What is Tender Management?

So what is tender management? In todays competitive business world, many potential projects and services are put out to tender. That is numerous potential companies are provided with the opportunity to bid for the work. In their bids, they will describe how their company will solve a business problem, provide the service required or supply the goods requested. They will also need to provide a competitive price for this work. The process of designing and writing these proposals or tenders, complete with the competitive pricing, is called tender management, proposal management or bid management.

The Art of Tender Management

As a company is competing against many other companies that may have the same or better qualities and lower prices, the art of tender management or writing a winning tender is highly skilled. A good tender writer who really knows how to write a bid and who will make the tender stand out from the competitors is highly sought after.

When does Tender Management Start?

The tender starts when an appropriate Invitation To Tender (ITT) has been identified. The ITT is a formal document that is published by a purchasing company in order to notify other companies that bids for a piece of work, project or service is required. There is always a fixed deadline that the tenders must be returned by and this makes bid management very time dependent. It all adds to the stress of the entire process. What does tender management include? Analyzing the requirements within the ITT. Designing a solution that meets these requirements. Managing the staff that will write the tender. Developing a compelling proposal that will meet the requirements and stand out from other bids. Producing a pricing structure that will win the bid as well as produce a profit by the end of the project. Minimizing risk and maximizing the impact of the tender. Sticking to tight deadlines.

Tenders Are Not that Standardised There are standard bid management processes available to manage these activities and one published bid methodology. There are also some computerized systems that will manage the workflow of a tender management process but bid management is nowhere as formalized as project management. This makes experience proposal writers with a history of winning highly sought after.

A tender or bid writer manages risk very well and is always organized and able to manage staff within a very highly charged environment. Framework Tender Agreements Such is the popularity of tendering that framework agreement tenders are now being offered. This is where a company tenders to receive a framework agreement that then provides them with the opportunity to tender for future work with the organization. These framework agreements are particularly popular with government tenders and large companies and are often found in information technology and staffing. Tenders can be low level such as a cleaning service or they can be highly prized, such as a bid for a multi-million dollar new computer system but they all have the same structure and processes. They start with the ITT request for bids and end up with a negotiated contract. A good bid manager knows how to manage the process, whilst juggling staff, information overload, searching for missing information and managing time frames.

Tenders Regulations A Necessary Requirement

Tenders regulations are going to be a central part of any bid writing process. If you produce bids in response to government or institutional Invitation to Tenders (ITTs) then you are going to be very constrained by tenders regulations. Governments, charities and institutes, particularly those that use public funds will have the strictest tenders regulations. These must be followed and fully adhered to, as non compliance usually means that the bid will not be evaluated and there will be no award of contract. These tender regulations are bought in to ensure that everything is fair and seen to be fair as well as ensuring that as many different types of companies can bid as possible. They typically include the following requirements: That the ITT is advertised in easily found areas for set times. This ensures that companies know where to find the ITTs. That there is a defined format that every bidder has to follow when writing the bid. This is to ensure fairness. That all bids follow a Value for Money (VfM) criteria. This is to ensure that public money is best spent and no company can overly benefit from wining the tender. Life time costs are often evaluated to meet the VfM criteria. Maintenance and support contracts and training are often required to ensure that the organization is in the best position to use the resulting products and services. That all bidders are prequalified for financial stability. This is again to protect public money. That bribes, inducements and other unfair activities are totally banned. Again to provoke fairness in the bidding process. There may be several reviews of your companys abilities as well as references taken up. This will be compulsory for all bidders. This protects the tendering company and is extremely common with governments. Individual workers on the contracts may have to pass reviews such as criminal record checks, drug testing etc. If your company does this regularly, any certificates would be useful.

All relevant laws are followed. This usually includes employment, health & safety, discrimination laws. These are some of the standard documents that you can write before you bid. These types of organizations love quality certificates so the more you hold the better.

All bidders also have to produce the same information in the same format, which makes evaluation much fairer and quicker. Lengthy evaluations can take time and money and these tender regulations keep evaluation costs down. Most evaluating agencies also have a set method of evaluating and scoring new bids. This also makes bidding much fairer as well as quicker to undertake. Savvy bidders know this and soon learn how to design their bids to take the best advantage of this knowledge. Whilst you may think that tender regulations are irksome, they actually make writing a bid much fairer, quicker and yes, easier.

