TENDERING PROCEDURES & IT’S ATTENDANT CHALLENGES · What is Tendering? •Tendering is the process of making an offer, bid or proposal, or expressing interest in response to an

TENDERING PROCEDURES & ITS ATTENDANT CHALLENGES

Onafowote, Fatai IdowuActing General Manager

Lagos State Public Procurement Agency

What is Tendering?

• Tendering is the process of making an offer,bid or proposal, or expressing interest inresponse to an invitation or request for tenderfor a particular need, such as works contracts,supply of goods, services, and select an offeror tender that meets their needs and providesthe best value for money.

Tendering………cont’d

• The core principle in public tendering is toachieve value for money through opencompetitive tendering process. This does not justrefer to offering the lowest price or best offer.

• Value for Money (VfM) can also be assessed bylooking at factors which include:

1)The relative risk of the proposal2)Fitness for purpose3)The performance history of the supplier/

contractor/ service provider

Tendering………cont’d

4) All direct and indirect financial costs andbenefits over the life of the procurement

5) The flexibility of the proposal to adapt topossible change

6) The anticipated price that could beobtained, or cost incurred, at the time ofdisposal

Types of Tendering

• Open Competitive Tendering – All eligiblebidders are given opportunities tocompetitively bid for a procurementopportunities.

• Closed (Restricted/ Selective) Tendering –used for already prequalified contractors/suppliers or where there are only a few knowspecialists in the field. Necessary biddinginformation and data are documented in theRFQ/RFP which are issued to the prospectivebidders.

Types of Tendering….cont’d

• Direct Contracting – used only where there is onlyone known company that can do/ provide therequired goods/ works/ services or a continuationof works/ services

• Framework Contracting – is a long-termagreement with suppliers, contractors and serviceproviders of non-consulting services which setsout terms and conditions under which specificprocurements (call-offs) can be made throughoutthe term of the agreement.

Procurement Cycle

Planning

Tender Preparation

Tender Notice

Tender Harvest

Tender Evaluation

Approval for Contract Award

Contract Formation

Contract Management

1

2

3

4

5

6

7

8

Tendering Stages

Tender Notice

Tender Harvest

Tender Evaluation

Approval of Contract

Contract Formation &

Signature

DIAGNOSIS OF

TENDERING STAGES

Tender Notice

1. The followings are various types of bidsolicitations a procuring entity could adopt toacquire goods, works and/ or services contracts;

a) Invitation for Bids

b) Request for Expression of Interest

c) Request for Proposal

d) Request for Quotation

e) Request for Standing Offer

f) Request for Supply Arrangement

g) Telephone-Buy

https://buyandsell.gc.ca/for-government/buying-for-the-government-of-canada/solicit-bids/types-of-bid-solicitations







































Tender Notice …cont’d1. Tender Notice should contain adequate information

for clarity of purpose2. Use of Standard Template for Tender Notice3. Use the appropriate medium to reach the

prospective bidders4. Depending on the complexity of the assignment,

adequate time should be given to the prospectivebidders to prepare and submit competitive bids/offers/ proposals.

5. Any addendum and/ or clarification on thesolicitation documents should be circulated amongthe prospective bidders within a reasonabletimeframe

Tender Harvest

1. Designate an officer to handle the receipt ofbids/ quotes/ proposal

2. Preparation for Bids Submission

3. Receipt of offers

4. Composition of Bids Opening Committee

5. Preparation of Bid Opening

6. Composition of Bid Evaluation Committee

Tender Evaluation

1. Sensitization of the Bids Evaluation Committee

2. Declaration of Conflict of Interest

3. Joint review of Pre-determined EvaluationCriteria

4. Individual Evaluation of Bids

5. Collation of Individual Evaluation of Bids

6. Preparation of Evaluation Report


1. Presentation of Evaluation Report to Tenders’Board for concurrence

2. Seeking relevant approvals e.g. PPA (if priorreview)

3. Types of PPA Approval Instruments

a. Certificate of Compliance

b. PPA No-Objection

c. Letter of Confirmation

Contract Formation & Signature

• Offer of Contract Award

• Acceptance of Offer

• Payment of statutory fees

• Registration of Letter of Award

• MDA Procurement Office liaise with the LegalOffice on Contractual Documents

• Liaise with Ministry of Justice on contractagreement

Guiding Rules of Tendering Process

• Advertisement:

Open advertisement in a widely readnewspaper and/or other easily accessiblemedia/platforms with a view to promotingcompetition, economy, efficiency and equalopportunities to all parties who are eligibleand qualified to participate in public contracts.

Guiding Rules…..(2)

• Use of Standard Bidding Documents:

There are various standard bidding document(SBD) templates for the procurement ofgoods, works and services. Identifying andadopting the use of applicable SBD to procurespecific procurement activity is required foreffective procurement process.

