Template - Tender Management Process
Template - Tender Management Process
Template - Tender Management Process
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Version [1.0] Issue Date [Date] Changes [Section, Page(s) and Text Revised]
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Role Project Sponsor Project Review Group Project Manager Quality Manager (if applicable) Procurement Manager (if applicable) Communications Manager (if applicable) Project Office Manager (if applicable) Name Signature
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Table of Contents
TEMPLATE GUIDE..........................................................................................................................1 1 TENDER PROCESS.......................................................................................................................2
1.1 OVERVIEW..........................................................................................................................................................2 1.2 ISSUE RFI.........................................................................................................................................................3 Document Statement of Work (SOW)......................................................................................................3 Document Request for Information (RFI).................................................................................................3 Release Tender Documents (RFI & SOW)...................................................................................................3 Receive and Evaluate Tender Responses....................................................................................................3 Select Tender Shortlist and Notify Suppliers................................................................................................3 1.3 ISSUE RFP........................................................................................................................................................4 Update Statement of Work (SOW)...........................................................................................................4 Document Request for Proposal (RFP).....................................................................................................4 Release Tender Documents (RFP & SOW)..................................................................................................4 Receive and Evaluate Tender Responses....................................................................................................4 Select Preferred Tender and Notify Suppliers..............................................................................................4 1.4 ISSUE CONTRACT.................................................................................................................................................5 Document Supplier Contract......................................................................................................................5 Negotiate Supplier Contract.......................................................................................................................5 Sign Supplier Contract...............................................................................................................................5
2 TENDER ROLES..........................................................................................................................5
2.1 PROCUREMENT MANAGER / OFFICER........................................................................................................................5 2.2 PROJECT MANAGER..............................................................................................................................................6
3 TENDER DOCUMENTS...................................................................................................................6
3.1 STATEMENT OF WORK (SOW)...............................................................................................................................6 3.2 REQUEST FOR INFORMATION (RFI)..........................................................................................................................6 3.3 REQUEST FOR PROPOSAL (RFP)............................................................................................................................6 3.4 SUPPLIER CONTRACT............................................................................................................................................6 3.5 TENDER REGISTER...............................................................................................................................................6
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Template Guide
What is a Tender Management Process? A Tender Management Process is a formal method by which potential suppliers are identified, evaluated and selected for the supply of products (goods or services) to the project. The process entails the creation of a suite of tender documentation outlining the project requirements, receiving tender responses and selecting preferred suppliers, based primarily on the quality of their response. A Tender Management Process is used to ensure that the selection of preferred suppliers occurs in a fair and honest manner. Although a number of types of Tender Management processes exist, this document provides a worked example of one particular type of tender process: the RFI / RFP process. This involves: Issuing a Statement of Work (which describes the project requirements) Issuing a Request for Information (requesting general supplier information) Issuing a Request for Proposal (requesting detailed supplier proposals) Receiving and evaluating each response, based on its merits Choosing a preferred supplier, based on his/her merits Negotiating a formal contract with the preferred supplier.
When to use a Tender Management Process A Tender Management Process should be utilised whenever a product is required from outside the project and a preferred supplier has not yet been chosen. The Tender Management Process is initiated immediately after the Procurement Plan has been approved. The Tender Process is usually undertaken by the delegated Procurement Manager (or officer); however, for large projects a Tender Committee may be formed to oversee the tender process. Without a formal Tender Management Process in place, it may not be possible to show that the method by which preferred suppliers were selected was rigorous and fair. The Tender Management Process is terminated only when the preferred suppliers have been selected and the supplier contracts formally signed.
How to use this template This document provides a guide on the topics usually included in a Tender Management Process. Sections may be added, removed or redefined at your leisure to meet your particular business circumstance. Example tables, diagrams and charts have been added (where suitable) to provide further guidance on how to complete each relevant section.
1 Tender Process
Describe in detail the process undertaken to identify, evaluate and select preferred suppliers for the acquisition of product for the project.
