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Two-stage tendering is similar to the because the technical and financial proposals are submitted separately, but one before the other, rather than simultaneously. A key feature of this procurement method is that the submission of proposals takes place in two stages. Another, that bidders can assist in defining the technical requirement and the scope of work. Two-stage tendering is used for the procurement of goods, services and construction works, and there are several ways in which the process may be carried out. Two of the most common are illustrated below: 1.The first procedure is as follows: (i) The first stage is used for determining responsiveness to the request for offers and for clarifying and reaching agreement on the technical specifications.
In this first stage, bidders are requested to submit a technical proposal with their best solution for fulfilling the requirement. The proposal is evaluated and scored, and the firm with the highest ranked technical proposal invited for discussions with the purpose of reaching agreement on the proposed technical solution. (ii)Stage two is for receiving the final offer of the technically highest ranked firm. This process is very similar to the quality-based selection (QBS) procedures used to request proposals from consulting firms when the Terms of Reference are difficult to define under highly specialized and complex requirements. In this second stage, if an agreement is reached, the technical specifications or terms of reference are finalized and the highest ranked firm is invited to first submit a financial proposal based on the agreed technical solution, and then to contract negotiations. 2.The second procedure is the following: (i) Under this modality of the procedure, in the first stage prospective bidders are requested to submit proposals on a partially developed technical specifications, and they are expected to contribute to the completion of the technical specifications and provide a methodology and work plan for carrying out the assignment.
Negotiated tendering. Serial tendering. Because of a lack of awareness. By the client. A limited appointment is agreed allowing them to begin work and in the second stage a fixed price is negotiated for the contract A 'tender' is a submission made by a prospective supplier in response to an invitation to tender.
The technical proposals submitted are evaluated for responsiveness to the solicitation documents. A clarification and discussions meeting is held with all responsive bidders, and minutes of this meeting are prepared and distributed to all responsive bidders.
The results of this meeting are used to finalize the technical specifications and the scope of work. First stage responsive bidders are then invited to submit technical and financial proposals based on the amended technical specifications and scope of work. (ii)In the second stage, responsive bidders submit technical and financial proposals as requested.
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The technical proposals are evaluated first, and the financial proposals remain sealed and secured. Firms achieving the minimum technical qualifying mark or greater, as stated in the call for proposals, are then invited to the public opening of their financial proposals. Financial proposals are then evaluated, and the firm achieving the highest score on the combined technical and financial proposals evaluation is invited to contract negotiations. If negotiations fail, the next highest ranked firm is called for contract negotiations. The above are only two variations of the two-stage tendering procurement method. There are others which given the degree of complexity will not be discussed in this text.