It is important that a standard process is followed when quotations and tenders are returned to the institution or department. This is to ensure that, all bidders are treated fairly and are seen to be treated fairly. Using a stated closing date and time after which submissions will not be considered,
means that all bidders have the same time to make their bids, however it also protects you. If your procurement is above threshold, it is mandatory to use an electronic tendering system for the submission of bids.
The use of sealed bids also protects the purchaser by minimising the opportunity for accusations of disclosure of one bidder’s bid details to a competitor.
A recommended sequence of events is available as an example of best practice when dealing with sealed bids, however most electronic tendering systems will record this information automatically.
Receipt of sealed bids
The following outlines the steps in managing the receipt of competitive sealed bids. Where submissions are made electronically the process is the same, however access to the electronic version and sight of submitted tenders will not be possible until after the designated closing time and date. Whilst it is recommended that these steps are followed for RFTs (requests for tender) and optional for RFQs (requests for quotation), higher value RFQs (suggested £30,000+ incl. VAT) follow the same process as RFTs.
The submissions must be returned in sealed, unmarked envelopes before a clearly stated time and date. The envelope will display the quotation/tender reference number plus the required return date and time. Or an electronic tendering system (eSender) should be used for return of submissions
The time and date of receipt of each quotation should be recorded on the outside of the return envelope, or by the electronic tendering system
Any submissions received after the stated closing date and time will not be opened and not be considered
All returned bids will be held unopened in a secure location until the stated closing time and date have passed, either physically or in a secure electronic tendering system
After the stated closing time and date, the bids will be opened by at least two members of staff or as required by your institution
The steps given above may appear somewhat bureaucratic, however they are there to protect you from accusations of treating one supplier more favourably than another. The use of sealed submissions, held in a secure location and opened at the same time in front of more than one person, or the use of a secure eSender provides evidence that there has been no collusion between the buyer and a supplier.
Issue of tender documentation - associated risks | ||
Issues | Risks | Solutions |
Documentation issued to bidders at different times | · One bidder gains a time advantage over the others · Challenge of favourable treatment to some bidders | · Where bidders are selected, issue the quotation/tender documentation to all firms at the same time · Where the requirement has been advertised, ensure the documentation is available for download, the bidders should be able to access the documents at a time that suits them |
Bids not held in secure location | · Open to challenge that one or more bids could be tampered with | · All submissions should be clearly marked with the reference number and the appropriate closing time to indicate that they are a bid · When received, each submission should be marked with the date and time of receipt. Then stored in a secure location until after the stated closing date and time |
Bids not opened at same time | · Open to challenge that details of one bidder’s submission is being communicated to another | · All submissions should be clearly marked with the reference number and the appropriate closing time to indicate that they are a bid · When received, each submission should be marked with the date and time of receipt. Then stored in a secure location until after the stated closing date and time |
Documentation issued very late or with very quick turn-around time Very short timescales at each stage of process | · The bidders have insufficient time to prepare a competitive bid · Open to challenge under the Procurement Act, that timescales are insufficient | · A realistic timetable should be established and adhered to for the competition · Sufficient time must be given |
Single person involved in the process | · Open to challenge of collusion with other bidders in the competition · Lack of transparency in the procurement process and spending of public funds | · Ensure that there are different people involved at the different stages of the procurement cycle so that there is a demonstrable separation of duties |
School / MAT members - the information on this page aligns with the following ISBL Professional Standards: 3.33, 3.34, 3.35, 3.36