Bidding

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The tender is a phase of the public sector contracting procedure to select private companies. The tender is the advertising phase, where the public administration is in charge of advertising the contract to be offered.

A call is published so that companies can present their offer, depending on the characteristics of the advertised contract. Companies can only submit one offer.

The companies that are interested and want to propose their own offer to be evaluated by the public administration are the bidders.

In a private contract, only the concurrence of two parties is necessary and their willingness to reach an agreement, with their own negotiation, as long as it is not contrary to the law. However, the same is not the case in public administration.

The public administration has defined the procedure to follow in order to contract a private company and that is where the bidding phase plays a main role.

Public procurement procedure

In the following graph we can see the steps to follow in the public procurement procedure:

Why is the tender necessary?

Advertising is necessary since we are in a public sector contracting procedure. That is to say, the company that ends up doing the work will be rewarded with the money from the taxes contributed by all citizens and the result of the completion of the contract will be for the use and enjoyment of the general population.

Therefore, a covered publicity and transparency procedure must be guaranteed, where it can be seen that the choice of the private company was the best possible option.

In all procedures, the tender is essential, so that companies can make their offers according to the needs of the public administration.

Depending on the type of contract that the administration wants to carry out, the tender will allow the presentation of more or less restricted offers by the companies.

What appears in the tender?

What appears in the tender are the procurement documents. These are all the necessary elements to know in depth the agreement that the public administration wants to make. The duration, the object, the price, the conditions of the contract, etc. are published.

Depending on the specifications, the bidding companies will make their offer.

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