Government Tenders Government Tenders

How

to

Really

Profit

from

Government tenders are very competitive and many companies exist only on them. That is because they are steady work and there is a guarantee of payment. Many projects provided by central or local governments have a great deal of prestige attached to them. The contracts can be any size from large to $multi contracts and be for anything from ditch digging to massive computer systems. In some highly specialized areas such as some defence contracts there may only be a few bidders. In other government areas such as cleaning, road repair or staffing there may be hundreds of businesses all competing for the same work.

So how do you succeed with such tenders?

Winning government projects is very price dependent as a competitive price is a major factor in awarding contracts. This has led to companies offering minimal services and products that will just meet the tender requirements and then building in as many profitable extras to the project as they can manage. This is one of the reasons that government projects often end up costing more than originally expected. The government office originally purchases a project that it thinks will meet its needs. During the project implementation, it discovers that the service offered is only basic and then starts to ask for upgrades and changes. The perceptive, experienced bidder knows this and has built in some extra services at a greatly enhanced price. The extras that will almost always be required are how the bidding company makes its profit. Of course, many overruns are also caused because the government office has not specified what it requires in enough detail. Government and public tenders can be very difficult to manage when they are won. The experienced company understands this and prices to make a profit.

Many Government Tenders Open Only Within the Country

Many governments are keen to attract small businesses in order to improve the countrys business environment and encourage business growth. As such many tenders are only open to business within that country, although some countries have to also tender internationally.

Government Tenders Are Firmly Controlled

Many countries firmly control their tenders by following a fixed format and having a common question structure. This ensures fairness and a removes the potential for corruption. It also means that companies are faced with the same questions on multiple tenders. This makes them easier to answer but familiarity makes it more difficult to differentiate yourselves from other bidders. Government Tenders Are Centrally Advertised Governments usually centrally advertise their tenders, so that there will be a web site for central government contracts and another for all local government contracts. The European Community (EC) also advertises all EC contracts on one web site. This makes it very easy for a company to identify and apply for new projects. Unfortunately, it also means that there are a considerable number of companies that all bid for the same work.

Profiting from Government Tenders

To summarize then, to become that experienced company and make a good profit from such tenders ensure at least 2 things: 1. Tender a low price that covers only the basic requirements of the tender. 2. Then include build in optional services at a higher price. Certainly this article covers the main aspects where government and public tenders are transparent. Many times depending on the country government tenders are decided by 'under table money'. But we don't want to go into that here, as that will open a can of worms - we shall leave that subject matter to wiki leaks.

Global tenders Are Benefits & Worth the Risks !?

Are you considering responding to global tenders? This is an opportunity not only for large corporations but for small and medium size businesses wanting to expand into new markets. Companies, governments and aid agencies issuing global tenders are not looking for one supplier to service the world but for new suppliers for regional or country-specific markets. Many websites and international journals advertise global tenders for goods and services and new development projects. Most go through a pre-qualification process with you so that you can be an approved bidder. Most important is to select carefully the most relevant tenders and assess your chances of success. The budget level of the tendering

organization, your capacity to service the client in the timeframe and your technical ability are all decisions that need to be made so your time is not wasted.

Pricing
Pricing may not be the main criteria in the selection of a supplier. Quality and experience can count to a far greater level especially in cases where emergency supplies are required and where the buyer is looking for a long term relationship and continuity of supply.

Risk management
There are risks involved in global tenders but they can be mitigated provided you are fully informed of the implications and you have done the necessary market research. Some of these are: 1. Qualify the buying organization. Find out as much as possible about them, their financial status, reputation in the market, trading and business history, any published achievements. Watch out for the red flags. 2. Good quality tenders will provide clear specifications, due date for submission, due dates for delivery of the goods or services. Contact details of the people handling the bid including telephone number and email addresses should be given. If any of these are not clear or missing, beware. 3. Legal and contract requirements may vary widely geographically and tenderers should take both their own advice and engage local legal support within the particular country or region. 4. Potential fraud is a risk, especially in emerging markets. This can be deliberate and designed but can also be through inadequate internal controls and lack of separation of duties in the buying organization. 5. Currency and finance risk. There are fluctuations in foreign currency exchange rates on a daily basis and forward cover or other defensive strategies should be used to protect the overall cost of the product or service and transportation. Tenders are issued by country, by area, by region rather than for the whole world. Investigate the region you are interested in expanding into and select the global tenders that you are truly able to fulfil.

