What Is A Preferred Bidder Agreement

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The central stage of P3 acquisition is usually the management of the tendering process. This can be followed by a pre-qualification for the selection of participating bidders (but not always, as indicated in the decision on the purchase strategy). The bidding process ends with the selection of a preferred bidder with whom the implementation works to execute the contract and obtain the financial conclusion. At a minimum, this interaction involves providing information to bidders and responding to requests for clarification regarding the PSR. In some cases, therefore, the government may consider updating the PSR documents. The typical channels of this type of communication are as follows: a big difference between procurement procedures in different countries is the government`s entry into negotiations with bidders. Negotiations at each stage can be a challenge and may reduce the transparency of the tendering process. This is why some governments do not allow the contract to be negotiated at any stage of the process (although there may be room for negotiation on bidders` proposals). One option, if the bids are not consistent and do not appear to be of high quality, is simply to repackage the project and launch it. The alternative is to expand the procurement process to identify a preferred bidder – usually by talking to the most high-end bidders about the points on which the bids do not match, often requiring a revised bid. In practice, countries` approaches are different. For example, Infrastructure Australia Practitioner`s Guide (AU 2015, 16) recommends the use of pre-qualification to select a number of bidders – at least three, sometimes more. On the other hand, the Singapore PPP Handbook (SG 2012, 60) excludes any provision prior to the number of qualified bidders, as this would limit competition.

Examples of PPP procurement procedures provide other examples of P3 procurement processes, including whether and what type of pre-qualification process is included. If negotiations are necessary and accepted within the current framework, the negotiation process must be carefully managed to ensure that legitimate issues are resolved without the preferred bidder getting a better position at the government`s expense.


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