tenderprocedure

Tender procedure is a formal process used by organizations to solicit bids for goods, services, or works. It aims to secure competition, transparency, and value for money while ensuring compliance with applicable laws and policies. The term is most commonly used in public procurement but is also applied in private sector purchases to standardize bidding.

The process typically begins with planning and the preparation of procurement documents, including specifications, contract terms, and evaluation criteria. Depending on the jurisdiction and the value of the contract, tenders may be opened to all potential bidders (open tender) or issued to a selected group (restricted or two-stage tender).

Tender documents are published or distributed, and bidders submit proposals by a defined deadline. Bids are then evaluated against predefined criteria, such as price, quality, technical merit, delivery schedule, and conformance with requirements. The evaluation is conducted by an independent committee or procurement authority to ensure impartiality.

Following evaluation, the contract is awarded to the most advantageous compliant bid, subject to any mandatory standstill period, debriefing for unsuccessful bidders, and compliance with procurement regulations. The next steps include contract formation, supplier performance monitoring, and post-award procurement management.

Key principles include fairness, equal treatment, transparency, competition, and non-discrimination. Oversight mechanisms, audit trails, and opportunities for bid challenges help maintain integrity. In modern practice, electronic tendering, dynamic purchasing systems, and framework agreements are used to streamline processes and improve efficiency.