Top 5 Tips to Tender Application Success

When considering to make a tender application, you must be thorough. Below you will find 5 tips to help you be successful.

5 rules to a successful tender application

1. Do your homework and start early

Each application for tender you make requires effort and resources. To make the best use of your time, get a copy of the tender documents as soon as you can, giving you more time to plan and prepare your submission.

If you get a copy of the tender documents through a third party, make sure that you register your interest with the contracting agency. This will ensure that you are notified of any amendments and that you are provided with any additional information issued.

2. Review and understand the client requirements

Make sure you understand what is required. Read the tender documentation thoroughly. Attend any pre-tender briefing sessions and be prepared to ask questions. If you are still uncertain and require assistance, seek clarification. This is the point at which a decision needs to be made whether to proceed to bid or not. Every tender application will include a number of pre-defined attachments and certificates. Make sure that you are in possession of the necessary accreditations. Read the contract terms and conditions and make sure that you can comply. Non-compliant tenders may not be considered by the client.

3. Study the evaluation criteria and plan accordingly

Study the criteria against which your tender application will be evaluated and note any weighting placed on each of the criteria. You must satisfy each of the criteria and you should focus particularly on those criteria that carry the most weight. Develop a tender response strategy which should include the budget and resources required to prepare your tender and to fulfill the contract should you be successful. The strategy will also include an analysis of your prospects of winning the tender and a review of your competition.

4. Check your tender application for completeness and accuracy

The tender will include all the requirements and specifications for the goods and services to be supplied. Be quite sure that you will be able to deliver. Include in your tender details of all the relevant experience you have in relation to the proposed contract. As a valued-added service you can offer substitute products or services where necessary or offer to make refunds if you fail to deliver as agreed.

5. Check the closing date, time and place for the tender
Failure to submit on time is a regular occurrence. As a rule, late tenders are not accepted. Dont waste all the effort that has been put into the tender application. Be quite sure that you have enough time to prepare and submit an offer before the due date. It is up to you to deliver or post your tender documents to the correct address by the due date, and indeed at the correct time.

Should You Bid in a Business Tender or Not?

A new Business Tender arrives to bid or not to bid? Not every tender issued that is of interest to you is worth the effort of tendering. Making the decision to bid must be taken with all the facts in mind. Sometimes the right decision is not to bid. Bid management professionals advise that opportunities should be qualified as early in the process as possible.

Qualification of a bid is a process where questions are asked like these:

Is this business tender in line with our strategic direction?

This includes analyzing if this is in fact our business area, are we known to the prospect and do they have budget to proceed with this purchase. In addition it is important to know if there is an incumbent supplier and to understand what our competitive advantage is. If it does not fit in with your business plan, then it is NO BID.

Do we have the capacity to complete the business tender on time?

Large and high value tenders require an investment in time, personnel, facilities and other resources. Detailed planning is required to establish availability and commitment of resources and a budget for the preparation work. A tender team should be established and tasks need to be allocated to each role. Following on from that, a tracking and review process with milestones should be implemented to ensure that the bid is submitted on time.

Are we positioned to win this business tender?

This means can we deliver their requirements in the given timeframe and can we achieve the level of quality that is required, assuming we have the people and the experience. Also, do we have the necessary accreditations and certifications that are compulsory? Are there any show-stoppers? Answers to these questions can be colour-coded in red, orange and green and studied to establish whether it is possible to get-to-green, i.e. to have a good chance of winning. Lack of corporate commitment and lack of resources could be a NO BID.

Do we have a current relationship with the client?

