Beyond the usual bids: win your next contract through rare tender types
As a supplier, you’re probably already familiar with applying for tenders through Dynamic Purchasing Systems, Framework Agreements, Open Tenders, and Below Threshold Agreements. The world of procurement is full of hidden opportunities waiting to be discovered, and these are just some of the tender possibilities. There are many more tender types to explore, and we’re here to guide you through all the different kinds of procurement.
This article focuses on three rare tender types to the ones mentioned above. You’ll get an extensive overview of when they are used, their advantages and disadvantages. Moreover, you will learn how to always stay ahead of your competitors, how to use data to your advantage, and how you could use Mercell Bidding to win your next contract. After reading this article, you will know everything about the:
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Competitive Procedure with Negotiation
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Competitive Dialogue
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Innovation Partnerships
Commonly Used Tender Types
In this guide, you’ll find in-depth information about some of the rarer types of procurement. Would you like to know more about winning more common contracts and tenders, such as DPSs, Open Tenders, Direct Awards and Restricted Tenders? You’ll find everything you need to know in our comprehensive guide, sharing the pros and cons of every tender type for SMEs.
1. Competitive Procedure With Negotiation
Let’s start off with the Competitive Procedure With Negotiation. Buyers will often choose this flexible procedure when a contract is quite complex, or when it cannot be procured off-the-shelf. The contracting authority has more freedom to negotiate with a reduced number of suppliers.
As a supplier, you’re invited to submit your bid, after which the buyers will make a selection. They will open negotiations in order to seek improved offers.
The Pros of a Competitive Procedure With Negotiation for SMEs
The Competitive Procedure With Negotiation works in your favour. Only a small number of suppliers — usually three — are invited to bid, meaning less competition and a stronger chance of winning. You’ll be in contact with the contracting authority, giving you the opportunity to tailor your proposal, demonstrate your value, and deliver a bid that truly stands out.
The Cons of a Competitive Procedure With Negotiation for SMEs
This procedure isn’t used that often, since it involves a high workload for buyers. On top of that, it can only be used in response to a previous open or restricted procedure where they only received unacceptable bids, and their needs can’t be met with existing solutions.
For buyers, this procedure can be quite tedious, since the negotiations require an increased exercise of discretion. For you as a supplier, however, that’s good news. This procedure tends to be more straightforward and less time-consuming than it might appear.
2. Competitive Dialogue
The second tender type on our list is the Competitive Dialogue. Buyers are required to justify its use, since it requires the buyers and suppliers to be in direct contact, risking a coloured outcome.
With the Competitive Dialogue, three suppliers will be shortlisted based on their capacity to perform the contract. Next, they will enter the dialogue phase, and they will discuss all aspects of the project. When the buyers are confident one or more suppliers will meet their needs, you’ll be invited to submit a bid.
The Pros of a Competitive Dialogue for SMEs
When done right, this procedure gives you a competitive edge. When negotiating the contract, the communications are face-to-face instead of through piles of paperwork, tender documents, and bidding documents. You are able to make a good impression and gather all the information you’ll need to write a bid that will blow the buyers away.
The Cons of a Competitive Dialogue for SMEs
The Competitive Dialogue requires a bit of work on the buyers’ part. There is a greater potential for collusion and corruption, and the transparency requirements are particularly challenging, since the buyers and suppliers will be discussing the project.
3. Innovation Partnerships
When a buyer is looking for innovative solutions, they are likely to use the Innovation Partnerships procedure. It works a bit differently than a regular tender, allowing more wriggle room for you as a supplier. How it’s done? The solutions are usually developed after the tender has been awarded; during the implementation of the contract. As a supplier, you won’t have to write a regular bid. Instead, you’ll be writing a research and innovation project proposal.
The Pros of Innovation Partnerships for SMEs
As a supplier, an Innovation Partnership is a great opportunity to share your made-to-measure offers. Since a limited number of suppliers can submit their bid, you will have a bigger chance of winning this type of contract than with an Open Tender.
Next to that, you are able to tailor your services to the buyer, even during the contract, allowing for long-lasting relationships and flexibility–both ways.
The Cons of Innovation Partnerships for SMEs
Just like the other rare tender types, the transparency requirements are quite high. You will have to make sure both you and your colleagues are being discreet during both the tendering process and the entire duration of the contract.
The biggest con of an Innovation Partnership is that you will need to deliver the exact thing the buyer needs in order to successfully participate. On top of that, you will have to be flexible and be able to meet changing requirements during the contract. If you have the capacity and the time, this type of contract could be very fulfilling!
How To Stay One Step Ahead of Your Competitors
The public market is broad and dynamic, offering tender types like DPSs, Innovation Partnerships, and Competitive Dialogues — and with new opportunities emerging daily, there’s always potential for suppliers like you to succeed.
Looking for the perfect fit requires time and energy; resources that are better spent elsewhere. With Mercell Bidding, you can focus on what’s most important: writing the best bid possible.
“How?” Glad you asked. Our Profile Builder does the heavy lifting for you. Just give us some keywords about your business, and before you can say “procurement”, our AI has built a professional, polished profile, all ready to match you with the best opportunities out there.
How to use data to your advantage
But how do you know which opportunity is the right one? By analysing data, you will be able to predict the market and improve your offers. Mercell’s database is Europe’s most extensive database, allowing you to put our historical and current market data to good use.
Be the first to know when a new opportunity arises–even before a contract hits the market. Discover why other suppliers won certain contracts, and how their strategies can help you polish your next bid.
Using Mercell Bidding to win your next contract
There is more to winning a contract than just submitting a bid. As a supplier, you need to know which types of tenders and contracts there are–and how to navigate them. Receive the best opportunities at the right moment with our all-in-one platform.