2015

E-TENDER

Submitted By:

Submitted To:

Jarin Tasnim Era (07-001)

Mr. Md. Rakibul Hoque

Md. Arafat Ul Huq (07-018)

Assistant Professor

Maisha Tanzim Anika (07-098)

Management Inf. Systems

25 August 2015

Acknowledgement
It gives us great pleasure in placing in the hands of our esteemed faculties. We
believe, will go through the documentation of the project work done by us. The
objective of this assignment is to provide a conceptual understanding of ETENDERING system.

pg. 1

Contents
Acknowledgement ....................................................................................................................................... 1
E-tender ....................................................................................................................................................... 3
Online Process ............................................................................................................................................. 4
Debt tender offer: .................................................................................................................................... 4
Competitive tender: ................................................................................................................................ 4
Tender offer:............................................................................................................................................ 4
E-tendering and how it works around the globe. ..................................................................................... 5
E-tendering system is an online tender system which uses a range of tendering methods to meet
these, including:........................................................................................................................................... 6
Open Tenders: ......................................................................................................................................... 6
Selective Tenders: ................................................................................................................................... 6
Pre-Registered Tenders: ......................................................................................................................... 6
Security ........................................................................................................................................................ 7
The Electronic Government Procurement ............................................................................................... 8
Tendering Process ................................................................................................................................... 8
The law governing tendering ................................................................................................................. 8
Tender evaluation ................................................................................................................................... 9
E-tendering in Bangladesh: ...................................................................................................................... 10
Private Sector of E-tender in Bangladesh ............................................................................................... 11
Benefits of E-tendering Authority: .......................................................................................................... 12
Benefits to Suppliers/Contractors: .......................................................................................................... 12
Problem of E- tendering: .......................................................................................................................... 12
Ethical Behaviors in E-Tendering Process ............................................................................................. 13
Ethical concepts and principles ............................................................................................................... 13
1.

Loyalty and Respect for Rules and Regulations......................................................................... 13

2.

Integrity ......................................................................................................................................... 14

3.

Impartiality and Fairness ............................................................................................................. 14

4. Transparency..................................................................................................................................... 14
5. Confidentiality ................................................................................................................................... 15
6.

Avoidance of Appearance of Impropriety .................................................................................. 15

7.

Due diligence.................................................................................................................................. 15

Conclusion ................................................................................................................................................. 16

pg. 2

E-tender
Tendering is not actually a business. It is a procedure used by businesses to choose
suppliers of goods and service or to dispose of unwanted goods or surplus stock
etc. It cant provide a secure environment because if a businessman price too low it
will end up with a poor income. For this reason it includes escalation clauses to
cover increases cost in any circumstance. E tendering provides a context where
clients and tenderers can minimize their cost, reduce unnecessary administration
and streamline the overall tendering process. When complete the e tendering
process, from the beginning to withdrawal, one should consider

tender procedures , types of electronic formats

the benefits and constraints that technology provides
work flow and security issues
tenders assessment

E tendering is a process of carrying out entire tendering cycle including submission

of price Bid to tender audit & storage.this cycle can be broken in:
1. Tender notice creation
2. Tender promotion
3. Tender document
4. Pre bid meeting
5. Bid submission
6. Payment gateway
7. Tender storage and opening
8. Tender evaluation
9. Negotiation
10. Tender award
11.Vendor registration and rating
12.Tender audit and storage

pg. 3

Online Process
E tendering is an online process where the complete tendering process from
advertising to receiving and submitting tender elated information. It is an enough
efficient process to reduce paper based works; it also facilitates the speed of
exchanging information.
Debt tender offer:

Firm may use debt tender offer when firm retires all or portion of its debt securities
by making an offer to its debt holders to repurchase a determined number of bonds
at a specified price.
For example: when interest rate becomes high, firm may issue bonds. And when
interest rate goes down firm may conduct a new bond offering at a lower price.
Competitive tender:

In competitive tender all bids must be submitted by a pre-determined date, and

give awards to the highest bidder. It is the process for buying new government
securities in the primary market.
Tender offer:

Tender offer is an offer to purchase some or all shareholders share in a

corporation. Tender offer price is usually set according to the market price. The
offer is made without the consent of the largest companys management or broad
of directors. It is also called hostile takeover sometimes.

pg. 4

E-tendering and how it works around the globe.

