Government, Semi-Government, and PSU all together form over 60,000 departments, and in these departments, there are more than a lakh of tenders issued. In these tenders the purchasing goes up to more than crores, depending on the procurement policy of that certain department.
When a department requires a certain product or service that is out of their basic purchase limit, they issue a tender. This tender is further divided in two parts: Technical Bid and Financial Bid.
Technical Bid
In the procurement process, the first bid to be opened is the technical bid. Only those parties, whose technical bid is approved, will be qualified for financial bid. And only after your financial bid is selected, will your business be in the league of winning the tender. If you get disqualified in the technical bid, you will be disqualified for the whole tender itself! So it is very crucial to take note of your technical bid.
A bid has various but diverse technical aspects, depending on the department that is issuing it. Some of them are:
Documents related to the company
Specification of the product or service that is going to be supplied
Test report and/or certificate related to the product
Past experience references
Time frame
Delivery method
It basically talks about the deliverable. Your bid should include:
How will you deliver the product
Your knowledge regarding that particular product or service
Do you have proper resources to finish the tender in the given time frame
Financial Bid
Financial bid depicts the group-vice price mentioned in the technical bid in an order. Just like technical bid, financial bid also has various aspects, depending on the department issuing it. Some of them are:
Per unit price of product supply
Currency rate of imported products, if any
Reimbursable expenses, if any
Method of payment
Financial Security Instrument, like Earnest Money Deposit, if asked for
The aspects of technical and financial bids differ from tender to tender. It completely depends on which department is issuing the tender, which product or services the bidding process for, and the amount of the bid. Only mention guarantee, warranty, specifications and the terms and conditions. It is the financial bid where the finances are discussed.
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