Unit-V CONTRACT MANAGEMENT #Elements Of Tender Operation Tender A tender can be said as an offer to do work or supply goods at a fixed price. Initiating step of a tendering process in which qualified contractors are invited to submit sealed bids for construction or for supply of specific and clearly defined goods or services during a specified timeframe. The tender process is designed to ensure that the work to be done for client/government is given out in a fair way. For example in Malaysia, there are a number of policies known as procurement policies which guide government of Malaysia on how to make decisions on which tender to accept. Although price is very important in the decision on which tender or bid to accept, it is not the only factor taken into account. • • • • • • • • The focus of tender planning is to ensure that the following elements are considered at the appropriate time: identifying clear procurement objectives appropriate market sounding and engagement strategy tender strategy key dates and time periods during the tender process tender evaluation and evaluation process management of probity contract management governance and resourcing Stages Of The Tender Process Following Stages Of The Tender Process • Advertising the requirement • Selection Stage / Pre Qualification Questionnaire (PQQ) • Evaluation of selection Stage / PQQ • Invitation to Tender (ITT) • Evaluation of the tender submissions • Award of contract • Advertising the requirement • The opportunity may be advertised in a range of ways, but will, at least include the following: • E-tendering portal • OJEU (Official Journal of the European Union) notice if required • Other websites (e.g. Supply to Surrey) • Trade publications • Other social media forums e.g. Twitter • SelectionStage / Pre Qualification Questionnaire (PQQ) • The selection stage may be carried out separately to the full tender process and is then referred to as a Pre-Qualification (PQQ). It can also be done in a single stage together with gathering tender information. • At selection stage bidders are requested to provide information online within a set timescale. This gathers information about your business to ensure you meet minimum requirements to allow the buyer to ensure that your organisation is able to provide its requirements and to either progress your tender submission for full evaluation or to shortlist for the Invitation to tender stage (ITT). It assesses: • Capacity • Capability • Experience • Supporting information on company finances and relevant experience / references and insurance information may all be sought at this stage. There are two complementary documents that formalise the standards of ethical behaviour we expect from our suppliers. The council's Ethical Procurement Statement and Supplier Code of Conduct can be viewed on the Surrey County Council website. • Evaluation of selection Stage / PQQ • Evaluates submissions to ensure suppliers progressing for the evaluation of their full tender submission (in the case of a single stage or open tender) or to shortlist and selects those suppliers most able to meet the requirements to be invited to the ITT (Invitation To Tender) stage in the case of a two-stage or restricted tender process. • Decision communicated to suppliers. • Invitation to Tender (ITT) • Depending on the procedure followed the ITT may be open to all suppliers (open or singlestage process) where selection and tender information are combined or only those who have successfully passed the selection / PQQ stage. • The ITT assesses the offer and the requirements as set out in the specification. • • • • • • Bidding suppliers will be asked to complete online questionnaires and provide supporting documentation. All tenders documents are available for download on the portal and will contain all or some of the following: Instructions to tenderers Specification Pricing schedule Contract conditions–defining the relationship between the public body and the supplier/contractor Tender evaluation model – how we intend to evaluate the submission Supporting documentation–depending on the contract requirements • • • • Evaluation of the tender submissions This is completed by an evaluation panel. Award of contract All suppliers that submitted a tender will be informed of the decision to award the contract via the portal. Decision letters should give details of the successful supplier/s and score achieved in the evaluation of tender submissions. • If the tender is has been published in the Official Journal Award Notice will be published. Fig Source: https://image.slidesharecdn.com/chapter2compatibilitymode-170825100839/95/chapter-2-compatibility-mode-14-638.jpg?cb=1503655761 Fig 1: Tendering Process-Flow Chart
