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.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.


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
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.

# EOI - Expression of Interest - Similar to RFP
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.

# 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.