Procedure for Award of Contract

The procedure for the award of a contract typically follows a structured path designed to ensure fairness, transparency, and the selection of the most suitable supplier. While specifics can vary by organization and the nature of the procurement, a general procedure might include the following steps:

Preparation

• Define Requirements:

Clearly articulate the goods, services, or works needed.

• Market Research:

Conduct research to understand market capabilities and identify potential suppliers.

• Develop Tender Documents:

Create detailed tender documents, including specifications, evaluation criteria, and contract terms.

Tendering Process

• Publish Tender Notice:

Announce the tender opportunity through appropriate channels to ensure wide visibility.

• Supplier Queries:

Allow and address potential suppliers’ questions or clarifications regarding the tender documents.

• Submission of Bids:

Invite and collect bids from suppliers by a specified deadline.

Evaluation and Selection

• Open Bids:

Depending on the rules governing the tender, this might be a public process.

• Evaluate Bids:

Assess submissions based on predefined criteria, which may include price, technical capability, sustainability, and compliance with specifications.

• Shortlist Suppliers:

Identify the top suppliers who meet the tender requirements most effectively.

Negotiation

• Clarify Submissions:

Discuss any ambiguities or seek clarifications from shortlisted suppliers, if necessary.

• Negotiate Terms:

Engage in negotiations with one or more suppliers to finalize terms, prices, or specific details of the proposal. This step might not be applicable in all procurement processes, especially in strict public sector tenders.

Award

• Select the Supplier:

Choose the supplier that best meets the evaluation criteria and offers the best value for money.

• Issue Award Notification:

Inform the chosen supplier of their successful bid and notify unsuccessful suppliers. A standstill period may be observed before contract signing to allow for appeals.

• Contract Signing:

Finalize and sign the contract with the successful supplier, specifying terms, conditions, deliverables, timelines, and payment schedules.

Post-Award Activities

• Debrief Unsuccessful Suppliers:

Offer feedback to unsuccessful bidders upon request, providing insights into areas of improvement.

• Contract Management:

Implement a robust contract management plan to monitor performance, manage risks, and ensure compliance with the contract terms.

• Supplier Relationship Management:

Develop and maintain a constructive relationship with the supplier to ensure the smooth delivery of goods or services.