Advanced Tendering Procedures & Bid Evaluation

Purchasing, Logistics & Supply Chain Management

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INTRODUCTION

This Advanced Tendering Procedures & Bid Evaluation training course will examine all the input that has influence and direct impact on tendering procedures and bid evaluation. The key elements include understanding business need, market analysis, supply chain cost modelling, contracting strategy, and contract award up to and including contract initiation. It introduces a methodology in classifying the 3rd party goods or services for an organization into categories based on supply risk to spend value. Then a methodology will be introduced to help assign the best-fit market approach to a particular category or its sub-category. All of these will lead to the best-fit tendering procedures and bid evaluation.

When should we play it safe by only allowing experienced and proven suppliers to bid? When and how can we develop new suppliers? What are a fit-for-purpose suppliers selection process? How best to master a tender negotiation? How to handle (or avoid) contract award disputes?

Objectives

By the end of this Advanced Tendering Procedures & Bid Evaluation training course, the participants will be able to:

Classify 3rd party goods and services based on supply risk and value of spend

Determine the procurement strategy choices available for a given opportunity

Plan and manage a competitive tender process from A to Z

Identify, assess and make proposals on how to manage procurement risks

Create an appropriate evaluation methodology to judge bids and tenders

Evaluate vendor proposals from a technical and commercial perspective

Prepare for and conduct professional negotiation with suppliers

Handle the outcomes from a competitive bid process

The benefit of this course

Immediate new capability to articulate a structural contracting strategy

A greater sense of Professionalism

Updated with World-Class practices and trends

More exceptional ability to negotiate and manage contracts

Increased recognition by the organization because of bigger impact

Procurement becomes a competitive edge of the company

More effective and efficient procurement practices

Better-fit approach to the supplier market

Reduction in failed procurements, where contractors and vendors decline to participate in competitive procurements

Course Outline

DAY 1

Formulating the Contracting Strategy

Classifying 3rd Party Spend into Categories

Market Approaches

Crafting the Contracting Strategy

Identifying and Mitigating Contracting Strategy Risks

Choosing the Best Contract Type, including

Lump-Sum Fixed Price Contracts

Unit Rate Contracts

Cost Plus Contracts

Day rate Contracts

Time and Materials Contracts

DAY 2

Best Practices in Tender Procedures

The Tendering Process

Seeking Expressions of Interest

Pre-qualification Methodologies

Basic Accounting and Economics

Total Cost of Ownership

How to Prepare Internal Cost Estimate

What is the role of negotiation?

DAY 3

Optimizing the Tender Documents

Contents of the Tender Package

Ensuring a Robust Specification and Scope of Work

Defining the Response, You Require from Bidders

Essential Clauses in the Draft Terms and Conditions

Bid Security, Performance Security in Public Tenders

Anticipating and Reducing the Risk of Scope Change

DAY 4

Managing the Technical and Commercial Evaluation

The Purpose of Bid Evaluation

Lowest Price or Best Value for Money

Stages of the Evaluation

Clarifying Bids to Assist the Evaluation

Choosing Evaluation and Award Criteria

Bid Evaluation Approaches (One-envelop, Two-envelop, Online Bidding)

DAY 5

Managing the Contract Award and Initialization Stage

Communicating the Results – Internally and Externally

Working with Tender Bonds and Performance Guarantees

Dealing with Disputed Contract Awards

Operating under Pre-contract Letters of Intent

Managing Pre-contract Scope Changes

Initiating Contract