Business

Tender Process: Your Essential Guide

If you’re a business owner, entrepreneur, or aspiring entrepreneur, there’s no way around it: you need to win government contracts. Well, to put you in the picture, winning a tender is the most lucrative source of income for entrepreneurs. We bet you’re on the edge of your seat, ready to risk it all for the tendering game. But hey, if you want to be successful, then there are a few things to think about before jumping in.

We’re speaking of a thorough understanding of all aspects of a tender procedure. And this article is here to make sure you get it right. But first, let’s talk about the law and how it governs the whole process.

Tender regulations in Algeria:

the Algerian tender process follows a regulation that has evolved to adapt to the economic changes that the country has experienced.

Indeed, the Presidential Decree No. 15/247 of September 16, 2015 Official Gazette No. 50 of September 20, 2015 entered into force on December 20, 2015, regulates this aspect of economic life.

This process is based on three fundamental principles:

  • Freedom of access to public procurement.
  • Transparency of the procedure.
  • Equal treatment of candidates.

How to fully comprehend the content of a tender notice? 

TENDER is a procedure that allows a buyer (the client), a company or an organization, which formulates a need for works, supplies, services or studies, to invite candidates to submit bids. The client would then choose among these candidates, the company best able to provide a service with the best quality/price ratio (the most economically advantageous offer).

The tender notice is issued when the budget for the project exceeds the following thresholds:

  • 12 million dinars for work and supplies.
  • 06 million dinars for services and studies.

When looking at a tender notice, this is the information you need to read quite carefully:

The announcer: This is the name of the company or organization that issued the tender notice.

The project title: The purpose of the project and what it is about, in other words, the nature of the announcer’s request.

The project’s activity sector: Or the field under which the project is listed, it can be the field of services, logistics or food processing for example.

The price of the specifications: In case the specifications are not free, this part of the document includes the price and the method of payment (by bank transfer or cash).

The address where the tender specifications can be obtained: The place where the potential suppliers must go to obtain the tender specifications for the call for proposal in question.

The address for submitting the tender: Where to submit the tender once the tenderer’s offer file is ready.

Submission deadline: This is the deadline after which submissions will not be accepted.

The body of the RFP contains a great deal of information of paramount importance.  You should therefore not rush, but take the time necessary to thoroughly review its contents This will allow you to determine whether the contract is suitable for you and whether you are able to fulfill it. If you judge that it favors your activity and that you can fulfill all the requirements, then you can move on to the next step. Which is to get the specifications.

Types of Tender Notices 

the scope of the activity or the competence sought by the announcer determine the types of the tender. This in turn is determined by the purpose of the contract and the obligations to be assumed by the successful tenderer. Taking into account the complexity of the project or the link between its realization and a high level of professional competence and experience, scientific and technological techniques, or even specific technical capacities. According to this criterion and on this basis, the tender can be national or international or both.

1- Open tender: open to all companies in the field. Due to its open nature, this form ensures the greatest participation, and its scope and ease of participation allow it to wait for the public order.

2- Restricted tender: reserved for certain types of companies only. The contracting authority resorts to it when it is a question of studies and complex projects, distinct and of particular importance.

3-Tendering with minimum capacity requirements: this type requires conditions related to the company’s capacity. A procedure which allows only candidates who meet certain qualification requirements  to submit a bid.

4-Pre Qualification bidding: for certain types of repeat contracts, select firms to be bid on for 03 years.

Consultation:

Below the following thresholds, the client or project owner can launch a simple consultation.

  • Under 12 million dinars for works and supplies.
  • Under 06 million dinars for services and studies.

The consultation can take two forms:

  • Mutual agreement after consultations: consultation of at least 03 suppliers.
  • The simple mutual agreement: consultation of a single supplier for certain cases provided for by the law (imperative urgency, situation of monopoly).

Conclusion

The tender notice in Algeria is subject to the procedure until its materialization of the market, hence its entry into force. This is in accordance with the regulations of public procurement. So, the tenderer must follow a set of formal procedures.

Accordingly, researching tenders can give you a good insight into the business environment of a country. Knowing how tenders work, can get you a sense of the business practices of the country. This can help an expatriate who is considering moving to the country to plan their move and integration efforts.

For more information on tenders in Algeria, visit DZtenders.com.

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