Tender

What is tender?
A tender is an official, organized invitation from a government department, organization,
ministry, or private company for suppliers to submit bids to provide goods and services.

Types of Tender
Tenders comes in various types, each designed for specific procurement needs. Here’s a
brief overview:

Open Closed Negotiated One-Stage Two-Stage

Tenders Tenders Tenders Tenders Tenders

1. Open Tenders
Open Tenders are publicly advertised requests for goods, and services, construction projects
that allow any qualified supplier to bid. Suppliers can submit proposals, which are evaluated
based on price and quality, and the contract is awarded to the best offer.
This process promotes transparency, encourages competition, and allows all eligible
suppliers, including MSMEs, to participate fairly.

2. Closed Tenders (Selective)

Closed Tenders are also known as selective tenders, involve inviting bids from a specific
group of pre-qualified suppliers rather than opening the process to all interested parties.
This method is used for projects requiring specialized skills or expertise, ensuring that only
capable suppliers are considered.
3. Negotiated Tenders
Negotiated tenders involve buyers directly negotiating with suppliers, instead of using a
competitive bidding process. This method is often used for projects that need flexibility,
urgency, or when there are only a few capable suppliers.

4. Single-stage Tenders
Single-stage Tenders are a procurement method where suppliers submit all their bids in one
complete submission. In this process, bidders provide everything needed-such as technical
details, pricing, and qualifications at once. This approach speeds up the tendering process
by eliminating multiple rounds. It's ideal for projects with clear requirements, allowing quick
evaluations and decisions. Single-stage tenders are used when time is limited or to reduce
paperwork.

5. Two-stage Tenders
Two-staged Tenders are a procurement method that involves two separate stages for bid
submissions.
In the first stage of two-stage tenders, suppliers submit technical proposals without
including prices. This helps the buyer evaluate the quality and feasibility of the proposals.
In the second stage, suppliers then submit their financial bids, using the feedback received
to adjust their prices to better meet the buyer's needs.

Differences among various types of tenders:

TYPES PARTICIPATION PROCESS CHARACTERISTICS

Open Tenders All eligible bidders Public advertisement Broad competition,

transparent, ideal for
large projects.

Closed Tenders Selective bidders Invitation only Limited competition,

tailored proposals,
specialized skills.
 Negotiated Tenders Limited suppliers Direct negotiation Flexible, direct
engagement, specific
expertise required.

One-Stage Tenders All eligible bidders Fixed submission Simplified, quick

process for
straightforward
procurements.

Two-Stage Tenders All eligible bidders Collaborative Detailed discussions,

discussions clarity on
requirements before
pricing.

Difference between government and private tenders:

In India, tenders are a widely used method for government and large businesses to invite
bids from qualified suppliers, promoting transparency and fairness. Government tenders are
often conducted online through official procurement portals, making the process efficient.

Here’s a quick look at the differences between government and private sector tenders.

ASPECTS GOVERNMENT TENDERS PRIVATE TENDERS

Strict rules to ensure fairness and Governed by the company's own

Regulation transparency. policies, with less oversight.

Details are publicly available on platforms

Transparency like CPPP and GeM. Often kept private by the company.

Eligibility Strict requirements, often supporting small Varies widely based on company
Criteria businesses (MSMEs). needs.

Formal and structured, requiring detailed More flexible; allows for

documentation and compliance with negotiations and direct discussions
Bidding Process regulations. with suppliers.
 Formal process for disputes, managed by Less formal, with limited options for
Appeal Process the government. complaints.

Tender terminologies in India

In India, the government releases different types of tenders for qualified bidders.
Understanding essential bidding terms is crucial for effectively participating in the bidding
process. Here are some commonly used terms related to bids and tenders in e-procurement
in India:

Tender terms associated with tender notices:

1. Tender/e Tender

A tender is an invitation for bids on a project from government departments or private

companies. They seek qualified suppliers to submit proposals, and the best bid is awarded
the contract.

eTendering, or electronic tendering, is a fully online process where everything from tender
announcements to bid submissions and evaluations is done digitally. This method is
paperless, making the process fair, transparent, and efficient.

2. ePublishing

The ePublishing system is a platform that enables government departments to electronically

publish their tender requests, contract award notifications, and amendments online.

3. Request for information (RFI)

A Request for Information (RFI) is a formal process used by organizations to gather

information from suppliers about their products and services. It typically serves as the first
step in procurement, helping organizations understand supplier capabilities and allowing
vendors to suggest relevant solutions before moving on to detailed requests.

4. Request for quote (RFQ)

A Request for Quote (RFQ) is a formal document used by organizations to request price
quotes from suppliers for specific goods or services. It outlines the required specifications,
and suppliers respond with their prices and capabilities.
5. Request for proposal (RFP)
A Request for Proposal (RFP) is a document that organizations use to ask suppliers for
proposals on specific projects or services. It outlines the organization’s requirements, goals
and evaluation criteria.

Tender terms associated with tender fee and payments:

1. Tender fees
A tender fee is a charge that bidders must pay to participate in the tendering process for a project or
contract to cover the costs of evaluating the submissions. The fee amount varies based on the
project's size and is usually specified in the tender notice.

2. Earnest money deposit (EMD)

An Earnest Money Deposit (EMD) is a security deposit paid by bidders with their tender to
demonstrate seriousness. It protects the buyer if the bidder withdraws or fails to meet
contract terms. If awarded the contract, the EMD is usually returned or applied to a
performance guarantee, but it may be forfeited if the bidder doesn't comply with
requirements.

