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It is a
common practice in the business environment that organisations require work
done for them, or are supplied with goods/services in bulk. In such cases,
it would be of great help to familiarise yourself with the existing tender
guides and bid procedures. The following paragraphs are presented to provide
you with information on the existing tender and bidding practices in
Ethiopia. In addition to the information available in this toolkit, it would
also be wise to read newspapers such as the Ethiopian Herald and Addis Zemen
to learn how organisations advertise tenders and bids.
What is a
tender?
Tender is a
means by which an organisation invites suppliers to submit competitive
offers for prices to render their services. There are different types of
tenders:
1.
Open tendering
Public bodies should prepare
the documents and follow the steps required for open tendering provided for
in articles 22 – 51 of the procurement manual of the Ministry of Finance
(MoF). The following steps should be followed when procuring under
alternative methods of procurement, except where specifically provided for.
Procedures for open tendering
The public body should firstly
assess its need or demand for the goods or services to be purchased. The
need or demand for the goods or services to be purchased should be requested
and approved by the authorising unit within the public body. It should also
reflect the interests of all concerned units in the public body. After the
need assessment is undertaken, the public body should prepare bidding
documents. These documents should include the following:
-
An invitation to tender;
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Instructions to bidders;
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Specifications and detailed
descriptions of the goods and services to be purchased;
-
Draft of basic terms and
conditions of contracts;
-
Standard forms for tenders,
including the quality and price schedules.
2.
Two-stage tendering:
First
stage:
-
Solicitation documents shall
call upon suppliers, initial tenders containing their proposals without a
tender price;
-
The solicitation documents may
solicit a proposal relating to the technical, quality or other
characteristics of the goods, construction or services as well as to
contractual terms and conditions of supply, and, where relevant, the
professional and technical competence and qualifications of the suppliers;
-
The public body may, in the
first stage, engage in negotiations with any supplier or contractor whose
tender has not been rejected pursuant to articles 12 and 13 of the
procurement manual of MoF concerning any aspect of its tender.
Second stage:
-
Public bodies shall invite
suppliers whose tenders have not been rejected to submit final tenders with
prices with respect to a single set of specifications;
-
Public bodies may delete or
modify any aspect, originally set forth in the solicitation documents, of
the technical or quality characteristics of the goods, construction or
services to be procured, and any criterion originally set forth in those
documents for evaluating and comparing tenders and for ascertaining the
successful tender, and may add new characteristics or criteria that conform
with this directive;
-
Any such deletion, modification
or addition shall be communicated to suppliers or contractors in the
invitation to submit final tenders;
-
A supplier not wishing to
submit a final tender may withdraw from the tendering proceedings without
forfeiting any tender security that the supplier may have been required to
provide;
-
The final tenders shall be
evaluated and compared in order to ascertain the successful tender as
defined in article 45 of procurement manual of the MoF.
3.
Restricted tendering
-
When public bodies engage in
restricted tendering on the grounds referred to in article 16(a) of the
procurement manual of the MoF, it shall solicit tenders from all suppliers
from whom the goods, construction or services to be procured are available;
-
When the public body engages in
restricted tendering on the grounds referred to in article 16(b) of the
procurement manual of the MoF, it shall select suppliers from whom to
solicit tenders in a non-discriminatory manner and it shall select a minimum
of 3 suppliers from the approved suppliers list. For details on Tender
procedures you may refer to the booklet of EBDSN entitled "Marketing
Strategies".
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Market I
Supply I
Infrastructure
I Business management
I Finance
Business
registration I
Taxes/Customs I
Tenders I
Training I
Summary
Business Development
Services (BDS) Forum
www.bds-forum.net edited by
Dieter Gagel, freelance consultant, providing information on BDS strategies,
networking and practical BDS case studies as well as business information on
marketing, business planning,
bookkeeping and cost calculation, import-export,
trade fairs and access to finance.
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