Managing a tender
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.
If you have not managed a tender before it can be difficult to understand all of the requirements of the role. It can at first seem a daunting and complicated task but once broken down it is actually a very structured and easy process to manage.
For the person managing the tender here is some detail on the tasks you will be required to perform:
All communication and management of suppliers.
Direct communication is an important part of managing the tender and ensuring the prospective suppliers are fully informed of the process but more importantly the business objectives of the tender. Do not assume your tender document has really got your requirements, suppliers have a tendency to try and read between the lines to find a competitive advantage and will often draw incorrect conclusions.
Ring each supplier to confirm they have received the tender, ask for confirmation they intend to respond and most importantly take the opportunity to reiterate the primary objectives your business has from the tender.
Development of the background and tender process communication for prospective suppliers.
It can be useful to produce a separate document that contains the background or business problem the tender is looking to resolve along with a clear description of the process and timeline. As things change during the process it become a useful reference and it help set expectation.
Include the background from the tender document, list the evaluation panel and the key evaluation criteria. A calendar for the tender can be a useful tool to set expectations for both prospective suppliers and the evaluation team. Remember your asking a supplier to invest in a sales process and you want them to be able to focus on providing you with a clear solution to your business problem.
Creation and distribution of the tender process document and evaluation worksheet.
You will likely have a template document from Finance or a dedicated Procurement team which will provide standard Terms and Conditions for a tender in your organisation. The manager of the tender will need to collate information to complete the tender document and the typical headings will include:
Purpose of the tender.
Milestones for tender process.
Desired outcome of the tender.
Instructions to prospective suppliers including response guidance.
Background / problem - relevant information to help suppliers provide a response to your tender.
The Functional and Non Functional requirements for your required solution.
The evaluation worksheet would be constructed from the Functional and Non-Functional requirements. The worksheet should be able to calculate an overall evaluation score and also include the ability to add weightings for different sets of requirements.
Management of the evaluation team to confirm requirements, provide supporting documentation and complete the evaluation.
The evaluation team will have other roles within the business review of evaluation of the tender will not be a natural priority in all cases. Just as with the prospective suppliers direct communication is an important part. Setting clear expectations and timeline for each part of the tender process will make the evaluation easier for the team.
It is important that each evaluator understands the evaluation worksheet, exactly what is expected of them and by when. This should include guidance on how to interpret and score each of the Functional and Non Functional requirements.
Report for the overall process for senior management and if applicable the procurement department.
Expanding on the tender process communication can provide a useful summary of the entire process and once you have included the evaluation scores and details on the final decision you have a summary report on the tender for management consumption.