E-Commerce can be defined as any value adding business exchange conducted
electronically within or between businesses, or between businesses and consumers.
It covers all forms of electronic trading including electronic data interchange,
electronic banking, electronic mail (email) and other online service and
communication tools (NSW Government 2002).
Todays industries, businesses and personal worlds are dominated by a wide range
of technologies and e-activities, including: computers, email, Internet, Websites,
etc., finding it more and more difficult to function without them. Yet, the success
of any profession is described as going beyond simply exchanging electronic
information. Successful implementation of information and communication
technology and innovative web-based e-solutions (such as E-tender) requires
careful consideration to meet industry needs. Where future research and
developments (R&D) in determining new and improved ways of doing business
through the Internet is dependent on the innovation of the industry (and end user),
not only the technology itself that is, matching technological innovation with the
perceived needs and preparedness for change on the part of the industry.
There is a considerable exchange of information between various parties during a
tendering process, where accuracy and efficiency of documentation is critical.
Traditionally this process is either paper-based (involving large volumes of
supporting tender documentation), or via a number of stand-alone, non-compatible
computer systems, usually costly to both the client and contractor. As such, having
a standard electronic exchange format that allows all parties involved in an
electronic tender process to access one system only via the Internet, saves both
time and money, eliminates transcription errors and increases speed of bid analysis.
E-tendering, in its simplest form, is the electronic publishing, communicating,
accessing, receiving and submitting of all tender related information and
documentation via the internet, thereby replacing the traditional paper-based tender
processes, and achieving a more efficient and effective business process for all
parties involved

pg. 5

Although there are a number of E-tender systems available to todays construction

industry, they all generally offer:
Some form of messaging function for telling tenderers of any changes;
Document management to keep track of all the information;
An audit trail;
A straightforward user interface;
Ways of helping the client compare particular elements of the bids (ITCBP
2003).

E-tendering system is an online tender system which uses a range of

tendering methods to meet these, including:
Open Tenders:

Open tenders are invited by public advertisement with no restriction placed

on who may tender. Tenderers are required to demonstrate in their tender
that they have the necessary skills, resources, experience and financial
capacity to carry out the work. Open tenders are usually called for building
work of relatively low value (e.g. up to $0.5M) and for civil engineering
works (excluding water and wastewater treatment plants and small town
sewerage systems), where it is inefficient to establish selective or preregistered tender lists.
Selective Tenders:

The selective tendering system is where a limited number of Contractors or

Consultants are invited to tender for a particular work. Tenderers are chosen
from a list of contractors or consultants who are pre-qualified (PQC) with
NSW Department of Commerce, with prequalification being based on a
proven record of relevant satisfactory performance and financial capability.

Pre-Registered Tenders:

When there are a relatively small number of pre-qualified contractors for a

particular work category with a continuous workload, pre-registered tenders
are used. Pre-registered tenders are invited by public advertisement with the
restriction that only those contractors pre-qualified for the type of work will
be permitted to tender.
pg. 6

Security
There is a nominated, continuing, primary e-mail contact within each firm
on the PQC list, and other e-mail contacts can also be added or specified by
the firm. However, as an E-tender system security precaution, whenever a
secondary user within a firm is detected accessing E-tender information, the
system routinely notifies the primary e-mail contact also.
Each E-tender system password is specific for that Tender and one-off for
an individual firm, thus if staff leave the firm and take knowledge of
passwords, etc. the current password cannot be used to access information
on further future tenders. Furthermore, a tenderers password only remains
current until the date that the tender closes i.e.: Contractor tender processes
typically last 3 weeks and Consultancy offer processes typically last one
week.
Whilst a Tender remains open, if an e-mail regarding the Tender is sent to a
nominated e-mail contact and it bounces (that is, the e-mail is returned
with addressee unknown), then the PM for that Tender would normally fax
or telephone the intended recipient and then make corrections to the e-mail
address if it is in fact incorrect.
Advises that for audit trail purposes, normal logging of all user access to the
E-tender Web-server is available for perusal should it be necessary. They
also advise that a standard level of back-up procedures for E-tender
documents are in place, with routine archiving taking place after two years
of on-line storage.
Once the E-tender period closes and following evaluation by a Selection
Panel and formal tender approval, the Project Manager would normally send
out four (4) hardcopy plus one electronic copy (on CD) of the full
documentation to the successful tenderer.

Letter of acceptance is when the Tender is verified, and the contract

becomes valid when hardcopy of the contract has been signed.

pg. 7

 The E-tender system is housed on dual, mirrored server hardware

(ensuring minimal downtime should one server fail or crash for any
reason), and is based upon Microsoft software. The E-tender system utilizes
Microsofts IIS Web-server, SQL Server database software, and the ASP
(Active Server Pages) approach to Web-serving.

