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Tenders

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ow best does a company prepare for

tenders?There is no scientific approach

to tenders,except one based on the

hard learning curve and collaboration with

the right partners in the process. However,

here are some tips for companies that want

to take part in governmental tenders:

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India presents itself as a very largemarket

for Government Procurement - getting

projects through the Tendering Process.

By present estimates, the Government

Procurement market is valued at US$ 300

billion annually, and growing.

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One of the primary reasons of success is

to locate and find a suitable strategic partner

in India – an Indian company that is familiar

with the procedures and the steps to be taken.

But this is easier said than done,as a number

of foreign players have come a cropper by

not doing proper due diligence.

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A combination of a first-rate legal services

organization and an effective business house

will get you on your way.A good combination

of these two partners will enable the foreign

company understand better the requirements

of the tender,the processing of meeting with

the conditions of the tender and in being

able to bid in the proper format.

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B2B firms offer online services giving

information on relevant tenders and advising

on the tendering process. However, each

Ministry in the Government – whether at

the Federal level (at the Center) or at the

State level – has detailed websites on all

major projects that it wants industry to bid for.

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Preparing for Pre-Tendering Qualifications

is vital to the process. Who is qualified and

who is not, and what needs to be done by

way of qualification through preparation

of the right documentation by a Chartered

Accountancy firm that should preferably be

an India-based one.

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There are certain incentives offered to

small and medium-sized industries. One of

them is that 20% of all procurement on an

annual basis is to be obtained from small

and medium-sized industries.

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Until recently,the procedure for bidding

for Defense and Security Tenders was tedious

and cumbersome.However,procedures have

now been streamlined and made attractive

to foreign bidders on a more transparent

level,creating a level playing field.Also,roles

of agents and agencies have been made

more stringent leading to a fairer and more

equitable tendering process.

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Bank guarantees and pre-bid fees are very

much part of the tendering process,mainly

because the Government bodies issuing the

tenders have to incur considerable expense

in setting up fair and balanced qualifications

that would safeguard the interests of the

tendering authorities while making it fair

for the bidding parties as well. Often, they

engage the services of experts to set up the

pre-requisites and conditions prior to bidding.

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Foreign bidders would be well-advised

to seek the assistance of major business and

trade organizations like Confederation of

Indian Industry (CII),the Federation of Indian

Chambers of Commerce & Industry (FICCI)

and Associated Chambers of Commerce &

Industry (ASSOCHAM) in learningmore about

the tendering process.These bodies have a

variety of companies and professionals who

could assist in the process. They also have

special units for SMEs.

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To ensure transparency in the tendering

process,the Government has set up an online

portal called the Central Public Procurement

Portal (CPP Portal).Tenders and information

about contracts awarded are regularly

published on this website. Some of the

proactive States engaged in the e-tendering

process include Gujarat,Maharashtra,Madhya

Pradesh, Andhra Pradesh and Chattisgarh.

Dealing with the Public

Tendering Process in India

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Steps have been taken to

streamline procedures and

implement e-Tendering

Abraham Yehuda