For some time now, the government of India has been putting emphasis on online tendering process or e-procurement goods, services, and works to increase transparency, efficiency, and fairness in public procurement.
Electronic tendering or e-tendering facilitates bidders from all over the country to participate in the bidding process, and the use of electronic platforms reduces the time and cost associated with traditional paper-based tendering. But the process is comparatively new and involves a lot of technicalities, thus not a lot of prospective bidders understand the importance and difference between a technical bid and a financial bid.
In the online tendering process, bidders are required to submit two types of bids – technical bids and financial bids. Both bids are crucial in the tendering process, and they play a vital role in determining the final outcome of the tender.
What is Technical Bid?
The technical bid is the first phase of the tendering process, and it is primarily concerned with evaluating the bidder’s technical capabilities and expertise. The technical bid assesses the bidder’s past experience, qualifications, technical expertise, and proposed methodology for completing the project or providing the goods or services requested. The technical bid is evaluated by a panel of experts who assess the bidder’s compliance with the specifications, adherence to quality standards, and the overall feasibility of their technical proposal.
Importance of Technical Bid
The importance of technical bids in the tendering process cannot be overstated. The technical bid ensures that only qualified and competent bidders are considered for the tender, and it helps to eliminate bidders who do not have the technical expertise or experience required to execute the project successfully. If finding issues with preparing a technical bid for e procurement, contractors can seek assistance from private web portals like BidAssist. On such portals, bidders can get services like bidder profile creation, preparing bid proposals – for technical as well as financial bids, and more.
What is Financial Bid?
The financial bid is the second phase of the tendering process, and it is concerned with evaluating the bidder’s proposed price or cost for the project or goods/services requested. The financial bid is evaluated after the technical bid, and it is only opened for bidders who have qualified in the technical bid. The financial bid assesses the bidder’s pricing and commercial terms, such as delivery times, warranties, and payment terms.
Importance of Financial Bid
The importance of the financial bid in the tendering process is equally significant. The financial bid ensures that the winning bidder provides the best value for money while ensuring that the project’s quality and technical requirements are met. The financial bid helps the buyer to compare and select the most competitive bid from among the qualified bidders, ensuring that the project is completed within budget and without compromising quality.
Difference between Technical Bidding and Financial Bidding
The key difference between technical bidding and financial bidding is that technical bidding focuses on the bidder’s technical capabilities and expertise, while financial bidding focuses on the bidder’s proposed price or cost. While both phases are important in the procurement process, technical bidding typically precedes financial bidding to ensure that the bidder’s technical capabilities meet the buyer’s requirements before considering the bidder’s pricing.
It doesn’t matter where the bid is being placed, be it for a tender in Delhi or an eproc Karnataka, bidders have to go through the technical bidding phase followed by the financial bidding phase to win a tender. And for both these, it is important to have the knowledge of both. And an easy way to get the hang of these technicalities is bid-related consultation from platforms like BidAssist.
Technical Bidding vs Financial Bidding: FAQs
Who can participate in technical bidding?
Any supplier or contractor who meets the minimum technical qualification criteria specified in the tender documents can participate in technical bidding in India. However, along with the basic qualifications, one must pass the experience bar as well for certain tenders, like mining, library works, etc.
Who can participate in financial bidding in India?
Only bidders who have qualified in the technical bidding phase and meet the minimum financial qualification criteria specified in the tender documents can participate in financial bidding in India.
How is a technical bid evaluated?
Technical bidding in India is evaluated by a panel of experts who assess the bidder’s compliance with the specifications, adherence to quality standards, and the overall feasibility of their technical proposal. To increase your chances of winning a bid, especially technical bid, it is imperative that a subject-matter expert is contacted, like BidAssist advisors and consultants.
How is financial bidding evaluated in India?
Financial bidding in India is evaluated based on its competitiveness, cost-effectiveness, and overall value for money. The bidder with the best financial bid is awarded the tender.
How does financial bidding differ from technical bidding?
Financial bidding in India focuses on the bidder’s proposed price or cost for the project or goods/services requested, while technical bidding focuses on the bidder’s technical capabilities and expertise.
What are the next steps post financial bidding in India?
After financial bidding, the bidder with the best financial bid is awarded the tender, subject to meeting other terms and conditions specified in the tender documents. The contract is then awarded to the winning bidder, and they are required to execute the project or provide the goods/services requested within the specified timeframe and quality standards.
What are the important factors to consider in technical bidding?
The important factors to consider in technical bidding in India include the bidder’s technical expertise, experience, qualifications, compliance with specifications, adherence to safety and quality standards, and proposed methodology or approach to complete the project or provide the goods or services requested.