Tendering and Contracting

How they carry out tendering and contracting

What is Tendering

Tendering is the procedure of making an bid, proposal or offer, or to express interest in request for tender. Tender is like an offer, organisations will search for tender or offer that meets their need e.g. supply of goods. Also they will consider the time, cost and quality as this is the most important to the client.

What is "RFT" stands for?

RFT stands for "Request for Tender". It is a document request for tenders / offer that is a structured invitation to suppliers, to supply and bid products/services. Furthermore it contains what is required, needs of the organisation, criteria and instructions that are to be obeyed.

The process of tendering and contracting

  • Phase 1 The needs are indentified
    - The tender holder (Commissioner/Customer) looking the needs for services or goods.
    - The tender process is decided.

  • Phase 2 Advertising
- EOL or expression of interest, it contains what are the requirements and operation for carrying out the role.
- They will publish tender documents to those organisation that replied.

  • Phase 3 Selection
    - They will submit PQQ which stands for pre-qualification questionnaire. It contains question like the details of the organisation e.g. financial info, business activities etc... This is used to know more about the context of the organization.
    - They will assess the PQQ and score it. It will be scored by MEAT or most economically advantageous tender.

  • Phase 4 Award
    - Successful at PQQ applicants will be notified.
    - ITT or invitation to tender. This is when the organisations will be invited to tender for a contract.
    - Tender documents will be submitted
    -The tender documents will be scored

  • Phase 5 Contract
    - The contact is awarded
    -Or further assessment to the applicants by inviting them to make a presentation, it will be then short-listed and the contract is awarded to the best applicant that suit the organization needs

Negotation and Contracting

The tender document is likely to be part of the contract, so it is important for the applicant to check what they've said properly e.g. the product and services they stated because they will need to perform this. If the applicant won the tender there might be a pre-contract meeting negotiation which only cover some element of the contract.

The contract is awarded when the tender procurement is finalised. The main elements of the contract will be in the ITT (invitation to tender) which shows what are the applicants need to perform. It will require the applicant to publish report on key performances and service outcomes, sometimes the payment will be base on the performance.

Contracting terms ‘expressed’ and ’implied’

Contract is legal agreement between two or more parties by which each party commit specific obligation or enjoys specific right, negotiated by virtue of that agreement.

Express terms, this is the one that the parties have set out in their agreement, it will be questioned to clarify and parole evidence prevents any contradiction to the written document.

Implied terms are the ones that is the parties intended to include but not expressly set out in the contract.

equality & diversity

The equality act 2010 is linked to the public sector quality duty.

This act is to "eliminate unlawful discrimination, advance quality of opportunity and foster good relations when exercising their functions."

In the tender process, the procurement processed exhibit their equality to all the contractors and supplier. They will look the supplier who have deep understanding of the legislation. They will check their discrimination history etc... In the PQQ the applicants will be asked about the equality and will be assessed to see if the applicants passed the statutory regulation and how they approach equality.

This is then provide a better equality and diversity between both organisation.