How Tender Evaluation Process Is Done? | National Tenders

How Tender Evaluation Process Is Done? | National Tenders

Are you aware of the e-tendering evaluation process which the government checks once you submit your bid for the particular tender. Get complete information about the tender evaluation process from National Tenders. 

Tender Evaluation Process: How it is done

Want to boost your business with the help of tenders? It is completely possible as tenders give great opportunities to do so. But getting a tender for your business might seem a hassle for some people. After a few rejections, they just give up thinking it is not for them. They can not get a tender. This is simply not how you should approach tenders. You need to understand the process and then follow it properly. When you understand the tender evaluation process, it becomes very easy to win bids. When you start getting them, you take your business to a new height.

It all begins when the tendering authority releases a tender notice. They do it by publishing it on their websites and/or newspapers. Then the bidders who are interested in the tender and who are eligible send their proposals with the pre-qualification bid. After this, their proposals are evaluated by the tendering authority. Lets understand the stages of tender evaluation in detail.

It starts with Pre-qualification stage

A tender evaluation committee from the tendering authority opens bids in the pre-qualification round. It is opened in front of the bidders and their representatives to maintain transparency. The location, time and date are given beforehand. This committee uses a checklist to see which bidder is technically and financially sound. The pre-qualification checklist contains the following details with their supporting documents:

  • Annual audit reports of last 3 – 5 years
  • Relevant licenses
  • Infrastructure requirement for the project
  • Industry certifications
  • Documents like sales tax/VAT/registration certificates, PAN/TIN number, etc.

Then comes Earnest Money Deposit enclosed

When the tender evaluation committee confirms that the bidder has completed pre-qualification bids with the required documents, the bidders are required to enclose EMD. This is the next stage of tender evaluation. A bidder who meets the minimum criteria is asked to deposit a certain amount of money in the form of deposit. This deposit ensures the bid by the seller. When this stage is completed, the committee moves on to the technicality.

Now the evaluation of technical bids

In this stage, the bidders technical aspects are examined closely. Every project requires certain technical requirements. A bidder must be in a position to fulfill them easily. The committee uses a point based system from 0 to 10 to rate the bidders. The different aspects of the criteria is given below:

  • Experience in the field
  • Sellers compliance checks, relevant licenses and certificates, etc.
  • Past performance
  • Relevant infrastructure and manpower

After giving each seller a score, the committee decides a cut-off %. Whoever qualifies the cut-off is eligible for financial bid evaluation. 

And lastly, evaluation of financial bid

In this stage, the lowest bid is designated as B1, then B2 and so on. The bidders are divided like this and then the points are calculated. For better understanding, lets keep it simple and take only 3 bidders. Lets suppose the lowest bidder has got 50 points. This is how the other bidders points are calculated:

B2 score would be calculated by this formula:


Same as above, B3 score would be:


This is how all the bidders points are calculated. The final score is given by the sum of technical bid evaluation points and financial bid evaluation points.

After this the bidders are shortlisted and called in for further negotiation. The bidders can discuss the project and clarify their doubts with the tendering authority. After this the evaluation is finally completed and a bidder is selected. The process of tender evaluation is very meticulous. It might seem a bit difficult to clear all the stages and get selected for a tender. But when you have a partner like National Tenders which guides you along the process. Contact us now.

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