This is a follow up blog post to my original blog post 'tender process acronyms explained' in part 2. I will cover more advanced tender process acronyms to help you through the tender process.
A European Single Procurement Document (ESPD) is similar to a Selection Questionnaire (SQ) in that it only requires completion once and requires bidders to self certify their ability to supply to government.
Procurement use the ESPD information to pre-qualify suppliers who may be rejected from the process if they fail to meet the minimum requirements. In addition to the Invitation to Tender (ITT) bidders may provide a Service Level Agreement (SLA) that contains Key Performance Indicators (KPI). KPI's are used by procurement to measure supplier performance at contract review meetings against those contained in the SLA.
Government buyers use the Most Economic Advantageous Tender (MEAT) to evaluate ITT responses. MEAT is determined by applying scores to tender responses in accordance with the evaluation criteria. MEAT is a complex process for example a buyer does not have to accept the lowest tender bid. A bid can be considered 'abnormally low' instigating an investigation and a possible disqualification from the tender process. A bidder can score 100% on quality but lose the tender because the bidders price was higher than other bidders.
Buyers should take care when setting their evaluation criteria. If their strategy is high quality, greater emphasis should be giving to the percentage awarded for quality. A 100% price approach is more appropriate for a mini competition but adopting this approach in a tender process may create an administrative burden for the buyer responsible for managing supplier performance under the SLA at a contract review meeting.
Freedom of Information (FOI) is a process of transparency and making information freely available to the public. Since the introduction of the General Data Protection Regulations (GDPR) in 2018 more buyers are requesting bidders to state which parts of their bid is exempt from FOI. A bidders pricing should always be exempt from an FOI request.
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By Naomi Clews
Naomi Clews Consultancy
Procurement, Tendering, Business Skills