General Guide To Tendering & Bidding Processes

1. THE BASICS OF
TENDERING & BIDDING
General GuideToTendering &
Bidding Processes
By: Moatasem Mabrouk
2015
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2. CONTENT
Introduction
Terms & Definitions
Tender Process Map
Bidding Process Map
Proposal Evaluation
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3. INTRODUCTION
Procurement is the acquisition of goods, services or works from an external source. It is favorable that the goods,
services or works are appropriate and that they are procured at the best possible cost to meet the needs of the
acquirer in terms of quality and quantity, time, and location. Corporations and public bodies often define
processes intended to promote fair and open competition for their business while minimizing exposure to fraud
and collusion.
Procurement vs. acquisition: procurement is the act of buying goods and services for an organization. And,
acquisition is the conceptualization, initiation, design, development, test, contracting, production, deployment,
Logistics Support (LS), modification, supplies, or services (including construction) to satisfy organization needs.
Acquisition is therefore a much wider concept than procurement, covering the whole life cycle of acquired
systems. Multiple acquisition models exist, one of which is provided in the following section.
Following slide shall describe some procurement methods
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4. INTRODUCTION
Open Tendering: Open tendering is shorthand for
competitive bidding. It allows companies to bid on
goods in an open competition or open solicitation
manner.
Restricted Tendering: Unlike open tendering, restricted
tendering only places a limit on the amount of request
for tenders that can be sent by a supplier or service
provider.
Request for Proposals (RFP): Request for Proposal is a
term that is used all across the business world. Client
receives RFP’s from potential clients all the time when a
client is seeking a new suppliers.
Two Stage Tendering: a two stage process which is
suitable for large scale projects in which the supplier
gets involved in the design phase, method statement
and pricing. This phase enable the client to evaluate
more and select best bidder out of the 1st stage who will
award the contract of this phase.
Request for Quotations: This procurement method is
used for small-valued goods or services. Request for
quotation is by far the least complex procurement
method available.
Single-Source: is a non-competitive method that
should only be used under specific circumstances. Single
source procurement occurs when the procuring entity
intends to acquire goods or services from a sole provider
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5. INTRODUCTION
Some Benefits ofTendering & Bidding Process:-
 Enhance Competition between suppliers,
 Cost optimization and value of sale enhancement,
 Transparency of acquisition process,
 Open vacancies for new market competitors and
entrepreneurs,
 Minimize potentials for conflict of interest,
 Give more space for negotiation,
 Assure subjectivity and accuracy of acquisition.
Applications:-
Organizations tends to call for tender due to different
reasons that might be vary from entity to another,
below are sample of reasons for using bidding &
tendering process:-
 Legal & Legislation requirements,
 New product/service acquisition,
 Large scale acquisition [exceed the limits defined in
the organization’s policies],
 Special requirement acquisition,
 Cost optimization and value of sale enhancement
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6. TERMS & DEFINITIONS
Tender – The term “tender” is often used interchangeably to the term bid. However, “Bid” is increasingly being used by the bidder
(the supply side) and the term “tender” used on the procurement side (the buyer).
Bid – an approach to a client in order to gain significant new or repeat business..
Proposal –The proposal is a written offer from a seller to a prospective buyer. It is a critical step in the complex sales process
Business profile, or corporate credentials – A business profile or corporate credentials is a promotional or marketing tool that
presents a snapshot of your company. It essentially serves as a resume for your business.
Capability statement – Similar to above but is usually tailored to the audience or the contract requirements, and describes the
business’ capabilities and experience, including who you are, what you do, and how you are different from your competitors.
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7. TERMS & DEFINITIONS
ASL – Approved Supplier List
EOI – expression of interest: a business expression indicating an
intent to bid
IFB – Invitation for bids: is an invitation to contractors or
equipment suppliers, through a bidding process, to submit a
proposal on a specific project to be realized or product or service
to be furnished
ITT – Invitation to tender: is a special procedure for generating
competing offers from different bidders looking to obtain an
award of business activity in works, supply, or service contracts.
PQQ – pre-qualification questionnaire: a series of questions for
potential tenderers to answer regarding their level of
experience, capacity and financial standing.
ITV – Invitation to vendors
RFA – request for applications
RFD – request for documentation
RFI – request for information: is a standard business process
whose purpose is to collect written information about the
capabilities of various suppliers. Normally it follows a format
that can be used for comparative purposes.
RFO – request for offers
RFP – request for proposal
RFQ – request for quotation or request for qualifications
RFN – request for negotiation
RFS – request for services
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8. TENDER PROCESS
Pre-Tender
• EOI
• Tender
Documents
Tender
• CFT / CFB
• Tender
• Tender
Addendums
• CloseTender
Evaluation
• Tender Opening
• Tender Evaluation
• Tender Interviews
• Tender
Recommendation
Award &
Contract
• PrefferedTender
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9. BIDDING PROCESS
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TenderAnnouncement
PQQ
EOI
RFI
OpportunityEvaluation
Technical
Financial
Approval
BidPreparation
Pre-job
TechnicalOffer
Financial Offer
ContractualTerms
Review
Amendments &
Follow up
Documentation
Final Review
Approval
Submitting
FollowUp
Meetings & Interviews
Negotiations
Awarding
Award Letter/Note
Contract Signature
Commencement

