Jorge Lynch

Understanding Bid Validity and the Bid Validity Period

1. What is bid validity?

When a bidder submits a bid or proposal in response to an invitation for bids or a request for proposals, they need to commit to their bid (this is done on the bid or proposal submission form) and also to how long the bid/proposal can be considered effective (this is what is commonly called the bid or proposal validity period). For the sake of simplicity and to avoid unnecessary repetition, we will refer from this point forward only to “bid validity”, but it must be understood that we are referring to the validity of a bidder’s offer, be it a bid or a proposal.
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Bid Security and Bid Securing Declaration: Similarities and Differences

Jorge Lynch 14 Comments

During the bidding process, it is customary to require interested bidders to provide a bid security or bid securing declaration along with their bid. This may be necessary in order for the procuring entity to have a certain degree of assurance that bidders would be discouraged from withdrawing their bid or refusing to sign the contract if they are selected for contract award.

What is a bid security?

A bid security is a monetary guarantee intended to dissuade bidders from withdrawing their bids before the end of the bid validity period because they would otherwise forfeit the bid security amount to the procuring entity. A bid security may be a fixed monetary sum or a percentage of the bid price, usually less than 5%. The format and amount should be stipulated in the governing procurement rules and clearly stated in the bidding documents.

7 Secrets to Quicky Become Proficient in Public Procurement

Jorge Lynch 10 Comments

Introduction

Many of us begin working as newly appointed public procurement practitioners with no idea of what to do or where to start. And it may take several years before we develop a system for being more efficient and effective in our work. Over the years, I’ve come to the conclusion that to quickly achieve proficiency in public procurement management, there are seven things you need to do.

1. Study the Public Procurement Rules

Most public procurement organizations are governed by a legal framework (procurement rules) consisting of a procurement law or regulation (sometimes called “the Act”). This is further developed into policies and procedures, procurement and contract administration manuals and guidelines, including standard bidding documents which are used for inviting bids and proposals. The language of public procurement policies, procedures, guidelines, manuals and standard bidding documents must align with what is stipulated in the public procurement legal framework. Adherence to the public procurement rules is obligatory and infractions are punishable by law. [Read more…] about 7 Secrets to Quicky Become Proficient in Public Procurement

Contract Administration Basics

Jorge Lynch 10 Comments

A contract is a written agreement, enforceable by law, between a procuring entity and a supplier, contractor or service provider for the provision of goods, works or services.

Contract administration involves all activities related to the monitoring of suppliers, contractors and service providers’ performance in the fulfillment of their contractual obligations, and to ensure appropriate actions are taken to promptly remedy any deficiencies observed in contract implementation, scope or terms and conditions.

Where does it start?

Preparation for contract administration begins with planning, which should begin during the bidding and selection process. This planning includes the nomination of contract administrators, a strategy for undertaking periodic performance review, the timeframe for certifying performance and acceptance of contract deliverables in order to avoid payment delays, and an understanding of the contract terms and conditions to ensure effective oversight.

Although the actual planning begins during the selection process, contract administration actually starts upon the signing of the contract, which is the point at which the parties to the contract are bound by its terms and conditions. [Read more…] about Contract Administration Basics

Pre-Bid Meetings: What, Why, Who, When, Where, How?

Jorge Lynch 2 Comments

What are pre-bid meetings?

Pre-bid meetings are gatherings scheduled after an invitation for bids or request for proposals is advertised. They are called pre-bid meetings because they are pertinent to procurement of goods, non-consultant services and works. When they are scheduled for consulting services, they are called pre-proposal meetings. These meetings, also called conferences, are scheduled during the preparation of the solicitation documents (invitation for bids or request for proposals) and the date, time and venue are mentioned in these documents so that all prospective bidders and consultants can become aware of them.

What is the purpose of pre-bid meetings?

The objective of pre-bid meetings is to explain the details of the solicitation documents to interested bidders. Prospective bidders are permitted to request clarifications on the invitation for bids or request for proposals by a stipulated date, and the pre-bid meeting is held within that period. [Read more…] about Pre-Bid Meetings: What, Why, Who, When, Where, How?

8 Causes of Delays in the Public Procurement Process and How to Avoid Them

Jorge Lynch 16 Comments

The public procurement process is often delayed for different reasons. Such delays may damage the Procuring Entity’s reputation and are a waste of scarce public resources; additionally, contracts are not awarded on time and this results in poor delivery of public goods and services.

The following are 8 common causes of delay in the public procurement process and what you can do to avoid them: impotenzastop.it

1. Delay in Preparing Technical Specifications, Scope of Work or Terms of Reference

Technical specifications, scope of work, and terms of reference are documents that describe what is needed, and should be clear enough to avoid confusing suppliers, contractors, service providers or the evaluation panel.

They are also needed to prepare the solicitation (bidding/tender) documents. And if they are not completed ahead of schedule, the procurement process is delayed before it even starts.

The reason for delay is usually due to lack of expertise in preparing these documents, or not realizing the extent of the information and research that may be needed to complete them. [Read more…] about 8 Causes of Delays in the Public Procurement Process and How to Avoid Them