5 Common Mistakes Newcomers Make in Government Tenders

Government tendering is a lucrative option for businesses of any size. As much as it is attractive to secure government bids and make government as your customers, there is a lot that goes beyond understanding how companies work in securing government bids. Government tender participation is a complex process and requires a lot of due-diligence and paperwork apart from other things to succeed. Since public entities are responsible for bringing positive change in the community, manufacturers and service providers are required to provide astute product/service quality for the larger benefit of the community. For newcomers who seek to secure government bids, tender filling is a complex process. In this article, we shall share the most common mistakes that companies may make in filing government tenders.

1. Incomplete or In-accurate documentation:

One of the primary mistakes that companies make in assessing and filing bids is incomplete documentation. As mentioned earlier, government tenders come with a lot of paperwork including past references, proven track record, balance sheet copies etc all of which must be furnished at the time of bid submission. Failure to submit any of the documents can lead to suspension and non-consideration for the bid. It is therefore recommended to study the requirements thoroughly as set in the bidding documents. Creating a checklist of the document set is a good way to ensure documents are stocked up correctly. It is important that companies pay attention to the smallest details set out by the authorities in their requirements and abide by them individually. A small note at the end to the authorities stating that you’re open for any other documents if required can also help in case authorities are open to consider your bid.

2.Compliance & Eligibility Criterion

The next important thing to look out for while filing government bids is to comply with the eligibility and compliance criterion. Government Tenders often come with several compliances including local or global quality certificates, territorial compliances such as Data Protection Acts etc. Companies must adhere to these norms in order to be considered eligible for the bids. If these norms are ignored, it can lead to disqualification in bids without opening of the technical or financial bids. A good way to overcome this is by inquiring beforehand about the different applicable certificates and ensuring that the company meets them before placing the bid.

3. Understanding the Technical Specifications:

One of the most important stages in the tender process is the technical specification understanding which lays out the exact technical requirement by the authorities. The technical specification entails the exact specifications of the product or service required and companies must adhere to these strictly in order to be considered for the bid. In a way, it is the crux of the tender as it details exactly the specifics of the product/service to be procured. When in doubt, companies must seek clarification on the technical specifications as it can significantly impact their chances of disqualification.

4. Pricing

While bidding for government tenders, price is an important criterion and in some cases the only significant factor in choosing the supplier. Pricing strategy must be aligned with the authority’s requirements and the product specifications. A good strategy would be to find out the past purchase pricing by the authorities as set out in their contract award information. This gives a fair idea of what the ideal pricing could be. Although still indicative, contract award information can give a good overview of what the authorities are capable of spending in cases where the budgets are not specified. In case where budgets are mentioned in the tender documents, the suppliers must try to accommodate the bids within the stipulated budgets. If the pricing can be lowered than the specified budget, it must be highlighted for authorities to focus on this point and increase the chance of getting selected. It is best to give reasonable answers of lower price such as cheap labour, mass production etc in order for the authorities to generate trust in the suppliers.

5. Deadlines:

Most government tenders come with a specific deadline to respond and to deliver the products. These deadlines must be respected by the suppliers not only as a mark of professionalism but also to ensure they do not get disqualified. Pre-bid meetings are a great way to stay on track for any last minute changes to the bid and prepare accordingly. By adhering to the deadlines, the companies can present a fair chance of representation in front of the authorities while also preparing for future bids released by the same authority. A good way to ensure repeat business is to keep in constant touch with officials through formal and informal means. Building rapport with officials can go a long way in securing contracts.

Overall, the steps outlined in this article can help newcomers avoid the mistakes and tender more effectively in government contracts. For more information, visit Tender Impulse.