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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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
Steps have been taken to
streamline procedures and
photo by: © Olivier Le Moal, Dreamstime.com