Understanding Bids and Public Bids: What You Need to Know

Have you ever wondered what goes into a winning public bid or how you can make your tender submission stand out in a crowded field? 

Whether you’re an experienced supplier or just getting started in public procurement, understanding bids - especially public bids - is crucial for navigating the tendering process successfully. 

Public procurement can be a complex and competitive landscape, but with the right knowledge and strategies, you can improve your chances of securing valuable contracts. 

In this article, you’ll learn what bids and public bids are, how the bidding process works, and how you can position your business to succeed in this competitive environment. 

We’ll break down the key components of public procurement, explain the steps involved in submitting a bid, and offer insights into how you can enhance your proposal to stand out from the competition. 

Let’s get started.

What do we mean by “Bids”?

A bid is a formal offer you submit in response to a request for proposals (RFP), invitation to tender (ITT), or another type of procurement document issued by a buyer - typically a public sector organization. 

The bid outlines your proposed solution, pricing, terms, and any other relevant details required by the buyer to assess whether your company can fulfill the procurement requirements.

In public procurement, your bid must meet specific criteria set by the buyer, such as price, technical specifications, legal compliance, and deadlines. 

Winning a bid isn’t just about offering the lowest price; it’s about presenting the right solution with the best value, while meeting all of the buyer’s requirements.

What Are Public Bids?

Public bids are those you submit in response to tenders issued by public sector organizations - like government bodies, local authorities, or state-owned enterprises.

Public bids are governed by strict rules and regulations to ensure fair competition, transparency, and accountability in the procurement process.

Public tenders are often highly competitive, as they involve significant contracts funded by taxpayer money. Public procurement processes are designed to offer equal opportunities for all suppliers and ensure that public funds are used efficiently.

Public procurement can involve various types of tenders, including:

• Open tenders: Where all qualified suppliers can submit bids.
  
  

• Restricted tenders: Where only pre-qualified suppliers are invited to bid.
  
  

• Framework agreements: Long-term contracts that allow buyers to make multiple purchases over time.

How Do Public Bids Work?

The process of submitting a public bid typically follows these steps:

1. Tender Announcement: You’ll first see a tender notice published by a public buyer. This notice outlines the scope of the project or the goods and services required, as well as submission guidelines and evaluation criteria. It’s your responsibility to review the details and ensure you meet the requirements.
   
   

2. Bid Preparation: To prepare your bid, you’ll need to carefully read the tender document. It will include technical specifications, legal requirements, and evaluation criteria. It’s essential that your bid directly addresses each of these points to be considered.
   
   

3. Bid Submission: After preparing your bid, you will submit it by the specified deadline. Public procurement processes typically require that you submit bids in a sealed envelope or through an online portal to maintain confidentiality.
   
   

4. Evaluation: Once the submission deadline passes, the public buyer evaluates the bids according to predetermined criteria, which often include price, quality, compliance with technical requirements, and delivery terms. In some cases, the buyer may conduct a mini-competition between shortlisted suppliers to choose the best offer.
   
   

5. Awarding the Contract: The buyer will award the contract to the supplier that provides the best value for money based on the criteria specified in the tender. If you win the bid, you’ll enter into a formal contract to deliver the goods or services outlined in your proposal.

5 Considerations When Preparing a Bid

To improve your chances of success, here are a few tips when preparing your bid:

1. Thoroughly Review the Tender Document

Start by reading the entire tender document carefully. Make sure you fully understand the requirements and follow the submission guidelines. Failing to adhere to instructions can result in disqualification.

2. Ensure Compliance

Public procurement is highly regulated. It’s essential that your bid meets all the legal, technical, and financial requirements laid out by the buyer. Be sure to check that you have all necessary certifications and documentation before submitting.

3. Tailor Your Proposal

Customize your bid to meet the buyer’s specific needs. Avoid sending a generic proposal - demonstrate exactly how your solution fits the project requirements. Show the buyer that your solution is the best choice.

4. Be Clear and Transparent

Public buyers value clarity and transparency in bids. Be honest about what you can deliver, your pricing, and your timelines. If you provide misleading or false information, your bid may be disqualified.

5. Offer Value, Not Just Price

While price is an important factor, public buyers are ultimately looking for the best value for money. Ensure that your bid balances cost with quality, delivery timelines, and customer support. Highlight the added value your solution offers.

Why Are Public Bids So Competitive?

Public procurement attracts intense competition due to several reasons:

• Open Process: Most public tenders are open to all qualified suppliers, making competition fierce.
  
  

• Large Contracts: Public sector contracts are often high-value and provide long-term business opportunities, which increases supplier interest.
  
  

• Transparency: Public procurement follows strict guidelines to ensure fairness, which means every supplier must meet the same standards.

With the competitive nature of public tenders, it’s important for you to differentiate your business by offering more than just the lowest price - focus on quality, compliance, and overall value.

How Technology Can Help with Public Bids

Managing public bids can be complex, but technology can simplify the process significantly. Using a platform like Mercell can help you stay organized and ensure compliance.

• Tender Management: Mercell centralizes your tender opportunities, so you can track deadlines, manage documents, and stay on top of important updates - all in one place.
  
  

• Compliance Automation: Mercell helps automate compliance checks to ensure your bids meet all the necessary requirements, reducing the risk of disqualification.
  
  

• Bid Collaboration: If you’re working with a team, Mercell offers collaboration features that allow you to work together on your bids in real-time, ensuring everyone is aligned.
  
  

• Data-Driven Insights: Mercell’s analytics tools help you track your past bids, understand market trends, and improve your bidding strategies moving forward.

Conclusion

Understanding bids and public bids is essential for successfully participating in the public procurement process. 

By preparing your bids carefully, ensuring compliance, and leveraging technology like Mercell, you can increase your chances of winning public tenders. 

The public procurement process is highly competitive, but with the right strategy and tools, you can position your business for success.

Ready to streamline your bidding process and improve your chances of winning public tenders? 

Sign up for a free trial with Mercell today and experience how our platform can help you manage bids more effectively, stay compliant, and win more contracts.