Have you ever wondered how government agencies, non-profits, or even private organizations choose the vendors they work with on large projects?
The answer is through a bidding or tender process!
What's a tender invitation?
A bid invitation or tender invitation is a request for interested organizations to submit a proposal for a specific project or supply of goods or services.
The invitation usually details the requirements for participation in the tender, the scope of the project or supply, and the criteria that the procurement entity will use to evaluate bids received.
So, why do Companies tender contract opportunities? Here are 3 major reasons why they do so:
📍To ensure fairness: One of the main reasons companies tender contract opportunities is to ensure a level playing field for all bidders. Tendering enables transparency and allows the potential bidders to enjoy equal opportunity to secure contracts since they are all privy to the same information and process. This is a key requirement in public procurement.
📍Risk Reduction: Another reason for tendering is that it helps to minimize the risk of procurement fraud and waste. Tender processes are designed to objectively assess potential suppliers against set criteria such that only qualified suppliers are awarded contracts, reducing the risk of non-performance, fraud, and waste.
📍Competitive Value: Tendering opportunities amongst several bidders allows companies to assess available options in the market. Bidders would usually put forward competitive offers when they are aware that the opportunity is open to several others. This enables the procurement entity to select the best value from the market.
Now, as a prospective supplier, it's important to thoroughly review a bid or tender invitation before submitting a proposal.
By being aware of the requirements and criteria set out in the invitation, suppliers can take steps to ensure that they meet the eligibility criteria.
So the next time you receive a bid or tender invitation, take the time to review it thoroughly and make sure you're submitting not just any proposal but the best value you can offer.
To learn more about conducting tenders and bidding successfully, visit academy.efemini.com to browse all available resources in the academy.
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