The 8 steps in the Tender Adjudication process
By W van Rooyen
10 November 2014
It is important to understand the Adjudication process when one responds to a Tender or Request for Proposal. If you have these 8 steps under control when responding to tenders, chances are good that you will proceed to the next round.
Here are 8 steps in the adjudication process that Organs of State will most often follow in determining which bidder will win the tender:
- Opening and recording of tenders
When tenders are opened in public, the following features of each tender usually are announced and recorded:
- The name of the tenderer;
- The tender price as stated on the form of tender;
- The number of B-BBEE points claimed by the tenderer;
- Tenders usually are endorsed and dated with the approved tender stamp of the Organ of State or Private Entity.
- Determine whether or not tenders offers are complete
After the opening of tenders, the tender officials will determine the responsiveness of each tender by determining whether:
- The tender complies with all the conditions of the tender or request for proposal;
- The tender has been properly completed and signed;
- The tender meets the minimum resource objectives;
Above are just some of the requirements that have to be met in order for your response to advance in the tender process. Any tender that does not meet the stipulated requirements will be regarded as being non-responsive. Non-responsive tenders will be eliminated from the adjudication process at this stage. All responsive tenders will proceed to the next stage.
- Price Review
The prices of all responsive tenders are checked for errors. Bidders who have tendered an unrealistically low price can be interviewed by the Organ of State to determine whether there is a valid reason for its tender price being unrealistically low. If the bidder can not supply a valid reason, the tender would most probably be eliminated from the tender adjudication process.
- Award of points for Functionality
Tenders that remain in contention will be awarded points for functionality.
- Awarding of points for Price
At this stage the points for price will be awarded according to the Preferential Points System. Prices are usually adjusted to a common base so that it can be comparable with each bidder`s price.
- Process review
At this stage the legitimacy of the B-BBEE Levels claimed by the bidders will be validated and recorded. If there are any reasons for eliminating tenders on the grounds of process review it will be recorded here.
- Summation of points
The points awarded for price and B-BBEE will be added for each tender and, subject to satisfactory risk analysis; the tender which has been awarded the highest total number of points will be recommended for acceptance.
- Risk Analysis
An Organ of State will do a risk analyses before acceptance of any tender to ensure that it would, if accepted, not place the Organ of State or the tenderer, at undue risk.
As one can see there are various elements that all contribute to the final awarding of a tender.
Please visit our website at www.how2tender.com for more on these as well as other interesting topics. You will also find our Tender Manual there - the Tender Manual guides you through the whole process of responding to a Tender or a Request for Proposal.
Until next time.