Handout 1

E-tendering Process
Definition:
1. An e-Tendering System (or Electronic Tendering System)
facilitates the complete tendering process from the advertising of
the requirement through to the placing of the contract. This
includes the exchange of all relevant documents in electronic
format.
2. E-Tendering System is an internet based process wherein the

complete tendering process; from advertising to receiving and
submitting tender-related information are done online. This
enables firms to be more efficient as paper-based transactions are
reduced or eliminated, facilitating for a more speedy exchange of
information.
3. Electronic Tendering System is an end to end Tendering System

which can be used and operated through a Computer System
connected to the internet. All the activities related to processing
of tenders are executed online starting from Tender Preparation
to Award of Tenders.
4. E-Tendering system is a web based application intended for

online users for replacing the manual paper-based tender
processes.
The Bid Documents can be downloaded online, Bid response is to

be prepared and signed online (through the use of Digital
Signature), payment for Bid submission is to be done online
(using Credit Cards, Debit Cards, Internet Banking Accounts and
Cash Cards) and the Tender opening is done online.
_____________________________________________________
WHY E-TENDERING?
Manual tender processes can be long and cumbersome, often

taking three months or longer, which is costly for both buyer and
supplier organisations.
E-Tendering System (or Electronic Tendering System) replaces
these manual paper-based tender processes with electronically
facilitated processes based on best tendering practices to save
time and money.
Buyers are able to manage the tenders coming in, with all tenders
stored in one place. Buyers can cut and paste data from the
electronic tender documents for easy comparison in a
spreadsheet. Evaluation tools can provide automation of this
comparison process.
Business benefits:
• Reduced tender cycle-time
• Fast and accurate pre-qualification and evaluation, which
enables the rejection of suppliers that fail to meet the
tender specification
• Faster response to questions and points of clarification
during the tender period
• Reduction in the labour intensive tasks of receipt,
recording and distribution of tender submissions
• Reduction of the paper trail on tendering exercises,
reducing costs to both councils and suppliers
• Improved audit trail increasing integrity and transparency
of the tendering process
• Improved quality of tender specification and supplier
response
• Provision of quality management information
Advantages of E-Tendering system:
• Reduces tendering cycle time

• Establishes transparency in tendering process
• No possibility of Coercion
• Reduces cost of tendering process drastically for
both for the client and the contractor
• Reduces possibility of missing on time submission
as tender can be uploaded online even up to last
minute
• Distance is no more a disadvantage for tender
submission
• Compiling tender evaluation data becomes easier
as all data is available in soft
• The exchange of information is faster and more
reliable.
Disadvantages of E-Tendering system:
Challenges and problems that may be encountered by not using a

traditional paper-based method can include:
Integrity
The ease with which documents can be distributed and access

can also present a risk to the integrity of the system.
Security
There is a need for security features, such as password

protection, verification emails and encryptions. This is required to
ensure that confidential documents cannot be accessed by
unauthorized parties.
System failures
If multiple suppliers are trying to submit bids online at the last

minute, this could cause delays or disruption to the system. There
have been numerous occasions when systems have crashed or
frozen at the last moment. This has resulted in bids being
submitted too late, incomplete or even rejected.
We know it can sometimes be difficult to manage online
submissions. This is especially the case when handling multiple at
bids at the same time. All too often we hear horror stories from
clients who have rushed to submit bids at the last minute and
faced frozen or crashed websites.
Important points to be noted:
• DSC generated outside India will not be allowed for bid

submission
• There is no limit for size of documents to be uploaded
• Last moment rush should be avoided as internet failures
may jeopardize tender submission
Prerequisites for e-tendering:

 Tenderers need to have valid Class III Digital
Signature with Firm’s Name and mapped to Unique E-
mail ID issued by licensed CA
 They need to have a dedicated computer with latest
Internet browser, Hardware and software as
required by specific tender
 The drivers for the Digital signature is to be installed
in the PC.
 Adequate Internet connectivity.
 Enrollment for E-tendering
 Facility for online payment as per requirement
 Availability of all necessary documents in electronic
form
Registration of Tenderer/Vendor
 Go to Home page of client site.

 Open "New Vendors" link and fill login registration
form to obtain User ID and password. Attach public
key of DS.
 Thereafter, Login ID is activated.
 Login using Login ID and password, change
password, to become a registered Vendor.
What is Digital Signature Certificate?
Digital Certificate is a unique pair of a Public key and a Private

key issued to an individual (either for his own use or use as an
authorized representative of an organization such as partnership
firm, private limited company or a public limited company). The
data encrypted by a Public Key of a Digital Certificate can be
decrypted only by matching Private Key of the same Digital
Certificate and vice versa.
Additionally, the Private Key of a Digital Certificate is used to sign

the data to ensure non – repudiation.
Who is responsible for issuing Digital Certificates in

India?
A Digital Certificate is issued by Certifying Authorities registered

with Controller of Certifying Authorities of Government of India.
There are several organizations registered as Certifying
Authorities and issue Digital Certificates through their authorized
partners. The updated list of Certifying Authorities can be viewed
at www.cca.gov.in.
What is e-Token device?
e-Token is a device to store Digital Certificates securely. A Digital

Certificate installed on a secure e-Token cannot be copied.
What is encryption and decryption?
Encryption means changing a set of data information into non –

readable format. Decryption means changing a set of encrypted
data information back into original format.
What is Hashing?
Hashing means generating a thumbprint of a set of data

information.
Hash is well defined algorithm in the Information Technology Act,

2000.
Hash is one – way. You can generate Hash value of a set of data
information but not set of data information out of a Hash value.
Hash is unique to a set of data information. Any change in the
original set of data information will result in change in the Hash
value.

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E-tendering Process

2. E-Tendering System is an internet based process wherein the

3. Electronic Tendering System is an end to end Tendering System

4. E-Tendering system is a web based application intended for

The Bid Documents can be downloaded online, Bid response is to

Manual tender processes can be long and cumbersome, often

Advantages of E-Tendering system:

• Reduces tendering cycle time

Challenges and problems that may be encountered by not using a

The ease with which documents can be distributed and access

There is a need for security features, such as password

If multiple suppliers are trying to submit bids online at the last

• DSC generated outside India will not be allowed for bid

Prerequisites for e-tendering:

 Go to Home page of client site.

What is Digital Signature Certificate?

Digital Certificate is a unique pair of a Public key and a Private

Additionally, the Private Key of a Digital Certificate is used to sign

Who is responsible for issuing Digital Certificates in

A Digital Certificate is issued by Certifying Authorities registered

e-Token is a device to store Digital Certificates securely. A Digital

What is encryption and decryption?

Encryption means changing a set of data information into non –

Hashing means generating a thumbprint of a set of data

Hash is well defined algorithm in the Information Technology Act,

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