A tender is a competition organized between several bidders who offer this service for the implementation of a work or service at the most suitable and lowest prices. Bidding can also be understood as the price offered by producers for their commodity relative to the price offered by competitors. Bidding is one of the types of procurement that is used more often when purchasing high-value goods. Its subject can be various services related to planning, transportation, restoration, development of mineral deposits, nature protection, rental, construction, repair and other issues.
Stages of procurement preparation
Tenders by the purchasing organization should be organized on the basis of the principles of openness, equality, transparency and competitiveness.
The stages mentioned for preparation of purchases are as follows:
- A tender commission is formed by the purchasing organization;
- A set of basic conditions of the tender is prepared;
- The tender announcement is published and contractors are sent an individual invitation to participate in the tender.
Formation of tender commission
The tender commission is a group formed from specialists of the purchasing organization or representatives of the related organization. The composition of the commission should consist of at least 5 people (odd number). The composition of the commission is approved by the head of the organization. Experts may also be involved in the commission for preparation of a set of basic conditions, evaluation and similar reasons. Also, the commission may include representatives of the executive power. This happens when the price of the tender object exceeds 5 billion manats, and if it is an organization financed from the budget, it exceeds 1.5 billion manats.
A set of basic conditions of the tender
The following information is shown in the set of basic conditions of the tender:
- instructions on the preparation of tender offers;
- appropriate evaluation of the qualifications of consignors, requirements for documents confirming them, as well as procedures and criteria for re-approval;
- necessary technical and quality characteristics of goods, plans, sketches and drawings, quantity of goods, additional services, time and place of sending goods;
- established criteria for determining the winning bid;
- conditions for dividing the tender subject among bidders;
- the form of the contract to be signed by the parties and the conditions of the purchase contract;
- the currency in which the price of the tender offer should be calculated;
- procedure, deadline and place of submitting tender offers;
- the language in which tender offers are prepared;
- the day, place and time of opening tender bid envelopes;
- how long tender offers are valid;
- references to normative legal acts on public procurement;
- other
Content of the tender announcement
Tender announcement or invitation is an important stage. The advertisement shows the following information:
- information about the person making the purchase;
- time and place of commencement of procurement;
- fees, taxes and concessions related to the purchase agreement;
- documents for participation in procurement;
- telephone and fax number of contact person for further information;
- tender offer guarantee conditions;
- the name of the goods to be sent, the place of delivery, the amount, the nature of the work to be done, the place of the services to be provided and the description of the service;
- timing of shipment of goods and completion of work or schedule of service;
- the amount of the participation fee and the method of payment;
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Documents submitted by contractors to the tender
The contractor who wants to participate in the tender as a bidder submits the following documents to the purchasing organization:
- application to participate in the tender;
- a document confirming the payment of the participation fee;
- tender offer;
- required documents about the consignor (contractor).
- full name and legal status of the consignor, country of registration and details;
- information on the qualifications of the consignor, if necessary;
- a bank statement on the financial status of the consignor in the last year.
The consignor must prepare his offer and submit it to the tenderer at least one working day before the start of the procedure. A tender submitted late will be returned without opening.
Apart from the tender offer, other documents must be submitted to the procuring organization at least 7 working days before the start of the procedure. If there is any deficiency in the documents, the contractor is offered to prepare the document or to make changes in these documents no later than 2 banking days after submission. In this case, all documents must be submitted to the purchasing organization at least 3 banking days before the start of the procedure.
If the documents are prepared correctly and submitted on time, the consignor who wants to participate in the tender is registered as a bidder.
Submission of tender offers
A natural or legal person can participate as a bidder for each subject and submit only one offer as a bidder.
The time, deadline and place of submitting tender offers are determined in the set of basic conditions of the tender.
The bid, signed and sealed by the bidder, is placed in a double envelope. The sealed side of both envelopes is signed by the bidder and submitted to the procuring organization after being sealed.
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