TENDERING:

PROCESS and
PROCEDURES

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Overall Perspective of
Procurement Policies

Efficient, effective and transparent

procurement systems which reflect
the principles of value for money,
transparency and accountability.

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Rationale for Tenders
Rules
The tendering process can be a
minefield of potential litigation, with
tenderers complaining of the lack of a
fair and consistent approach to
tendering and accusations of
favouritism and corruption.

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 SIX CORNERSTONE
PRINCIPLES of any
tendering process

1. Transparency: candid, evident, manifest and easy to

see through or understand
2. Probity: Virtue or Integrity; honesty.
3. Equity: Fairness and Impartiality

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4. Fairplay: Even playing ground; fairness in
tendering. The practice of justice, unaffected
by prejudice or partiality.
5. Value for Money
6. Accountability

Summary
1-6 serve the objective of engendering
stakeholder confidence in a tendering
process.

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 How these concepts are
demonstrated throughout a
tender process
„ Pre-Qualification Procedure – System of
fair selection of contractors with whom the
company should do business.
„ Tenders Rules and Procedures – System
by which tendering is governed. This system
comprises standard letters of invitation,
stated procedure for bidding, simultaneous
notice to bidders, minuted pre tender
meetings, controlled points of interaction
between company and bidders, defined
scope of works, specifications, terms of
reference etc.
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TENDERS RULES:
„ Govern the process of purchasing Goods, procuring
Works and Services and disposal of assets.

„ They are usually structured around different

Committees with varying levels of authorities and
approvals delegated to each. For example, at eTecK,
there are delegations of authority ranging from the
„ The Board
„ The BTC comprising directors of the Board
„ The MTC comprising Vice Presidents of e TecK
„ The President
„ The Vice Presidents
„ The Managers

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 USUAL FEATURES OF
TENDERS RULES

1. EXEMPT SERVICES: -
These Services may be procured directly from
the supplier subject to other purchasing
procedures:-
-Professional Services e.g. – legal, architects,
medical, training;
- Goods and Services not exceeding an overall
value (for example TTD$25,000.00 per item);

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 Exempt Services cont’d
„ Free Lance Services such as event
catering, event management, audio visual
production;
„ Printing, refreshment, stationery,
housekeeping items and spares;
„ Advertisement, courier, flowers, sound
system rentals, newspapers;
„ IT equipment and spares.

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2. OVERALL
REPONSIBILITIES
„ Generally, Tender rules are administered
through the Secretary Tenders Committee.
„ Management remains ultimately
responsible for ensuring that the rules are
adhered to.

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3. METHODS OF TENDERING

(i) Open or Public Tendering

- Advertisement in daily newspaper.
(ii) Selective Tendering
- Contractors chosen from Pre-Qual
Register
(iii) Sole or Direct Tendering
- Sole bid invited without competitive
bids.
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4. 2-stage Tendering
Two Types of 2-stage Tendering:
1. One Stage – Two envelopes – Technical
and Financial Bids
2. Two Stage Process – Two envelopes -
post-qualification questionnaire and
Technical/Financial Bids

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Selective Tendering
„ Tenderers are chosen from pre-
qualification register
„ Tenderers are short listed and approved
by the President/Chairman (outside the
pre-qualification register)

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 Sole bid/preferred supplier

„ No substantially responsive bids are received;

„ Goods comprise part of a system already in
use;
„ Consultancy service required is a special
assignment or Works are of a specialized
nature;
„ Emergency works.

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TENDER PROCESS
„ Invitation to tender
„ Pre/Post Qualification Questionnaire
„ Bid Bond
„ Site Visit – mandatory and non-mandatory
„ Tender Boxes
„ Receipt of Tenders
„ Withdrawal of Offer
„ Tender Opening
„ Evaluation of Tenders
„ Recommendation for Award/Approvals
„ Letter of award
„ Conditions of award – insurances and performance bond

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SECRETARY, TENDERS
COMMITTEE
„ Administration of the Tenders Rules from
invitation to contract award
„ Maintenance of Register of Tenders
„ Tender Meeting – pre/post bid
„ Communication with Tenderers
„ Monitors Contractor Performance
„ Communication of Decisions of
Committees
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 Other procurement processes
„ Purchase orders - invoices
„ 3-quotation systems – small contracts
based on standard forms
„ Petty cash procedures

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