Competitive Procurement: How to Run a Tender Process

Many projects need to procure services or long-term supply contracts. And getting the best value often means running a competitive tender process. So let's see the steps you need to take.
1. Determine requirements
2. Document requirements
3. Determine priorities and relative importance of things like:
4. Create evaluation framework for bids, against requirements
5. Set a tender deadline
6. Advertise the opportunity
7. There may be a pre-qualification stage, with a Pre-qualification Questionnaire (PQQ)
8. Create bidder briefing:
9. You may choose to accept and answer questions from bidders.
10. Brief the evaluation team
11. Receive bids
12. Evaluate Bids
13. Clarify uncertainties
14. You may now select the best bid.
15. Notify winning bidder
16. Contract negotiations to finalize contracts
17. Formal award of contract
Please do not simply accept the lowest cost tender for anything that actually matters!
Jargon:
PQQ - Pre-qualification Questionnaire
ITT - Invitation to Tender
RFP - Request for Proposal
RFI - Request for information
RFQ - Request for Quotation
SOW - Statement of Work
TQs - Technical Queries or Questions
MEAT - Most Economically Advantageous Tender
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#Project #ProjectManagement #TenderProcess

[@Onlinepmcourses]

Running a procurement process - or having one as part of your project - is something a lot of Project Managers will need to do at some point. Let's take a look at how the process works.
Thank you for watching - please do subscribe to the channel and, to join my community, sign-up at onlinepmcourses.com/assets440251/the-onlinepmcourses-newsletter/

[@stemsparksolutionsofficial]

Thanks for sharing, I appreciate the 17 steps! Initially I thought yikes 17 steps but after watching, I think I really appreciate the approach.

[@Onlinepmcourses]

You're right - Usually, I like to simplify to 7 steps or fewer and consolidate multiple actions in each step. But here, precision matters. I am glad that worked for you.

[@gentlemen1984]

Short and simplest way for easy understanding,appreciated

[@Onlinepmcourses]

Thank you.

[@worcestersorcerer]

Thank you, an excellent and well defined process to follow

[@Onlinepmcourses]

You're welcome - thank you.

[@r.i.4259]

Short but very good course, thank you!

[@Onlinepmcourses]

You're welcome.

[@djabrayilmagerramov6731]

explained perfectly!

[@Onlinepmcourses]

Thank you

[@maungmaungkhaing6258]

Thanks you are taking about learning management and marketing and organizations but you will understand me wait to time for my jobs and stay in room you can live longtime.

[@Onlinepmcourses]

All the best

[@natalieabiraad4854]

Thank you for the interesting video Mike

[@Onlinepmcourses]

You're welcome, Natalie.

[@nicolasturcotte-legare2242]

Thanks for the very interesting video, Mike!

[@Onlinepmcourses]

My pleasure, Nicolas.

[@boikanyodhlodhlo7271]

Thank you for this insightful info

[@Onlinepmcourses]

My pleasure

[@joshowens2062]

👏👏👏👏👏👏

[@Onlinepmcourses]

Thank you!

[@frederickhunder9116]

Thanks. This was very helpful. Looking for info to help construct my church new building

[@Onlinepmcourses]

Nearly 500 videos on this channel to help you. Good luck.

[@Babu-l7u]

Quality information sir

[@Onlinepmcourses]

Thank you, Manoj.

[@joshowens2062]

Subscribed

[@Onlinepmcourses]

Thank you

[@zandilemnguni3354]

I have been tendering with UN organization i noticed that some of their agencies they don't award bids on bid validity time.how long does they take after finalizing ITB to award a bid?

[@Onlinepmcourses]

+I am afraid that I do not know the UN's tender management procedures. I also suspect that different sections may have variant processes and that some may not stick closely to them for many different reasons. The only approach for you to take is to follow the procedures for contacting the issuing officer of their representative and politely ask the question. Good luck.

[@HeavenestStCyr]

What does standing of the bidder mean? 1:55

[@Onlinepmcourses]

Somebody's standing' - it's British idiom that slipped in - sorry.
Somebody's standing is their status in terms of how people regard them. In this context, we shold consider their reputation, financial strength, credit rating...
I used the term as a shortcut to mean we need to assess whether this is an organization that we feel confident and comfortable doing business with.

[@user-hp2zt9sr2f]

how long does this typically take?

[@Onlinepmcourses]

There is no 'typical'. A big public sector procurement for a mega project can take years. A small procurement for a modest project in an owner-managed business can take a very few weeks - maybe just days. Context is everything. However, your organization may have procedures with rules that set out time scales. So too will any public sector procurement, in many countries.

[@user-hp2zt9sr2f]

@@Onlinepmcourses Cool, that makes sense. What are the parts of the process that take the most time and require the most work?

[@Onlinepmcourses]

@@user-hp2zt9sr2f I would always allow the most time for getting the specification right. Then, plenty of time to ensure that the suite of tender documents is clear and accurate. If you get the spec wrong, then no matter how well you run the tender process, you'll end up with the wrong outcome.

[@user-hp2zt9sr2f]

amazing, that makes a lot of sense. do you have any recommendations for softwares that are commonly used for these processes and how good they are?@@Onlinepmcourses

Great insights on procurement! As a fellow procurement professional, I appreciate the valuable content you're sharing. I also create content on career advice in procurement and business management; feel free to check out my channel for additional tips and discussions. Always great to connect with like-minded professionals!

[@Onlinepmcourses]

Awesome, thank you!