10. EVALUATION OF BIDS
Opening of Bids
Examination of
Bids
Requests for
Clarification
Evaluation &
Comparison of
bids
Post-qualification
Award
Recommendation
Bid Evaluation
Report
Notification of
Award
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11. EVALUATION OF BIDS
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Opening of Bids
The opening of bids should take place immediately after
the deadline for submission in the presence of bidders’
representatives who wish to attend.
Bids, modifications and withdrawals received after the
deadline must not be opened.
The outer envelope of these late bids and modifications
should be opened first and the names of the bidders
submitting late bids or modifications read out and
recorded. The inner envelopes of all late submissions
must be returned unopened to the respective bidders.
Withdrawal notices received prior to the deadline
should be opened next and read out and recorded.
Bids which are the subject of a withdrawal notice must
not be opened and must be returned unopened to the
respective bidders.
All bids and modifications received prior to the deadline
must be opened next.
No bid shall be rejected or an opinion/judgment voiced
as to its responsiveness at the bid opening, except for
late bids.
Immediately after the opening of bids, all bids which
were opened must be stored safely and confidentially
and be made available only to those directly involved in
the evaluation process.

12. EVALUATION OF BIDS
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Preliminary Examination of Bids
Each bid will be examined to determine if it:
 is properly signed and accompanied by a power of attorney;
 is accompanied by the required bid security;
 is complete and generally in order (if not, any omission must
be noted);
 is substantially responsive to the bidding documents (if not,
any deviations, omissions or variations must be noted);
 is free of computational errors (any such errors must be
noted); and
 requires any clarifications (any such clarification must be
noted).
The evaluation committee must decide which
deviations (including omissions and variations) or
reservations identified at this point are material and
therefore the relevant bids should be declared as not
substantially responsive. If a bid is not substantially
responsive, it should be rejected and cannot be made
responsive by correction or withdrawal of the
nonconforming deviation or reservation.
At the end of this stage, the committee should be
agreed on:
 those bids which are substantially nonresponsive and should
not be considered further; and
 any clarification which should be requested from bidders.
The outcome of the examination should be
summarized

13. EVALUATION OF BIDS
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Requests for Clarification:
All requests for clarification must be made in writing, and the response must also be given in writing.
A log of all requests for clarification and responses must be kept.
Requests for clarification can be sought at any time, up to the contract award decision.

