DR PRIYANKA SATALKAR ROLL NO.

06 SEM:03 PGDHM&HC

TENDER
A tender is an offer to do or perform an act which the party offering, is bound to perform to the party to whom the offer is made.
An offer made in writing by one party to another to execute certain work, supply certain commodities, etc., at a given cost and terms. A Tender process is a process within which a project requests from the external market place proposals on the supply of goods and services to that project.

SIX PRINCIPLES of tendering process

Transparency: Candid, evident, manifest and easy to see through or understand

Probity: Virtue or Integrity; honesty.

Equity: Fairness and Impartial Fairplay: Even playing ground; fairness in tendering. The practice of justice, unaffected by prejudice or partiality. Value for Money Accountability

How these concepts are demonstrated throughout a tender process

Pre-Qualification Procedure System of fair selection of contractors with whom the company should do business.

Tenders Rules and Procedures System by which tendering is governed. This system comprises standard letters of invitation, Stated procedure for bidding, simultaneous notice to bidders, minute pre Tender Meetings, controlled points of interaction between company and bidders, defined scope of works, specifications, terms of reference etc.

TENDERS RULES
Govern the process of purchasing Goods, procuring Works and Services and disposal of assets. They are usually structured around different Committees with varying levels of authorities and approvals delegated to each. For example, In an organization ,there are delegations of authority ranging from the The Board The BTC comprising directors of the Board The MTC comprising Vice Presidents of organization The President The Managers

FEATURES OF TENDER RULES

EXEMPT SERVICES: -These Services may be procured directly from the supplier subject to other purchasing procedures:e.g. Professional Services e.g. legal, architects, medical, training; Goods and Services not exceeding an overall value (for example TTD$25,000.00 per item)

 Free Lance Services such as event catering, event management, audio visual production; Printing, refreshment, stationery, housekeeping items and spares; Advertisement, courier, flowers, sound system rentals, newspapers; IT equipment and spares.

METHODS OF TENDERING
Open or Public Tendering:
An open tendering process is an invitation to tender by public advertisement. (newspaper) There are no restrictions placed on who can submit a tender, however, suppliers are required to submit all required information and are evaluated against the stated selection criteria

 Tender value >= 25 Lac

Ad in Indian Trade Journal(ITJ)

At least one National Daily having wide circulation Publish at own website & NIC website NIT to Indian Embassies abroad as well as foreign embassies in India Three Weeks time from date of publication of bid

Select tendering
A select tender is only open to a select number of suppliers. The suppliers may be a short list sourced from an open tender or be a compilation of businesses that the organization has worked with previously.

Value up to 25 Lac Bid document should be sent to Regd. Suppliers by Speed Post/Regd Post/Courier/ e-mail No. of supplier firms in this type of Tender should be more than three Web based publicity Sufficient time is given in this type of Tender

Multi-stage tendering
Multi-stage tendering is used when there are a large number of respondents. At each stage in the process, the suppliers are culled to those who are most suited to the specific contract requirements.

Invited tendering
An organization contacts a select number of suppliers directly and requests them to perform the contract. It is generally used for specialist work, emergency situations or for low value, low risk and off the shelf options.

Sole bid/preferred supplier

No substantially responsive bids are received;

Consultancy service required is a special assignment or Works are of a specialized nature; Emergency works. If only a particular firm is the manufacturer

Technical reason to be recorded (standardization of machinery HP, SONY etc.

Tenders can be issued through:

Expressions of interest (EOI) - used to shortlist potential suppliers before seeking detailed offers.
Request for information (RFI) - used in the planning stage to assist in defining the project, however, not used to select suppliers. Request for proposal (RFP) - used where the project requirements have been defined, but an innovative or flexible solution is needed. Request for quotation (RFQ) - invites businesses to provide a quote for the provision of specific goods or services. Request for tender (RFT) - an invitation to tender by public advertisement open to all suppliers

tender request documents

Description of the goods and services to be procured: this will include what the work will involve, and any technical specifications or details relating to requirements, deliverables or outcomes of the project.

Conditions of tender: this stipulates the terms and requirements that must be met in order to be considered for the project or contract. There may be technical qualifications, experience, licensing, legal or financial conditions that ought to be met in order to be eligible.

Evaluation criteria: this outlines how your submission will be assessed and evaluated. This should be adhered to and used as a guide when preparing your tender submission.

 Submission content and format: details may be provided on how you should present your submission. There may be specifications relating to length of submissions, file format, presentation etc. Templates or response forms may also be provided. It is important to use these when available, and adhere to format and presentation instructions.

Process rules and information: this may include things such as the deadline for submission; where and when it should be submitted, what should be included in the submission; for example pricing information or schedule, and person(s) to contact for clarification or enquiries regarding the tender.

Conditions of Contract: Draft contract conditions: this may indicate the general or standard terms and conditions of the contract, with additions or alterations made when a winning tender is announced

TENDER PROCESS
Invitation to tender Pre/Post Qualification Questionnaire Bid Bond Site Visit mandatory and non-mandatory Tender Boxes Receipt of Tenders Withdrawal of Offer Tender Opening Evaluation of Tenders Recommendation for Award/Approvals Letter of award Conditions of award insurances and performance bond

Tender Evaluation
Tender is sealed Tender documents must clearly specify evaluation criteria.

Two types of Bids: Technical Financial Process of tender evaluation to be confidential until the award of the contract is notified.
Difference between TOC (Tender Opening Committee) & TEC (Tender Evaluation Committee) Satisfaction of Conditions specific to the contract

 Quality of submission Financial stability of each company The companys technical capability

Previous experience
Quality of service for services and works Quality, delivery time, distribution facilities, after sales service and price for goods

 Sample Testing Capacity Evaluation. Turnover Statutory documentation

Arrival at Outcome Price of the bid

Determination of L-1, L-2, L-3 Determining Reasonableness of the L-1 Rates Recommendation for Negotiation (if require)

2-stage Tendering
Two Types of 2-stage Tendering: 1. One Stage Two envelopes Technical and Financial Bids 2. Two Stage Process Two envelopes - postqualification questionnaire and Technical/Financial Bids

 In this tender system, a double envelope may be used. The double envelope system separates the technical proposal from the financing or cost proposal in the form of two separate and sealed envelopes. During the tender evaluation, the technical proposal would be opened and evaluated first followed by the financing proposal. The objective of this system is to ensure a fair evaluation of the proposal. The technical proposal would be evaluated purely on its technical merits and its ability to meet the requirements set forth in the Invitation without being unduly skewed by the financing proposal.

e-Tendering
E Tendering is a process of carrying out entire Tendering Cycle Online including submission of Price Bid such that Efficiency, Economy, Speed of Internet can be harnessed.

 E Tendering Cycle can be broken in Key Modules

Benefits to Tendering Authority Completely Automated Process Shortens Procurement Cycle Economical and Environment Friendly Greater Transparency Improvement in work culture in the departments System aided Evaluation process On the fly reports/comparatives statement Minimize Human errors Minimal Storage Spaces Change in Perception Progressive Organization Lesser hassle of communication and administration

Benefits to Suppliers/Contractors Anytime & Anywhere Bidding Fair, Free and Fearless participation for vendors. No dependence on Newspaper, Courier, Banks, Zero Administrative hassles Can carry out all activities from any computer Economical saving on Traveling cost Reduces efforts & cost of bidding No tenders can be missed because of distance Can submit bid on last minute

Manual V/s E Tendering System