Tendering/Procurement: Public & Private

Tendering/ procurement: Public & Private

Importance, Emergence and need to analysis of tendering writing and process.

In the competitive business world, the industries and business organisation have been relying on the contracts, documents and business relationships for the growth in the industries and business in India. In the Indian scenario of industrialisation, most the industries has neglected the key area of their business and the small industries has been grabbed by the big competitors and big organisation, due to the lack of skill, information and management and ignorance of the key areas of the business and neglecting of thereof.

The tender is one of the most important documents a business needs as in the commercial globalization, it is very essential that the tendering and procurement should be earmarking to achieve the better business opportunities and success.

Tendering is a process in which organizations or government entities invite bids from potential suppliers, contractors, or service providers to perform a specific task or provide goods or services. The Indian Contract Act, 1872, and the rules and regulations framed by the concerned authorities govern tendering in India.

In the public sector, tendering is a crucial aspect of procurement. The government is required to follow a transparent and fair tendering process to ensure that public money is spent wisely and efficiently. The process of public sector tendering is governed by the Indian Constitution, the Public Procurement (Preference to Make in India) Order 2017, and the General Financial Rules, 2017. The tendering process in the public sector involves pre-tendering activities, submission of bids, evaluation of bids, and contract execution.

In the private sector, tendering is a common process for selecting vendors or contractors for various services or projects. Private companies are not bound by the same regulations and laws as the government, so they have more flexibility in the tendering process. However, private companies also have to follow ethical and transparent practices to ensure that the tendering process is fair and unbiased. The tendering process in the private sector involves identification of requirements, publication of tender notice, submission of bids, evaluation of bids, and contract execution.

The writing tender documents is a lengthy process which needs the clear, concise, efficient, consideration and understanding of clients needs match business writing style. The process is not only be based on the communication within a needs those needs of clients, but to excel within them.

There is not general tender template writing for business in a business manner, as  the tender document is an offer of your company, but it also reflect and demonstrate  often a complex and timely process with the how effectively the assignment can be added pressure of short deadlines be undertaken.

The importance of the tender writing is required to achieve the business goals as the tender documents is the key factor of the business concern to grow in the competitive commercial globalisation and the skills and ability to understand the complex issues and the key factors are required to be explored for the winning tender as such the master class for winning tender and procurement guide on the key issue as such the workshop will assist you to:

• Identify perspectives and differences in the tending process with point of view of  supplier and buyer.
• Exchange your tendering documents and process.
• Develop a winning bid strategy and tender process.
•  Know How to compile and manage the winning tender response.
• Establish an effective tender writing skills and information mapping.
• Understands the contract condition and manage the risk with solution.
• Improve your skills from the details of your tenders up to project delivery.
• Guarantee a good impression to your client and out shine your competition.
• submitting tenders in a clear, concise and effective manner
• conveying messages formally
• writing in a manner that shows a clarity of thinking and operation
• using punctuation to maximum effect
• deleting corporate jargon
• understanding the importance of writing for the audience
• addressing the key requirements of the tender

METHOD OF TENDRING:

• Public tendering.

The public tender also called as the Government tender and public procurement. Public tendering is a system by which an invitation to tender is advertised in the press as per the guidelines of the CVC, India and the intending entity or persons are asked to apply for a tender documents.

It is to be kept in mind that the advertisement for registration of tenders and short listing is not regarded as fulfilling public tender requirements. The pre-registration of tenders may be carried out to establish numbers of entities or person, those will be tendering for the issue of tender documents.

• All applicants registering interest to tender will be issued with tender documents.
• The lowest or any tender will not necessarily be accepted’ is a condition to be included in both the advertisement as well as tender documentation.
• Tendering by invitation.

Under the tender by invitation system, the entities and persons have been shortlisted from the list of the qualified and potential establishment or organisations as per capability and acceptability of the entities and persons to carry out the satisfactorily intending projects. The renderers chosen are then invited to tender for intended project and procurement documents are issued to them..

• RFI: A request for information is a standard process to collect written information about the capabilities of various suppliers/vendors, which follows a particular format that can be used for comparative purposes.
• RFP:- A request for proposal is an initial stage in a procurement/tending process, issuing an invitation for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service. The process brings structure to the procurement decision and allows identifying benefit and risks.
• RFQ: the request for quotation is process, wherein the discussion with the bidders/supplier  are not required as the specification of a product or services are already known, the prize is only factor in selecting bidder. Request for quotation may also be used a initial step to  prior to going to a full blown request for proposal to determine general price ranges and products, services or suppliers may be selected from request for quotation results to further research to write an effective and comprehensive request for proposal.
• Key objectives of RFI, RFP & RFQ:
  • Obtain correct information to enable sound business decisions.
  • Decide correctly on strategic procurement.
  • Leverage the company’s purchasing power to obtain a favourable deal.
  • Enable a broader and creative range of solutions to be considered.

• Key benefits:
  • Informs suppliers that your company is looking to procure and encourages them to make their best effort.
  • Requires the company to specify what it proposes to purchase. If the requirements analysis has been prepared properly, it can be incorporated quite easily into the Request document.
  • Alerts suppliers that the selection process is competitive.
  • Allows for wide distribution and response.
  • Ensures that suppliers respond factually to the identified requirements.
  • By following a structured evaluation and selection procedure an organization can demonstrate impartiality – a crucial factor in public sector procurements.
• Key Factors of Effective Procurement/Tender:
  • submitting tenders in a clear, concise and effective manner
  • conveying messages formally
  • writing in a manner that shows a clarity of thinking and operation
  • using punctuation to maximum effect
  • deleting corporate jargon
  • understanding the importance of writing for the audience
  • Addressing the key requirements of the tender.

Tendering is an important process for both public and private sectors in India. The process ensures transparency, fairness, and accountability in the procurement of goods and services. Tender writing is a complex and timely process that requires clear, concise, efficient, and consideration of the client’s needs. There is no general tender template for business as the tender document is an offer of the company, reflecting and demonstrating how effectively the assignment can be undertaken.

In conclusion, tendering is crucial for the growth and success of businesses in the competitive business world. The skills and ability to understand the complex issues and key factors are required to explore the winning tender. The process of tendering requires the establishment of effective tender writing skills, identification of perspectives and differences in the tendering process, development of a winning bid strategy and tender process, and management of risk with solutions.