What Is a Tender and How Does It Work in Public Procurement?

Public procurement is the structured process by which governments and publicly funded bodies purchase goods, services, and works. At the heart of this process lies the tender—a formal invitation for suppliers to submit competitive offers.

Tenders ensure that public money is spent transparently, competitively, and in a way that delivers maximum value to citizens. They are not simply “requests for a price” but carefully managed competitions governed by strict rules, designed to ensure fairness and equal opportunity for all qualified suppliers.

If you’re a business looking to grow in the public sector, understanding what tenders are, why they exist, and how the process works is essential.

What Is a Tender?

A tender in public procurement is an official request issued by a government department, municipality, public utility, or other contracting authority for suppliers to submit proposals to deliver a defined good, service, or work.

The tender specifies:

• What is needed (scope, specifications, performance requirements)
  
  

• How it will be evaluated (criteria and weightings)
  
  

• When and how to submit (deadlines, formats, platforms)

Tenders can cover everything from supplying school meals to building highways, from IT system development to providing medical equipment. The value may range from a few thousand euros for local services to multi-billion-euro infrastructure projects.

Unlike informal procurement, tenders must be published in a transparent, accessible way—often on national portals or EU-wide systems—so all qualified suppliers have the chance to compete.

Why Governments Use Tenders

Governments have unique responsibilities when spending public funds. Tenders are used to safeguard those responsibilities through three key objectives:

1. Transparency and Accountability
   Every euro, pound, or krone spent must be traceable. Tenders are advertised publicly, award decisions are documented, and losing suppliers can usually request feedback. This prevents corruption and builds public trust.
   
   

2. Fair Competition
   Tenders give all qualified suppliers—whether multinational corporations or local SMEs—an equal chance to compete. Buyers must apply the same criteria to everyone.
   
   

3. Value for Money
   The tendering process encourages competitive pricing while still rewarding quality, sustainability, and innovation. Governments aren’t looking for the cheapest option, but for the best balance of cost and benefit over the contract’s life.

By meeting these goals, tenders help public bodies deliver better services, infrastructure, and outcomes for citizens.

The Tendering Process: Step by Step

While there are variations depending on the procedure used (open, restricted, negotiated, etc.), most public tenders follow a broadly similar process:

1. Publication of Tender Notice

The buyer publishes a notice on an official procurement platform. This includes a summary of the requirement, deadlines, and where to access the full documentation. Large contracts above certain thresholds may also appear on EU-wide portals such as Tenders Electronic Daily (TED).

2. Accessing Tender Documents

Suppliers download or request the tender pack, which often includes:

• Instructions to bidders (submission process, timelines)
  
  

• Technical specifications (exact requirements)
  
  

• Selection criteria (qualifications, financial standing, experience)
  
  

• Award criteria (how bids will be scored)
  
  

• Terms and conditions

3. Clarification Period

Buyers allow a window for suppliers to submit written questions. This is your opportunity to seek clarity on scope, evaluation, or contractual terms. Answers are shared with all bidders to maintain fairness.

4. Bid Preparation and Submission

Suppliers prepare a full response, which may include:

• A technical proposal detailing how you will meet requirements
  
  

• A pricing schedule or financial proposal
  
  

• Evidence of qualifications, references, and compliance documents

Bids must be submitted in the specified format and by the stated deadline—late or incomplete submissions are typically rejected without review.

5. Evaluation and Scoring

Bids are assessed against the published criteria. Scoring often involves a quality-to-price ratio (e.g., 60% quality, 40% price), with points awarded for meeting or exceeding requirements.

6. Award Decision and Standstill

Once a winner is chosen, all bidders are notified. In many jurisdictions, a short standstill period follows before the contract is signed, allowing unsuccessful bidders to request feedback or challenge the decision if necessary.

7. Contract Delivery and Management

Winning is only the beginning—suppliers must deliver as promised, comply with reporting requirements, and maintain quality. For frameworks or DPS arrangements, winning suppliers may also compete in ongoing mini-competitions for specific orders.

Key Documents and Requirements

Public tenders are document-heavy, but certain elements appear in almost every procurement:

• Contract Notice – the public announcement of the opportunity
  
  

• Technical Specifications – detailed description of goods, services, or works required
  
  

• Selection Criteria – conditions you must meet to be considered (e.g., minimum turnover, relevant past projects)
  
  

• Award Criteria – how your proposal will be scored (e.g., methodology, innovation, social value, price)
  
  

• Submission Instructions – exact format, platform, and deadline requirements.

Failing to meet any of these requirements—no matter how small—can result in disqualification, even if your offer is otherwise competitive.

How to Respond Effectively

Winning tenders isn’t about luck—it’s about aligning your offer with the buyer’s published needs and priorities. To increase your chances:

1. Read Everything Thoroughly
   Even experienced suppliers can miss details that cost points. Highlight every requirement and create a compliance checklist.
   
   

2. Focus on Buyer Needs, Not Just Your Capabilities
   Tailor your proposal to the outcomes the buyer wants, using their language and terminology.
   
   

3. Be Clear, Concise, and Evidence-Driven
   Avoid jargon. Provide proof—case studies, performance data, testimonials—rather than vague claims.
   
   

4. Get the Pricing Right
   Be competitive but sustainable. Unrealistically low bids may be rejected as non-compliant or risky.
   
   

5. Submit Early
   Technical glitches or last-minute issues can derail your submission. Aim to upload at least a day before the deadline.

How Mercell Helps Suppliers Win

Finding the right tender is often the hardest step. Tenders are scattered across dozens of portals, each with different formats and search tools. Mercell solves this problem by:

• Aggregating tenders from national, regional, and EU platforms into one searchable database
  
  

• Allowing you to filter by CPV code, value, region, and buyer type
  
  

• Sending real-time alerts for relevant opportunities
  
  

• Storing and managing compliance documents so they’re ready for every bid
  
  

• Offering bid management tools to assign tasks, track progress, and meet deadlines

This means you can spend less time searching and more time crafting competitive proposals—boosting your win rate.

Conclusion

Tenders are the backbone of public procurement—formal, transparent competitions that allow governments to spend public funds wisely while giving suppliers a fair chance to win work.

Understanding how tenders work, from publication to award, is essential if you want to succeed in the public sector. It’s not just about finding opportunities, but about responding strategically, avoiding common mistakes, and consistently meeting buyer expectations.

With the right knowledge—and the right tools—you can turn tenders from an intimidating process into a reliable growth channel.