How much time is required to manage a tender?
Managing a tender requires investment in time and someone to manage the overall process that will include internal and external people. How do you calculate how much time will this take?
You will be striving to obtain goods and/or services that represent the best overall value but much more is involved than simply issuing tenders, receiving proposals and choosing one based on the lowest cost. Lets start by making some assumptions:
You understand the products or services available and you have well defined requirements therefore, the tender process is a Request for Proposal (RFP).
Market research and business parameters such as total revenue and profit has identified six prospective suppliers for the tender.
You will shortlist to two supplier for presentations / workshop.
The tender is worth between $250,000 and $1,500,000 in total.
Contract negotiations will be completed post tender process.
As the manager of the tender process you are responsible for a timely, efficient and robust selection process for both your organisation and the suppliers who are being asked to participate. Each tender is a little different but a good estimate of the time you will need to set aside is:
24 hours - Confirm requirements and develop tender document with evaluation team.
32 hours - Release the tender and manage prospective suppliers.
16 hours - Collate responses and consolidate pricing information for evaluation team.
8 hours - Develop and agree agenda for workshops, update evaluation if required.
32 hours - Presentations and Workshops with shortlisted suppliers.
16 hours - Process report and loss reviews if requested.
Total estimated effort to manage = 128 hours
Each member of the evaluation team should expect to dedicate the following amount of time:
8 hours - Review of the tender document and evaluation criteria.
2 - 4 hours - per response for review and evaluation.
16 hours - Workshop with shortlisted suppliers.
8 hours - Evaluation team meetings to review and agree team evaluation.
Total estimated effort to evaluate = 56 hours
Considering the required tasks and setting aside the appropriate amount of time will simplify your management of a tender. This will result in a timely, efficient and robust selection process for both your organisation and the suppliers who participate.