In today’s changing economic environment, public works provide the corporate sector with immense opportunities to compete for profitable work. Therefore, understanding the public procurement process is critical to compete for such projects and be eligible for work.
All levels of government, including Federal, state, and local agencies select potential vendors through competition. Public organizations advertise, collect information, and accept offers to secure the necessary goods and services. The process includes Invitations for Bid, Request for Proposals, Requests for Qualifications, Requests for Letters of Interest, and Invitations to Negotiate. The responses are then evaluated based on the needs of the organization without price being the determinative factor. However, many organizations still face certain challenges when it comes to improving the public procurement process. Here are the key steps involved in the public procurement process.
Want to know how you can improve the public procurement process flow? Request a free proposal and we will get back to you in 48 hours with information on public procurement best practices.Request Free Proposal
Steps Involved in the Public Procurement Process
Step 1: Requirement identification
Organizations must determine the objectives for the procurement and have a detailed clear scope of requirements. They should also research the market and gain insights to understand capabilities and restraints. While doing so, organizations should also ensure probity arrangements and meet government transparency requirements.
Step 2: Scope of the procurement
Rights products are vital for organizations. Some organizations have standards to help determine specifications. Selecting the goods or services to be purchased are subject to coordinated procurement arrangements that must be used. Then, estimate the value of procurement and comply with the rules set by the government entity.
Step 3: Determine the procurement method
In a public procurement process, it depends on the organization whether they want open tenders or limited tenders. Open tenders generally involve one stage (Request for Tender) and need to be advertised on the official website. Limited tenders are directly asked from or more suppliers. In this, the organization qualifies suppliers to determine the best products.
Step 4: Explore sourcing options
Notify the market to obtain products. For open tenders, ensure that the minimum requirements are met. Include essential information in the request documentation to enable suppliers to develop and lodge competitive and compliant submissions. Also, use appropriate limitation of liability and standard contract clauses to improve the public procurement process.
Inability to improve the public procurement process can restrict companies to procure the best products for their businesses. Stay a step ahead by requesting a free demo of our procurement platform to gain exclusive insights to improve the public procurement process cycle.
Step 5: Evaluate Submissions
Deal with unintentional errors in tenders in accordance with the set guidelines. Undertake a financial viability assessment of preferred suppliers to improve the public procurement process. Also, provide sufficient documentation and information to the delegate to enable them to make an informed decision.
Step 6: Manage Contracts
Developing a contract management plan is crucial for organizations to assist the entity to understand and implement obligations under the contract. If possible, assess contract extension options on a value for the money basis in accordance with the terms of the contract.