Private Sector Tendering
There has been an increasing move in recent times for private sector businesses to emulate government departments and agencies in their practice of tendering. Many private businesses are choosing to buy their products and services by finding suppliers via a tendering process. And the types, range and amount of products and services they seek are vast and differing, thus offering opportunities to a wide range of businesses.
The private sector is attracted to tendering to realise benefits including; maximising competition, providing an opportunity for a much larger pool of suppliers to make an offer, as well as having a greater choice in selecting a supplier that offers value for money.
However, the private sector has the luxury of having a much more flexible tendering process, in comparison to the public sector (government). As the requirements of transparency and accountability greatly differ between the two groups, private sector companies are not required to have such stringent and prescriptive procedures. Without such tight constraints, the private sector can often make the process simpler and more flexible, and tenderers generally have fewer requirements to adhere to when submitting a tender. Often tenderers can present their offer through more individual and innovative means and are generally more readily able to meet with the company requesting tenders if clarifications or questions arise.
Whilst the tendering process may differ between Government and private sector, the two groups generally look for similar things; the core being value for money. Quality, reliability, efficiency, and added value are important factors in any tender offers that are sought after when evaluating tender submissions. Other factors include.
Authenticity and insight:
Does the bidder have genuine, substantiated knowledge and experience of the sectors of activity in which the business is engaged and the factors that influence its market environment and profitability?
The private sector is attracted to tendering to realise benefits including; maximising competition, providing an opportunity for a much larger pool of suppliers to make an offer, as well as having a greater choice in selecting a supplier that offers value for money.
However, the private sector has the luxury of having a much more flexible tendering process, in comparison to the public sector (government). As the requirements of transparency and accountability greatly differ between the two groups, private sector companies are not required to have such stringent and prescriptive procedures. Without such tight constraints, the private sector can often make the process simpler and more flexible, and tenderers generally have fewer requirements to adhere to when submitting a tender. Often tenderers can present their offer through more individual and innovative means and are generally more readily able to meet with the company requesting tenders if clarifications or questions arise.
Whilst the tendering process may differ between Government and private sector, the two groups generally look for similar things; the core being value for money. Quality, reliability, efficiency, and added value are important factors in any tender offers that are sought after when evaluating tender submissions. Other factors include.
Authenticity and insight:
Does the bidder have genuine, substantiated knowledge and experience of the sectors of activity in which the business is engaged and the factors that influence its market environment and profitability?
- Partnering and synergy: Are the corporate values and policies of the business understood and supported?
- Is there a sense that this bidder is the one best placed to work with the client in a productive team effort?
- Risk and professional accountability: Has the bid addressed these concepts? Does it indicate an understanding of their significance for successful contract performance?
- Innovation: New ideas, fresh thinking and solutions that competitors will find it hard to match are ingredients that can win the day, but innovation needs to be both deliverable and dependable. Has the bidder taken account of the risks associated with innovation?
- Flexibility and responsiveness: Does the bid communicate a readiness to ‘go the extra mile' to provide maximum value in meeting the client's requirements, and a willingness to adapt methods and procedures in response to unforeseen changes in the requirements of the contract?