If there is a current and functional working relationship with the client, thats a good start but not vital. If our relationship with the client is not particularly good but it can be fixed, thats also OK. If the current relationship is poor and cant be fixed, then it is NO BID. If most of the above questions can be addressed positively, then submitting a business tender is the right decision. In certain cases it may be opportune to submit a bid even if there is little chance of success, for political or branding reasons.

Tender Evaluation 5 Criteria & 2 Tips

What are tender evaluation criteria? The purpose of an evaluation process in sourcing is to identify which bid offers the best value for money i.e. the most economically advantageous tender or proposal. The criteria that are specified in the invitation to tender document are the basis for the buying decision. Preparation before issuing the tender The tender evaluation criteria need to be defined prior to sending out the bid document or the Request for Proposal (RFP). The thought process is important at this stage as the criteria to be used for assessing the tender needs to be communicated to the bidders. Tender Evaluation criteria should reflect the risk and the value of the contract

In the Government sector it is normal practice to provide both the criteria and the weightings, i.e. the exact basis on which their offer will be judged. In the private sector, most organizations provide the general criteria but often do not disclose the weightings. Cost is usually one of the main criteria. Tip: Best practice is to provide a costing template for the bidders to complete so that you can compare the bids easily without a lengthy calculation and analysis process Cost vs price Cost is more than the base price. It will include delivery, installation and transportation if they are not specified separately. It is important to ask for any on-going operational costs, warehousing, maintenance, spares, consumables, licenses and various other costs that may be incurred. Tip: Your costing template in the tender should allow for and encourage bidders to include all the costs associated with the commodity over its whole life. Quality requirements All non-cost criteria should be defined in the bid document. The criteria to be used in the tender evaluation process will vary depending on the goods or services being sourced. Here are some of the main ones: Technical issues and functional ability to fulfill the requirements Continued technical support and after sales services Ability to deliver on time and complete in the required time frame Compliance with legal and statutory requirements Acceptance of the proposed terms and conditions Training and on-site installation Tender is complete and signed by an authorized person Criteria weightings Each separate criterion should have a percentage or a number of marks allocated to it highlighting the relative importance of each area, disclosed in the RFP if appropriate. Bids should only be assessed against the criteria issued in the invitation and no new assumptions made when performing a tender evaluation. Assessing the Tender responses An important first step in the process is to ensure that the bidders meet the overall basic requirements and that the bidders fully understand the implications and the risks of implementing the service or delivering the goods. Provided that the template layout you supplied is clear, scoring the responses is easy and the process to evaluate tenders should be straightforward.

How to tender - 5 rules to follow & 3 pitfalls to avoid

Instructions on how to tender and when to submit a bid are always provided in the tender guidelines issued by organizations, both in the public and private sector. Tips on how to bid successfully:

Rule #1 - Follow the instructions to the letter

Each tender or bid advert indicates, usually in a covering letter, where you can collect the tender documents, where they should be submitted and by when. Bidders that do not comply with the basic requirements for submission will be disqualified in the first round.

Rule #2 - How to tender: Submit all required forms and certifications

Included in the tender will be requests for supporting documentation including company profile, references from satisfied customers, tax clearance certificates, company registration documents, audited financial statements etc. Care must be taken to complete these forms correctly, get technical advice if needed. Finally, check for errors and completeness before submission.

Rule # 3 - Submit your bid before due date and time

Every tender has a closing date. To ensure that the bid is delivered on time a project plan should be prepared detailing the internal milestones to be achieved and allocating the tasks. Ideally there should be a bid manager or tender leader to make sure that you are on time, Closing dates are exactly that, late bids are disqualified.

Rule # 4 - How to tender by focusing on the evaluation criteria

Organizations issuing formal tenders usually outline the judging criteria, sometimes they often include the points allocated to each area. This provides clues to the importance of each criteria, e.g. price, quality, after sales services and support. Take time to understand both the price and non-price measures purchasers to evaluate tender bids.

Rule #5 - How to tender by differentiating yourself from the competition

Your competitors are also submitting tenders, so structure your tender response so that you are in a position to win even if yours is not the cheapest bid. Include value-added services in the price or offer creative price structures. The key is to be organized - focus on the parts of your tender where your competitive advantage lies and use examples and client testimonials.

