E-Tendering

Last night, I read about one article discuss on "E-Tendering". Here the brief about the E-Tendering.

Introduction

"E-Tendering" is a way of managing the entire contract letting process electronically. Documentation is distributed and returned via a secure web-based system. This avoids the need for collating paperwork and sending it by courier. During the tender period, updates and queries are exchanged through the same system. The client has everything to assess the bids, and the software will generally contain tools to help in comparison of the tenders. E-tendering can be used for all values of tenders, although primarily used for higher value contracts at present.

Features

The purchaser uploads the notice or invitation to tender onto the system. Notification is sent out, and the suppliers download the information and complete their responses. The purchaser can access the tenders only after the deadline has passed. All information is held in a central database. This is easily searchable and can be fully audited, with all activities recorded. Although there are a number of systems available, they generally offer:

• some form of messaging function for informing tenderers of changes;
• document management to keep track of the information;
• an audit trail;
• a straightforward user interface;
• ways of helping the client compare particular elements of the bids.

Users must be properly identified and registered, with controlled access to the service. Security has to be as good as or better than in manual systems. Data is encrypted and users are authenticated by means such as digital signatures, electronic certificates or smartcards.

It is important to ensure that neither party can deny having sent or received tender documents and that no undetected alterations can made to a tender. The tenderer is able to amend the bid right up to the deadline – while the client cannot get access until the deadline has passed. The tender management system may also include features such as databases of service providers and spreadsheet-based pricing schedules. Post tender negotiations are likely to be conducted face-to-face but these meetings can be more focused as the online communications have helped build productive relationships.

Benefits

Advocates of e-tendering see the potential for cost savings as well as avoidance of common problems:

• information supplied to tenderers is consistent;
• tenders are always legible;
• automatic tallying prevents arithmetical errors;
• there are reliable processes for distributing changes during the tender process;
• checks highlight incomplete bids;
• there is less likelihood of missing the tender deadline;
• faster distribution of information;
• improved security;

tenderers who are based further away are not disadvantaged;

• there are improved communication and audit trails;
• less time is spent on routine administration;
• better management information is provided;
• there is no need for paper copies;
• the standardised electronic format makes the comparison of bids more
straightforward;
• the process is transparent and open.

Implementation

The systems must be extremely robust. Confidential information cannot be allowed to fall into the wrong hands. Advanced capabilities are possible. You might for instance want to be able to compare data from project to project, in order to see the relative prices. There is often scope for reuse of standard information where there is a regular pool of tenderers. Pre-qualification documents could be stored.

Despite the undoubted managerial benefits, there are legal issues. There may also be grey areas such as whether to specify the time of dispatch or of receipt. Copyright may become an issue - it is all too easy for someone to cut and paste information from someone else’s work.

Other issues to clarify include:

• liability for lost or corrupted data;
• fallbacks if the service is unavailable;
• ensuring that firewalls do not remove attachments.

Tips

• You may have difficulty persuading suppliers to participate in e-tendering. If so,
ensure that the terms, conditions, application form and software installation are
straightforward.
• Ensure that the servers are well protected.
• Put a robust security policy in place. Consider the adoption of enhanced
technologies, more secure than passwords alone.
• Carry out a security “health check” including an assessment of the risks of
unauthorised access.