What is a tender?

How the process runs

A tender usually starts with a published notice, then tender documents that set out the scope, the draft contract, the response forms, the evaluation criteria and the closing time. Bidders may attend a briefing and submit questions, with answers shared to all. Bids are lodged by the deadline, often through an online portal, and late bids are commonly rejected. The buyer checks compliance, scores bids against the criteria, may negotiate with a preferred bidder, and then awards the contract and tells the others. Australian Government rules distinguish open tenders, where any supplier can respond to a published approach to market, from limited tenders, where the buyer approaches selected suppliers.

What evaluators look for

Price is only one criterion in most tenders. Others include capability and experience, methodology, staff, capacity, risk, compliance with the draft contract, and sometimes local or social benefit. The documents usually state the criteria and sometimes their weightings. A strong bid answers each criterion in the order asked, gives evidence rather than claims, and makes it easy for an evaluator to find the answer and score it. In the United States, sealed bidding under Part 14 of the Federal Acquisition Regulation is the closest equivalent to an open tender decided mainly on price.

When to bid and when to walk away

Tendering takes time, and most bids lose. Bid when the scope fits your capability, the contract size suits your business, the criteria reward what you are good at, and you can meet the insurance, licensing and reporting requirements. Walk away when the specification looks written for a competitor, the risk terms are unacceptable, or the closing date leaves too little time to do it properly. A smaller number of well prepared bids usually wins more work than many rushed ones.

Common mistakes

Missing the closing time is the most final mistake. Others include not answering every mandatory requirement, altering the response forms, attaching marketing brochures instead of answering criteria, pricing a different scope, and adding departures from the contract that were not invited. Many bids also fail on basic presentation: inconsistent names and numbers, missing signatures or unreadable scans.

Where it shows up in the product

The proposals module can write the narrative and priced parts of a response, with one pricing table whose items can be grouped under labels, terms written as numbered clauses, and a valid until date. Many tenders require their own forms and portal, so use the generated proposal for the parts the buyer lets you write in your own format, and export it as a PDF; export is PDF only. Price hints you give become line items at exactly those prices.

Questions people ask