Pre-qualification questionnaires Supplier questionnaires or pre-qualification questionnaires ensure that potential suppliers are all asked the same information when assessing their suitability to be invited to tender or to have their tenders evaluated. Some organisations issue a standard pre-qualification questionnaire, for example the UK government has developed standard core PQQ questions which have been revised several times and are mandated for use across government, and has also stipulated that PQQs should not be used by central government contracting bodies when procuring goods or services valued less than the
threshold values set by UK procurement legislation.
Tender box A tender box is a mailbox used to receive the physical tender or bid documents, or a digital equivalent. The tender box is not implemented in every country around the world.
Tender validity date A tender validity date is a date until which a tenderer commits to keeping their prices (and other tender details) open for
acceptance (or otherwise) by the client. Such a date is usually included in a form of tender, either as a specified date or as the termination of a specified period from another key tender date. For example, in tendering for gym equipment in 2013,
West Dunbartonshire Council required tenderers to accept that "Your tender shall remain open for acceptance for ninety (90) days from the date for return of tenders indicated above, or any subsequent date notified to you by us. Your tender may be accepted by us at any time during this period."
Tender evaluation There are several different methods for available for tender evaluation, which are related to the proposition method asked by the procurement management:
Lowest price This method is the simplest and oldest of all. Under this the procurement contract is awarded to the best price. Some relevant methods are these of examining the overall or in parts and in total discount in a given price list or on a given budget. One of the options available under rules applicable to
government procurement in the European Union (EU).
Most economically advantageous The term "most economically advantageous tender" ("MEAT") is applied when proposals of differing quality are evaluated within set limits. Under this the proposals are graded according to their price for value and the contract is awarded to the one with the best grade. Similar to this is the grading of the proposals according to time, making the proposals needing less time of implementation seem more valuable. This is also one of the options available under rules applicable to government procurement in the EU.
Mean value The contract is awarded to a bid close to the
mean value of the proposals received. This may apply to procurements where numerous proposals are expected and there is a need for a market-representing value.
Exclusion of the extremes Under this method the proposals that are deviating the most from the mass of the proposals are excluded and then the procedure continues with one of the above methods. There are also many variants and/or combinations of these main methods.
Process contracts There are cases where an invitation to tender creates or implies a contractual obligation on the part of the inviting body to comply with duties of fairness and good faith in how they conduct the tender process. For example: • Under
Canadian law, the existence of a "process contract" or "Contract A" is now a well-established principle.
"Contract A" in Canadian legal practice is distinct from "Contract B", the contract to be awarded concerning the subject matter of the tender exercise. •
New Zealand law regarding "the circumstances in which the calling for tenders gives rise to a process contract" was reviewed in
Transit New Zealand v Pratt Contractors Ltd. [2002] and summarised by the
Court of Appeal in
Prime Commercial Ltd. v Wool Board Disestablishment Company in 2006: • Several other relevant cases in
English law are outlined by Fellowes in a 2010 article on
the evolution of tender contracts. • In a
Northern Ireland case,
Gerard Martin and others v Belfast Education and Library Board, Weatherup J referred to "an implied contract with implied terms of fairness and good faith". The Library Board's tender documents in this case gave rise to an obligation of fairness in how the Board conducted the tender process.
After evaluation Upon completion of tender evaluation it is usual to award a contract, unless no satisfactory tenders have been received. Organisations seeking tenders may reserve in advance the option not to award a contract or to abandon the procedure.
Post-tender negotiation Post-tender
negotiation involves negotiation between an intending buyer and seller after a seller's bid or tender has been submitted, usually to see whether any improvements in terms can be secured before a contract is signed. Tender documents may refer in advance to the possibility or option to negotiate. ==See also==