How to tender: The pitfalls

Pitfall #1 Compulsory Briefings Look out for any compulsory briefings or site meetings or any other special conditions of contract as non-compliance can disqualify you. If you do not attend the compulsory meetings, you will not be able to tender.

Pitfall #2 - Failure to Comply with how to tender rules Take time to understand and then adhere to the tenders legal requirements and stipulations. This is particularly important in public sector tenders where the regulations are defined by law and these may differ for different government departments and local authorities. Failure to comply will disqualify you. Pitfall #3 - Be totally honest. If the tender asks whether your organisation has suffered deductions for liquidated damages, or whether a previous contract has been terminated, or not renewed, be truthful. Follow the 5 rules on how to tender and they will work in your favour.

Finding tender leads!?

Finding tender leads is not difficult if you know where to look. Government and public sector tenders are often required to advertise in the press for fair access and openness. Private and corporate tenders are not so easy to locate and not-for-profit organizations use different avenues to source their suppliers.

Tender leads for public sector contracts can be found by:

Following up tender notices published in newspapers and trade magazines. Monitoring online government tender bulletins on their websites, The central or local offices of some government agencies may be approached directly. Find out in which newspapers (or elsewhere) they advertise and whether they keep a database of preferred suppliers. If so, find out how you can get onto that database. Most government websites advertise a free tender service to promote broader access to their contracts. You can actually find any government website for leads. Governments that are transparent will have a dedicated website for all their tenders.

Tender leads for private sector contracts that are not publicly advertised will require more research by:
Building contacts with potential customers so that you are aware of business opportunities before they are tendered Advertising your services in trade and professional magazines Researching activities and trends in your area of business Following up on news reports on developments in your industry sector Networking in your business environment There are commercial services available which scan the business world for as many tenders as possible. They gather the information and sort them into categories. When you subscribe to their services, they send you the information on tenders available for

your industry. It is a very handy way to find tender leads if you don't have time to phone around and scan all the newspapers and bulletins. Leads for the not-for-profit sector are not always advertised, so either Use local voluntary and community sector networks and publications, or Make direct contact with the purchaser such as the United Nations, World Bank and Oxfam through their websites which carry their tenders Tender leads can also be found in commercial business support organisations and tender alert services that are equipped to help small businesses get access to tender information. They will also help you complete the tender documentation. Be proactive. Stay in contact with the buying offices that put out the most appropriate tenders for your business. Tender information is made available as widely as possible but it doesn't mean that it will come to you automatically. Apart from keeping a keen eye on newspapers and the Tender Bulletins, apply the age-old business principle of networking.

6 Points to Public Sector Tenders

Public sector tenders that are issued follow very specific rules and regulations relating to statutory and legal requirements. They are also designed to promote fairness and access to government contracts for the smaller and more localized businesses. Governments have very large budgets and are bigger players in the economy since the recent recession so it is worth the effort. Before bidding on government sector tenders it is important to understand all their requirements and follow them closely.

Specific points to consider before bidding on public sector tenders: #1. Where Are Government Buying Decisions Made?
It is important to know where government buying decisions are made when you are initiating business with government for the first time. You will need to do some research to work out who is the right person to talk to. As all government agencies structure their buying activities differently, this task is a necessary step. Know who you are dealing with.

#2. Compliance to public sector tenders request is the first hurdle.

You need to adhere to the rules specified in the tender as there will be no latitude in the evaluation process. Government departments are structured based on their defined policy and processes and if you can demonstrate that you can work their way, then your tender will be considered favourably. Government sector tenders often include requests to attend a briefing and site meetings may be compulsory. This means that failure to attend could disqualify you. Often details are given at these meetings that are not available anywhere else. In addition you have the opportunity to clarify instructions to make sure there are no misunderstandings.

#3. Get to the point when doing public sector tenders

Procurement practitioners managing public sector tenders are demanding more of bidders. To succeed, tender responses need to be shorter, sharper, and to the point. The responses to questions need to be clear and easy to find. Evaluation teams do not spend time hunting for the information they need so size and word count limits need to be adhered to.

