A tender is a formal request for bids on a project. It typically refers to the procedure wherein entities that intend to contract a supplier of goods or services request bids from interested stakeholders and expect them to submit proposals within a specific time frame.
The bidding procedure is governed by legislation or internal regulations in order to guarantee fair and efficient competition amongst the bidders.
Indeed, companies who spend considerable financial and human resources to put together a potentially winning tender application expect the tender process to be fair and effective.
Any type of discrimination could put a procurement’s credibility at risk. Suspicions of bias could lead to legal action being taken by participants. This in turn could result in delays and extra expense that were not planned for.
A good tender process should:
- Be open and all bidders should have an equal opportunity to secure the project
- Be coherent and organized, describing each of the tender procedure’s requirements
- Outline the budget and the deadline
- Be compliant with corporate regulations and moral principles
- Be streamlined to cut red tape
- Generate timely feedback to all respondents
See also: What is the tender process?
How to ensure a fair and equitable treatment
Those entities who issue tenders must be aware of the way the participants may view their activities. In order to ensure impartiality and fairness it is important to:
- Recognize and actively handle conflicts of interest, both real and perceived
- Guarantee that all participants benefit from the same access to information. This, however, does not refer to commercially sensitive information regarding other participants
- Equally offer (where possible) additional information or clarification to tender participants
- Ensure all participants receive an extension notice in advance if a decision is made to extend the deadline
Things to avoid during a tendering process
When organizing a tender, it is important to avoid:
- Filling the brief with unnecessary or inconsistent information
- Being overly detailed in your desired method of achieving the goal
- Setting irrational budgets and deadlines
- Making unreasonable demands from potential partners
- Giving one potential partner a competitive edge or extra information during the tendering process
- Sending out too many invitations to bid
Tips for a fair and successful bidding process
1️⃣ Prepare to give the bidding process some time
You may have a specialized procurement team or one person handling the assignment but being ready to devote time and mental energy to tendering is crucial if you want to have the best chance of choosing the ideal partner.
2️⃣ Be consistent and always ready to offer feedback
Be open to potential partners and eager to reply to their questions, helping them to put together a clear application.
3️⃣ Hold a fair competition
Be careful to treat all candidates equally and openly. Note that a drawn-out or excessively bureaucratic process may exclude smaller providers or participants who are new to the process.
4️⃣ Establish a system of scoring that matches your priorities
The scoring system for evaluating submissions must match your objectives so it would be simpler to identify which partners can match the values and standards you set.
5️⃣ Perform due diligence
Think about the checks you can undertake to ensure that the partner will be able to complete the task. Request samples of their previous work, ask to meet with former or current clients and enquire about the standards the organization is devoted to upholding.
6️⃣ Realistic timeframes
Establish reasonable deadlines for each phase of the bidding process and respect these.
7️⃣ Be firm and offer feedback
Inform potential partners about the positive aspects of their submission and what changes they should make going forward.
If you want to effectively store, track, and manage your data, thus speeding up the acquisition process then choose the Tenderwell App from DevelopmentAid. In order to build a dynamic and successful partnership, our app optimizes how you deal with leads, candidates or proposals and makes it easier for you to communicate with partners and applicants. Note that the Tenderwell App was developed in full consideration of the GDPR and other international data protection laws.
With over 700,000 published tenders, DevelopmentAid.org is the leading provider of information for organizations working in the aid sector. If you want to post a tender on the platform, you can do so by clicking Tenders in the top menu and then selecting Publish in the left-hand menu. Alternatively, you can send your request through info[at]developmentaid[dot]org with the tender document attached, preferably in Word or PDF file format.
Publishing a tender is free of charge and once approved it will be added to our Tenders page where thousands of organizations have access to it.
Final word
A tender represents an effective way of finding an ideal supplier. However, it’s worth noting that the obligation and resources devoted to this should be considered by both sides of the table. Remember to offer a clear and equitable procedure and ensure there’s enough time and resources to support it. Last but not least, make sure you walk all potential bidders through the process.
