The Bidding Process in Procurement

Business
Michael Baron
October 7, 2021
Two people stand at a wooden desk, collaborating on data analysis. One person points a gold-tipped fountain pen toward a smartphone displaying a bar chart, while the other person's hand is open near a printed document featuring similar blue and grey bar gr

There are many reasons why an organisation opts for the procurement bidding process, but mostly it is that many organisations find that a procurement bidding process offers the most transparent and fair method of choosing a supplier. This is not only for the suppliers bidding, but for the clients themselves as it demonstrates they are not merely selecting the supplier who offers the lowest price, which could leave both parties open to accusations of 'buying' the contract.

Bid processes can take one of two pathways; either through a single submission, for those who are short on time and need a solution to their requirements quickly, or a procurement approach involving two or more stages whereby suppliers must pass an initial pre-qualification criteria before being invited to tender their final submission. This process usually provides assurance for the organisation releasing the tender that all suppliers in the procurement process have a verified track record.

The staged approach can include any of the following stages:

  • Contract notice is released on preferred portals
  • Expression of Interest - Interested suppliers will express their intention to bid
  • PQQ - Suppliers may be required to complete a Pre-Qualification Questionnaire. They will have to meet a specific set of parameters in order to progress on to the next stage. If a supplier is registered with a specific portal the organisation is using, most of this will have been prepopulated from the responses given during registration.
  • ITT - If suppliers are successful in meeting the PQQ parameters, they will be sent an Invitation to Tender. This will include all documents and specifications needed to complete the tender.
  • Evaluation - When evaluating the bids submitted, the procurement team will have a set criteria of requirements and a set scoring methodology to ensure scores allocated are done as fairly as possible and leave no room for challenge.
  • Presentation - all suppliers who have submitted a bid that meets all the requirements set by the client may be asked to undertake a presentation and answer any questions from key stakeholders as the final stage of the bidding process. Their presentation and answers to questions asked will be scored with the highest scoring supplier being awarded the contract.
  • Award of Contract and Standstill Period - all suppliers will be notified of the award outcome with a standstill period of usually ten (10) working days. This gives unsuccessful bidder(s) the opportunity to challenge the decision if they feel they haven�t been evaluated correctly.
  • Implementation - Once the standstill period has ended, contracts can be signed, and the implementation period can commence.

Whatever the outcome of the bid, feedback will always be given if requested. Suppliers can use this feedback to see where they can make improvements to secure further points when tendering for another bid in the future. Common feedback is that it can be very simple for suppliers to describe their product or service as if they are discussing with someone who knows what they are talking about, a colleague for example. However, what they need to do is describe it as if the person reading has never heard of it before. This will ensure they are describing what they are offering clearly with no room for misinterpretation, which is where a bid writing service is of use.

Conclusion

A procurement process within bidding provides a transparent and thorough process in the selection of high-performance suppliers. It ensures all suppliers hold the necessary accreditations, insurances and ethos a client is looking for. It can also help the client make financial savings in that the employees they have dedicated to the writing and construction of the bid will now not be taken away from their daily responsibilities. Depending on what their role is in the organisation, this could in fact delay important decisions or actions because their time has been taken up with bid writing. With a procurement process, most of the initial work has already been done and coupled with a bid writing service, can be the most efficient form of securing contracts through procurement.

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