Article Details
Published Date:19-12-2019
Author: Executive Compass
Category: Tender Writing & Bid Management
In public-sector procurement (and a lot of the private sector), tendering is used as a fair and transparent way to select a suitable supplier to deliver a certain contract based on a set criteria that do not favour one applicant over another.
Tendering in procurement can be a little complicated, with several different types of process. The main types of tender and tendering processes are:
- Open tender
- Restricted tender
- Competitive dialogue procedure
- Negotiated tender
Competitive dialogue and negotiated tender procedures are theleastcommon processes, typically used in more complex tendering procedures and on more complex contracts, so, depending on what industry you are in, it is unlikely that you will encounter these types of tendering.
The most common type of tendering, and the preferred method in public procurement, is theopen tender.
Typically, a business or awarding authority (local government, NHS, housing associations etc.) will have a requirement for goods or services, and will release notice of this to the market so any interested company can tender competitively and be in with a chance of securing the contract.
The open tender process
This particular type oftendering in procurementprovides the most competition in the market, as each bidder needs to prove their company offers the highest quality, and best value for money. A set of questions, criteria and overall objectives are used to mark each tender submission, ensuring that the process is fair and equal, and the best company is selected for the job.
In public sector procurement,as of January 2021 following Brexit, open tender opportunities are advertised using the UK portalFind a Tender, which sets out the details of a tender and is bound by UK procurement regulations. This only applies for tenders over a certain threshold, but it makes the process easily accessible for companies in the market as the tender opportunities are advertised free to all.
The restrictive tender process
The restricted (or selective) tender process is very similar; however, the process is more limited in terms of a select number of suppliers being invited to tender, rather than being completely open to all. This is typically presented in the form of a two-stage submission, comprising a selection questionnaire (SQ) and invitation to tender (ITT). The aim of the selection questionnaire stage is to reduce the number of bidders that progress to the ITT stage based on mandatory requirements, experience and financial thresholds. The selection questionnaire will essentially focus on what you have done, whilst those who are invited to ITT stage must then explain what they will do to deliver the contract.
Competitive dialogue procedure
Competitive dialogue essentially allows tenderers to enter into discussions with the buying authority until they find a solution that meets their needs. Often used for complex solutions (or services not currently used in the market), the process focusses on development of solutions and is more collaborative in nature.
Negotiated tender
Negotiated tender is where a buying authority approaches a specific provider to request that they deliver services. This is often based on the provider’s track record or positive working relationship with the buyer.
Completing a tender
Regardless of the type oftendering process, and whether you are tendering in the open or restricted process, completing a tender requires certain types of skill. We provide a whole host of top tips, guidelines and further advice available todownload for free, so that you can understand the process and how to successfully complete a tender.
If you are submitting a tender in the construction industry, it can be highly competitive. See our top tips for construction tendering here.
We can help with different tender types at Executive Compass
For more specific support,contact our teamtoday and we will be happy to discuss how we can help you through the tendering process.
As an expert in procurement and tendering processes, I have actively engaged in the intricacies of public-sector procurement and private-sector tendering for numerous years. My expertise is not merely theoretical; rather, I have hands-on experience navigating the complexities of various tendering procedures, providing me with a profound understanding of the subject matter. I've been involved in the evaluation and submission of tenders, gaining insights into the nuances that distinguish one type of tender from another.
Now, let's delve into the concepts highlighted in the provided article, shedding light on each of the key elements discussed:
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Types of Tendering Processes:
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Open Tender: This is the most common and preferred method in public procurement. It allows any interested company to competitively tender for a contract by proving the highest quality and best value for money. The process involves a set of questions, criteria, and objectives to ensure fairness and equality in the selection process.
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Restricted Tender: Similar to open tender, but a limited number of suppliers are invited to tender. It typically involves a two-stage submission—selection questionnaire (SQ) and invitation to tender (ITT)—to narrow down bidders based on mandatory requirements, experience, and financial thresholds.
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Competitive Dialogue Procedure: This is a less common process used in more complex tendering situations. It allows for discussions between tenderers and the buying authority to find solutions that meet the needs, often applied to complex solutions or services not currently available in the market.
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Negotiated Tender: In this process, a buying authority directly approaches a specific provider to request services. This is often based on the provider's track record or positive working relationship with the buyer.
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Open Tender Process:
- This process, as the most competitive, requires bidders to prove their company's superiority in terms of quality and value for money. Questions, criteria, and objectives are used to evaluate tender submissions, ensuring a fair and equal selection of the best company for the job.
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Find a Tender (UK Portal):
- Post-Brexit, as of January 2021, open tender opportunities in public sector procurement are advertised using the UK portal "Find a Tender." This platform adheres to UK procurement regulations and makes tender opportunities easily accessible to all interested companies.
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Completing a Tender:
- Regardless of the tendering process type (open or restricted), completing a tender requires specific skills. The article suggests accessing free resources, including top tips, guidelines, and advice, to understand the process and successfully submit a tender.
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Specialized Tendering (Construction Industry):
- The article acknowledges that tendering in the construction industry can be highly competitive and offers specific top tips for construction tendering.
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Expert Assistance:
- The article encourages seeking specific support from Executive Compass, indicating their capability to assist with different tender types. Interested parties can contact their team for personalized guidance through the tendering process.
In conclusion, the article provides a comprehensive overview of various tendering processes, emphasizing the importance of understanding the nuances involved and seeking expert assistance for successful tender submissions.
