Tenders, their types and process

Tenders
Presented by P.V. Mukherjee.

What is a Tender?
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 To invite bids for a project, or to accept a formal offer such as a takeover bid.
Tender usually refers to the process whereby government invite bids for large
projects that must be submitted within a finite deadline.

There are three kinds of tenders in India:
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3. Overseas Tenders1. Government Tenders 2. Private Tenders

Government Tenders:
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The Indian government along with other state and local governments and their
agencies and department buy many goods buy many goods and services from the
private sector, and provide a significant market opportunity for businesses.
The contracts ranges from Health sector, Transportation sector to Aviation sector
and Defence sector.

What government looks when selecting:
• The relative risk of the proposal.
• Fitness for purpose.
• The performance history of the supplier.
• All direct and indirect costs over the life of the procurement.
• The flexibility of the proposal to adapt possible change.
• The anticipated price or cost incurred that could be obtained at the time of disposal.
The official site for “e-procurement” is https://eprocure.gov.in/eprocure/app.
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5,894 Tenders!
Active and Coming from Government.
333 Tenders!
Active and Coming from Navy.
1241 Tenders!
Active and Coming from Indian Army.

Tenders of Private Companies and Businesses:
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 After seeing government’s tender processes, impressed by it private
companies and businesses also started to buy products and services via
tendering.
 However the private sector has the luxury of having a much more flexible
tendering processes because of lower accountability and liability compared to
public sector. As a result, tenderers generally have to adhere by fewer
requirements.

What Private Bodies Look For?
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 Despite the difference in basic tendering procedure, both private and Govt.
Bodies look for similar things; i.e.
A> Value for Money: Overall is it worth investing.
B> Quality: What is the quality they are giving.
C> Reliability: What are the feedbacks of previous employers.
D> Efficiency: How efficient were they in previous projects.
E> Added value: Innovative ideas from the other side.

Overseas Businesses:
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 Overseas businesses often offer tenders for various reasons among which
cheap labour being the main cause.
Example: TCS, IBM, Cognizant etc companies in India flourish from the
software tenders of international organizations.

“ There are
Seven Steps
To be followed
For applying
TENDERS.
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The Seven steps of Tender:
1. Determining the type of tender.
2. RFT(Request for tendering) is prepared.
3. Tenders are invited.
4. Suppliers respond.
5. Evaluation and Selection.
6. Notification and Debriefing
7. Contracts established and Managed.
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1. Determining the type of tender:
There are four main types of tender processes:
1> Open Tendering: This kind of tendering has no requirement of who can place
the tender and are generally advertised in news papers.
2> Select Tendering: A select Tender is only open to a select number of suppliers.
3> Multi-Stage Tendering: Here suppliers are given the opportunity to bid at each
stage of the project.
4> Invited Tendering. The organisation invites a supplier directly and asks them to
perform the contract.
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2. RFT(Request For Tender is prepared):
The RFT(Request For Tender) could vary from organisation to organisation.
However, there are some standard documents attached:
> Description of the goods and services to be produced.
> Conditions and requirements that must be met in ordered to be considered for
the contract; i.e. technical qualifications, experience, licensing, financial terms etc.
> Evaluation Criteria: This specifies how the bids will be accessed.
> laying out the content and format that should be maintained on submission.
> Last but not the least, last date of submission, whom to submit should be
included in the RFT.
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3. Tenders Are Invited:
After preparing the RFT(Request For Tender) along with it the advertisement is put
on newspapers and/or websites, initiating the bidding procedure.
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4. Suppliers Respond:
As the bidding process initiates the suppliers reads the RFT carefully, plan there
response and respond via the said medium.
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5. Evaluation and Selection:
After going through the application of different suppliers, the one who is offering the
best value for money wins the contract.
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6. Notification And Debriefing:
After the winner of the tender is decided, both the winner and the unsuccessful
suppliers are notified and debriefed.
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7. Contracts Established and Managed:
Finally, the awardee of the tender goes through a legal agreement with the
organisation and the process of offering tender is finished.
However, The process of managing the contract just begins and is usually
effective till the successful of the project.
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Lets Recap; Three Main Tenderers:
1. Government
Organisations:
These are the most
attractive yet the
most hard to obtain
due to stringent rules.
2. Private Bodies:
These does not have
as stringent rules but
are quite attractive
tenders.
3. Overseas:
These opens a new
door of international
tenders; However
international laws and
local laws and
legislations and taxes
should be studied
thoroughly.
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Lets Recap: Seven Steps of Tender:
1. Determining The
type of Tender
4. Suppliers Respond
2. RFT(Request For
Tender) is Prepared.
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3. Tenders are
Invited
6. Notification and
Debriefing
5. Evaluation and
Selection
7. Contracts Established
And Managed.

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THANKS!
Any questions?
You can find me at:
▪ mrpradiptavmukherjee@gmail.com
▪ +917001545320

Tenders, their types and process

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