Learn about tender in procurement
Tendering is usually regarded as complex and convoluted and has a lot of obstacles. The truth is that tendering is still the best option for public sector procurement. Remember that there is also tendering in the private sector, and there are various benefits for both the sellers and buyers of the works, services, and products.
When it comes to the public sector, there is tender procurement for goods, services, and works for the government. This gives you a regulated, formalized, and transparent way to get business from providers. Ideally, you can win a contract with a public sector organization when you tender for it. In this post, you will learn about tender in procurement.
The tendering process
The tender procurement process in the public sector is usually simple. The public sector organization which can include the NHS, a local authority, Police, or a central government department can publish a contract notice that has a request for tenders.
The request for tenders can have all the relevant and vital information of the contract and may have a deadline for which the suppliers have to send their proposals. A tendering contract can include stationery and cleaning service providers, builders, and digital service providers. In other words, it can include anything the public sector needs can be tendered, so businesses across all industries and sectors can get involved.
As you can see, tendering is a competition, though a business is not expected to begin any work before it is formally chosen. And, this is where tendering stands out because all potential bidders can see what is happening and they present in the same format. Every potential bidder works with the same subject to achieve the same goals.
Tendering is useful for buyers because it provides a fair and transparent means to get business that doesn’t have any supplier that is right to do the project. Therefore, regardless of size of your business, business stature, or market share, anyone can get involved in the tendering process. But tendering is still highly competitive.
A business that is operationally prepared and can take the contract needs to meet the regulatory criteria. This is the only way a business can win the tender, so smaller businesses have to work harder when bidding for a larger contract. This is the reason why it makes sense to use Tracker Intelligence so that you can track public sector contracts. Remember that you also need to consider the social factor. Public sector organizations have to factor in this social factor when they decide to award a contract to a specific business besides the economic value.
This is usually crucial for the involvement of smaller and medium businesses. The good thing is that most governments tend to put a lot of resources into helping smaller businesses procure contracts. However, in most cases, larger businesses often show social value eligibility.
The benefits of tendering
One of the major benefits of tendering is that there is transparency. You should remember that transparency can benefit both the seller and buyer in the tendering process. You don’t have to get involved in back-and-forth negotiations. You have clear expectations from the onset. The payment process also tends to be transparent, and you can expect to receive your payment within thirty days or sixty days, though this depends on the contract’s size.
Also, tendering often creates goodwill. Keep in mind that tendering is a form of matchmaking process that makes sure that there is due diligence between both parties. And, any potential problems or other issues can be rooted out in the tendering process. This leaves a binding and safe agreement between the seller and buyer.
Social value also plays a huge role when it comes to public procurement. It doesn’t make sense to opt for cheaper products or services that may fail to offer social benefits. Tendering in the public sector can encourage providers to put greater focus on what they intend to do for their local areas when it comes to employment, work experience, community programs, and mentorship. In other words, it offers a more holistic type of business that aligns well with the goals of both local and central governments.
Compliance is important to public sector tendering. Suppliers who secure the contracts can only be the ones that are legally compliant and have met the relevant procurement regulation regarding the service delivery. A good example of this is health and safety. Keep in mind that the tendering process can make sure that any bidder needs to submit health and safety information to win the contract. This ensures that there is an existing plan in place to help you do the work compliantly.
Tendering is suitable to any business as long as it is the best idea for the project at hand. In the past, tenders were often for the largest bidders that were successful in public sector procurement. This is because they were operationally prepared to handle the contract. They also had experienced bid writers who could demonstrate due diligence and eligibility.
Recently, this is changing and local and central authorities are now taking a good look at different ways smaller businesses may bring something innovative and new to the table. Larger contracts are still likely given to larger businesses, but the new regulations and rules assist smaller contracts from being taken by larger businesses, especially when smaller businesses are well-equipped.
But smaller businesses should still focus on the bidding and proposal process. Remember that you cannot afford to make any errors when it involves the tendering process. Therefore a small business needs to know how tendering works and the progress of the tendering process.
The tendering process has several stages. This includes advertising the tender requirements, pre qualification questionnaire or the selection stage, evaluation stage, invitation to tender, evaluation of submissions, and awarding of the contract. In most cases, the purpose of the tender can be established by a commission. But the commission process can be different and legally different from the procurement or tendering process. Therefore, as a business owner, you need to understand the stages of the tendering process so that you can enhance your chances of winning the contract.