Wednesday, February 25, 2009

All about Tenders

Updated on 25th Feb, 2009

Who Floats a Tender?

A buyer which can be either Government or Large Private Company , can float a Tender as and when they need to buy Goods, hire services or construct something. Generally tenders are floated by Government as it is a mandatory requirement for them.

A Seller which can be either Government or Large Private Company , can float a tender for selling used machinery, scrap or surplus products. Generally Government floats sell tenders it is a mandatory requirement for them.
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Why Tenders?
Tenders are open invitation to buy or sell goods/services/contracts. Those who are interested in supplying what has been advertised, can respond to a Tender & submit their best competitive offer. The best competitive offer (Lowest Bidder or L1)is generally selected & the contract is awarded to L1 Bidder.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.

Why Tenders are published in Newspapers?
Tenders are published in newspapers for the following reasons;
- It is a mandatory requirement for Government Organisation form Transparency point of view
- For wider publicity & ensuring better & higher response from bidders from across the world
- To ensure that everyone gets equal opportunity to participate in a tender & transparency is maintained
- As per CVC (Central Vigilance Commission), now tenders can be also published on Websites.
- The cost of publishing Tender in Newspaper is very high, and hence the same is recovered from bidders by means of selling them Tender Documents Fee.
- This is also a good tool that ruling Government (political party in Power) has to control the media (the press) from writing against them. If you publish articles against the Government, the Government will stop giving tender advertisement in that newspaper.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.

Types of Tenders?

There are various types of Tenders, some of them are listed below;
# Open Tender - In Open Tender anyone can participate. The participant has to ensure that they fulfill the minimum pre-qualification criteria specified in the tender document to qualify. If they do not meet the pre qualification criteria, their bid will be rejected & they will loose the document fees they have paid. It is necessary that open Tender is advertised in newspaper. The Lowest Bidder or L1 generally wins the contract.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.

# Limited or Closed Tender - In Limited Tenders, only pre qualified or empanelled bidders are allowed to participate. As Limited Tenders are not advertised in newspapers, other bidder generally do not come to know that such tender is floated.The Lowest Bidder or L1 generally wins the contract.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.

# ICB or International Competitive Bidding - In such tender companies from outside India can also participate in Indian Tenders.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.

# NCB or National Competitive Bidding - In such tender only Local or Indian companies can participate. Companies registered in other countries cannot participate.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.

# RFP or Request for Proposal - In RFP a company is supposed to submit only the Technical proposal. Indicative price bid can also be invited, if so required by Buyers. Once RFP round is over, RFQ or Request for Quote can be invited from shortlisted Bidders.
Another purpose of RFQ is to understand the current technology available in the market. For e.g. if a new power plant is to be built, the government can float an RFP stating that it wants to build a 1000 MW power plant, different Bidder will submit their response stating that they can build either Thermal, Nuclear, Solar, Fuel, Coal based plant. On the basis of response from different bidders, buyer will select either of the technology & then float a fresh tender or just invite bids form pre qualified bidders.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.

# RFQ or Request for Quote - In RFQ, a company has to submit their best offer & on the basis of this decision the contract is awarded. For example if someone wants to buy 1 Window AC, only RFQ is floated because no Technical pre qualification is required as it is a standard product.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.

# RFI or Request for Information - Similar to RFP
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# EOI - Expression of Interest - Similar to RFP
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# Singe Envelope Bidding - In such Tender both Technical Bid & Price bid is submitted in a same envelope. Both Technical & Price Bid is opened simultaneously & bid is awarded on the spot.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.

# 2 Envelope Bidding - In such Tender, Technical Bid & EMD is submitted in one Envelope & Price Bid is submitted in Second sealed envelope. Both Envelopes are then put in a Big Envelope, is sealed & submitted. First Technical bid containing EMD is opened & price bid of only those bidder who are found technically qualified are opened subsequently at a later date.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.

# Multiple Envelope Bidding - In such Tender, EMD is submitted in 1st Envelope, Technical Bid is Submitted in 2nd Envelope & Price Bid is submitted in 3rd envelope. If required pre qualification bid can be submitted in separate envelope.First EMD envelope & pre Qualification envelope is opened. Than Technical envelope of only those bidders who pre qualify is opened.
In last those who are found technically qualified, their price bid is opened.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.

# Pre Bid Meeting - In some tenders which are of high value pre bid meeting is allowed. In pre bid meeting, Buyer & Bidders get together & buyer tries to resolve the queries of one or many bidders. The pre bid meeting is scheduled on a specific day, where all bidder can remain present or can post their queries on or before the pre bid meeting date.

All queries of those who are present or who have mailed are read out and clarification is provided.


