Answer :
Competitive tendering is a procurement process where an entity, usually a public or governmental organization, solicits bids from various suppliers to fulfill a particular contract. The goal is to obtain the best value for money by selecting the most suitable supplier based on criteria such as price, quality, and capability. This process is essential in ensuring transparency and fairness in awarding contracts, particularly for large projects or purchases.
Open tendering, also known as open bidding, is a common form of competitive tendering where the procurement opportunity is made available to all interested suppliers through wide advertisements. This process is considered fair and equitable because it allows all qualified bidders an equal chance of winning the contract.
Here are three merits of open tendering:
Transparency:
Open tendering ensures a high level of transparency because the bidding process is open to the public, allowing all potential suppliers to participate. This openness helps prevent corruption and favoritism, as all bids are evaluated based on the same criteria.Competition:
By opening the opportunity to a wide range of bidders, open tendering encourages healthy competition among suppliers. This competition can lead to lower prices and better quality solutions as companies strive to offer the best possible bid to win the contract.Equal Opportunity:
Open tendering provides a fair opportunity for all qualified suppliers, regardless of size or previous business with the issuing organization. This can help new and smaller companies enter the market and compete with established firms, promoting innovation and diversity in available products and services.
