Oilonga Tender Portal now publishes bid results as they become available.
The Procurement Act 15 of 2015 has made it a requirement for public entities to publish all their procurement awards. This serves two purposes:
- The winning company becomes aware of their upcoming contractual responsibility.
- The companies who have been disqualified are notified of their fate and can also apply for review. The review process give bidders an opportunity to seek remedy. If they are unhappy with the award of a procurement contract.
Are there additional reasons for inspecting bid results as an entrepreneur or marketer? What other lessons can you take from analysing bid results?
The bid preparation process is lengthy and time consuming. Getting a negative outcome from your bid proposal can be frustrating. However, it does not mean that there is nothing to learn from this failure. In fact, it should be common practice for an entrepreneur to inspect bid results. This piece will look at 5 main reasons why this exercise is so important.
Reason #1 for Inspecting Bid Results: Company culture
The Procurement Act 15 of 2015 provides the guidelines that public entities should follow when undertaking a competitive bidding. However, there is a noticeable influence of organisational cultures in the execution of the procurement function.
Knowing that all public entities use the same policy, does not mean that they all execute the process the same way. Remember, there are people behind every organisation and policy. The mentality “this is how we have always done it” comes into play. There is also a gross misinterpretation of the policy in some cases.
Inspecting bid results gives you an insight of that specific entity’s approach to disqualifications, and their interpretation of the act. You might be disqualified for one thing at one public entity. And not be disqualified for the same thing at another. Keeping an open mind is key as this aspect is concerned.
Reason #2 Reasons for Disqualification
When a buyer(s) sends out a notification of award. The executive summary of the bid evaluation report is included. This summary consists of the list of bidders who submitted bids, their bid price and the reason for disqualification.
Inspecting bid results means you become aware of your weaknesses as a bidder. This information can help you do better in your next proposal. You will have to take a proper analysis of the reasons for disqualification and subsequently find solutions to these issues.
We have a list of all the reasons cited for disqualification. Please make it a habit to inspect this list. You might just pick up why you haven’t been successful in your previous bids. Remember a mistake repeated, becomes a costly habit. Go to list.
Reason #3 for Inspecting Bid Results: Average Market Price
Inspecting tender results helps you determine the market level price for a specific product or service. It also gives a clear indication of what prices buyers consider to be too low, or too high.
The winning bid price might not always be profitable or the market level price. However, it gives you a good insight of what the lowest price is. The price that your competitors are willing to offer potential clients.
With additional research you might be able to stumble on how your competitor is able to charge this price. It could be because they have a cheaper supplier or other operational factors.
Public entities buy from the lowest priced bidder. Therefore, it should be our objective as bidders to reduce our production costs, in order to offer a competitive price.
Now that we have analyzed why it is important to know the average or lowest price for a product/service. What do you think can we learn from a higher price?
When you do research on your competitors. It does not only advise you on the strengths that you need to emulate. It also exposes their weaknesses.
A competitor that has a higher price for a product. Gives you an opportunity to offer their existing clients a cheaper alternative. Remember competition is warfare, the winner is always the one who is not afraid to spill some blood.
Reason #4 Supplier or Subcontracting Opportunity
Another reason you should consider inspecting bid results is the opportunity to render your goods or services to the winner. Yes, we should compete but when we cannot, we collaborate.
A bulk supplier can offer to supply goods to the appointed bidder. Subcontractors and those with support and logistics services can also offer to provide services.
You may need to do additional research in order to establish the winning company’s existing supplier/vendor relationships. Their areas of weakness and their level of expertise.
Reason #5 Joint Venture Opportunity
Are you looking for a potential joint venture partner? bid results could be a great resource. Firstly, you have a list of all the businesses who offer a similar product/service. Secondly you know what their weaknesses or strengths are (at least some of them).
You might want to seek out companies who have won several projects. Or those who got disqualified on a criteria where you fare better. The criteria for a joint venture partner depend on your objectives with the partnership.
Oilonga Tender Portal publishes bid results as they become available. Click on the link below to stay updated.