14. EVALUATION OF BIDS
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Evaluation and Comparison of Bids
Bids which have not been declared substantially
nonresponsive will then have to be evaluated in depth.
Before a bid can be evaluated the following must be
done:
 computational errors must be corrected in accordance with
the relevant provision in the instructions to bidders;
 bid prices must be converted to a common currency in
accordance with the relevant provision in the instructions to
bidders;
 adjustments should be made for any obvious omissions,
deviations or variations which are not considered to be
material and which can be quantified;
 the adjusted bid price resulting from the above would
constitute the basis for the subsequent evaluation and
comparison of bids.
The detailed evaluation of a bid involves first checking
that the technical characteristics, functional
performance and commercial conditions of the bid are
in accordance with the bid requirements.
The next step is to apply the evaluation criteria specified
in the bidding documents and adjust each bid as
appropriate using the evaluation criteria. Only the
criteria specified in the bid document can be applied.
No new criteria must be introduced at evaluation,
and the specified criteria must be applied wherever
appropriate. Specified criteria cannot be waived during
evaluation.
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15. EVALUATION OF BIDS
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Evaluation and Comparison of Bids
Where there are a large number of bids to be evaluated
(over six) and the spread of bid prices is relatively wide,
it is not necessary, in the first instance, to evaluate all
bids in detail. One can usually determine, from the
specified evaluation criteria, the range of bid prices
relative to the lowest bid price which stand a reliable
chance of being the lowest evaluated bid. In such cases
it is recommended that, in the first instance, only those
bids within this range should be subjected to a detailed
evaluation. If the lowest priced bid is rejected during
evaluation, the range must be predetermined, and all
bids in the revised range must be subject to a detailed
evaluation.
The adjusted bid price of each bidder will require
adjustment in accordance with the evaluation criteria in
the bidding documents, in the manner and details
specified therein, to arrive at the evaluated bid price.
The evaluated bid prices are compared and ranked in
ascending order to determine the bidder with the
lowest evaluated price.

16. EVALUATION OF BIDS
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Post-qualification
A successful bidder must be qualified to satisfactorily
perform the contract.
Therefore, it must be determined whether the bidder
offering the lowest evaluated bid is so qualified.
If bidders were prequalified prior to bidding, then a
simple check should be made to determine that the
lowest evaluated bidder still satisfies the qualifying
requirements specified for prequalification.
If no prequalification was done, then it must be
determined that the lowest evaluated bidder has the
relevant previous experience, and financial, technical
and production capability and capacity to perform the
contract.This must be based on the qualifying criteria
specified in the bidding documents.
A positive determination is a prerequisite for the award
of the contract to the bidder.
A negative determination must result in rejection of the
bid; in which event, the committee must proceed to the
next lowest evaluated bid to make a similar
determination of the bidder’s capabilities to perform the
contract satisfactorily

17. EVALUATION OF BIDS
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Award Recommendation
The successful bidder whose bid has been determined to be substantially responsive and has been determined to
be the lowest evaluated bidder and who has been determined to be qualified to perform the contract
satisfactorily, must be recommended for award of the contract.

18. EVALUATION OF BIDS
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Bid Evaluation Report
A bid evaluation report with the award recommendation
must be prepared.
The bid evaluation report should reflect the logical
sequence of the bid evaluation process in the following
manner:
 receipt and opening of bids
 examination of bids
 substantially nonresponsive bids
 correction of arithmetic errors
 currency conversion
 adjustment for nonmaterial deviations
 bids subject to detailed evaluation
 evaluation of bids
 comparison of bids
 lowest evaluated responsive bid
 post-qualification
 award recommendation
The bid evaluation should be prepared in the format
outlined in the Model Bid
Evaluation Report in the manner and detail outlined
therein, including all forms and annexes.

19. EVALUATION OF BIDS
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Notification of Award
When the award recommendation has been approved, a notification of award (letter of acceptance) should be
sent out immediately to the successful bidder.
Negotiations must not be held with the successful bidder with the intention of getting a reduction in price or a
change in the scope of the contract.
Negotiations are only allowed under exceptional circumstances and with the Bank’s prior concurrence.

20. THANKYOU …
References
"Definition of bidding in English". Oxford. Retrieved 29 March 2014.
"Bidding at Auctions". Auction Bidding. Retrieved 31 March 2015.
"BiddingTerminology". AuctionsUK. Gauk Auctions. Retrieved 31 March 2015.
Evaluation of tenders and preferred bidder selection
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