project on government tenders

8/13/2019 Project on Government Tenders

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Project On Government

Tenders

MADE BY:

Jaanam Chandnani

F.Y. B.M.S (22)



Government Tenders:

Government Tenders, also called public tenders or

public procurement, is the Procurement of goods and

services on behalf of a public authority, such as a

government agency. With 10 to 15% of GDP in

developed countries, and up to 20% in developing

countries, government tenders account for a

substantial part of the global economy.

Why Tenders?

Tenders are open invitation to buy or sell

goods/services/contracts. Those who are interested

in supplying what has been advertised, can respond to

a Tender & submit their best competitive offer.Intention is mainly to curb the possibilities of

favouritism and give good way to auditing function.

The best competitive offer (Lowest Bidder) is

generally selected & the contract is awarded to

Lowest Bidder.



Methodology Of Tenders -

The methodology of Tenders takes time and the pipe

line of the activities is long. The hierarchy levels are

very important to be maintained. There is no quick

fixing mechanism available in this method.

Methodology followed is as under:-

(1) Define the Requirement/ Project clearly.

(2)The advertisement is to be given in minimum three

national English papers and trade journal, calling for

offers.

(3) Generally offers are to be placed with earnest

money and before a stipulated date, after which it

will not be accepted. They are to be filled up on a

prescribed Tender Form.

(4) Tender document is available at cost. It contains

all the Terms and Conditions.

(5) The Tenders are opened publicly on the decided

date and the work is awarded to the lowest bidder.



(6) If the lowest bid is more than the estimated

cost, negotiations are done with that party and they

are awarded the work.

Types of Tenders: There are various types of Tenders, some of them

are listed below:-

1.) Open Tender –

In Open Tender anyone can participate. The

participant has to ensure that they fulfil the

minimum pre-qualification criteria specified in the

tender document to qualify. If they do not meet thepre-qualification criteria, their bid will be rejected &

they will lose the document fees they have paid. The

Lowest Bidder generally wins the contract.

2.) Limited or Closed Tender –

In Limited Tenders, only pre-qualified or empanelled

bidders are allowed to participate. As some Tenders

are not advertised in newspapers, other bidders

generally do not come to know that such tender is



floated. The Lowest Bidder generally wins the

contract.

3.) ICB or International Competitive Bidding –

In such tender companies from other countries can

also participate in Indian Tenders.

4.) NCB or National Competitive Bidding –

In such tender only Local or Indian companies can

participate. Companies registered in other countries

cannot participate. The Lowest Bidder wins the

contract.

5.) Request for Proposal (RFP) –

In RFP a company is supposed to submit only the

Technical proposal. Indicative price bid can also be

invited, if so required by Buyers. Once RFP round is

over, RFQ or Request for Quote can be invited from



shortlisted Bidders.

Another purpose of RFQ is to understand the

current technology available in the market. For e.g. ifa new power plant is to be built, the government can

float an RFP stating that it wants to build a 1000

MW power plant, different Bidder will submit their

response stating that they can build either Thermal,

Nuclear, Solar, Fuel, Coal based plant. On the basisof response from different bidders, buyer will select

either of the technology & then float a fresh tender

or just invite bids form pre-qualified bidders.

6.) RFQ or Request for Quote –

In RFQ, a company has to submit their best offer &

on the basis of this decision the contract is awarded.

For example if someone wants to buy 1 Window AC,only RFQ is floated because no Technical pre-

qualification is required as it is a standard product.



Online Tenders in India:

With increasing use of internet in India, Indian

corporates and government finds a good option to

display the Tenders making the process easy and

cheaper. Corporate world can get a wide area of

scope with tenders going online as they can crack

important Tenders which went unnoticed earlier.

Government gets a chance to get those companies

noticed about those tenders which went unnoticed

earlier. Now it can be ensured that tender goes to

deserving organisation whoever is able to provide

quality services and price.

project on government tenders

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