Winning a government tender can be a very meticulous and challenging task. Still, it can be a very transformative opportunity for businesses to grow and expand their reach of operations and provide a stable stream of revenue. However, the process of a tender awarded by the government is highly competitive and requires a well-laid-down strategy to execute the whole thing. This article will offer a comprehensive guide to winning government tenders in India, providing insights and strategies to increase your chances of bidding and winning the tenders
GOVERNMENT TENDERS IN INDIA
In India, government tenders are invitations or requests for proposals issued by various government departments. These tenders can be of any type ranging from services to construction to procuring goods. The government provides opportunities to businesses to take part in bids and compete for contracts. The various departments that release tenders span over many sectors and levels of government:
CENTRAL GOVERNMENT
The departments, ministries and public sector undertakings (PSUs), Ministry of Defence, (CPWD) Central Public Work Department.
STATE GOVERNMENT
States have their own ministries and departments and release tenders specific to them that include (PWD) Public Work Department, Health Department, State Electricity Boards and more.
MUNICIPAL CORPORATIONS
In cities and towns local governing bodies issue tenders for waste management, maintenance, infrastructure development, and other services.
DEFENSE AND MILITARY
Institutions such as the Indian Army, Navy, and Air Force, (DRDO) Defence Research and Development organization issue tenders for equipment and services.
PUBLIC SECTOR UNDERTAKING (PSUs)
- BHEL – Bharat Heavy Electricals Limited
- ONGC – Oil and natural gas corporation
- NTPC – National Thermal Power Corporation and others.
TIPS TO WIN TENDERS
Contesting for tender requires a lot of technical expertise and experience. Here are the tips for winning tenders and strategies to make that daunting task easier.
APPLY TO RELEVANT TENDERS
The very first step and surely most important step for winning a tender is to apply for the bid. It is essential to keep in mind whether the contract you are applying for is relevant to your business or not. All the tenders have some specific criteria for eligibility, pre-qualification for the contractors, work experience, location details and more.
To make it understand easier, let’s discuss an example
Kind of contract – building a road tender
Value of tender- rupees 22 crores
Pre-qualification- The annual turnover of the business in the last 3 years should be at least 40% of the total value of the current tender. it means that the bidder must have a turnover of rupees 8.8 crores for the last three years, unless you are not eligible for the contract.
UNDERSTAND THE REQUIREMENTS ACCURATELY
The second step is to understand the scope of work and how this can be done efficiently with minimum costs and deliver a quality project. Read the tender notice carefully, all the necessary information concerning the tender is mentioned in the notice and in the works contract document. Check specially for
- Pre-qualification
- Legal specification
- Work experience
- Payment terms
- Contract terms
- Tender fees/EMD
It is advised to check for risks to avoid any last-minute challenges. It is recommended that you should discuss the tender documents with the managers, engineers and any other expert to have a risk and profit analysis.
ASSESS THE RISKS OF THE BID
It is important to assess the risks involved and draft the proposal for the bid accordingly. The bidder should have a clear picture of the risks involved and must be clear of all aspects of the project like timelines, creating competitive quotes, and mitigating the risks without impacting the quality and contract SLAs. It allows you to evaluate the factors and proceed with the project only if the tender is profitable to the business and adds a feather to the cap of achieves to the business.
The knowledge of the finer details of the project will also provide an edge in the further process, it provides a better position in competition as someone who is prepared. It is not always the lowest financial bidder who wins but the one who offers value for money.
SHOWCASE YOUR USPs
Never miss out on the chance to highlight your achievements, experience and skills. A typical tender is evaluated at two stages
- Technical
- Financial
It is expected during the technical evaluation, you will be able to highlight the professional achievements, work completion reports better than the client’s expectation.
Ensure you highlight the following:
- Years in business, nature of work, projects completed
- Successful projects with relevant details such as project value, location, duration.
- Details on the size of the team, their skills and competency and technical knowledge.
- Certifications like ISO certificate can help in e-tendering, patents and awards if any.
BE THE FIRST TO SUBMIT YOUR BID
Every tender notice has an opening and a closing date. It is advised to submit the proposal in advance, ahead of the closing date. Here is why
- It is evident that you are not only one applicant, but the competition can also be very intense, being an early applicant allows the tender authority time to focus more on your proposal and evaluate it.
- The tenders nowadays are carried out online means, and if there are last-minute glitches or server overload, it is advised to submit your proposal before time.
- Tendering application requires document submission, fees, receipts etc. Keep a checklist to ensure that you don’t miss out on any important documents.
COMPETITIVE AND REASONABLE QUOTE
The goal is to win the tenders and one should present quotes intelligently, that is profitable to the business. You should know the following facts about the quote:
- They are the final cost and estimates. All the factors such as taxation, inflation, cost of raw materials, labor, administrative costs, transportation costs, Packaging etc. are included in it.
- The quote should have a reasonable margin when calculating the cost. The price quoted should be competitive but also profitable to the business at the same time. Bidders can take the help of previously awarded projects as a reference to get the idea of how the quotes should be drafted.
- If after the evaluation of the bids and quotes things are not in the favor of the business and the bid proposal should be surrendered.
How to win bids
To win a construction bid in India is a very difficult and complex process. It demands a strategic approach with deep understanding of the project and tendering process as well. The tendering sector is very diverse and vast, with many opportunities lining up from infrastructure projects to railway projects to management and maintenance projects. Below is the list to follow to aid in the process.
- Conduct a thorough market research
- Focus on the relevant topics
- Assemble a strong team
- Understand the requirements
- Draft a good proposal
- Highlight your USPs
- Accurate quotes
- Risk management
- Use technology
- Seek feedback and improvement
- Stay updated with the market trends
The above checklist will help you to tick mark all the essential points need to complete and work on to win a bid. By following the list, you can make sure that every aspect of your project proposal is on point, and nothing is missing which may lead to any problems or last-minute hassles.
