Preparing and evaluating tenders
Every organisation has procurement requirements, but the value of products and/or services can vary greatly due to the nature, sector and complexity of the business concerned.
The main objective of any tendering process is to appoint the ideal supplier that is commercially and financially sound, technically competent and can offer you the best value for money.
Supplier sourcing generally starts with a Pre-qualification Questionnaire (PQQ) or an Invitation to Tender (ITT) for prospective suppliers to complete and return by a set date. It is therefore essential that a team is available that has the correct skills to manage the whole tender process from understanding requirements, creating and issuing documents, assessing bid responses, negotiations, contract award and successful implementation.
Unfortunately, too many companies have minimal tender management experience, so will simply approach local companies or ones they have used for a period of time, allowing them to heavily influence the procurement strategy, whereas a tender process could prove far more beneficial overall. eXceeding often uses its expertise to help companies design and prepare tender documents and processes, guiding them through the tender processes or provide a fully managed tender solution. So why not contract eXceeding today to see how we can help your company.
Contract Strategy and Specification
Managing a tender from start to finish can be very complex and challenging, especially if you’re looking to procure goods or services that you haven’t purchased before. It’s necessary to thoroughly analyse the contract requirements, prepare a clear and detailed products and/or services list, so as not to miss any aspects of the required services. Product and service specifications play a vital part in any PQQ/ITT process, as they set out precisely what is required, when it is required and how it should be delivered.
A completed ITT document would normally include items such as:
- Programmes and milestones
- Pricing and payment schedules
- Goods or services
- Product specifications
- Method statements
- KPIs, SLAs and service credits
- Quality control processes and procedures
- Accreditations and qualifications etc.
Consequently, a fully detailed response will enable you to compare bids and choose the best company for your requirements.
By thoroughly evaluating the submitted bids, companies are able to procure goods or services that offer the best value for money, as they will compare costs, quality, technical compliance, capacity and capability, delivery, performance and risk.
Assessments will follow a defined pattern in order to ensure all bids are dealt with fairly. Where great differences in costs exist, for example, it is necessary to establish if the data supplied relates to a compliant or non-compliant tender agreement, i.e. alternative methods to meet the contract specifications.
Potential conflicts of interest will be considered, both internally and externally, as part of the bid assessment. Bidders may be contacted, for the purpose of data clarification, prior supplier selection and contract award.
If bids exceed the expected cost levels, decisions will have to be made as to whether to continue and reappraise the estimate, or to abandon and recommence the whole procurement exercise.
Final Decision of the Review Panel
Having agreed which tender provides best overall value for money, taking into account all of the above options, the contract will be awarded, but the review panel’s decision is final
For further information on running Tenders please visit our Tendering page
Email [email protected] or call 03333 555 111 for all enquires.