3. Quotation
A quotation refers to the final price that a bidder presents in their bid proposal for carrying
out a project. Bidders must follow a specific format when quoting their prices in tenders.
The quotation represents the actual amount the bidder requests for the project, rather than
an estimate, and it is fixed and cannot be altered later.

Tender terms associated with eTendering process:

1. Opening and closing dates

These refer to the specific dates and times when a tender is opened for bids and when the
submission period ends. Suppliers must submit their bids within this timeframe.

2. Tender document
This is a comprehensive document that outlines the requirements, specifications, terms, and
conditions of the project for which bids are being invited. It serves as a guide for suppliers
on how to prepare their bids.
3. Bid document
This document includes the actual bid submitted by a supplier in response to the tender. It
contains details about the supplier’s offer, including pricing, technical specifications, and any
other relevant information.

4. Corrigendum
A corrigendum is an official amendment or clarification issued by the buyer regarding the
tender documents. It may address errors, omissions, or changes in the tender requirements
and must be communicated to all bidders.

5. L1/L2/L3 bidders
These terms refer to the ranking of bidders based on their bid amounts. L1 is the lowest
bidder, L2 is the second-lowest, and L3 is the third-lowest. This ranking helps in determining
who is awarded the contract.

6. Proposal documents
These are the documents submitted by suppliers that detail their proposed solutions,
methodologies, and pricing in response to a Request for Proposal (RFP). They help the buyer
evaluate the bids.

7. Tender status
This refers to the current state of the tender process, indicating whether it is open, closed,
under evaluation, or awarded. It keeps bidders informed about the progress of the tender.

8. Bid awards
This refers to the decision made by the buyer to accept a particular bid after evaluating all
submissions. The awarded bidder is then given the contract to execute the project.

9. Digital signature certificate (DSC)

A DSC is an electronic certificate used to authenticate the identity of a bidder during the e-
tendering process. It ensures that the submitted bids are secure and legally valid, as it
verifies the signer's identity and integrity of the document.

Where are Tenders published in India?

In India, tenders are published on various platforms to ensure transparency and accessibility
for interested bidders. Here are the primary places where tenders are published:

1. Central Public Procurement Portal (CPPP)

The Central Public Procurement Portal (CPPP) is an online platform to streamline the
procurement process for central government tenders. It serves as a central hub where all
central government tenders are published, providing detailed information to potential
bidders.

2. Government e-marketplace (GeM)

The Government e-Marketplace (GeM) is an online platform to facilitate the procurement of
goods and services by government departments and public sector undertakings. It enhances
transparency and efficiency in the procurement process while encouraging the participation
of Micro, Small, and Medium Enterprises (MSMEs).

3. State government portals

State Government Portals are online platforms set up by individual state governments in
India to streamline the procurement of goods, services, and works. These portals publish
various tenders from state departments and public sector undertakings, making tender
information easily accessible to suppliers.

4. Department of ministry websites

Department and Ministry Websites in India are official platforms where government
departments publish tenders and project details. Suppliers can access tender documents,
deadlines, and application instructions, promoting transparency and public participation in
procurement processes.

How to submit an online Tender application?

Search for Download Prepare Track and

Registratio
Obtain DSC relevant tender and submit Await
n
tenders documents bid results

1. First, register on the relevant government e-tendering platforms, such as the Central
Public Procurement Portal (CPPP) or the Government e-Marketplace (GeM), or specific state
government portals. You will need to provide business details, including a valid GST number,
PAN, and other required certifications.

2. Digital Signature Certificate (DSC) is mandatory for e-tendering. It ensures secure and
legally valid digital communication. You can obtain it from authorized agencies.
 3. Once registered, use the platform's search tools to find tenders that match your business
expertise and interests. You can filter by categories, department, or region.

4. After identifying a relevant tender, download the tender documents to understand the
requirements, terms, and conditions.

5. Prepare your bid according to the tender guidelines, including technical and financial
proposals. Ensure all required documents are attached. Submit the bid through the portal
before the closing date.

6. After submitting the bid, you can track its status online. Once the bids are evaluated, you
will be notified of the results and whether your bid was successful.

Special Instructions to the Contractors/Bidders for the e-submission

of the bids online through this eProcurement Portal:
1. To submit bids online, contractors need to enroll on the eProcurement Portal and register
their Digital Signature Certificate (DSC) using an e-token from authorized agencies.

2. They should update required documents in advance and read the tender schedules
carefully. It's essential to submit all necessary documents, including the Bill of Quantities
(BOQ), without changes. Any clarifications should be sought through the portal.

3. Bidders must send their Earnest Money Deposit (EMD) to the Tender Inviting Authority
(TIA) and ensure documents are virus-free. Click the "Freeze Bid" button to complete the
submission, as all actions will follow Indian Standard Time (IST).

Challenges faced in government tenders in India:

Examples of a tender:
Closing
Tendering Authority Tender ID Tender Title Type Date
National Highways Authority Construction Open
of India||RO-Nagpur - NHAI 2024_NHAI_211022_1 work Tender 25-Nov-24
Ministry of Road Transport
and Highways||P6 Delhi - Open
MoRTH||RO Bangalore 2024_MoRTH_825337_1 Civil works-Road Tender 10-Oct-24
Ministry of Road Transport
and Highways||P6 Delhi - 2024_MoRTH_82710 Open
MoRTH||RO Bangalore 1_1 Civil works-Road Tender 10-Oct-24