#4. Use the template provided for Price & Cost Breakdowns.
Price and cost breakdown information and financial analyses must be provided in the template provided or in the order stated. It is not advisable to use other formats or programs as this may lead to disqualification. Evaluation cannot be done fairly or easily if submissions are not comparable.

#5. Advertise Credentials but No Sales materials

Specific examples and client case studies will be requested to allow you to demonstrate your credentials. However, there will be a restriction on supplementary sales material in public sector tenders and it is good practice to supply only what is asked for and in the format requested. Creative visuals and brochures that were not asked for should not be included

How to Bid Government Contracts?

Ever wondered how to bid government contracts? Many companies survive just on winning government contract bids. The size of your company is not a problem as many governments actively encourage smaller companies to bid government contracts. They do this as it promotes: Greater competition More companies are able to bid. Lower costs Smaller companies have fewer and lower overheads. New ideas These are sparked from the competiveness and innovation inherent to emerging companies. Responsiveness Due to the greater level of the competition. Flexibility Smaller companies are able to move and change far quicker than a larger company controlled by shareholders and multiple layers of management. Quality of service Available from a responsive company in a competitive area. Specialization Many companies that specialize are by their nature small. This ensures that they can bid without having to join a consortium that will put up the prices.

To bid government contracts is made easy by many governments who have their own web sites. So if you wished to bid on UK government contracts, they have their own web site that has all of the available government (Invitation To Tenders) ITTs in one place. The USA also have their own site, as does the European Community. If you wish to bid government contracts you must remember several major factors: Governments are very price sensitive.

Governments need to be fair and legal, so their bidding procedures are highly controlled and formulative. Many governments have key areas that they are particularly keen to see within a bid. These would be such activities as: o Equal opportunities. o Green initiatives. o Legal requirements. o Quality. o Health & Safety. o Staff transfers.

This does mean that once you have written this information you are able to use it on several occasions. This does make tender writing much easier and quicker. So ensure that you know and understand your governments bidding processes and what they generally look for in a winning bid. If you wish to bid government contracts you will need to complete a PQQ (Pre Qualification Questionnaire) before you are allowed to complete a full tender. This will ask you questions about the stability and financial robustness as well as a few other questions intending to choose a few most appropriate bidders. Read the PQQ in great detail because you can often find out the government agencies key requirements. To conclude if you wish to bid government contracts, learn the bidding processes, write up the standard questions and pay attention to the PQQs.

International Competitive Bids Big Bids, Big Risks, Big Returns

So what are international competitive bids? The easy answer is that they are bids for contracts that are offered internationally. Why would a company or organization do that? Countries and large organizations such as The World Bank offer the option of international competitive bids because they want to find the best companies in the world to provide their products and solutions. International bids are expensive to hold and even more expensive to complete so the value of services and products required are usually in the $ millions and the projects involved are very complex. Many of the projects involved are infrastructure projects where it is expected that large consortiums of bidders will tender for the work. A significant others are manufacturing projects where large companies are seeking new manufacturing premises or services. The third area is defence, such a specialized area that countries need to search internationally for products and defence services. The large funding agencies such as The World Bank and The International Monetary Fund (IMF) often provide the opportunity of international competitive bids on third world country projects.

Many of the consortiums that bid for these projects come from several countries and all of them must, as part of the bidding regulations, contain companies from the host country. To solve language and currency misunderstandings, most of the bids are completed in UK or USA English and priced in US dollars. This means that when companies bid for these projects they need to hedge their own currencies against the US dollar, and often for many years. This provides an extra layer of risk in what are often extremely risky projects. Countries, as expected, require their bids to be in their native language and currency. This means that international companies need to employ local bid writers or those that can speak a foreign language. Some countries, luckily stick to USA or UK English, but most still want paying in their own language and funds. So where do you find these projects so that you can make your own international competitive bids? Well, luckily they are grouped together on just a few different web sites. The major funding agencies have their own web sites and there are a few large web sites that have international projects as well as project feeds from the funding agencies. If there is a large project being set up such as the Olympic Games Venue then a web site is also set up offering companies all over the world the opportunity to place their own international competitive bids. As already stated, these projects are extremely risky to complete, particularly those within any third world country. The usual risks found are: Finding the skilled staff who are prepared to live away from home for some months or even years. Transporting goods, materials, tools etc to another country or sourcing them from within that country. Purchasing goods and services to work on the project in one or more currencies and being paid in a completely different currency. Any political unrest that may make completely the project or being paid difficult. Working in several different languages and training staff in yet another language. The volume and sheer size of the projects as well as the sometimes long wait to be paid.

