What is a bid management process?
Bid management is a broad process during which a company (or other commercial forms) is trying to win a tender. This definition is overarching but clear enough. Still we have to highlight in the sequel sections the following questions: what is a bid? How and where to find the suitable opportunity? Finally, what are the major steps to win a contract award?
Where to find the suitable opportunity?
Nowadays, the data collection, outsourcing and market prospection became fairly easy task. The easiness is due to multiple reasons. First, technological assets are the greatest tools ever. The internet transformed tendering and consequently bidding to smooth processes. Search in B2B platforms, which provide premium quality of bridging services between procurers and suppliers. A platform like ours e-electricity could be considered a trustful sources of data when it comes to tenders and opportunities. It is one of the youngest but the most pertinent platform of tender information and services. You can find more details published in the blog in a previous article entitled Online Marketing: A Borderless Marketplace E-electricity As a Case Study. The opportunities are also available in other various platforms (I previously wrote an article entitled What Is a Procurement Process? Where To Find Business Opportunities? TED As a Case Study).
The preparatory phase of a bid:
The preparatory phase is the most indispensable and important part of the whole process. Any project whatsoever starts with a clear strategy drawing. The strategy of bidding process starts with a searching operation for the right prospect. For instance, a company with a capital of under 5000 Dollar could not apply for huge procurements. The thing is that you need be aware of your capacities as a manufacturer or a service provider and act accordingly. This is because tendering is all about managing the right capacities in the right frame of time. In the preparatory phase, the company should also know whether it should be considering a public procurement or a private tender opportunity.
These choices should be in the bases of the strategy. To recapitulate, first you should know your budget limitation and your production capacities. Then decide the size and nature of the procurement you would apply for. The financial parameters are the judge in this stage.
What are the necessary steps to win a contract:
There are major steps that a company should think about before and during the bidding process. In the scope statement, the procurer will request plentiful of information it is better to be prepared. The sections we generally find in a scope statement are general description of the tendering conditions, standard specifications, specific requirements and definite quantities and finally technical specifications and schedule of deadlines.
Evaluate your capacities and your business cycle:
The procedure of bidding is long but worthy it. For that reason, we advise you strongly to have a team working with you on that. The team essential first activity (after the preparatory sourcing stage) is to make a full and detailed review of your company. The review will contain both your production capacities and your measures and policies.
The review will be useful for the company itself to know its strength and flows. Besides, the review will be useful in the second phase of bidding writing. Any procurer will require in his scope of statement a complete and wholesome review of the company in addition to the technical specification.
Start gathering the suitable documentation:
The best practice of tendering and bidding is based on a wise and well planned strategy. Therefore, the bid management team should be organized, efficient and qualified. Online platforms as said before provide a hub of opportunities, thus the team should pursue the process. Basically, the team should start by getting the documents needed. A first and most document is the scope statement where the details of the contract exist. In addition, the scope statement contains technical and prices specifications, terms of conditions and the statement of work. The required standards should be analyzed thoroughly. RFQ’ s publications in most cases attach a file similar to scope statement, it is necessary that the team of bidding possesses a copy of it. After this procedure of data tracking, the next phase is the monitoring of the details, documentations and files.
This stage is primordial when it comes to the bidding process. It is necessary to notice that process of bidding starts by a simple quote offer. There is a slight difference between a quote and a bid. The quote is always primary and not finite. In addition, it is never considered as a bid until it is submitted with the scope statement required documents. In a quote, we might find rates, exact quantities payment conditions and description of the capacities of the company. Besides, a quote just like a bid contains the exact costs and delivery suppositions. Starting by drafting the quote is a first and important step if ever a company would like to be a contract winner. In the preselection stage a procurer studies and compares the quotes offers and the companies’ reviews. Afterward, lucky companies who proposed best quotes (least prices and best qualifications) will get letters of intents. These letters of intents (LOI)’ reception means that the company is accepted to be a candidate for the next stage.
If you have done the hard job of preparing the quotes offers then you were accepted. All you have to do in this stage is to submit your exact bidding price, technical support documents, the scope statement (fully filled) and your company review. If you submit properly your bid and that your documents are complete get ready for interviews. Whether online meetings or personal meetings you will be interviewed for more details concerning your bid. The committee will ask precisely about some technical ambiguities (if there are any) and about the exact deadlines and frame of time.
If the candidate-company succeeded this stage too, this means that this company will win the contract. After winning the contract, it is tremendously important to notice that keeping your proposal premises is a decisive red line. The procurer has the right to breach the contract in case of deficiency, disconformity or irresponsibility. Otherwise, if the contract is fulfilled both the procurer and the supplier will be satisfied.