1.1 Overview
Provide an overview of the Tender process for the project. For example: The purpose of the Tender Process is to provide a clear, robust and fair process for the appointment of preferred suppliers for the acquisition of product for the project. In summary, the Tender Process will be undertaken by this project through the implementation of three key processes: Issue RFI Issue RFP Issue Contract.
The following diagram describes the processes and procedures required to select a preferred supplier for the project.
Document Request for Information (RFI) Once the SOW has been defined, an RFI is produced. The purpose of the RFI is to identify interested suppliers in the market place and find out basic information regarding their business and product-set. This information is then used to determine whether or not the supplier is likely to meet the requirements of the project as outlined in the SOW. The RFI is documented by the project team and approved by the Project Manager. Release Tender Documents (RFI & SOW) The RFI and SOW are released to the marketplace to inform potential suppliers of the project requirement as outlined within the SOW and the format of the required response as outlined in the RFI. A set of timeframes is explicitly provided for the supplier to formulate a response and send it to the project team for review. Receive and Evaluate Tender Responses Once the Response period has expired, the Procurement Manager (or Officer) collates the responses received from interested suppliers and logs their details in the Tender Register. The tender responses are then formally evaluated. One of a number of evaluation methodologies may be used to select the tender shortlist; however, it is usual for responses to be rated according to pre-defined criteria and weighted according to their rating category.
Select Tender Shortlist and Notify Suppliers The responses with the highest scores are added to a tender shortlist. Only short-listed suppliers will have the opportunity to take part in the next phase of the tender process: the RFP phase. Suppliers who are not on the short-list are formally notified that they will not be progressing to the next phase.
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Update Statement of Work (SOW) Based on the responses to the RFI, the project team will have become more aware of the potential suppliers and products available in the marketplace, in addition to the information sourced already during the market research exercise. This information may be used to review the SOW document and update the requirements, based on what is now thought available and possible. For instance, a supplier may have suggested a new technology (or approach) previously not thought of. NB The team must be careful not to redefine the SOW based on only one supplier response; otherwise they may pre-determine the overall result of the tender process. Document Request for Proposal (RFP) Once the SOW has been updated, an RFP is produced. The purpose of the RFP is to gather more detailed information from each supplier regarding their company, products and approach to the procurement requirement. This information is used to determine whether or not the supplier meets the detailed requirements set out by the SOW. The RFP is documented by the project team and approved by the Project Manager for release to the short-listed suppliers. Release Tender Documents (RFP & SOW) The RFP and SOW are released to the short-listed suppliers to inform them of the detailed project requirements and format of the required response. As per the RFI process, the timeframe for formulating and submitting the supplier response is also made explicit.
Receive and Evaluate Tender Responses Once the Response period has expired, the Procurement Manager (or Officer) collates the responses received from the short-listed suppliers and updates their details in the Tender Register. The tender responses are then formally evaluated, using more detailed criteria than the RFI evaluation process. Select Preferred Tender and Notify Suppliers The single response with the highest score is then selected as the preferred supplier and asked to enter the contract negotiation phase. All other suppliers are formally notified that they will not be progressing to the next phase. NB While it is usual to have only one preferred supplier, it is possible to choose 2 or more preferred suppliers if they can meet the particular needs of the project.
Document Supplier Contract A formal supplier contract is drafted by the project team for the delivery of supplier product which meets the requirements laid out in the SOW. Negotiate Supplier Contract The Procurement Manager and supplier representative then negotiate contractual conditions which they believe to be fair and reasonable and a final draft is drawn up for approval. At this point, legal council should be sought to ensure that the document does not put the project at risk and that it will deliver the benefits required by the project. Sign Supplier Contract The Project Manager and supplier representative then authorise the contract by formal signature. The contract is filed and the formal obligations under the contract for the supply of product are commenced under the Procurement Management Process.
(NB Refer to the VALC Consultants LTD Procurement Management Process template for a complete example).
2 Tender Roles
Define the roles and responsibilities for all resources (both internal and external to the project) involved with the Tender Management Process. Examples include:
3 Tender Documents
Reference any other documentation used during the Tender Management Process.
(NB Refer to the VALC Consultants LTD Request for Information (RFI) template for a complete example).