# Corrigendum - If any change/correction is to be made in Tender Notice or Tender Document, the same can be made by issuance of corrigendum. Please note that Corrigendum can only be issued before the due date & time of tender submission expires. Against a Tender, any number of corrigendum can be issued.
- Corrigendum is issued after pre bid meeting to post clarifcations.
- Corrigendum is issued in case tender due date is extended

# Addendum - If any new content is to be incorporated in Tender Document, the same is done by means of issuance of Addendum. However in many Tenders, it is also done by issuing a corrigendum notice.







20 comments:

  1. http://tendertigerindia.blogspot.com/

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  2. Your site is good and user friendly, but i came across lot of other websites providing similar services like yours and at a cheaper rate for eg like www.mytenderworld.com they are selling single tenders much cheaper then you.

    Poonam

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  3. hello sir
    can u plz tell me me the details that how many qualified parties are required for the valid tenders.


    kapoormjrakesh@gmail.com

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  4. Corrigendum and Addendum very minute differnce highlighted. Once Addendum is issued it forms part of document and corrigendum will be pre- tender correspondence.

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  5. SINGLE BID OBTAINED THROUGH E-TENDERING CAN BE ACCEPTED OR NOT FOR AWARD OF JOB

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  6. Dear Sir,

    I have a query related to deciding L1. Our organization invited tender for manpower wherein we got quoted by the bidders their service charges as we have asked that the service charge should not be less than the 2% in accordance withe minimum wage under labour act. Thus more than two bidders quoted 2% exactly and there other bidders quoting service charge of 2.001%, 2.4 % and 2.6%. In that case those who quoted 2% service charge shows the service provider gets no profit. In that case that case what shall we do with the bidder for consideration of 2% quoted bidders since it is not clear that it should be more than 2% or the idder cant quote 2% exactly and they can be condiered for L1?

    Now second question arises if three L1 are there, i.e. all the three quoted same service charge of 2%, what would be the next step for elimination step for deciding manpower on the technical bid? Of course all these questions/clarification should within the ambit of CVC guidelines of Government of India.I shall be grateful if you could send me reply quickly since the decision has to be taken tomorrow.

    Wthe deepest regards,

    A.Selvam

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  7. Your site is great. I am based in the United Kingdom and I have just set up a blog site that offers to video education and articles on the subject of how to tender for contracts. You can check it out at http://www.whatistender.co.uk If you want to link up with us, that will be great. We teach how to tender for contracts online and offline. We also have our main website http://www.businessservicessupport.com where you will learn about our workshop and support to small businesses.

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  8. It is practically impossible for any individual or organization to scan the total press tenders purchase requirements published by various Government, Corporate, Public sector procurement & Tender purchase Agencies. For example there are more than 1000 major news papers & journals being published which carry about 1500 major tender notices, invitation to tenders , government Tender bids requests & trade opportunities on a daily basis, i.e. even if one procures all the news papers and tender journals & deputes one person on regular basis, one may not be able to ensure that he has received the business & alltender leads & information regarding relevant tenders pertaining to his business activities.

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  9. Please Provide us techno-commercial formula used for evaluation of Tenders.

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  10. Sir,

    We are able to track our invoice/payment status on the official website of the ONGC but not on the offical website of the SCI. Could you kindly
    tell me what are the CVC/New Delhi directives to public sector companies in this matter ?





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  11. Hey Admin thanks for the post i was looking for a blog about online traders . and this post provided all i needed to know about tenders .appreciate your work

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    Replies
    1. Tenders are the business documents that carry important information about any business project, goods and service requirements. Tenders help people to grow their business. One of the most important things that tenders allow you to do is that you can make planned and systematic approach to any business project.

      Online Tenders News

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  12. We have advertised a Tender and received only one tender. Should we go ahead for one tender or we have to wait...

    tenders online & tender management

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  13. Its very good to publish a tender if some company have a large project. this post covers all the information required by Anyone who had no prior knowledge of Tenders and their type and uses. thank you providing a perfect information about Tenders .
    Tender Management & Government Tenders South Africa

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  14. if a tenderer submit envelop after deadline date,should his envelop return without opend it or only return dd and retained documents..

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  15. Are there any guidelines for what process to follow for empanelment laid down by CVC ?

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  16. Rreceived 2 tenders but found only one technically responsive.Can the financial bid be opened? What is the CVC guidelines?

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  17. Thanx for sharing this. It's totally valuable and incredible info!
    You should find Tenders Information Web Portal where u can gain access to all Gov Tenders, Tender Leads, Tender News Information, e Tender, Online Tenders, and IT Tenders etc, relevant to your company. TradeReder is a Global Tenders repository platform for A-Z department tenders. Have a wealthy business!

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