When writing any international competitive bids, a company must be very skilled in managing large scale risk in order to both win the project and more importantly, make a profit from the project. So why do companies place international competitive bids on projects? The simple answer is that winning one of these bids can be several years work and profits for a company. Of course that can also be a major risk factor! The fact is that international competitive bids are a growing trend and this kind of work will continue to be available.

No Bid Contracts Simple and Quick but Can Be Problematic

No bid contracts seems a contradiction of terms and their other name sole source contract sums it up even more. It is a contract where only one company is being considered for the contract to undertake the work.

This usually happens when there is only one company that is available or able to undertake the work. Large government contracts for ships, submarines, army tanks etc. are commonly no bid contracts. No bid contracts are sometimes controversial and should be used sparingly. They are common when: There are legal or security reasons why negotiations with only one company should be undertaken. There is a need for great speed. Sole or single source contracts are much faster to negotiate and award than a conventional bidding environment which may take many months to complete. It is in the public interest. An example of this would be if a national asset such as a car manufacturer or bank needed to be sold, bailed out or remodeled and only one possible purchaser had been identified.

The USA has a law colloquially called Cronyism which makes no bid contracts particularly difficult in that country and there are several investigations currently under way on some these awarded contracts. They seem to be particularly popular in defense and building and many large companies have won this type of contract, simply on their reputation and contacts in high places. Sometimes the particularly unappealing contracts are awarded on the basis of the receiving company having little option but to accept the contract. In this case, the government usually offers other deals, loans and rewards for undertaking the project. This may be the case where a company is asked to merge with or bail out another company in the same industry that is having financial and operational problems. In this case loans and financial assistance may be offered. This option can often save a country's key assets. This was quite common at the height of the worldwide financial and banking crisis in 2008. Great care must be taken to ensure that these no bid contracts are fair and seen to be fair and that no inducements are received or offered.

Online tenders The Way of Bidding in the Future?

Web sites that offer the opportunity of finding online tenders are becoming increasingly popular. In the the past, companies had to seek out Invitations To Tender (ITTs) directly from the company, from weekly and monthly publications, from newspapers or on company websites. Now they can just monitor a couple of web sites and all the online tenders are there. Most of the tendering web sites have sophisticated searching faculties making finding the ideal tender quick and easy. Most of them will email you with potential ITTs using your own bespoke search terms. These web sites are usually grouped by government and non government projects. Both are equally popular with expansion hungry companies. This ease of finding ITTs can also be a disadvantage. Many companies suffer from an overload of potential but not appropriate ITTs until they learn to really fine tune their search criteria. Others never seem to find their ideal online tenders!

Once you have found your ideal ITT, you must remember that hundreds of other companies have found this ITT just as easily so your competition has massively grown from a few years ago. Needless to say, you have found your ITT and because you are one of many that has also found it and will bid for this project, your tender writing skills need to be very good. Companies have found that when they issue an ITT on one of these web sites, they receive a considerable number of inappropriate and poorly written tenders. Evaluating tenders is a time consuming and expensive process, so ITT issuing companies are now issuing Pre Qualifying Questions (PPQs) that are very long and complex. These PQQs are designed to remove any companies that are bidding because they found the ITT, but are clearly inappropriate for the project. As web sites that allow bidding companies to easily find online tenders flourish, complex and difficult PQQs will continue to become the business norm. There are also a group of web sites that offer online tenders called reverse auctions. On these web sites companies place their work to be completed and sellers bid directly on the web site for any work. Currently these web sites only manage smaller size projects, but there is definitely room for growth in this area. It may be that in a few years time, a company will find online tenders and then be asked to produce their PQQ directly on the site. This can then be quickly reviewed and the winning companies offered the right to complete a full tender for the work.