Tender

Tender

Definition:

A tender is a formal expression of interest or offer to provide goods, services, or works at a specified price. It is a document that describes the requirements for the item or service and invites potential bidders to submit their proposals.

Key Elements of a Tender:

• Tender Document: A document containing all the details about the requirements, specifications, and conditions of the tender.
• Description: A clear and concise description of the item or service being tendered for.
• Price: The specified price or cost for the item or service.
• Submission Deadline: A specific date and time by which bids must be submitted.
• Evaluation Criteria: The factors that will be used to evaluate and select the winning bidder.
• Contractual Terms: The terms of the contract that will be awarded to the winning bidder.

Types of Tenders:

• Open Tender: A public invitation to tender, where anyone can submit a bid.
• Closed Tender: A private invitation to tender, where only invited bidders can submit bids.
• Single-Source Tender: A tender where there is only one potential bidder.
• Multiple-Source Tender: A tender where there is more than one potential bidder.

Process:

1. Issuance of Tender Document: The issuing organization releases the tender document, which includes all the necessary details and requirements.
2. Bid Submission: Potential bidders submit their proposals, which include their prices, technical qualifications, and other required documents.
3. Evaluation and Selection: The organization evaluates the bids based on the specified criteria and selects the winning bidder.
4. Contract Award: The winning bidder is awarded the contract and begins work on the item or service.

Examples:

• A construction company tenders for a new building project.
• A software company tenders for a contract to develop an e-commerce website.
• A government agency tenders for a new fleet of cars.