The Electronic Government Procurement

Tendering Process

Government purchasing is important as considerable sums of public moneys are

spent every year. For example, the Queensland Government spends around $6
billion a year on goods and services, with an additional $4.5 billion on capital
assets/works (Queensland Government State Purchasing Policy). Quality of service
and value for money is maintained by contracting out the provision of certain
goods, services and capital assets/works. In its simplest form, the tendering process
involves the principal advertising or issuing a request for tenders (known as an
invitation to treat), the various tenderers then make offers, one of which is then
accepted by the principal, forming a contract between the tenderer and the
principal. Often a tendering system will also involve a system of prequalification
or registration so that the principal knows and can easily verify the tenderers.
The law governing tendering

Tendering is the main means by which governments and other public sector
organizations award contracts for goods and services. It is seen as the fairest means
of awarding government contracts and the method most likely to secure a favorable
outcome for the government in its spending of public moneys. Unlike countries,
such as the United States, Australia does not have a national system which
mandates that contracts be awarded by a publicly advertised tendering process and
regulates each stage of the government tendering procedure. Instead, the process in
Australia is regulated largely by the common law through the general principles of
contract law, supplemented by statutory provisions.
There are some exceptions to the contract being formed at acceptance, such as
when the contract is contingent on a formal document being executed after
acceptance, or where the department requests notification of expressions of interest
pg. 8

in the tendering process. Such notifications are not offers but part of a negotiation
stage which may lead to short listing from which the invitation to treat may flow.
This first part of this section will outline the common law principles that are
present in each of the key steps in the tendering process (identified previously in
section 3): pre-qualification and registration, public invitation, tender submission,
close of tender, tender evaluation, award of tender, and archiving. The remaining
part of this section will consider the shift to an electronic environment and the
additional legal issues that arise as a result of that new environment.
Tender evaluation

Contract law: implied terms of fairness

Misleading or negligent conduct
Equity: estoppel
Restitution
Administrative law

pg. 9

E-tendering in Bangladesh:
E tendering is a part of electronic government procurement. I brief it is called EGP. On all fronts of governance there should be electronic operation to save time,
reduce hassles and ensure transparency through widening access to public
information. As a part of that process, the government has initiated a process to
introduce electronic tendering in its public procurement system. In Bangladesh,
about 75% of the development budget is spent on procurement. The public
procurement act 2006 and the public procurement rules 2008 are now in force to
ensure transparency and accountability in the process of government purchase with
the public funds.
The centre procurement technical unit (CPTU) of the implementation of
monitoring and evaluation decision (IMED), under the ministry of planning has
been working in line with government plan to introduce e tendering on a limited
scale by the end of June, 2010.
Under the public procurement reform project -2 (PPRP-2) supported by the world
bank, e tendering would be introduced first in four target agencies- Local
government and engineering development (LGED), Roads and highways
departments (RHD), Bangladesh water development broad (BWDB) and rural
electrification broad(REB).
Different procurement entities can send their tender notices both online and offline.
When e tendering will be in place, all such information and monitoring will be
done online. And under the e-GP system, the whole cycle of procurement will be
done electronically. Electronic tendering system is an effective way to curb
corruption in government procurement and ensure transparency and accountability.
It incorporates functionality for real time dynamic pricing and project management
which would enable prospective bidders to view opportunities, register expressions
of interests, receive information and submit tender.
A total of 266 out of 300000 bidders got themselves registered so far with the
electronic government procurement (e-GP) system as works are underway to
introduce e tendering process for expedited and transparent public procurement
mechanism as part of digitalization campaign. Last year government launched GP
portal www.eprocure.gov.bd developed by Central procurement technical unit
(CPTU) under the ministry of planning and started the E-tendering process. CPTU

pg. 10

already signed a memorandum of understanding with seven bank- Agrani, Janata,

Sonali, Pubali, United commercial bank,National bank and Bangladesh Krishi
bank to facilitate payments for the tenders.
A part from introducing e-GP , the CPTU is implementing the PPRP-2 increase
procurement capacity , improve procurement performance among stakeholders. Its
objective is to raise the quality of life of the people through creation of
employment and improvement of infrastructure. In the e-GP the bidders need not
to be physically present to submit their tenders. They can submit their tenders
sitting at home.
The basic objective of e-GP is to bring security, authenticity and accountability
into the tendering process. Additional benefits include savings on time, efforts and
money involved in the procurement cycle for both the supplier and the contractor.
E- tendering offer comparative and qualitative comparisons amongst bidders to
facilitate an accurate evaluation process.

