Public procurement plays an important role in socio-economic development at both regional and international levels. It refers to specific acquisition systems and methods to procure the goods, works, and services needed for the implementation of public programs and projects based on the principles of transparency and accountability. As of 2021, the global value of public procurement was projected to be around US$13 trillion per year in nominal terms. Efficient and fair procurement systems can help governments to achieve better value for money while creating numerous business opportunities for small- and medium-sized firms and individual consultants.
In this context, DevelopmentAid invited Fabio Santoni, international tender expert and founder of Nove Business Consulting, to share some useful tips on how to overcome the challenges in identifying funding opportunities, reading and understanding procurement notices, and avoiding the most common pitfalls in tender participation.
How to choose the right funding opportunity
Before deciding to pursue a specific funding opportunity, organizations and individual experts should consider the geographical aspect, more specifically the country in which the project will be implemented. At this point, it is essential to establish if the party has contacts/agents in that country who could help with the implementation. Taking into consideration that donors constantly strive in their efforts to engage locally based companies in the implementation process, creating consortia partnerships with local entities could prove to be a winning strategy.
At the same time, a lack of such local contact points could be offset by previous experience working in the region/country, the sectors of interest involved, or by the ‘exclusivity’ of a company’s or individual’s products or services. Thus, proven experience of successfully implementing projects of a similar caliber or the availability of specific products or services that have a high funding priority (e.g., medical masks in the context of the COVID-19 pandemic) could prove sufficient to land the desired contract.
Finally, Fabio encouraged interested parties to pay specific attention to the project requirements to confirm that the specific characteristics required for participation and the associated conditions match the operational capacity of the company/expert. Previous experience working with specific donors or contracting authorities is a point of merit that is often judged positively.
How to read and better understand procurement notices and associated tender documents
Immediately after a relevant funding opportunity has been identified, interested parties can start to study the associated documents. As Fabio mentioned, each donor has a specific schedule in the issuing of project documentation but, in general, they all follow similar steps. The General Procurement Notice (GPN) or Procurement Notice is the initial document that marks the project approval and the move towards the implementation phase. The GPN usually includes information regarding the dedicated funding, the list of requirements, the project’s objectives, and the timeframe. This document is a valuable link within the bidding strategy that allows parties to start preparing promptly for upcoming projects. DevelopmentAid’s Funding Tab offers the exclusive ability to follow any funding profiles (tenders/grants) that are of interest to you from the early intelligence stages.
Fig.1. An overview of the details included in the General Procurement Notice
Source: Fabio Santoni. Individual impact webinar with DevelopmentAid (16 June 2022).
The next step in bid preparation relates to obtaining and studying the tender-specific documents (TD). These offer detailed information on the project’s goals, the beneficiary/customer, general and specific tender participating conditions, the estimated timing of the project phases, a technical description of what is required (goods, works, or services), administrative documentation, and the preliminary draft of the contract. It is important to note that interested parties often struggle to locate tender documents as these could be published on various platforms or released against a cost or specific request. This is where DevAid’s membership comes in handy as it offers members the ability to download and read the relevant tender/grant documentation with just one click.
Here is a short guide on how to read and understand TD:
- General project description refers to the general context of the project and the related tender(s);
- Beneficiary/customer data highlights the final beneficiary (the contracting authority) and the relevant contacts to whom requests for clarifications should be submitted;
- Tender general conditions are the primary rules that define the tender procedures. These always follow the general project guideline mentioned in the donor-specific General Procurement Guide;
- Estimated timing for all project phase realization (offers, evaluation, assignment, realization) details the basic guideline for the timing of the tender project;
- Administrative documentation required is to the list of administrative documents that should be attached to the offer, often an important qualification and selection criterion;
- Technical description of what is required (goods/services/works) describes the exact technical guidelines of the works, products or services that need to be performed or delivered;
- The preliminary draft of the contract is a strategically fundamental document as it outlines all the clauses and rules that will have to be respected when the contract is assigned. It is important to remember that in 90% of cases, this contract is not subject to any negotiation.
How to organize and roll out internal tender management procedures
Once an interested party has identified a suitable funding opportunity, researched the relevant paperwork, and decided to pursue this, the project is added to the operational pipeline and managed through internal tender management procedures. Fabio highlighted the importance of developing and implementing internal procedures that yield outcomes (e.g., bidding documents) that are easy to read, understand, and to use for future reference. Here is an example of a Tender Management Process (TMP) suggested by our speaker:
Fig.2. Stages of a Tender Management Process
Source: Fabio Santoni. Individual impact webinar with DevelopmentAid (16 June 2022).
Here are some tips to consider when organizing and rolling internal tender management procedures:
- Deadlines – Bid managers are encouraged to pay special attention to deadlines. It is important to leave some extra time available should urgent adjustments be needed;
- Internal resources management – The efficient management of internal resources is a common challenge encountered by bid managers. In this context, effective enterprise resource planning/managing (ERP) tools such as Tenderwell could come in handy;
- The quality of the consortia – It is not always easy to select the right external partners for the project in hand. Using external tools, such as DevelopmentAid’s Organizations database, could help to identify suitable partners, contractors, or subcontractors in an efficient way;
- Aim to comply – A tender rarely allows room for negotiation, specifically in terms of the technical proposal. So, try to be as compliant as possible with regard to the technical requests and submit a financial proposal that clearly details the price (discounts) formula.
For those who did not have the opportunity to join us for this online event, a link to the recorded version can be found here. The presentation materials can be requested at e.rata@developmentaid.org
We invite you to our next webinar on “Doing Business with EBRD. Corporate and Technical Assistance Procurement” which will take place on 23 June 2022 at 4 PM (Brussels) or 10 AM (Washington DC). Johan Bert, Associate Director at EBRD, will give an overview of the role of consultancy services in EBRD operations and will provide some practical considerations for building fruitful partnerships and positive business collaborations.
You can register here.
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