WHAT IS A TENDER?

A tender is a formal and structured offer or bid submitted by an individual or organization in response to an invitation to tender (ITT) issued by a client or purchaser, typically in the context of procurement.

Tenders are primarily used in the public and private sectors to procure goods, services, or works. The process ensures that the procurement is done transparently, efficiently, and in a manner that promotes competition.

In Kenya, tenders are used to acquire products or services in various fields such as construction, supply of goods, consultancy services, and others. Tendering is typically seen as a way to ensure that the government or private organization receives the best value for money while complying with regulatory frameworks designed to reduce corruption and ensure fairness.

STEP-BY-STEP PROCESS OF TENDERING IN KENYA

The tendering process in Kenya is governed by the Public Procurement and Asset Disposal Act, 2015, and the associated regulations. The key steps in the tendering process are as follows:

Step 1: Preparation of Tender Documents

Before issuing a tender, the procuring entity must prepare tender documents that contain all the relevant details, including:

  • Scope of work or services.
  • Eligibility criteria.
  • Terms and conditions.
  • Submission guidelines (deadline, format, etc.).
  • Evaluation criteria (technical and financial).

Step 2: Advertisement of Tender

The procuring entity advertises the tender in national newspapers, the Public Procurement Information Portal (PPIP), and other relevant platforms, depending on the nature of the tender. For public sector tenders, this is typically done through:

  • The Kenya Government Procurement Portal (www.tenders.go.ke).
  • Newspapers such as the Daily Nation or The Standard.
  • Trade journals and websites.

The advertisement will contain all details on how to obtain the tender documents and the submission deadlines.

 

Step 3: Pre-Tender Meetings (Optional)

Some tenders may require a pre-tender meeting or site visit, where potential bidders have the opportunity to ask questions and seek clarifications regarding the tender. This ensures that everyone has a clear understanding of the requirements before submitting their bids.

Step 4: Submission of Tenders

Tenderers prepare and submit their bids, ensuring they meet the specified requirements. Tender submission can be done physically or electronically depending on the tender type. The bids typically consist of:

  • Technical Proposal: Demonstrates the capability and experience of the bidder, including past performance, team qualifications, and proposed methods of execution.
  • Financial Proposal: Indicates the bidder’s cost offer, broken down as necessary.

The bid must be submitted before the deadline. Late submissions are generally rejected.

Step 5: Opening of Tenders

Tenders are publicly opened on the specified opening date. The bids are read out aloud, and the names of the bidders along with the submitted prices are recorded. This is a public process intended to ensure transparency.

Step 6: Evaluation of Tenders

The evaluation process is carried out in two main stages:

  • Technical Evaluation: The first stage involves evaluating the technical proposals to ensure that they meet the required specifications. If a bid does not meet the required technical standards, it may be disqualified.
  • Financial Evaluation: After the technical evaluation, the financial proposals of the qualified bidders are opened, and the cost is evaluated. The financial evaluation considers factors such as price competitiveness and the value offered.

In cases where a two-envelope system is used, the technical evaluation is done separately from the financial evaluation.

Step 7: Awarding of Tender

Once the tenders are evaluated, the most responsive and compliant bidder is awarded the contract. This is done by issuing a Letter of Award or a Notification of Award to the successful bidder. The successful bidder is then invited to sign a formal contract with the procuring entity.

Step 8: Contract Signing

After the award, the contract is signed by both parties. This contract outlines the terms and conditions of the agreement, including timelines, milestones, and payment terms. The contract is legally binding.

Step 9: Post-Award Processes

Once the contract is signed, the procurement team monitors the performance of the contractor or supplier, ensuring that the work is completed as per the agreed terms. Performance guarantees may be required, and penalties may apply for delays or failure to meet the terms of the contract.

DEMYSTIFYING TENDERING IN KENYA

Tendering in Kenya can sometimes appear complicated due to the regulatory framework and various steps involved. However, understanding the process is key to successfully navigating it. Here are some of the common misconceptions about tendering in Kenya and their clarifications:

Misconception 1: Tendering is Only for Large Companies

While large companies often dominate tendering processes, small and medium-sized enterprises (SMEs) can also participate and win tenders. In fact, the Kenyan government has policies that favor local content, and many tenders are designed to encourage the participation of local businesses.

Misconception 2: It’s Impossible to Win a Tender

The notion that tenders are rigged or that winning is impossible can discourage many potential bidders. While competition is fierce, following the proper procedures and presenting a well-prepared, competitive bid increases the chances of success. Moreover, the government has made efforts to improve the transparency of the tendering process.

Misconception 3: The Tendering Process is Corrupt

Though there have been instances of corruption in tendering, there are now numerous reforms in Kenya to ensure transparency and reduce corruption. The Public Procurement Regulatory Authority (PPRA) is responsible for overseeing procurement, and they enforce strict adherence to the procurement laws.

Misconception 4: Tenders are Only for Government Projects

While the government is a major player in the tendering process, tenders are also issued by private companies, parastatals, and non-governmental organizations (NGOs). Many private companies follow similar processes for procurement, and the opportunities for tenders are diverse.

 

Misconception 5: Tendering is a Quick Process

Tendering in Kenya can take time, especially for complex projects. The entire process, from advertisement to award, can take weeks or even months, depending on the nature of the tender. Patience is necessary when participating in tenders.

Misconception 6: Tendering Requires a Lot of Money

While it’s true that some tenders, particularly in the construction and infrastructure sectors, may require significant financial capacity, smaller tenders may not have such requirements. Many governments and private organizations are keen on supporting SMEs and offer tenders that are within the financial reach of smaller companies.

Conclusion

Tendering is a structured and vital process in Kenya’s public and private procurement system. While it may seem complicated at first glance, understanding the steps and debunking the common myths can help potential bidders to participate more effectively. The key to successful tendering lies in thorough preparation, adherence to the guidelines, and clear communication with the procuring entities. By demystifying the process, businesses can confidently engage in tenders, thereby contributing to the growth of the economy and their own success