Open tendering explained

What open tendering is

Article 28(1) of the UNCITRAL Model Law says a procuring entity shall conduct procurement by open tendering ¹. Other methods are allowed only under Articles 29 to 31 ¹. National laws use the same rule. Section 24 of Nigeria's Public Procurement Act 2007 says goods and works are procured by open competitive bidding, which gives every interested bidder equal, simultaneous information and opportunity ³. Section 35(1) of Ghana's Act 663 requires competitive tendering except as the Act provides ⁴.

The World Bank requires national open competitive procurement to be advertised at the national level and to be open to eligible firms from any country, under paragraph 5.4 of its Regulations ².

Step 1: the notice

Under Article 33 of the Model Law, the entity publishes an invitation to tender, and publishes it internationally as well, except for domestic or low-value procurement ¹. Article 37 lists what the invitation must contain, including the entity's name and address and the manner, place and deadline for presenting tenders ¹.

For World Bank financed projects, the Bank publishes a General Procurement Notice on its external website for expected open international procurement ². The borrower advertises each Specific Procurement Notice, and the Bank publishes it on its website ².

Step 2: time to bid and submission

Article 14(2) of the Model Law says the deadline must be a specific date and time and must allow sufficient time to prepare and present tenders ¹. Rules set minimum periods.

• World Bank: 30 business days for open international competitive procurement, paragraph 5.36 ².
• Nigeria: not less than six weeks for national and international competitive bidding, section 25(2) ³.
• Ghana, original 2003 text: at least six weeks for international tendering, sections 45 and 53 ⁴.

Step 3: public opening

Under Article 42 of the Model Law, tenders are opened at the deadline, and every supplier that bid may attend ¹. The name and address of each bidder and its tender price are announced and recorded ¹.

World Bank openings are normally public under paragraph 5.42 ². In a single-envelope process, the borrower reads aloud and records each bidder's name and total bid amount, and sends a copy of the record to all bidders ². In a two-envelope process, the second envelope may not be opened earlier than 10 business days after bidders learn the first-envelope results ².

Step 4: evaluation and award

Article 43 of the Model Law says a criterion may be used only if it was set out in the solicitation documents ¹. Where price is the only criterion, the lowest priced tender wins ¹. Where there are other criteria, the most advantageous tender wins ¹. Article 44 bans negotiations with a supplier about its tender ¹.

Under paragraph 5.68 of the World Bank Regulations, the borrower awards the contract to the bidder offering the Most Advantageous Bid ². Nigeria's Act sends the contract to the lowest evaluated responsive bid, under section 16(17) ³.

Step 5: standstill, notice and challenge

Article 22 of the Model Law requires the entity to tell every bidder which tender it will accept at the end of a standstill period, which runs from the date the notice is sent ¹. Article 23 requires prompt public notice of the award, naming the supplier and the contract price ¹. The solicitation documents must tell bidders about the right to challenge under Article 64 ¹. The World Bank applies a standstill period after its Notification of Intention to Award, under paragraph 3.29 ².