Thoughts on Commercial Tendering Process

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Thoughts on Commercial Tendering Process

• Gareth Evans on behalf of Gazprom Marketing
  Trading - Retail

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Summary

• Presentation to provide an overview of commercial
  process when looking to procure new service in
  commercial market.
• Intended to help stimulate and inform debate on
  central system funding and governance.
• Not intended as a definitive guide to tendering
  processes.

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Pre-Tender Process solution definition

• Identification of need/requirement
• Internal discussion
• Comparison with market offerings/services.
• Discussion with service providers
• Determination of high-level solution
• Scope
• Length of service
• Likely cost
• Comparison of two (in particular budgetary
  constraints) determines whether to proceed.

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Pre-tender process external activities

• Once likely desires determined, then usually
  there is an informal sounding out from
  current/likely providers.
• Rarely, may undertake Request For Information
  (RFI)/ Expression of Interest to clarify the
  scope and possibility of the work to be done.
• Will refine the requirement and create potential
  shortlist of tender respondents.
• In many cases will not go any further.

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Tender - Contents

• Tender must provide enough information for all
  interested parties to respond if they desire.
• Tender will contain
• Tendering company details
• Required service levels
• Expected cost
• Duration of service
• Date for response
• Contact details

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Tender - Publicity

• Once tender is deemed necessary, tender document
  advertised and circulated.
• Usual mechanisms
• Email (to known/likely vendors)
• Internet (website, bulletin boards, OJEU etc)
• Publications.
• Once tender is deemed necessary, tender document
  advertised and circulated.

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Tender Responses Contractor Interaction

• Interactive Process
• Pre-tender briefing (if needed)
• Answer questions, provide additional information.
  
• If required circulate/publish additional
  information.
• Important all interested parties receive same
  ability to question/interact.

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Tender Responses Internal Assessment

• Evaluate Tenders against published document and
  discussions
• Likely tender responses will vary on proposed
  provision of service.
• At this point tender company may decide to
• Stop
• Adjust tender and re-issue
• Shortlist
• Choose vendor
• Depending on service, may require board approval

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Post Tender Process

• Inform all tender responders outcome of tender
  process
• May repeat tender process with shortlist.
• If suitable tender selected then discussion with
  preferred vendor commences
• Both sides under no obligation at this time,
  though general competition law provisions still
  apply.

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Contact Details

• Happy to answer questions
• Waters Wye Associates
• Gareth Evans - 01473 822503
• - 07500 964447
• gareth_at_waterswye.co.uk
• www.waterswye.co.uk