Guiding Rules….. (3)

• Pre-disclosure of Evaluation Criteria:

Open competitive bidding using clearlydefined criteria, and offering to everyinterested bidder equal information andopportunities to offer the works, goods andservices needed.

Criteria stipulated as the basis upon whichbidders would be evaluated shall not bechanged in the course of any procurementproceeding.


• Public Bid Opening:

All bids received within stipulated timeframeshall be publicly opened at the time andvenue specified in the bidding documents inthe presence of bidders who choose to attendand other relevant stakeholders.


• Evaluation of Bids by Competent Personnel:

All bids opened during the Bid Opening Exercise shall beevaluated by a Bid Evaluation Committee (BEC)comprising of competent and capable technicalspecialists in the field of the proposed project/assignment.

It is important for any member of the BEC to declareconflict of interest if any before or during the evaluationprocess. The number of BEC members depend largely onavailability of the technical personnel but should not beless than three. Caution should also be taken in thechoice and number of members to avoid incurringunnecessary administrative cost and prolonging theprocurement process timelines


• Clarification:

In a sustainable and transparent procurementprocess, it is obligatory on the part of theProcuring Entity to adequately address all queriesand clarifications that may be raised by bidder(s)during the period allowed in the biddingdocuments. It is important that clarifications,modifications and extensions are issued promptlyand in sufficient time before the bid closing date.It is also essential that the same information isissued to all bidders at the same time.


• Award of Contract to Most Qualified Bidder:

A contract shall be awarded to the lowest costevaluated and qualified bidder from bidderssubstantially responsive to the bid solicitation.

In some climes, contract is awarded to theMost Economic Advantaged Tenderer(M.E.A.T); this concept incorporates non-measurable elements of sound procuremente.g. green procurement, innovation etc.


• Debriefing of Award:

Prior procurement contract award to the successfulbidder, the Procuring Entity owes it an obligation tonotify all the unsuccessful bidders of the completion ofthe evaluation process and more importantly to informthem that they are not successful giving justificationfor their non-qualifications.

Debriefing unsuccessful bidders encourages them tosubmit bids again for future opportunities and assistthem in submitting more responsive or competitivebids. It also provides unsuccessful bidders with a fairopportunity to appeal, under the administrative reviewprocedures, if they feel that the procurement has notbeen properly conducted.

Major Challenges in Tendering Process

Challenges Vs. Risks

• Challenges:

These are obstaclesthat must be overcometo achieve the desiredset goals/ objectives. Itmay be easy or hard toovercome.

• Risks:

An uncertain situationThere is a probability ofoccurrence.

Impact can be positiveor negative.

Challenges

• Feedback from some of the StateProcurement Officers in various Ministries/Departments/ Agencies revealed that theyencounter different challenges during variousstages of the tendering process.

• Some of the major practical challenges are astabulated in the following slides;

Tender Notice

Challenges Consequences SafeguardMeasures

Having personalinterest in aparticular platformfor bids solicitation

Limited Competition Getting an approvalfrom relevantauthority on the useof a particularplatform / mediumfor bids solicitation .

Evading the use ofright platform /medium for bidssolicitation

Limited Competition Adhering strictly tothe approvedAnnual ProcurementPlan.

Tender Harvest


Having multiple BidsSubmission Venues/Locations

Loss of time tocollate bidssubmitted

Specifying a singlebid submissionvenue/ location inthe BiddingDocuments

Non-provision ofsecured Bid - Box

InadvertentlyOpening of Bidsand/ or Loss of Bids

Provision of tamper-proof Bid-Box.

Tender Evaluation


Non-adherence toEvaluation Workplan/ Schedule andRules

Delay in EvaluationReport

Strict adherence toEvaluation Workplan/ Schedule andRules to save time.

Using of non-conduciveEvaluation Venue

Loss ofConcentration andPoor Quality ofEvaluation Report

Provision ofconduciveenvironment for thebids evaluationpreferably offsite



Request for wrongapproval instrumentfrom PPA

Delay in obtainingApprovals

Provision ofadequate trainingsfor the ProcurementOfficers

Non-Availability ofApproving Officer(s)

Delay in obtainingApprovals

Setting of Timelinefor obtainingapproval(s)

Contract Formation & Signature


Inability of thewinning bidder tosubmit relevantdocuments forpreparation ofcontract documents

Delay in thepreparation ofContract Agreement

Dissemination ofadequateinformation towinning bidder andsetting of timeline

Bureaucracy inContract Formation

Delay in thepreparation ofContract Agreement

Setting of timelineand penalizingofficer who defaults.

Thank you