Types of procedure: open, restricted, quotation, direct award, expression of interest

The procedure is how the buyer puts firms in competition. It tells you whether you can respond, what you hand in and how much time you have. The exact name changes from one country and funder to another, but the mechanisms are the same. The notice or tender file always says which one applies.

Open tender

What it is. The buyer publishes a notice, and any firm meeting the conditions can respond. This is the rule for contracts above a certain amount and the case most of this guide describes.

National or international. A national tender mainly targets firms in the country and is published there. An international tender is published more widely and assumes foreign competition. This does not shut you out: a local firm can respond if it meets the criteria, but they are often higher and the file may be in English. Conversely, a national notice can remain open to foreign firms, especially when a funder pays for it.

What you hand in. The administrative documents, the technical bid, the financial bid and the bid security if one is requested.

The trap. Thinking "open" means "within anyone's reach". The file may demand a turnover, references or equipment beyond you. Read the criteria before you start.

For a small firm. Look at the lots first, the parts of the contract the buyer puts out to competition separately. Each lot is evaluated on its own, and you can often respond to just one, with more modest requirements. If you respond to several, the file may require your capacity to cover their total. Otherwise, see Joint ventures and subcontracting.

Restricted tender and prequalification

What it is. Only firms invited by the buyer can submit a bid. "Restricted" covers two situations: either the buyer first published a prequalification notice and selected the qualified candidates, or it directly invites firms it knows, where the rules allow this.

Who can respond. At prequalification, any interested firm. After that, only those selected.

What you hand in. First a qualification file with no price: legal status, turnover, similar contracts, resources. Then, if you are selected, a full bid.

The trap. Taking prequalification lightly. If you are not on the list, you will not even see what follows. Another trap: what you declared at prequalification must still be true when you bid, and the file may ask you to confirm it.

For a small firm. Respond to prequalification notices in your sector, even if the contract looks out of reach: it is a way of becoming known. Where the procedure runs with no public notice, only your reputation with the buyer can get you invited.

Quotation and request for prices

What it is. For small amounts, the buyer asks a few suppliers for prices and chooses, most often, the cheapest compliant one. Depending on the country it is called a cotation, demande de cotation, demande de prix or demande de renseignements et de prix.

Who can respond. The firms consulted and, when a notice is published, all those meeting the conditions.

What you hand in. A light file: a signed quote, the technical sheet of the product or service and a few administrative documents. Delivery terms count as much as the price.

The trap. Time limits are short, sometimes a few days. Without up-to-date certificates you are out before you even price. A request forgotten in an inbox is as good as a refusal.

For a small firm. This is often the best way in: small amounts, few formalities and your first references. But you only receive a request if the buyer knows you. Register on supplier lists where they exist, introduce your business to the purchasing departments of buyers in your region, and keep a standard quote with current prices so you can answer fast. At international agencies the equivalent is the RFQ: see the United Nations page.

Direct award

What it is. The buyer deals directly with one firm, with little or no competition. It is called gré à gré, entente directe or marché négocié depending on the country. It is the exception, kept for defined cases: real emergency, exclusive right, a service only one supplier can provide. It most often needs an authorisation.

Who can respond. Nobody: there is nothing to respond to. You cannot apply for a direct award.

What you hand in. If the buyer approaches you, a bid and supporting documents, followed by a negotiation.

The trap. The go-between who offers to "arrange" a direct award for a commission. That is corruption: you risk debarment from public contracts and prosecution, with no guarantee of a result.

For a small firm. There are honest ways of being considered. Make your rare capacities known, such as an exclusive dealership, an approval or a presence in a hard-to-reach region. Keep a clear company page. Do small consultations well, because a buyer calls back suppliers who delivered. And a direct award given to another firm can open subcontracting for you.

Expression of interest (AMI)

What it is. The buyer publishes an expression of interest notice (avis à manifestation d'intérêt, or AMI) to identify candidates before launching its consultation. You are not bidding yet: you are showing your references to get onto a list. This is the normal route for consultants, though a buyer may also use it for works or supplies.

Who can respond. Any firm, consultancy or consultant within the scope of the notice, alone or in association if the notice allows it.

What you hand in. A letter, a company presentation and above all similar assignments described and proved: client, subject, period, amount, your role. No price, and generally no methodology yet. The notice says whether CVs are requested.

How the shortlist works. The buyer scores the experience against the notice's criteria and keeps the best placed, in limited number. Only they receive the request for proposals, where the methodology, experts and price come in. This is described in Works, supplies, services, consulting.

The trap. Sending a general brochure. The reader is looking for assignments that resemble this one. Present the closest first and use the notice's words. Do not attach a price.

For a small firm. If your references fall short, associate with a firm that has the missing ones. Do it at the expression of interest stage, because changing the team afterwards is often restricted.

Two-stage tender

What it is. For a complex purchase the buyer cannot yet fully specify, it first asks for technical proposals with no price, discusses them with candidates and refines its need. It then asks for final bids with prices.

Who can respond. Firms admitted to the first stage, to which the notice generally invites them.

What you hand in. A technical proposal with no price, then a revised technical bid and a financial bid.

The trap. Confusing this with two envelopes. Two envelopes means a technical and a financial bid handed in on the same day and opened separately. Here, there are two submissions at different times. Another trap: stating a price at the first stage.

For a small firm. The procedure is long and costly, and rarely within your reach alone. Access comes rather through a partnership with a large bidder, as a specialist or subcontractor.

Framework agreement and call-off contract

What it is. The buyer selects one or several suppliers for a set period, with prices or terms fixed in advance, then orders as needed. Names vary: accord-cadre, marché à commandes, marché de clientèle, or long-term agreement at international bodies.

Who can respond. It depends on the starting procedure, most often a tender. If there are several holders, they are sometimes put back in competition for each order.

What you hand in. A standard bid, with unit prices that bind you for the whole period.

The trap. Reading the maximum amount as guaranteed turnover. The buyer can order far less, and the file sometimes sets a minimum, sometimes none. Also check whether your prices can be revised: a frozen price and a rising cost is paid for over the whole period.

For a small firm. Regular orders are valuable, but they require stock, cash and the ability to deliver quickly on each order. Work out what you can sustain at the highest volume.

In your country

Here are your country's procedures, under their local names, with the cases where each is used.

The choice of procedure often depends on the estimated amount. The thresholds below set it when the national code applies. A funder or international body has its own.

A buyer may not cut a need into small purchases to stay under a threshold and avoid a stricter procedure: this is called splitting (fractionnement). Do not confuse it with lots, which are legitimate and published in a single notice. If the splitting rule seems to be bypassed on a contract, see Challenge a decision.

What next

The procedure says how the buyer sets up the competition, and the type of contract says what you must prove: see Works, supplies, services, consulting.