of tendering processes: open and closed.
Open Tendering Process
Open tendering is the most common type of procurement process and involves publishing a tender document, usually in the form of a request for proposals (RFP), which invites bids from interested suppliers. There is no limit on the number of suppliers who can submit bids, and there is no obligation on the government to award a contract to any supplier.
Closed Tendering Process
Closed tendering is the second most common type of procurement process and involves issuing an invitation to tender (IT) which is sent to a limited number of suppliers who are then required to bid for the contract. The government may or may not require pre-qualification from suppliers before issuing an IT invitation, and it may decide to award the contract to only one supplier.
What are the Requirements for a Tendering Process?
What are the requirements for a tendering process?
There are a few things that need to be in place before you can start the tendering process. First, you will need to create a solicitation or request for proposal (RFP). This document will list all of the items that you are looking for and what their specifications should be. Next, you will need to create a bidding timeline. This will outline when bids must be submitted and how often they can be updated. Finally, you will need to set up an RFQ (request for quotation) system so that suppliers can submit quotes based on your RFP.
How to Host a Tendering Process?
Tendering process is a process of inviting and awarding contracts to suppliers, whereby the contracting authority identifies potential suppliers based on pre-determined criteria and solicits offers from them. The contracting authority then evaluates the offers and selects the supplier who provides the best value for money.
Tendering process is usually used in public procurement, where multiple suppliers are invited to tender for a contract, or in case of emergency procurement, where only one supplier is available. It can also be used in case of joint bidding where two or more bidders are invited to tender together.
A tendering process starts with an advertisement or request for proposals (RFP). This document specifies the requirements of the contract and defines who can bid. The advertisement will list all the required qualifications for bids, such as type of supplier, price range, etc.
Once the requirements have been published, interested suppliers will submit proposals. Proposals must meet all the specified requirements and should be tailored to meet the specific needs of the client. Once all proposals have been received, they will be evaluated and ranked according to their merit.
The highest-ranked proposal will then be awarded the contract. If there are still multiple proposals that meet all the requirements, a selection committee made up of experts from within the contracting authority will choose which proposal to award.
Some common elements of a tendering process are:
1) Specification of requirements: The RFP must list
Conclusion
The tender process in procurement can be a difficult and time-consuming process, but it is important that the company takes the necessary steps to ensure that they are getting the best possible deal for their money. By following all of the proper steps, companies can avoid any potential issues with procurement and get what they need without any hassles.