Private Sector of E-tender in Bangladesh

Comparing to the lengthy and un-nurtured sector of government E-tender, the
private sector is much promising and has a healthy performance. It is performing
well comparing to the need of technology skilled customer.
The best and promising private sector totally relies on only one website. It is
known as http://www.tenderbazar.com/#1 (Tender Bazar). It is the largest tender
bazar fo the town. It is quite updated and performance is high according to the
Alexa rating. It is the fastest growing tender portal of Bangladesh. It is a platform
that brings the bidders and inviters together to exchange information. It provides
accurate supplying of quality data in the shortest possible time. It is currently the
largest portal of Bangladesh.

pg. 11

Benefits of E-tendering Authority:

Completely automated process

Shortens procurement cycle
Economy Friendly
Greater transparency
Minimize humans errors

Benefits to Suppliers/Contractors:

Anytime & anywhere bidding

Fair, free and fearless participation for vendors.
No dependence on newspaper
Zero administrative hassles
Economical-saving on travelling cost
Reduces efforts and cost of bidding
No tenders can be missed because of distance.

Problem of E- tendering:
People of Bangladesh are not ready to use the e tendering systems in full fledges
because of some major infrastructure problem. All participants are not capable of
using e tendering procedures because of lack of knowledge of technology, shortage
of power supply and low internet connectivity.

pg. 12

Ethical Behaviors in E-Tendering Process

There are two definitions of ethics as follows:

The moral principles governing or influencing conduct.

The branch of knowledge concerned with moral principles (The concise
Oxford dictionary of current English).

Ethics is the basis on which most of the procurement related principles, such as
fairness, integrity, and transparency, are based.
Professional standards of ethical conduct, no matter what the organization, contain
typical characteristics, including commitments to:

Behave honorably in all aspects of work and professional activity.

Conduct oneself in such a manner as to maintain trust and confidence in the
integrity of the acquisition process.
Avoid clever practices intended to take undue advantage of others or the
system.
Uphold the organizations standards and policies and all relevant legislation.
Avoid conflicts of interest.

Ethical concepts and principles

Some ethical concepts and principles that relate to the procurement process are:
1. Loyalty and Respect for Rules and Regulations

the procurement officer should:

i.
ii.
iii.
iv.
v.

Stand by decisions that are in the organizations interest even if they are
unpopular.
Understand the rules and regulations pertaining to his or her profession and
organization.
Know why the rules and regulations are necessary.
Know what caused the rules and regulations to be enacted.
Respect the need for the formality of rules and regulations.
pg. 13

vi.
vii.

Interpret and apply rules in accordance with their intent.

Be able to perform procurement responsibilities effectively and efficiently
and still abide by the pertinent rules.

viii.

2. Integrity

A procurement officer should therefore demonstrate integrity by:

i.
ii.
iii.
iv.
v.
vi.

Upholding the principles of the United Nations Charter.

Demonstrating the values of the UN, including impartiality, fairness,
honesty, and truthfulness, in daily activities and behaviors.
Acting without consideration of personal gain.
Resisting undue political pressure in decision making.
Not abusing power or authority.
Taking prompt action in cases of unprofessional or unethical behavior.

3. Impartiality and Fairness

According to The concise Oxford dictionary of current English, fair is defined as

just, unbiased, and equitable; in accordance with the rules. In the context of
impartiality and fairness and accordance with the definition above, the
procurement officer should:
i.
ii.

Set aside all personal and organizational biases.

Apply the same standards of evaluation to all the suppliers (equal treatment).

4. Transparency

There are two degrees of transparency:

i.
ii.

internal scrutiny
External scrutiny.

pg. 14

5. Confidentiality

Confidentiality needs extra consideration in UN procurement, due to the

delicate nature of the information that is handled in procurement processes,
such as pricing of products, marketing strategies, etc. A breach in the
confidentiality of the data handled in the procurement process could result in
discredit of the UN and distrust from governments, partners or suppliers

6. Avoidance of Appearance of Impropriety

In the private sector, appearances are tempered by the wishes or standards of

the organizations leadership. Employee behavior is judged according to
legality and the satisfaction of owners or customers. However, international
public-sector procurement officers must adhere to more conservative standards.
Not all societies have the same standards or traditions about what is proper and
what is not. It is important to recognize cultural differences in appearances and
to anticipate, in the most conservative terms, what might be perceived as
improper conduct (conservative does not mean the same thing to staff from
different cultures).

7. Due diligence.

Diligent procurement officers should:

i.
ii.
iii.
iv.

check the references of potential suppliers

develop impartial evaluation criteria
carefully analyze the offers received
Not cut corners for the sake of convenience

pg. 15

Conclusion
The entire public procurement activity undertaken by the government shall be
channeled through the e-GP infrastructure and implemented in a phased manner.
Efficiency in handling public procurement by the government organizations shall
be enhanced through automation and process reengineering.

pg. 16