competitive bidding
Introduction
An open and competitive procurement procedure begins with the promoter’s description of its requirements and an invitation to suppliers to indicate their interest in the contract and their professional capacity to fulfil it. The promoter then identifies potential suppliers and invites them to submit bids. After the bidding phase, most procurement systems require a public declaration of the competitors’ names and their bid prices and, ultimately, of the successful bidder.
There is a wide variety of procurement procedures available for use in tendering when it comes to PPP arrangements. Many of these procedures have become prescriptive in nature. Many local governments follow standard procurement procedures drawn up by the International Federation of Consulting Engineers (FIDIC).
However, most commonly PPP contracts are awarded as the result of some form of competitive bidding procedure. Designing a competitive bidding process – and getting the best possible result – is easiest when the product or service required is a fairly standard one and the technical outputs can be defined with reasonable certainty in the bidding documents. Particular attention, therefore, should be paid to providing good quality information to potential bidders and to the detailed design of the bidding process.
Defining the procurement process
Some initial decisions need to be made regarding the procurement and the bid evaluation process. It includes:
Qualifying criteria for the evaluation and selection of shortlisted bidders
Process for submission and evaluation
Details of pre-submission conference or meeting and of other opportunities to ask questions or seek clarifications
Indicative procurement schedule
Other general instructions to applicants
Application forms (as annexes)
The choice of procurement method will depend on the government’s budget, capacity, desire to encourage innovation, need for high-level inputs, vulnerability to corruption, and objectives of
An open and competitive procurement procedure begins with the promoter’s description of its requirements and an invitation to suppliers to indicate their interest in the contract and their professional capacity to fulfil it. The promoter then identifies potential suppliers and invites them to submit bids. After the bidding phase, most procurement systems require a public declaration of the competitors’ names and their bid prices and, ultimately, of the successful bidder.
There is a wide variety of procurement procedures available for use in tendering when it comes to PPP arrangements. Many of these procedures have become prescriptive in nature. Many local governments follow standard procurement procedures drawn up by the International Federation of Consulting Engineers (FIDIC).
However, most commonly PPP contracts are awarded as the result of some form of competitive bidding procedure. Designing a competitive bidding process – and getting the best possible result – is easiest when the product or service required is a fairly standard one and the technical outputs can be defined with reasonable certainty in the bidding documents. Particular attention, therefore, should be paid to providing good quality information to potential bidders and to the detailed design of the bidding process.
Defining the procurement process
Some initial decisions need to be made regarding the procurement and the bid evaluation process. It includes:
Qualifying criteria for the evaluation and selection of shortlisted bidders
Process for submission and evaluation
Details of pre-submission conference or meeting and of other opportunities to ask questions or seek clarifications
Indicative procurement schedule
Other general instructions to applicants
Application forms (as annexes)
The choice of procurement method will depend on the government’s budget, capacity, desire to encourage innovation, need for high-level inputs, vulnerability to corruption, and objectives of